Trends in International Business: JP Morgan Chase Case Study

This presentation discusses the scope of international business, impact of technology and innovation, company background, external factors affecting international business in the USA, Germany, and Australia, and the impact on leadership. It also analyzes the external environment for operations of JP Morgan in these countries and the strategies taken by the company.

Trends in
International
Business
JP MORGAN CHASE CASE STUDY

Introduction
The presentation will discuss;
The scope of topic
Impact of technology and Innovation
Company background
Impact of external environment
External factors affecting international business in the USA, Germany and Australia
Impact on Leadership

Executive Summary
It can be said that the viability of companies operating in the financial sectors depends on
trends that exist in the locations that the company operates in. The external environment fro
operations of the companies determines the nature of operations of the companies who are
operating in the industry. JP Morgan operates in the financial sector while offering an array of
banking and financial services. The aim of the presentation is to analyse the external
environment for operations of JP Morgan in countries such as Australia, USA and Germany. The
technological, demographic, political and geopolitical environment of the said countries have
been discussed along with the implications of globalization of the operations of the company
and the financial sectors. Furthermore, the factors affecting the viability of the financial sectors
has been provided along with the strategies taken by JP Morgan to highlight the identified
issues.

Scope
While multinational organisations are operating in the market, they have to be mindful of
external environment.
The external environment constitutes of factors that determine the viability of the organisations
while they are operating globally (Suddaby, Bruton & Si, 2015).
Thus, companies need to carry out intensive marketing research (Fatma, Rahman & Khan, 2015).
With the help of effective analysis of the external business environment, the companies can take
strategies through which the companies can sustain their position in the market while they
operate in the market.

Impact of technology and
Innovation
Innovation definition:
In terms of business it can be said that innovation refers to the transition of an unique ideas in a product or
service that creates value for the consumers who are willing to purchase the same (Edison, Ali & Torkar,
2013).
Impact:
It can be said that innovation is a driver when it comes to sustainability in international business.
The company that is able to incorporate innovative technology in their work ethics will be able to gain
effectiveness in operations.
The latter is evident in countries that are deemed to be developed in nature.
People in developed nations such as the USA, Germany and Australia are technologically adepts thus,
innovation must be incorporated into operation in order to capitalize on customers belonging to such
countries.

JP Morgan Chase
The company was founded in 2000 by Aaron
Burr and John Pierpont Morgan
(Jpmorganchase.com).
The company has its headquarters in New
York.
The company offers banking and financial
solution while it is operating in the market.
As of 2018, the $40.764 billion

Impact of External Environment
Regardless of the location a company is operating in, they have to comply with the external
environment.
In various countries there are different external environments.
Factors such as technology, demographic structure, political framework, geopolitics and effects
of globalisation are the factors that constitute the political environment.
The external environment helps in shaping the nature of operations of companies and the
implications that they are subject to while operating in the said markets.
The following sections will discuss the implications of the external environment while JP Morgan
operates in countries such as USA, Germany and Australia.

Technological environment
USA;
The country accounts for one-third of the R&D that is carried out all
over the world. Amazon is on the top of R&D list.
Increase in the propensity of innovation.
Experiencing severe competition from Various nations.
Germany
Considerable amount of investment in R&D.
Independent and government run laboratories.
Technological competency boosted by Ministry of Science and
Technology.
Australia;
Innovation and technological competency is appreciated in the country.
High investment on R&D.
Country has incorporated considerable amount of innovations.

Demographics
Australia
Population to be estimated around 25,493,800
Country is multicultural with various languages spoken,
English is the primarily spoken language.
Germany
Population of the country is estimated to be around 83 million.
German is the language spoken primarily
The death rate is higher compared to the death rate.
USA
Population estimated to be around 329,524,838.
English is the primarily spoken language
The population is on the verge of rising, obesity is prevalent.

Political environment
USA
Progressive taxation system
High rate of sales
Evidence of labor laws and equal employment
Australia
Lack of political interventions
Appreciation to activities such as sustainability
Transparency
Germany
Democratic Republic state
Political system established and is known as Grundgesetz
(Bleibtreu et al., 2018).
Fundamental structure incorporates value system.

Geopolitics
USA : Favourable international political relations with
various nations. JP Morgan being a country of US origin
helps have favaourable nature of operations in the USA.
The population of the country is aging and has been
identified as a point of main concern. CSR activities are
carried out and determines the effectiveness of operation
of JP Morgan in the US
Germany: The country is independent and does not rely on
international relations. Sustainable reputation with
community service is a key to achievement of success of
the company in country.
Australia: Favourable international relations with a stable
political reputation. Environmental sustainability is a key to
success in gaining compliance with the environmental
legislative bodies. JP Morgan have been able to carry out
the same through its carbon reduction plan.

Globalisation
Advent of Globalisation has had varied effects on Australia, Germany and the USA.
The nations are incorporating innovation in their activities.
Even on the advent of globalization low interest rates are hurting the financial performance of
each of three nations. In USA, Germany and Australia, the reserve banks of the counties
maintain a low interest rate.
Rise of multinational companies in all the countries. The companies that are seen to be adopting
green tactics are gaining favourable nature of outcomes in terms of environmental legislation,
thus, bolstering the scope of companies to perform effectively in the countries (Chen,
Karabarbounis & Neiman, 2017).
Favourable nature of relations needed to sustain international business motives.

Trends affecting the financial
service sector
Innovation and technology is identified as the main driver for
propelling the activities of the company. According to Barajas
et al., (2013), following are the trends that impact financial
services in countries;
•Digitalisation: It is imperative for financial institutions
regardless of the country to cater to the needs associated with
the time. It helps in speeding the efficacy of the service and
ensures the smooth nature of operations of the sector.
•Artificial intelligence: The inclusion of artificial intelligence in
every financial activity of the sectors serves the same purpose
as digitalization and helps in assisting the customers opting for
the service.
Cloud banking: The incorporation of cloud banking with
general nature of banking services helps in boosting the
convenience of the users of the financial services.
Furthermore, this can help in mitigating the shortcomings of
countries associated with financial stature of the country.

Trends affecting the financial
service sector
UPI: UPI or Unified Payment Interface must be included in the operations of every company who
offer financial services irrespective of the countries that they operate in. The latter is a
revolutionary transaction systems that has been started in various countries and has resulted in
the formulations of a unique system that helps in development of uniformity in payments and
transactions.
Emphasis on Mobile banking: The main aim of the latter is to carry out efficiency and mobility
through the banking and similar financial services to be offered. Everyone might not carry
laptops all the time and it is a result of the same to ensure that the services that are mobile in
nature.

Strategies to be Taken by JP
Morgan
The strategy to be taken by the company is sustainability oriented and help the company in gaining favourable
association with the environmental legislations that exist in the aforementioned countries.
Reduction of Carbon footprints from operations is been highlighted to be on the top of the priority of the
company. JP Morgan has taken a leadership role in terms of removal of carbon footprints from operations
(Strand, 2014). The challenges and opportunities regarding the removal of carbon footprints as been
highlighted by the company.
The company has decided to carry out change that is characterized by the development of end-to end removal
of carbon from activities associated with the removal of carbon from all the activities of the company. The
company has been able to get high performance emission quality certificates across countries and technologies
that have been incorporated. The main scope and aim of the company is to Focus of renewable energy;
Reduce number of vehicles in operations.
Reducing energy consumption through LED usage.
Advising clients in all countries to follow sustainable approaches (Jpmorganchase.com, 2019).

Impact on Leadership
The strategies that have been taken by the company while they operate in the global financial
industry is characterized by a sustainable notion. The aim of the company is to mitigate the
differences by instating sustainable leadership while they are operating in collaboration with
different bodies in each of the said countries.
The company believes that communication in terms of the sustainable motives of the company
is key to the development of a sustainable leadership model through which the company will be
able to engage people in the intended activities. This will not only help in terms of achievement
of eth said sustainable goals of the company, but will also help in engaging various organization
in the countries towards activities that are contribute to the sustainability of the environment.
Hence, the society can be in collaboration and same terms while carrying out activities as usual
in the mentioned countries.

REFERENCES
About Us | JPMorgan Chase & Co. (2019). Retrieved 9 September 2019, from
https://www.jpmorganchase.com/corporate/About-JPMC/about-us.htm
Barajas, M. A., Beck, T., Dabla-Norris, M. E., & Yousefi, M. R. (2013). Too cold, too hot, or just right? Assessing financial sector development
across the globe (No. 13-81). International Monetary Fund.
Chen, P., Karabarbounis, L., & Neiman, B. (2017). The global rise of corporate saving. Journal of Monetary Economics, 89, 1-19.
Edison, H., Bin Ali, N., & Torkar, R. (2013). Towards innovation measurement in the software industry. Journal of Systems and Software, 86(5),
1390-1407.
Fatma, M., Rahman, Z., & Khan, I. (2015). Building company reputation and brand equity through CSR: the mediating role of trust. International
Journal of Bank Marketing, 33(6), 840-856.
Jpmorganchase.com. (2019). Driving Sustainability through Business and in Our Operations | JPMorgan Chase & Co. Retrieved 9 September
2019, from https://www.jpmorganchase.com/corporate/Corporate-Responsibility/environment.htm
Schmidt-Bleibtreu, B., Klein, F., Hofmann, H., Hopfauf, A., & Brockmeyer, H. B. (2018). GG Kommentar zum Grundgesetz (Vol. 13). Carl Heymanns
Verlag.
Strand, R. (2014). Strategic leadership of corporate sustainability. Journal of Business Ethics, 123(4), 687-706.
Suddaby, R., Bruton, G. D., & Si, S. X. (2015). Entrepreneurship through a qualitative lens: Insights on the construction and/or discovery of
entrepreneurial opportunity. Journal of Business venturing, 30(1), 1-10.