Business and Business Environment: JP Morgan Report Analysis

This report analyzes the business environment of JP Morgan, a finance and investment organization. It begins by defining the business environment and then explores different types of organizations, including public, private, sole trader, partnership, and voluntary organizations, detailing their purposes, advantages, and disadvantages. The report then examines the size and scope of these organizations. The core of the report focuses on JP Morgan, analyzing its organizational structure, linking it to its objectives, and examining the relationships between different departments. It also investigates the positive and negative impacts of the macro-environment on JP Morgan's operations, including an assessment of its strengths and weaknesses in relation to external factors. The report uses a functional structure to analyze the specific roles and responsibilities within JP Morgan. The report also discusses the primary, secondary, and tertiary sectors and how JP Morgan fits into the tertiary sector by providing banking and investment services. Overall, the report provides a comprehensive overview of JP Morgan's business environment and its internal and external dynamics.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Various type of organizations and purpose............................................................................1
P2 Size and Scope of organization..............................................................................................4
TASK 2 ...........................................................................................................................................7
P3 Relationship between different organization and they link to the structure and objective of
JP Morgan...................................................................................................................................7
TASK 3..........................................................................................................................................10
P4 Positive and negative impact on macro environment upon the business operations...........10
P6 Strength and weakness interrelate with the external factors................................................13

INTRODUCTION
Business environment means that all the external and internal factor which effect the
business operations and functions like management, business regulations, demand and supply,
employee and customer etc. Business environment is the sum of all the individual and institution
which is control the entire business process but their business activities depend upon the affect in
the overall business performance as well as sustainability (Wu,and Lu, 2015). This assignment
will discuss about the JP Morgan Finance and Investment organization to maintain the
relationship between the different function of department and organizational.
This report will discuss about the different type of organization and its purpose. This
assignment will analyse the two different type organization structure and link to their department
and achieving the goals and objectives. This report will analysis the entire detail of macro
environment in JP Morgan Investment and Finance. This report will determine the strength and
weakness of the organization and it also impacts on the business for decision making.
TASK 1
P1 Various type of organizations and purpose
There are different type of organization and their specific purpose such as public, private
and voluntary organization discuss as following:
Public Organization- This sector is operated and controlled by government. Public organization
is based on the economy to provide the different type of services such as governmental, health
care, infrastructure, transportation and military services etc. For example- NASA is a public
organization which are undertaken in the business process on the behalf of government. This is
the most important part of public sector to manage the entire management system for long term.
This sector will focus on to increase their understanding towards the research and earth. They
will provide the best quality of services to their customer. This organization is funded by
government and they mainly focus on providing the services to the people according to their
interest. NASA is public organization to provide the more benefits regarding the research and
they also giving the important information regarding the science and technology etc.
Advantage-This organization is influence to their economy to increase their profitability
and productivity.
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Disadvantage- It is very difficult for company to manage and control the entire business.
There are lot of time spends on the meetings as well as interacting with the employee.
Private organization- The private organization is main part of economy that is run by the group
of individuals for increasing the profit in marketplace. JP Morgan Finance and Investment
organization is private banking company to provide the best quality of services such as
investment banking, securities services, wealth and health management services etc. This
organization is owned by the individual to manage the entire business operations and functions.
The main objective of this organization to increase their profitability and productivity in
marketplace. The private organization is diverse sector to establish the biggest companies with
the help of partnership, group and individual etc. JP Morgan organization provide the
opportunities to the people such as job options, career choice etc. They are increasing more
money and also increase their profit in marketplace.
Advantage- The private organization provide the Limited Liability which is the biggest
benefits for this organization.
Disadvantage- The main disadvantage of this organization is one or more people are
director and stakeholder.
Sole trader-This organization is maintained by one owner to manage the entire business in
proper manner. There are many types of sole organization establish in UK. This organization is a
part of private sector. They mainly focus on to increase their market share and brand image.
They always increase their productivity and profitability in marketplace. JP Morgan is a private
company to increase their business all over the world.
Advantages- This organization will maintain and control the entire business process in
effective way (Wu,and Lu, 2015). All the information are kept in private and limited companies
are provided the information publicly. This organization is taking decision fast to manage their
operations and functions.
Disadvantage- It is very difficult for this private organization to raise the fund for the
business purpose.
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Partnership- Partnership organization is a combination of one or more people to establish the
business all over the world. Partnership has two or more people invest their money resources and
skill towards the business process.
Advantage- there are many opportunities for splitting the income and saving the money
because of tax resultant saving.
It is very easy to change their legal structure according to the circumstances.
Disadvantage-Liability of partners is the major disadvantage because of the limited
business.
Voluntary organization- Voluntary organization run by the local authority to manage the
business operations in proper manner. This organization will concern about the human welfare to
provide the best quality of services. Voluntary organization is group to people to usually handle
the association on the common interest. This organization is also known as non-governmental
organization because they are increasing their services. This organization is used for the people
to provide the services regarding the society and community etc. In United Kingdom, there are
majority in other counties to increase their business for the human welfare. This organization
will make profit for growth and development. They provide the facilities and services to the
social communities and culture.
Advantage- The main advantage of voluntary organization to provide the best quality of
services to poor people, society community and society etc.
Disadvantage- Fund raising is the major challenging part for the voluntary organization
so that the rate of unemployment is very high.
P2 Size and Scope of organization
Basis Public Private Voluntary Sole trader Partnership
Size The size of
public
organization
is depended
upon the
employee and
The size of
private
organization
Can be
medium and
large
Voluntary
organization
can be small
and large
because they
can develop
Sole trade
organization
is also
depended
upon their
employee.
Partnership
organization size is
depended upon their
two or more
partnership to
manage their
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their
structure.
according to
their business.
their business
for social
community
and human
welfare.
For
Example-
How many
employee
working
together
business operations
and functions.
Scope Public
organization
increase their
business for
the purpose
of society and
not only
provide the
best quality
of facilitates
but also
increase their
productivity
and
profitability
The scope of
private
organization
will enhance
their business
all over the
world. They
have power to
maintain their
quality so that
it will increase
their sales and
productivity.
They mainly
focus on their
profit to build
a trust on their
customers.
Voluntary
organization is
a group of
people to plan
an effective
strategy for
growth and
development.
Voluntary
organization is
based on the
charity to
provide the
facilitates and
services to
poor peoples.
All the
employee of
this
organization is
working
together to
provide the
best services.
The sole
trader is
required to
maintain
their business
operations
because they
require only
small
amount. The
size of this
organization
is small.
This organization is
contract with one or
more people to
establish the
business all over the
world.
The main scope of
this organization to
connect with the
many stakeholders
to increase their
sales and
productivity in
marketplace.
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Legal
structure
The public
organization
is
accountable
with the
government.
The funding
is providing
by the
government
to manage
their services
in
marketplace.
Private
organization is
based on the
individual that
is followed the
separated
legal rules
which is
beneficial for
organization.
Every
stakeholder to
share the
employee
members.
This
organization is
taking fund to
the local
authority and
charity.
Voluntary
organization is
helpful for
providing the
facilities and
services.
Sole Trader
organization
is required
only small
amount for
business
development.
They are
taking
amount to
the bank For
Example-
Banking
loans.
This organization
will choose their
partner for carefully.
They are invested
the money
individually.
Objectives The main
objective of
this
organization
to increase
their
profitability
and helpful
for the
customer.
They provide
the efficient
quality of
services.
The main
objective of
private sector
to increase
their sales and
productivity.
They also
establish their
business all
over the
world.
Voluntary
organization is
mainly
concern abut
the
communities
to provide the
benefits for
improve their
conditions.
Sole trade
organization
is a type of
private
organization
so that they
also concern
about their
business
establishment
in the world.
The main aim of
partnership
organization to
coordinate with the
other partner to
maintain their
relationship. They
also increase their
business in other
countries.
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Primary Sector- The primary sector will manage the extraction of raw material from the
earth which is extract the corn, food item and coal etc. Primary sector is mainly concerned about
the raw material which is applicable in the business to develop the best quality of product in
marketplace.
Secondary Sector- The secondary sector is used for converting the raw material into the
goods. This sector is development for creating an effective product in marketplace. It is a leading
industry to provide the best quality of good and services in marketplace. Sole trader is part of
secondary organization because they use different raw material to convert into the best quality of
good and services.
Tertiary Sector- This sector is helping to supply the best quality of good and services to
the client and business. This sector will provide to manage the business operations such as sales,
restaurants and retail etc. JP Morgan is part of tertiary sector because they provide the best
quality of services regarding the banking and investment etc. Voluntary organization will belong
to the tertiary sector because they are providing the good services in marketplace.
TASK 2
P3 Relationship between different organization and they link to the structure and objective of JP
Morgan
An organizational structure is a system to perform different activities in order to achieve
their objective and targets. Organisational structure is important as it assists in identifying the
specific role and responsibilities of company. JP Morgan is a leading financial and investment
company to follow the specific procedure for development. There are variety of structure
divided according to their functions and structures. The large and small organization has needed
to increase their sales and productivity to match the proper goals and targets.
Functional Structure- Functional structure is the important for organization to specialize
and set up the role and responsibilities towards the tasks. Functional structure is an essential for
JP Morgan company to work in a proper manner. This organization is divided the each
department according to their specific tasks. This is also helpful for coordinate with the other
department to achieve their goals and objectives. Manager will communicate with the each and
every employee to provide the information. This structure is design for increasing their
production and sales in marketplace. JP Morgan is work with the other small company while
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every department support to their talented employee. In this way, it will increase their
productivity and sales in market. Each and Every people has to be divided their specific role
according to their capability. This organization is followed this functional structure to improve
the performance of employee and organizational.
Divisional Structure- Divisional structure is the main part of organization to divide the role of
employee according to their capabilities and skills. This structure is mainly followed the large
organization to operate the entire geographical areas (Anderssonand Holm 2015). JP Morgan is
also used this structure because they can divide the each and every department and employee
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Illustration 1: Structure of JP Morgan
(source: Divisional structure, 2017)

according to their capability and skill. This organizational structure will helpful for operate the
each division independently. It is very expensive due to their large size of organization and its
scope. The small organization use this structure in the small scale because there are small offices
and having different city. For Example- It will cover the entire geographical areas with the help
of sales team because they will coordinate with the client and customers.
Relationship between different organizational departments and link with the objectives
and targets-
In JP Morgan Financial and investment, this organization is performing different
operations and functions for growth and development. They will divide the role and
responsibilities to each and every department (Apăvăloaie2014). It is very helpful for managing
the entire business process. All the department of this organization is connected to each other.
They provide the best services and facilitates to their customers.
Human resource management- Human resource management is a part of JP Morgan
organization to perform different task such as training and development, selection and
recruitment, managing policy, appraisal etc. these are different operations performed by HRM.
HR officer is also manage the entire business activities in proper manner. Human resource
manager use different new technology to improve their performance of employee and
organization. It is very helpful for identifying the talented people who have capabilities to
manage the entire business in proper manner (Calabrese and Sarno2018). In JP Morgan, they
have efficient manager to provide the best quality of training so that they improve their
performance in effective ways. In this way, they can be achieve their goals and objectives.
Human resource management is an essential for organization to manage the entire business
process. For growth and development, it is required to change the business policy, terms and
conditions.
Information technology- JP Morgan organization use new technology to increase the
speed of business and their performance. Most of the organization use new technology for
improvement which is beneficial for company to increase their sales and productivity (Demiland
Zot2015). The manager of this company to communicate with their employee and identify their
opinion towards the business. They provide the opportunities to give their own idea and
implements in the business development process. In this way, they innovate a new idea to
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develop their business. Nowadays, All the employee use new technology for growth and
development. This organization use idea to provide the best quality of services such as online
banking facilitates, mobile application etc. this is very beneficial for customer to easily check the
status of account and amount of balance.
Marketing- Marketing is the best process to promote their product in marketplace which
is required to use this promoting platform to increase their sales. JP Morgan organization use
marketing for promotions HRM is related to the Marketing because they are using tool to give
advertisement regarding the job vacancy (Evans and Barlow2017). Marketing is an essential for
organization to provide the details of product in front of customer. Marketing is linked with IT
teams because they use new technology for promotions. Marketing the best medium to helpful
for growth and development.
Finance- Finance is an essential department to manage the overall budget of organization
because they will identify the actual amount invest for particular product because HR department
invest money for training and development and Marketing team invest money for promotions. It
is important to manage the over all budget of organization in proper manner. Finance department
has important duties to manage the planning, controlling the long and short term strategy for the
investment etc. (Fossand Saebi2017). It will perform different functions for managing their
business process effectively and efficiently. Finance is connected with the human resources and
Information technology, marketing because it is very helpful for maintain the over all
information of all the departments in proper ways.
TASK 3
P4 Positive and negative impact on macro environment upon the business operations
PESTLE Analysis is done to determine impact of macro factors on business. This helps
in managing stability in business management of an organisation. It is strategic tool which
includes impact of political, economic, legal, environmental, technological and social factors.
This firm is dealing with providing the financial services.
Political Factors - JP Morgan deals in financial services directly to customer. This entity is
follows all rules which are made by government. Political issues which are affecting business
operation are taxes, employment policies, banking regulation of the businesses (Frösénand
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Tikkanen2016). If all the regulation are successfully implemented in the JP Morgan which can
help in getting success of the business. Political factors plays an important role in determining
profitability in certain country. If the employment policies are not followed by organisation then
it effects on working of entity. This factor includes, the trade regulations and tariffs which are
related to the financial activities, level of corruption, legal framework, intellectual property
protection, wage legislation which has to be followed by the JP Morgan.
Economic Factor- in supporting of the economic growth of JP Morgan which includes the
financial crisis, population growth, urbanisation and unemployment rate and these factors helps
in determining profitability position of business. This factor facilitates in making economic
policies, interest rate and pricing which is offered by financial services. In the macro factors
which are included under this is inflation rate, saving rate, foreign exchange rate, efficiency of
the financial market, infrastructure quality of the banks, education level of the economy, business
cycle stage and many more (Georgescuand Popescul. 2015). If inflation rate increases in that
case people, working under JP Morgan has to make changes in plans and strategies according to
situation. Sales of business also affecting which ultimately on the profitability position of
business. it will impact the negative on the business. Workers has to give guidance and tell them
about the new plan which are made in the inflation.
Social Factor - For growth of entity, management needs to be attentive towards socio cultural
factors of customers. There are various competitors of the company like, Bank of the America,
Citi Group incorporation and many more which entity has to move ahead. For dealing with the
customers this entity has to target potential future customers. Attitudes of the people play very
important role in this factor. Some factors which company has to include for the growth of the
business which are demographics and population skills level, hierarchy structure of the entity and
power structure, culture, leisure interest and many more (Kolk2016). If support of the entity is
there which will help in making the growth of the entity. If the JP Morgan of is not meeting the
needs according to the requirement of the demographic then it will impact negative on the
business.
Technological Factor -
this factor deal with the usage of the advanced technology which will help in making the
business to run smoothly. JP Morgan is doing its business and also considering the promotion
activities so that people will aware the services which are provided by the company. for
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