Business Environment Analysis Report: JP Morgan Finance & Investment

This report provides a comprehensive analysis of the business environment, focusing on JP Morgan Finance and Investment. It begins by examining different types of organizations, their advantages and disadvantages, and then delves into the size, scope, legal structure, and objectives of various business entities, including sole traders, partnerships, private enterprises, public enterprises, and voluntary enterprises. The report then explores the relationship between different organizational functions, such as marketing, production, HR, and finance, and how these functions link with organizational objectives and structure. Furthermore, it investigates the positive and negative impacts of the macro environment on business operations using PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors. Finally, it conducts an internal and external environment analysis, identifying strengths, weaknesses, and how they are interrelated with macro factors. The report aims to provide insights into how JP Morgan operates within its business environment and how it can leverage its strengths to mitigate weaknesses and capitalize on opportunities.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different types of organisations and their advantages and disadvantages..................................1
Size, scope, legal structure and objectives..................................................................................3
M1 ..............................................................................................................................................4
TASK 2............................................................................................................................................4
Relationship between different organisational functions and how they link with organisational
objectives and structure...............................................................................................................4
M2...............................................................................................................................................5
TASK 3............................................................................................................................................6
Positive and negative impact of macro environment on business operations.............................6
M3 ..............................................................................................................................................8
TASK 4 ...........................................................................................................................................8
Internal and external environment analysis with strength and weaknesses................................8
How strength and weakness interrelated with macro factors....................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment consists of several elements that assist to influence organisational
decisions. There are several aspects such as economic, social, political and technological factors
that influence an enterprise. However, these factors are beyond the control of an enterprise. It
will aid in identification of capability so that firm will get good policies that increase strengths of
an enterprise. Plan and policies also make sure that threats must be assessed to increase positive
results (McGuigan, Sin and Kern, 2016).
Present report is based on JP Morgan Finance and Investment, which has more than 4,400
offices in all over the world. It is one of the biggest UK leading enterprises, which make
investment. Different types of financial products and services to make values development by
them.
For gaining insight information of the chosen company, present report covers different
types of organisations with their advantages and disadvantages. Furthermore, it includes
relationship with organisational functions and its link with their objectives. Along with this,
positive and negative impacts of environmental operations have been identified to promote
desired results. With the help of internal and external environment analysis, strengths and
weaknesses assessment will be done to focus on attaining success in all business functions.
TASK 1
Different types of organisations and their advantages and disadvantages
With respect to develop successful results, in UK, there are different enterprises work
that belongs to distinguish sector. They all have different aim and objectives for ascertained
positive results (McGuigan, Sin and Kern, 2016). Therefore, they are able to grow in global
market to increase revenue and profitability.
Following are the different types of organisations and their purposes:
 Sole trader enterprise: Sole trader enterprise is owned by one person. It consists of one
or more employees and total control of the enterprises by owner only. Main advantage of
this enterprise is that it is cheap and easy to start up sole trade enterprise. Furthermore, it
also considers more profits with setting up desired results. However, there are certain
disadvantages such as unlimited liability so that more finance is required. It is difficult to
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create long-term finance unless ownership not changes (Advantages and Disadvantages
of Different Business Entities, 2018). For instance, Anglia Tax Help that deals in
accountancy services, payroll services etc.
 Partnership enterprise: Partnership is legal form of an enterprise that considers
operations between two individuals who share their management and profits. In this
consideration, the federal government also recognises different types of partnerships.
Most common and general partnership consider with several advantages. Main
advantages of this business is owner receive all profits, few documents needed to make
decisions in enterprise operations. However, there are certain disadvantages also exist
such as owner ability to raise capital that is limited to personal funds from people (Liao,
Yue and Wang, 2018). Social Chain is one of the famous examples of partnership
business in UK.
 Private enterprise: Private enterprise consists of importance to develop their profits and
revenue. In this consideration, maximum revenue and profitability will be developing
successfully to make effective work performances. Main advantage is that private firm
can charge price as per their own interest. However, customer believe is less than public
businesses (McGuigan, Sin and Kern, 2016). For instance, Arcadia Group and JP Morgan
Finance and Investment are one of the famous private enterprises of UK.
 Public enterprise: Public enterprise mainly deals with customer welfare so that they
determine their functions and operations to make security for them. Main advantage of
public enterprise is that they can easily charge low prices and provide facilities such as
education, health, etc. However, there are certain disadvantages such as government must
loss due to lead higher taxation. For instance, Cabinet office is public sector enterprise.
 Voluntary enterprise: Voluntary enterprise considers their operations and functions as
surrounding management and operations systems that were not working. Main advantage
is that direct control is remain and lower cost requires set up (McGuigan, Sin and Kern,
2016). However, there are certain disadvantages such as no investigation conduct by
directors. This type of business deal in third sector that is tertiary.
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Size, scope, legal structure and objectives
Every enterprise consist their functions to make desired work performances in the
company. They have different size, scope, legal structure with objectives. With the help of aim
and objectives, they perform their effective functioning in the company. They are as follows: Sole trader enterprise: In order to consider legal structure, sole trader are free from it.
They can easily engage in any business unless license is not required as per law. Their
main objectives is to grow business with more employment terminology. Furthermore,
their scope is that they can easily select any business as per own choice. Hence, they are
not depends on other organisation. Size of the organisation is very small so that they are
able to manage their operations easily by own way. Personal touch of this enterprise is
easily developed as per customer taste and requirement (Sindhyja, 2018). This business is
suitable when market for product is limited in particular place. Partnership enterprise: Partnership enterprise has objective to share responsibilities in
all areas of the enterprise. It includes exposing with losses and expenses. This is because,
profit and losses sharing among different partner pay appropriate share of tax. Legal
relationship among partners required to consider proper agreement. Wide scope of
partnership firm exist in the UK so that it develop more desired work performance.
Partnership assets is more complex so that formal and general relationship managed in
systematic manner. Different types of scope also ensure successful results in partnership
activities. Private enterprise: Private businesses consider their operations from small to medium
sized enterprise. They can be run their functions and operations with family or small
group of owners. Usually they work with limited share of liabilities. They are held
functions privately among public so that in market it would be beneficial to operate with
restricted law by business rules. Legal structure of the business is flexible so that changes
of policies and other things could be managed easily. Legal and proper work is main
aspect of company (Liao, Yue and Wang, 2018). Their main objectives is to increase
profitability and revenue with operating many business activities in desired manner. As
per effective work performances, it can be stated that JP Morgan Finance and Investment
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consider their functions and operations to work in global environment. Furthermore, they
regulate different policies as separate legal entity. Public enterprise: Public enterprise consider different range in term of small and
medium-size business. Majorly they run with family members and close friends. They are
only liable for the companies for which they have invested money. For members of
public can easily share of such companies with true owners. They deal in different sectors
such as health care, construction, property, plantation, manufacturing, etc. These types of
businesses operate functions in all types of structure. Mainly, vertical structure has been
followed which is originated with several functions and operations of company
(Feigenbaum, 2018).
 Voluntary enterprise: This kind of enterprise play critical and integral role for health and
social care with including providers of such services. Contribution of the enterprise is to
maximise and improve well being of population of England. Hence, structure of the
voluntary sector is that it is registered charities that needed with rules and regulations. It
is very different from other businesses (Franks, Davis and Scurrah, 2014). As results,
they reduce wastage of resources which assists to develop desired results outcomes.
Objectives is to established reflect interest and concerns of their co-founders. It will
develop significant advantages in particular circumstances.
M1
In order to consider different structure, size and objectives, products and services
developed successfully in market. As per creative work performance, it can be said that JP
Morgan Finance and Investment able to deal in global environment easily. Furthermore, the
company deal in private sector so that it is important to offer creative work performance to gain
more customers (Schaltegger, Burritt and Petersen, 2017).
TASK 2
Relationship between different organisational functions and how they link with organisational
objectives and structure
In the business, there are different types of functions and operations consider that assists
to develop significant advantages. All functions and operations are interrelated with each other to
produce more creative results (Bocken, Rana and Short, 2015). For instance, marketing,
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production, procurement, HR, etc. All these functions are interrelated with each other so that
organisational objectives could be accomplish easily. Marketing and production department: In the production department, it is important to
consist operations and activities in creative manner to attain more profitability. With
respect to denote production, JP Morgan Finance and Investment must set their budget
which implemented in market. Therefore, assessment of market trends helps to identify
demand and requirement of customers (Abidin and Haseeb, 2018). As per their results,
production department produce their results. Marketing and HR department: In the HR department, it can be interpreted that how
much staff members requires it assessed with the latest trends. On the basis of creative
work performances, it can be interpreted that HR department continuously grow in the
market (McGuigan, Sin and Kern, 2016). Hence, HR functions such as training,
development, etc. will be produce that applicable for proper management and maximise
systematic work performances.
 Finance department: Along with this, finance department consider budget and activities
which help to promote more desired work performances in business (Wright, Lumpkin
and Agarwal, 2016). In this way, financing activities linked with marketing to perform
several tasks and operations as well. It requires strategy that involve to perform
systematic work performances in business unit.
M2
In the different functions of JP Morgan Finance and Investment, there is wide
relationship. This is because, all functions work together to perform creative work performances.
As per marketing and other functions relationship, it can be stated that finance and production
department work together to attain more systematic work performances in business unit (Abbasi
and Abbasi, 2017). For instance, finance department has wide role because it provides more
functioning to other elements of the business. In the chosen business, finance department is most
important to develop effective work.
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TASK 3
Positive and negative impact of macro environment on business operations
In order to analysis impact of macro environment on business, it can be stated that
PESTLE analysis is important consideration. It assists to focus on marketing activities and tools
that helps to provide excellent opportunities with marketing concept. Furthermore, in financing
and investing activities, it assists to develop more significant advantages (Kew and Stredwick,
2017). It also develops independently services that based on specific laws which create impact
on growth and offering.
 Political factors: It is first element that consider in industry analysis process. On JP
Morgan Finance and Investment, government policy create significant effects such as
natural resources, telecommunication, finance industry, etc. It creates huge impact which
influence strategic planning, financial performances and stock price. Furthermore, it can
be stated that foreign investors not holding interest in financial institution because of high
risk. It creates impact on transactions in emerging markets. Positive impact is that
government influence assists to focus on systematic business operations (Chuang and
Huang, 2018). However, negative impact occur because of tough tax rates and other
consideration.
 Economic factors: Economic factors are generally considered economic growth,
exchange rates, interest rates, tax policy, etc. In the words, it can be stated that in the
finance and investment company there are more influence exist because of certain
factors. For example, financial services industry is sensitive to make changes in interest
rates and businesses tremendous exposure that pay full attention to exchange rate
movement. However, economic growth and inflation rate actually used to gauge in
overall country for its economic values. High growth economy with stable inflation rate
that is attractive place for investment (Franks, Davis and Scurrah, 2014). In this regard,
positive impact ascertained with facilitating business growth of JP Morgan Finance and
Investment. On the other hand, more fund needed to promote more desired level aspects.
 Social factors: Social factors also create impact on JP Morgan Finance and Investment
because of changes in customers needs and requirement. As per market change, it creates
attitude and emphasis on safety. It is important for demographic features for investor that
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evaluate characteristics of consumer and assist to whole industry. For instance, ageing
population structure create major part from the trend. Young country also indicate that
consumer products promising prospects. Consumer confidence surged with owing to
economic factors that are socially acceptance in financing industry. However, gender
perception create negative impact on the company to develop desired results (Shenkar,
Luo and Chi, 2014).
 Technological factors: Along with this, technological factors consider aspect for specific
country with research and development, technology incentives, automation, etc. rate of
changes in technology consist different activities. It helps to assess potential market and
build competitive advantages as well. With the help of this element, JP Morgan Finance
and Investment able to increase customer attraction easily. It also makes sure that less
competition and more potential customers attracted at workplace. Beside this, it also
requires more investment to implement in chosen business but regulated with ascertained
several advantages at workplace (Criscuolo and Menon, 2015). Positive impact of this
element is that desired results will be accomplish with different website and apps.
However, features and concern point spend significantly to maintain large technological
infrastructure.
 Environmental factors: Sustainability and environment friendliness consider important
role in the chosen business. This is because, environmental consideration assists to
address investment at global environment. It creates positive impact on JP Morgan
Finance and Investment to maintain environmental effectiveness. On the other hand, it
creates negative impact on functions because environmental sustainability not achieve
easily (Halbert and Rouanet, 2014). Along with this, company must regulate their
operations to manage work performance in systematic manner. Reduce cost is also
developed creative work performances.
 Legal factors: As JP Morgan Finance and Investment consist their operations and
functions at global level. Therefore, they must follow all rules and regulations determined
by government in each country. With the help of oversight and regulations, it can be
stated that several laws implemented in the present sector. In different agencies, it must
be compile towards consumer and social responsibilities (Jones, Hillier and Comfort,
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2016). Financing industry heavily regulated area in which compliance needed with proper
focus. With the help of spending, it can be stated that desired level of results will be
accomplish in systematic manner.
M3
On the basis of PESTLE analysis, it can be stated that JP Morgan Finance and Investment
consider several aims and objectives to promote significant results. With the help of different
factors, the chosen business can easily develop their performances. As per economic element, it
can be stated that economic growth continuously develop to attain organisational structure (Liao,
Yue and Wang, 2018).
TASK 4
Internal and external environment analysis with strength and weaknesses
The performance and business related decisions of JP Morgan finance and investments
are greatly influenced by the internal and external environment of the organisation. JP Morgan
can achieve its organisational goals by establishing a coordination between its strengths and the
external environment. The SWOT analysis for the JP Morgan is given below. Organisation can
use this analysis to frame appropriate strategies which optimizes the effectiveness and minimize
the risks and failures.
Strength:
 JP Morgan finance and investment is well established and successful brand which is well
known among its target audience.
 The organisation is operating huge number of offices across different corners of the
world organisation has efficient skills of management.
 The global exposure provides excellent networking and public relation skills. With global
exposure it is very convenient for the organisation to address the greater extent of the
customers (Brooks, Heffner and Henderson, 2014).
 The broad communication network serves as the strength of JP Morgan. It allows
organisation to identify the requirements and latest trends in the industry. The vast
exploration of the services allows JP Morgan to keep regular monitoring of its
competitive organisations not only in UK but across all the other countries.
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 The most attractive and beneficial strength and advantage for JP Morgan is that it can
access the innovative concepts for its business by analysing the variations in national
economies of different countries.
Weakness:
 The lack of customer awareness is one of the critical weakness parameter of the JP
Morgan finance and investment. With the advent and expansion of digital technologies
customers are able to easily access the financial solutions.
 Thus, organisation must focus on its marketing strategies so that the brand awareness can
be created among the customers. The organisation faces the financial instability and thus
marks the involvement of market fluctuations.
 Due to lack of appropriate decision making and analysis approach JP Morgan finds it
difficult to perform well in situations of strict competitive environment. Another weakness of the organisation is that its policies and decisions are framed on the
basis of its major customers of head quarter. This approach is not suitable to all other
offices of the organisation because each region has its own customer segment whose
requirements and financial assets are different so the implementation of same policies to
all over world without developing brand value is not great step for the business
development.
Threats:
 Every economy has different liability regulations. These regulations can affect the
internal decision making of the organisation. The strong threat which can influence the
profit and brand value of the JP Morgan is the innovative and technical exposure
implemented by its competitors. Thus, JP Morgan must regularly review the performance
and moves of the other organisations.
 The increasing dependency on digital technologies is greatly influencing the behaviour of
its customers. The trends of purchasing, supply and distribution chain are changing
tremendously (Dictionary, 2016).
 Organisation must ensure that these changes are reflected in the decision making and
policies framework. Otherwise, the performance of organisation may fall from the
desired level. The factors like inflations, currency fluctuations can seriously affect the
overall profitability of the organisation.
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 In certain economies the local distributors have great impact on the customer's behaviour.
These competitors may gain high profit margin and thus can give JP Morgan a strong
competitive environment.
Opportunities:
 The JP Morgan can expand their business to the economies which have potential
to develop. The emergence of the organisation in developing economy can build
great base for the future growth and development of the organisation.
 The organisation can find innovative policies which gains the attention of
customers to involve in finance management and commercial banking operations.
 The changing customer behaviours helps in the development of opportunities for
increasing revenues and diversification of organisation into different product line
as well.
 By emphasising more concentration on brand value management JP Morgan can
present itself as the leading organisation across the world. But the organisation
need to identify the innovative approaches which could retain customers
irrespective of the involvement of the digital technologies.
How strength and weakness interrelated with macro factors
Apart from the organisational policies and decision making strategies there are various
factors which influences the operational activities and strategies of the organisation. Every
economy has variation in its taxation, finance and investment policies which are in compliance
with the legal regulations of the economy. JP Morgan must develop its policies in accordance
with the regulations of the economy instead of standardisation of the policies. The political
factors will greatly influence the organisational culture of the JP Morgan. The failure to meet the
legal implications can cause interference in the smooth operation of the activities. The major
weakness of the organisation is brand awareness.
The organisation can resolve this issue by involving more interaction with technology.
For instance the social medial tools can be used by the organisation as an effective way to
interact with the customers. It can provide organisation awareness about its brand images,
feedbacks and expectations of the customers. The organisation must also ensures that it provides
the services in accordance with the technical advancements (Korableva and Kalimullina, 2016).
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