7002LBS Strategic Management: Internal Analysis of JP Morgan

This report provides an internal analysis of JP Morgan, a leading financial services company, to identify its strategic capabilities and discuss their implications for strategy formulation. The analysis employs tools such as SWOT, Value Chain Analysis, and the VRIO framework to evaluate JP Morgan's strengths, weaknesses, opportunities, and threats, as well as its resources and capabilities. The report identifies key competencies, including a strong market position, effective use of technology like Artificial Intelligence, and a skilled workforce. The analysis concludes that JP Morgan effectively manages its business functions and activities, leading to increased profit margins and productivity, and that adopting the latest technologies enhances its brand image in the financial sector. The report also evaluates the pros and cons of each tool used for internal analysis, highlighting their respective limitations and contributions to understanding JP Morgan's strategic landscape. This document is available on Desklib, a platform offering a wealth of study resources for students.

STRATEGIC MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................................2
MAIN BODY..............................................................................................................................................2
Internal analysis of JP Morgan................................................................................................................2
Competencies assist organization to compete..........................................................................................6
Evaluation of different tools or models used for internal analysis...........................................................6
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8

INTRODUCTION
Strategic management includes implementation and formulation of major initiatives and
goals taken by a company’s top authority. The current study is based on JP Morgan, is one of the
best and well known organization within US finance industry. This report explains internal
analysis in context of company and defines evaluation of models or tools used to conduct
internal analysis for firm.
MAIN BODY
Internal analysis of JP Morgan
Definition of internal analysis and strategic capabilities-
Internal analysis is one of the best ways for identifying abilities and capabilities of a
company, operating within any sector (Dickler and Folta, 2018). While strategic capabilities
refer to set of resources, abilities and skills that create a long term competitive benefits for an
firm like JP Morgan
SWOT analysis-
Strengths-
JP Morgan is the biggest banking organization in America, United State and one of the
leading financial service companies in the world (Johnson, 2018). Strong capital & liquidity are
the strength of this firm, they deposits minimized and loans decreased in year 2013 and thus
firm’s deposits to loans ratio increased to 174 percent. It has built a culture among suppliers and
distributors where dealers promote its products or services. Organization is able to invest in
training for sales team that help to enhance skills of applicants and they can explain client how
they can extract maximum benefits out of things.
Weakness-
Along with certain strengths, JP Morgan weaknesses also affect business productivity and
profitability rather than before (Islamaj and et.al., 2017). For example, Information technology
infrastructure of this organization was not sufficient and effective in maintaining their current

system in organizational operations. Firm also suffered from technical problem due to above
weakness, thus their online banking system experienced a security or privacy issues that
approved some users to access to account data of other. It directly affect negatively on
consumers as well as employees privacy, affected people had expressed their anger or frustration
on social media or other tools where they can share their personal experience within others
socially.
Opportunity-
In recent time, people believe that carrying and keeping money is too risky and they
prefer to be cash less by using credit card option available in market. JP Morgan in America can
grab this opportunity, they can offer different kinds of credit cards with advanced technology
system that help its consumers for paying bill after purchasing products and while shopping in
stores or malls. Credit card utilize is on rise around the globe, especially Americans are utilizing
their credit cards more than ever (Besedovsky, 2018). Firm has good potential or strength to
benefits from this chance which helps to increase their brand image within marketplace rather
than before.
Threats-
It is the last component of this model, in context of JP Moran, firm faced threats from
certain of competitors because of their business operations in over 100 markets. Bank of
America, Goldman Sachs, HSBC and Wells Fargo are the competitors of chosen company who
gives tough competition to its business (Kim, Sengupta and Laskowski, 2019). Along with it,
increasing competition in finance business segment from technology giants was another threat
for organization which directly affects organizational functions and operational efficiencies. In
period of financial technology, many large technology companies like Alibaba and Amazon are
leveraging their expertise in artificial intelligence and machine learning that they have developed
over period of time and utilize it to encroach into boundaries of traditional financial services
organizations that have only currently started utilizing latest technology.
Value chain analysis-

It considered as procedure of looking at act that got into modifying inputs or efforts for
producing services or products that is highly valuable for consumers (Niemi and et.al., 2020).
Primary activities-
Inbound logistics-
JP Morgan is able to provide strategic solutions and advice to its consumers, including
capital raising, trade finance to corporations, risk management and governments (Kim and Youn,
2019). Organization is capable to cater better client services as it help to build strong relations
between management and target market in result people take loan and other financial services to
them.
Operations-
JP Morgan effectively manages and run their business operations in US and across the
world. They know as Swiss army knife of banks, as they have some of best mobile finance and
banking technology which make them able to become a market leader within finance sector.
Outbound logistics-
Organization optimizes their outbound logistics such as offering financial service via
online sources to its consumer (Benson, 2018). They can gain competitive advantages by
providing effective services and suitable solutions after analyzing needs and situation of
consumers. JP Morgan by using technology communicates with clients and understands their
financial needs for solving it.
Marketing & sales-
JP Morgan has an excellent marketing group that can be very effectively and efficiently
provide services to those demographics domestically. With the help of advertisement activities,
organization gain attention of new consumers towards taking their finance related solutions.
Further in help to increase their sales rather than its competitors.
Services-

Post and pre sale services provided by JP Morgan to its consumers will play vital role in
developing client loyalty. They are able to offer financial solution with clear information and
data related to needs of people. As it help to protect brand reputation and increase consumer base
rather than its competitors.
Secondary activities-
Company infrastructure-
JP Morgan infrastructure denotes a number of activities such as handling accounting,
strategic management and planning. Its infrastructure platform spans debt, equity and geographic
risk return spectrum. Organization has one transport rail leasing resource itself in Beacon Rail
which makes up for 6.8% of their 9.7 billion portfolios.
HRM-
Human resource management within JP Morgan is able to strengthen workforce and
increase productivity level within financial sector. HRM develop strategies and plans for
employees to enhance their skills and motivational level. Effective HR section allow firm to
reduce competitive pressure based on commitment and inspiration of their workers.
Technology development-
Like other companies, JP Morgan business activities is also based on technology as they
are able to provide financial solutions via implementing latest technologies within financial
sector. With skilled and talented worker, company manages and operates function with varied
technologies. Research and development section of firm is classified in this category.
Procurement-
It denotes procedures included in buying inputs that may range from supplies, machinery
and equipment. JP Morgan added value by providing consumers services and better solutions to
its clients. Hey cater leveraged financing to organizations to aid them achieve business objectives
such as repurchasing shares and making an acquisition.
VRIO Framework

It is most effective and useful business analysis tool that forms part of a company bigger
strategic scheme (Indartono and Wibowo, 2017).
Value-
Positive market reputation is valuable for JP Morgan, it help to increase their productivity
and profitability level rather than before. High consumer rating is also consisting with this
element that is beneficial for business. It defines that customers like their services and prefer to
visit again and again.
Rare-
JP Morgan has effective leadership team who are able to strengthen brand image within
marketplace and increase productivity level (Yow and Tong, 2019). Positive market
segmentation is rare in context of firm, as it help to enhance organization performance. Along
with high consumer rating organization led within finance sector.
Imitability-
JP Morgan is not able to generate brand awareness within marketplace; organization is
ineffective regarding this concept. Furthermore, firm is also not capable in context of leadership
team. But, organization gain competitive advantage with brand awareness activities and high
consumer rating.
Organization-
JP Morgan is able to focus on market segmentation; they also give importance to build
strong leadership and management team. They provide special training to accounts and sales
team in order to enhance their productivity and motivational level.
Competencies assist organization to compete
After conducting above internal analysis it has been identify that JP Morgan has essential
and valuable resources that help to build strong market position in finance sector. For example,
they are able to use Artificial Intelligence technology which is quite beneficial in term of
increasing profit margin. With strong workforce, organization caters the best and appropriate
services as well as solutions to its target market.

Evaluation of different tools or models used for internal analysis
Basis SWOT analysis Value chain VRIO
Pros This tool is used to
analyze internal
abilities or capabilities
of organizations
(Phadermrod,
Crowder and Wills,
2019). It helps to cater
firms a clear view of
their strengths,
permitting it to meet
objectives of business.
It aid to highlights
threat and
weaknesses.
Many advantages
consist with this
model. It helps to
boost up productivity
and profitability. With
the help of this tool,
organization
comprehends their
primary and
secondary activities.
In term of benefits,
this tool is especially
utilized to determine
internal capabilities of
organization. It is an
easy framework to
apply and aid to
determine unused
competitive benefit
that firm can then
transform into a
sustained advantage
(Buzatu, Pleșea and
Iulian, 2019).
Cons It leads to four
individual lists of
weakness, strength,
threat and
opportunity.
However, model
caters no mechanism
to range importance
of one element versus
another within any
list. As outcomes, it is
difficult to identify
amount of any one
component fact
impact on aim.
Limitation of value
chain analysis is that
is pressure firm to
break into segments
and there is possibility
of failure or losing
brand image in
market.
VRIO model is quite
difficult to apply to
startups and medium
enterprises as they
might not have
enough abilities or
assets to be capable to
determine any
potential competitive
advantage. This tool is
unable to consider
internal factors for
instance, how demand
and need in
marketplace is

changing.
CONCLUSION
From above analysis, it has been concluded that JP Morgan is able to operate their
business functions and activities in effective manner, in return it increase profit margin and
productivity. Furthermore, it has been summarized that by adopting latest technologies within
business, company build their brand image in financial sector.

REFERENCES
Book and Journals
Benson, G.S., JPMorgan Chase Bank NA, 2018. System and method for anti-phishing
authentication. U.S. Patent 10. 027. 707.
Besedovsky, N., 2018. Financialization as calculative practice: the rise of structured finance and
the cultural and calculative transformation of credit rating agencies. Socio-economic
review. 16(1). pp.61-84.
Buzatu, A.I., Pleșea, D.A. and Iulian, C., 2019. MANAGING ORGANIZATIONS FOR
SUSTAINABLE BUSINESS DEVELOPMENT: INTERACTION BETWEEN VRIO
FRAMEWORK AND McKINSEY 7S FRAMEWORK. New Trends in Sustainable
Business and Consumption. p.243.
Dickler, T.A. and Folta, T.B., 2018. Identifying internal markets for resource
redeployment. Strategic Management Journal.
Indartono, S. and Wibowo, F.W., 2017. VRIO and THES based development of university
competitive advantage model in formulating university strategic plan. International
Information Institute (Tokyo). Information. 20(10A). pp.7275-7283.
Islamaj, E and et.al., 2017. Weakness in Investment Growth: Causes, Implications and Policy
Responses.
Johnson, C., 2018. Pushing shadow banking into the light: reforming the US tri-party repo
market. In Research Handbook on Shadow Banking. Edward Elgar Publishing.
Kim, D. and Youn, M.K., 2019. Entering Uncharted Territory: Ownership of Healthcare by
Business Corporations. The Journal of Business, Economics, and Environmental Studies
(JBEES). 9(1). pp.29-31.
Kim, H., Sengupta, U. and Laskowski, M., 2019. Business in the Front, Crypto in the Back: How
a Finance SME Turned to a Blockchain Startup, Novera, for Innovation. Crypto in the
Back: How a Finance SME Turned to a Blockchain Startup, Novera, for Innovation (July
19, 2019).
Niemi, J and et.al., 2020. A value chain analysis of interventions to control production diseases
in the intensive pig production sector. PloS one. 15(4). p.e0231338.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Yow, W.T. and Tong, D., 2019. Case Analysis 3:“Managers Don’t Have All the Answers”.