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Internal Strengths And Their External Macro Factors of JP Morgan

University : Regent College London

  • Unit No : 1
  • Level : Undergraduate/College
  • Pages 21 / Words 3500
  • Paper Type : Assignment
  • Course Code :

    BMA702

  • Downloads : 1596
Question :

Business environment complies as the combination of all the external and internal factors which influence the organization which operates business and operations. JP Morgan Investment and Finance company tries to manage all the business activities in all the proper manner

  • Explain various types, size and scope of organisation.
  • What are the interrelation and the functions of organisation with there organisation structure.
  • Explain the positive and negative outcome of macro environment.
  • What are the internal strengths of business and their external macro factors.
Answer :
Organization Selected : JP Morgan

Introduction

In the next task, report will discuss about various types of organization and their specific purpose (Mbaye and Gueye, 2018). It also analyses the different types of enterprise structure and the way they are linked with each and every department for achieving their objectives and targets.

P1 Different type of organization and purpose

Most of the organizations are set up their own specific objectives and their structures are helping to increase progress towards their goals and achievements. For Example, JP Morgan organization is creating the impressive structure which is helpful for increasing their profit and sales in marketplace (Acar  and ÖzÅŸahin, 2018 ). There are various type of organization are categorised according to their spe

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Public Limited organization

The main purpose of public organization to provide the bes facilities to their customer Public limited enterprises are based on the legal designation which is helpful for this law to manage the business process and it also provided the share to the public and offered the limited liability. In UK, there are many company listed in the stock exchange. This enterprise will allow selling their share  the investor to increase their capital which is helpful for the economy of country (Boo,  2017.).  Public organizations are owned as well as operated by the government. This organization mainly focus on providing the best quality of facilitates and services to their customer like health care, military, governmental and transportation, etc. For example: British Petroleum is public limited organization and this is oil based company which concentrates on  maintaining their services and facilitates.

Advantages

  • This organization will helpful for organization to increase their capital and share to the public for investing the money.
  • They  provide the financial related opportunities to find out to maintain their the best position in the marketplace.
  • Business entity also offer shares  which are easily transferable and it  provides benefits to the shareholders.

Disadvantages

  •  This organization is required to protect their equal rights and also following legal rules and regulation
  • Public limited organization is very hard to control the business process and their shareholder so that they  face many challenging issue regarding the time management.

Sole Trader

Sole trader organization is owned by the one or more person. They have new employees working together. The owner of sole trader organization has direct v control on the entire element of business. The main purpose of sole trader organization to increase their profitability and productivity in marketplace. They  received the profit for the organization. They have many responsibilities to manage their profit and loss (Jensen,  2017).  It is very easy to establish the business and as sole trader can easily  decide what type of business he wants to start and manage . In this way, it will increase the economy of country. It is based on One-man ownership so that there is no risk in the business such as no separation, no separate entity, less legal formalities etc. For example, JP Morgan is sole trader organization to provide the services such as financial banking, investment etc.

Advantages

  • The entire business control by the owner of an organization.
  • It is easy and cheap

Disadvantages

  • It is very difficult for this organization to increase their finance because it is based on the small business they will not useful for the long term financial planning and they will change their status of ownership.

Partnership

This organization is owned and operated by the several people.  Partnership organization is based on the arrangement of partner and  agree with the cooperate . Partnership organization is similar to the personal business and specific legal relationship by agreement in between one or more owner of organization. This enterprise will maintain the relationship with their employee and provide the best quality of services in marketplace (Möller and Halinen,  2017). This enterprise mainly focusses on increasing their productivity and profitability in marketplace. For example: Jones and Johnson is partnership organization which is managed by one or more partner and it also controls the  business operations and functions effectively and efficiently.

Advantages

  • One or more people are better for increasing their sales and productivity.
  • They establish the business in very low cost.
  • They provide the opportunities such as splitting the income for the purpose  of tax saving.
  • There are limited external rules and regulations
  • They can easily change  their legal structure according to the specific circumstances.

Disadvantages

  • This organization has risk on the disagreement and management
  • Each and every business partner are agent for taking actions.
  • There are high chances of conflict between partners.

Charitable Organization

This organization is operated by the Local authority which is helping the poor people by providing the best quality of facilitates and services. This organization will  manage the business process. The objective of such firm is solving the problem regarding the  political and social issues in the society. They mainly focus on developing project for  human welfare and social communities. This enterprise is also known as Non-governmental company. This organization consists of  few members to participate to develop the business and they will take fund by investors. Charity and foundation etc. For Example,  Cancer Research is non-governmental organization which provide the best services to the cancer patient those who are suffering for the cancer (Roy  and Singh,  2017). They provide the best quality of services such as free treatment, medicine, therapy etc. this is helping the poor people those who have not sufficient money. It is very beneficial for human being and community.

Advantages

  • This organization is adopting a new approach for growth and development. They also identify the need and requirement of development.
  • They are communicating with the top level to low 
  • They   efficient leader to easily influence the staff member to provide the best services.

P2 Scope and Size of organization

Basis

Public

Sole trader

Partnership

Voluntary

Private

Size

The size of public organization is measure their size according to different parameter like Measure the value added Number of employee and expenditure and income.

Sole trader organization is owned by one man so that they have small staff employee working. They are not making a large profit in marketplace.

This organization is running the business form 10-20 people are working together. It is depended upon the territory and state (Boo,  2017).

This organization is increasing their rang from small scale to large scale according to their structure, member and culture etc.

Private organization is based on their large scale and scale because most of the people start their business initial stage. They are increasing the business all over the world.

Scope

Public organization is profit oriented to expand the business across the world. They are building a trust on the customer.

Sole trader organization to utilize the fund to develop the business they provide the opportunity to take decision. They directly contact with the customer to understand their need and requirement.

Partnership organization is managed the business need and requirement by partner who are applying the new approach to improve the development process and property of company, finance facilitates etc.

The main scope of this organization to provide the opportunities for serve the benefits and it will cover the entire areas such as families, health services and labour etc.

Private organization always maintain their business operations and functions to increase their business all over the world.

Legal structure

They are strictly followed all the rules and regulations which are required to give the correct financial facilitates.

Sole trade organization is responsible to legally manage the business process and they are taking decision regarding the development and running.

In Partnership organization, they are following the business operations and function in between two or more people who are share the profit and management with legally.

Voluntary organization is use the voluntary group to build a trust, unincorporated and provide the guarantee to their employee.

Private organization is based on the join stock organization and their business separated the legal entity from the owner of organization because they are running the business by owned.

Objective

The main objective of public organization to increase their business but they provide the best quality of services for human being and communities.

Sole trader is focus on expanding the business form initial level to top level. They are acquired the top position in marketplace.

Partnership organization established the business with the help of one or more people. They are expanding the business for growth and development.

Voluntary organization focus on providing the facilitates for human welfare and social community.

Private organization is only concern about their sale and productivity. They have change their quality of services according to the requirement of customer.

CONCLUSION

Task 1 discuss about the different type of organisation such as sole trader, private, public, etc. and their size and scope. Also, it is about how they vary in legal structure objectives, etc., and their specific purpose.

References:

  • Acar, A.Z. and ÖzÅŸahin, M., 2018. The Relationship Among Strategic Orientations, Organizational Innovativeness, And Business Performance. International Journal of Innovation Management. 22(01). p.1850009.
  • Boo, H.V., 2017. Service environment of restaurants: findings from the youth customers. Journal of ASIAN behavioural studies. 2(2). pp.67-77.
  • Jensen, M.C., 2017. Value maximisation, stakeholder theory and the corporate objective function. In Unfolding stakeholder thinking (pp. 65-84). Routledge.
  • Möller, K. and Halinen, A., 2017. Managing business and innovation networks—from strategic nets to business fields and ecosystems. Industrial Marketing Management. 67. pp.5-22.
  • Roy, V. and Singh, S., 2017. Mapping the business focus in sustainable production and consumption literature: Review and research framework. Journal of Cleaner Production. 150. pp.224-236.

TASK 2

Introduction

Business is the activity which is performed by the employees for earning the profits of the business. In this task, it will discuss about the relationship between the organization and how they link their specific goals and objective. It also describes the structure of JP Morgan finance and investment company.

P3 Interrelationship between the organization and they link with the objective and structure of JP Morgan Finance and Investment

An organization structure mean to all activities are performing in business development such as coordination, supervision and task allocation towards the goals and achievement. This is important for JP Morgan to innovate a new idea that is implements in the business process in order to achieve their advantages in the competitive level (Lincoln,  Guillot  and Sargent,  2017). Most of the organization will allow using business structure which is beneficial for growth and development. There are two different type of organizational structure discuss in following:

Divisional Structure - This organizational structure is using large scale company to divided their specific role in different departments. JP Morgan organization is also used this structure operates in wide range of geographical areas. They provide the best quality facilitates and services in marketplace (Jogaratnam,  2017). The advantage of this structure need to meet the requirement and objectives. It is very expensive because of their scope and size of organizations. They have different head office in the various city.

Matrix structure - Matrix structure is combination of divisional and functional structure. Most of the large companies use this structure to create a power and most of the companies used dual management system such as divisional manager and functional manager. JP Morgan finance and investment company used this structure to cover the managerial territory

Relationship between each and every departments and link to achieve their goals and objectives.

JP Morgan is the fastest growing organization to performing various type of task related the commercial banking, financial banking etc. This organization has allowed each department to perform different operations. All the department of JP Morgan is intern-connected to share the information from one department to another.

Human resource Management - HRM is an essential part of JP Morgan to manage the business operations and function in proper manner. They provide the facilitates such as recruitment and selection, training and development etc. HR officer is main person to handle the business activities effectively and efficiently (Lindholm,  Laine and Suomala,  2017) This department has more responsibilities to arrange the program for new employee to improve their skill and knowledge towards the objectives and goals. HRM iis using the information technology for providing the best quality of training to their employee. In this way they are directly linked with the technology.

Information technology - JP Morgan is a leading organization and it will increase their sales and productivity with the help of technology. This organization using new technology to improve their services which is beneficial for growth and development (Mohammed,  Gururajan  and Hafeez-Baig, 2017). Manager of JP Morgan is easily communicated with the customers to easily identifying their need and requirement. In this way, they also increase their speed towards the business operations and functions.

Marketing - Marketing is important concept which is used for promoting their product in marketplace. JP Morgan is also used marketing tools to promote their services in global market. Marketing concept is directly connected with the information technology because this concept is coming from the technology (Trad  and Kalpić,  2018). This is very helpful for improve the performance and also take suggestion directly to the customers.

Finance - Finance is another department to manage the budget of company to planning, coordinating and controlling the strategy for short term and long term. This is very beneficial for JP Morgan organization to manage the overall business in proper manner. Finance department will calculate the investment of training and development; promotion of marketing all the data are stored in the form of documentation (Jogaratnam,  2017). HRM, Marketing and information technology are interconnected with each other.

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CONCLUSION

According to task 2, it is described the Relationship between each and every departments and link to achieve their goals and objectives.

References

  • Jogaratnam, G., 2017. How organizational culture influences market orientation and business performance in the restaurant industry. Journal of Hospitality and Tourism Management. 31. pp.211-219.
  • Lincoln, J.R., Guillot, D. and Sargent, M., 2017. Business groups, networks, and embeddedness: innovation and implementation alliances in Japanese electronics, 1985–1998. Industrial and Corporate Change. 26(3). pp.357-378.
  • Lindholm, A., Laine, T.J. and Suomala, P., 2017. The potential of management accounting and control in global operations: Profitability-driven service business development. Journal of Service Theory and Practice. 27(2). pp.496-514.
  • Mohammed, A.A., Gururajan, R. and Hafeez-Baig, A., 2017, August. Primarily investigating into the relationship between talent management and knowledge management in business environment. In Proceedings of the International Conference on Web Intelligence (pp. 1131-1137). ACM.
  • Trad, A. and Kalpić, D., 2018. The Business Transformation and Enterprise Architecture Framework: The Financial Engineering Technology Concept. In Regaining Global Stability After the Financial Crisis (pp. 23-45). IGI Global.

TASK 3

Introduction

In this task pestle analysis is done to gain competitive advantage from other firm. It helps in determining business stability, economic stability, social advantage, environmental factor of firm. It is helping cited entity to make sure that they are following all things which are required to show impact of macro factors. Impact of macro factors on firm is very adverse as well as positive which can facilitate company to reach new heights of success.

P4 Impact of the positive and negative impact of the macro factors

Under this Pestle analysis is done which is helpful in determining the overall position of the JP Morgan. It also helps in analyzing the impact of the macro factors on the business. It is also being helpful in gaining of the competitive advantage of the other (Charter, 2017). Under this there are the various factors involved which are Political, legal, environmental, technological, social and economic.

PESTLE Analysis

Political Factor

Under this factor changes in the rules which are made by the government which are affecting the operations of the business. Government may introduce the taxes, fiscal policies, trade policies and many more. For example, impact of rise in the taxes which impact whole environment of the company. It has affected in the salary of the employees which are working there. This factor includes political stability of the business as JP Morgan is offering the financial services of the business and that is impacting on the entity severely (Charter, 2017). Rules of the UK are changing in that case working in the regular changing environment is affecting the business of the JP Morgan. Changes in the wage legislation also affected the business very much.                       

Economical Factor

These factors which are affecting the business of the JP Morgan directly which are inflation rate, interest rate, foreign exchange rate and many more. These are the macro factors which are impacting the business. Economic stability of the business affects the working criteria of the JP Morgan. Economic situations of the country changes on the regular basis which impact son the decisions making of the entity (Hammer, 2015).  For example, inflation rate rises which makes the firm to leave the employees. Unemployment increases in the region or area. For designing of the economic policies, interest rates, pricing of the financial services provided by the business JP Morgan consider financial crisis, population growth, urbanisation rate and unemployment rate. For contributing the economic growth of the business company has dealt with these factors.

Social Factor

Social factor means the company is focusing on the social cultural values of the customers. This includes the demographics, class structure of the business, leisure, age, gender and many more which is affecting the business. Environment of the business is affected by the social environment of the business. JP Morgan is doing the operations of business with the support of the local people (Hammer, 2015). This company is targeting the people who needs the financial services. There are many competitors of the JP Morgan like Citi group, Bank of America and for moving ahead of the competitors of the business must target the current and future customers.

Technological Factor

Under this factor use of the latest technology which make the work easier and faster. This includes the recent technological developments used by the business, impact of technology on the product offering of the entity, impact of the cost culture, impact of the value chain culture and many more. as this company is offering the financial services which needs to be communicated to the clients via modern technology. JP Morgan is paying attention towards the campaigns for promotion of the business (Jeston, 2014). This is done to the make aware to the consumers about the services offered by the entity. Now credit cards are mostly used by the entity and JP Morgan must develop the payment methods which can be beneficial for the customers as well as employer.

Legal Factor

This factor includes the changes in the law which affects the operations of the entity. Like changes in the laws of labour law, safety law, discrimination law, employment law, data protection and many more. JP Morgan is a company which is offering the financial services to the customers. Changes in the laws of data protection affect the whole working criteria of the entity. Changes in the Discrimination law is affecting the entity as well as employees.  This law helps in the prevention of rights of the employees and changes in this impact on the employee very severely (Veblen, 2015). These laws help in regulating the business effectively. For the survival of the entity in market rules related to the interest rate, loan amount, financial transactional charges must be followed to run the business.  By implementing these services in the entity help in never entering into the legal action of the business.

Environmental Factor

This factor includes the changes in the climatic conditions, laws regulating the environmental pollution and many more. Diverse market has different norms which affects the profitability of the JP Morgan. It is affecting the environment of the business. Many of the countries which have different liability clauses which are affecting the businesses of entity. Countries are Texas, Florida and UK which has very strict laws towards the protection of the environment (Draper, 2017). Environment Law 1975 is followed by the UK for the protection of the environment. JP Morgan has analysed that company must pay attention towards the ecological aspects of the business. In the financial industry is company can gain good market share.

CONCLUSION

From this report has been concluded that PESTLE Analysis is very important for firm for knowing true position of firm which is very important for cited entity to make sure that that are ahead of competitors. It is helping entity to forecast decisions by seeing the market environment.

REFERENCES

  • Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
  • Draper, T., 2017. American business and public policy: The politics of foreign trade. Routledge.
  • Hammer, M., 2015. What is business process management?. In Handbook on business process management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
  • Jeston, J., 2014. Business process management. Routledge.
  • Veblen, T., 2015. The higher learning in America: The annotated edition: A memorandum on the conduct of universities by business men. JHU Press.
  • Ward, J., 2016. Perpetuating the family business: 50 lessons learned from long lasting, successful families in business. Springer.

TASK 4

Introduction

This task will focus on making determining of strengths and weakness of JP Morgan. This tells about true position of firm and help cited company to make sure that people who are working under this entity will reach to success by improving of their loopholes.

P5 Internal strengths' and weakness of JP Morgan and interrelation with the external macro factors

Swot Analysis of the firm is done to determine the loopholes as well as strong points of the business and for knowing the true position of the business. It is helping the entity to recover the weak points and move ahead from the competitors of the business. It is very necessary for the business take one step for the success of the business.

Strengths

Leading player in the global financial services is dealing with more than 60 countries and providing the services to the government clients, institution, businesses. This company is leading in the investment banking, commercial banking, financial services. These things help in moving ahead from the competitors.

Strong liquidity and capital position of the company is really strong. In the period of the 2008 -2013 loans of the entity has decreased and the deposits has increased (Crane and Matten, 2016). JP Morgan ratio of deposit to loans has increases to the 174%.

Diversified revenue streams- in the company is dealing with the balanced revenue system which is dealing with the five different segments of the business which are investment banking, assets management, commercial banking and corporate entity. This company is the oldest business firm which is operating in the banking and non-banking subsidiaries. This company is most successful firm in UK. this company also merged with the bank for increasing the self-sufficiency and cost reduction of the entity by implementing do it yourself approach. 

Weakness

For maintaining of the business operations of the JP Morgan IT infrastructure of the business is so poor. It affects to the operations of the company.  In the cancellation of the agreement of the with IBM has resulted in the loss of the shifting of the employees to the IBM payroll. This also affects the productiveness of the entity (Storey, 2016). By appointing the new consultant in the company which implement in the out sourcing strategy of the company leads to the over expenses in the business.

Opportunities

Agreement with IBM and the other leading companies which is creating the important values of the clients, shareholders, and employees. Entity is undertaking the outsourcing agreements of the entity from time to time which is helping the company to become more competent and increase in the quality. By expansion in the other countries help the entity in grabbing the market opportunities.

 Threats

Constant changing regulation which are made by the government is affecting the JP Morgan of the entity. Company has lot of competitors which are impacting on the business. Success of the merger is not guaranteed. Low interest rate environment is affect the working if the entity.   

P6 Strengths and weakness which interrelate with the external factors

This report will cover the strengths and weakness of entity are interrelated to firm's macro factors. Macro factors like political stability, economic condition, social support and many more which are affecting cited entity in adverse way.

Interrelationship with the strengths and weakness of the macro environment which is affecting the decision making of the business (Bryman and Bell, 2015). JP Morgan has strong position in market and has the political stability of the business which is significant and affects the decision making of the entity. By this business can run well in the market. Organization observes the economic environment which helps in making the economic policies of the business. It is helping the entity to work in every economic situation. This helps the entity in its development. Company is doing the business by following the social factors of the which facilitate the entity in flourishing the business. By monitoring the local environment helps in finding out the changes and with implementing of these changes facilitate in the development of the entity. In the UK laws related to the environment are very strict. Environment Act 1975 is implemented on all the entities of the UK which is helping the government to preserve the environment. UK is tech logical advanced country which is benefiting the JP Morgan (Sekaran and Bougie, 2016). This will create the brand image in front of the society. This helps in taking the decision making of the entity. Legal position of the entity as well as the country is very strong which helps in taking the decision making of the entity.

CONCLUSION

From this report it can be concluded that people who are working in entity must know strong points and weak points which need to be improved in entity. By improving of loopholes help in making entity to make good image in front of competitors. Like by implementing of CSR activities in organization help in preserving environment. From this report this has been concluded that JP Morgan strengths and weakness of firm is determined which help in making entity to make sure that weakness of entity is must be improved by cited compa

REFERENCES

  • Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
  • Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
  • Charles Jr, O. H., Schmidheiny, S. and Watts, P., 2017.Walking the talk: The business case for sustainable development. Routledge.
  • Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
  • Dunning, J. H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.
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