Introduction
The JP Morgan Chase & Co is a public company that deals with financial holdings providing services in the field of finance and investment banking. The company offers clients with a variety of investment banking commodities in key capital markets that entail advice on corporate strategy and structure (Teece, 2010). It further advises on raising capital in markets of equity and debt, sophisticated management of risk, making of markets in cash securities and derivative instruments as well as research and company brokerage. The following paper will assess how industrial globalization and technological changes have influenced it, studying the possible average returns using the industrial organization model and the resource-based model and also how the vision and mission statements affect the overall success of the company. Finally, the paper will discuss the impact of each stakeholder category influences the overall company success.
Impact of Globalization and Technology Changes
The financial crisis that hit the world in the years 2007 and 2008 saw JP Morgan and Chase Company dwindle in performance. However, the company strived and emerged from the crisis as among the strongest banks on American soil. Thanks to globalization opening up markets in new territories, the company has its sight on expanding abroad. The Chief Executive recently announced that the firm was seeking to make entry into new markets particularly Europe, Asia and Latin America (Dash, 2010). The company had made some key profits from treading in the new markets during a preliminary research and is now affirmative that the move to seek new grounds of operation is a positive and constructive one.
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Change in technology is well associated with the dynamic world today. Today, with the e-commerce retail to the robotic industry, technological change is inevitable (Oliveira et al., 2011). The JP Morgan Chase & Company has made tremendous steps forward by investing in technology. The company insists that it has seen tremendous scales of improvement in the rate at which services are delivered to both clients and staff in the company. Furthermore, the technological change in the aspect of computerised systems and digital marketing ensure that the company collects data from all over the world without having to send its people on the ground. The company has partnered with OnDeck Capital to allow small business lending and symphony for systems of communications the incredible scales in improvements have seen the company invest more money in technology with more than 40,000 technologists and 18000 of the developers creating intellectual property (Macheel, 2017).
Industrial Organization Model and Resource-Based Model
The industrial organization model acknowledges that the external perspective elaborates external forces of the organization as the key and dominant influences on the strategic actions of a firm and depends on the assumptions that the external environment creates pressure on the firm and determines the strategies that will bring forth superior returns (Teece, 2010). The second assumption is that firms competing in the industry control the same sets of resources that are all relevant and hence pursue similar strategies.
Thirdly, the model assumes that resources employed in implementing the strategies are mobile across the companies and lastly the organizational decision-makers are rational and dedicated to acting for the interests of the firm. The industrial model hence can help the JP Morgan Chase & Co achieve greater profits by ensuring the company focuses on the external market especially in new territories (Teece, 2010). The company will need to observe new cultures that influence work by employees and client behaviour and formulate a strategy based on that culture. For instance, the company is stretching its reach to Asia and will thus need to incorporate the Indian culture in business to take off in India. Such a move will mean branding products to fit the cultural desires of the people in these new markets.
The resource-based model entails a system of operation that explains the unique internal resources and abilities of the firm to act as ground for earning above average returns. It depends on three key assumptions that include: each firm exists as a collection of resources and abilities providing ground for strategy and is the key source of returns for the firm, firms acquire various resources over time and develop various techniques and resources may not be as a mobile as they ought to across firms (Teece, 2010). The model suggests that JP Morgan Chase & Company employ the loads of money and skilful personnel to act towards improving returns. The money the company has can be used to hire highly skilled employees to steer rocket the firm into making large chunks of profits (Teece, 2010). It becomes easier for the firm to pay for advertisements that enable it to scale new heights of the market hence making profits. The skilful employees enable the firm to quickly solve problems that come about and hence move forth to move past obstacles as soon as possible.
Mission and Vision Statements Effect on Performance of Company
The mission statement of the JP Morgan Chase & Company states “to be the best financial company in the world”. The vision statement states “At the JP Morgan Chase & Co, we want to be the best financial service company in the world. Because of our great and excellent platform, we believe this to be within our reach”.
The statements ensure to keep the company focused on a culture that facilitates better services to the clients. Therefore, the company is always seeking ways of improving the services it offers to the clients. It has developed a training program specifically for the purpose of brainstorming to improve ways in which to offer customer service delivery. Technology is used to ensure fast delivery of quality service to the customers in a bid to retain and gain customers. The company takes pride in being the leading bank in the States and wishes to rubberstamp that position with provision of the highest quality service to the clientele.
Stakeholder Impact
JP Morgan values its stakeholders who are the customers, investors and the community around its areas of operation. The investors ensure that the company is always striving to be innovative and seeking new ways of handling problems. It has ensured to keep the firm on toes in its bid to make profits and stay aloof of competition (Singh, 2014). The customers are the primary reason for all the innovation and service delivery programs in the firm.
As a key stakeholder, the customer determines the success of the firm and as such everything the company undertakes revolves around them. Lastly, the community surrounding the JP Morgan premises make a vital stakeholder. In this regard, the JP Morgan in its aim to be socially responsible does well to take care of the community (Singh, 2014). It is precisely because of the above reason that the company has undertaken the community development program that targets local impact and local strategic partnerships towards being part of the solution to societal problems.
Conclusion
The JP Morgan Chase & Co is a public company that deals with financial holdings providing services in the field of finance and investment banking. The company offers clients with a variety of investment banking commodities in key capital markets that entail advice on corporate strategy and structure. A good number of factors influence the performance and operations of the company and such include globalization, changes in technology and models of strategy employed as well as the stakeholders and mission and vision statements of the firm.
References
Dash, E. (2010). JPMorgan Sets Sights Overseas. The New York Times, pp. 1-4. Retrieved from https://www.nytimes.com/2010/06/23/business/23bank.html
Macheel, T. (2017). What JPMorgan is doing with that $9.5 billion tech spend. Retrieved from https://www.tearsheet.co/modern-banking-experience/what-jpmorgan-is-doing-with-that-9-5-billion-tech-spend
Oliveira, T., & Martins, M. F. (2011). Literature review of information technology adoption models at firm level: Electronic Journal of Information Systems Evaluation, 14(1), 110.
Singh, A. (2014). Priorities Set; JPMorgan Chase Focuses on Stakeholder Engagement with Latest CSR Report. Retrieved from http://www.csrwire.com/blog/posts/1354-priorities-set-jpmorgan-chase-focuses-on-stakeholder-engagement-with-latest-csr-report
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2-3), 172-194.
