With the same two forces in mind, predict what the company might do to improve its ability to address these forces in the near future.

Strategic Management and Competitiveness

Introduction

Strategic management in an organization entails setting specific objectives, strategy evaluation, analyzing the organization internally, analyzing the competition and making sure that the strategies get rolled across the organization by the management. Strategic management is necessary to ensure that the organization meets its objectives and goals. The changes in the environment of the business in terms of competition make it necessary for the organization to ensure that their success strategies are constantly assessed. This paper will discuss how the changes in technology and globalization have impacted JP Morgan & Chase corporation, apply the model of industrial organization and the resource based model in determining how above average returns can be earned by the company , assess how the mission and vision statements influence its success, and evaluate how the stakeholder categories affect its success.

Globalization

Globalization has impacted JP Morgan Chase & Co in such a way that it has been able to expand its business and provide opportunities for those who need them in different states and countries across the world. The corporation has been able to expand its reach and influence the lives of different people across the world while exploring opportunities for maximizing profits for the organization as well ensuring satisfaction of its customers. For instance, it has 40 offices in the United States, private locations of banking in Asia, Europe, and Latin America. The organization has assets of 2.4 trillion and carries out its operations worldwide in over 60 countries with employees that are over 240000. It operates over 5500 banks for retail in the US and has over 200 locations outside the United States. When considering taking their investment to countries across the world, JP Morgan Chase & Co strategically considers factors such as considering whether the conditions that are available in the country are right for success. Also, investments that are deeper and broader are necessary for the purpose of developing growth that is inclusive. Having offices across the world is a strategy that is important in ensuring the company meets the needs of its customers.

Technology

JP Morgan Chase & Co has a team of technologists that provide solutions of a diverse range including initiatives for strategic technology, mobile electronic payments, big data, cyber security, machine learning and enterprise development of the cloud among other technologies that are state of the art. The impact of the various technologies on the company are as follows. The cloud plays an important role in the company which includes reducing the capacity of the peak that the company has to keep in its centers for data and excess loads of work can also be burst into the cloud. Combining artificial intelligence and compute power is in some way safer for cyber security. The cloud also makes it easier for workloads to be divided into pieces. Technology makes it possible for the services to be faster, cheaper, integrated and better. For instance, mobile banking which is easier as the customer does not need to be physically present in the bank to transact. Social media through the channels like YouTube help market the organization’s services. The company has been impacted by e-commerce in the sense that the corporation’s customers are able to transfer cash online when engaging in online transactions. The organization also allows the buying of shares in the company through the online channels making it convenient for their customers. Data and analytics impact the company in such a way that information collected about the market conditions including competition gets analyzed to identify information that is useful and use it to ensure that the company processes get optimized in order to increase the company’s overall efficiency and improves the satisfaction of customers.

Industrial Organization Model

Industrial organization model refers to how the organization operates in terms of productivity whereby it looks at the regulatory policy, market competition, antitrust policy and the company’s strategic behavior. This model makes use of an external perspective that is used for the explanation that the organization’s outside forces are a representation of the influences that are dominant on the organization’s strategic actions. This gets based on several assumptions; the decision makers of the organization get assumed to be committed and rational in acting in the organization’s best interest (Parakhina et al., 2017). This is evident in JP Morgan whereby the leaders are responsible in ensuring that the needs of the customers are met by ensuring that the employees give the best they can to ensure that the business maintains its profitability and beats competition. The resources that get used by the organization for the strategy implementation are mobile across firms. This mobility ensures that profits are maximized by spending less on resources that can be shared within the organization. Most organizations that JP Morgan Chase & Co is in competition with make use of similar strategies and sets of resources that are strategically relevant in ensuring that the organizations meet their objectives. The environment that is competitive puts pressure on the corporation and also helps determine the strategies that will get used to produce impressive returns to investments.

Resource-Based Model

JP Morgan Chase &Co makes use of the model that is based on resources by adopting its characteristics and resources that are unique and using them to earn returns that are above average (Barney, 2018). An example of this unique characteristic for JP Morgan Chase & Co that is uses to maximize returns is the fact that it has been able to merge investment banking and commercial banking in a way that makes sense. Because of this, there are wild varieties of corporate cultures and personalities that get to mix. Because of the diversity, the corporation is able to develop unique or different capabilities from the wild variety of skills that may be presents due to its diversified organizational culture. With different skillsets available to the organization, it will be possible for the organization to make use of strategies that are new in trying to achieve the strategic competitiveness. In the model that is based on resources, JP Morgan Chase & Co will not be able to exercise mobility on the basis that the skills of a person cannot be shared as the information could be part of a competitive strategy to ensure that the organization achieves great returns, more than their competition.

Vision

The vision statement for JP Morgan Chase is “to be able to be the best company in providing financial services in the world, with their platform that is excellent and great heritage making it possible to reach their goal.” This vision is important as it sets the common goal that employees can look towards in working towards achieving the goals that have been set by the corporation. This vision statement for JP Morgan Chase entails the details of what the company wants to achieve, the purpose and what the company is striving to achieve. The aspirations of the organization are to be the best worldwide financial service provider, the great heritage they have is with regard to diversity which enables them to explore different skills and achieve optimal outcomes with regard to satisfaction of the customers. The fact that the organization involve both investments and commercial banking places it at a better position to achieve the set vision.

Mission

The mission of the corporation is “to make it possible for many people to share and contribute in the growing economy’s rewards. JPMorgan Chase & Co believe that the reduction of inequality and creation of prosperity that is widely shared needs nonprofit, business, government and other civic organizations to collaborate, especially in metropolitan and city regions that power the growth of the economy.” The efforts to make this mission a reality by the organization has been through the provision of employment opportunities for students of IT to be able to launch their careers starting with internships at JP Morgan Chase. This mission statement will affect the success of the organization in the sense that it will be able to attract the interest of so many people due to its involvement in matters of public interest. In working towards improving the economic growth of the regions in which it has offices, it will also boost its growth due to the expansion of business and the publicity it will have attracted through its collaborations.

Stakeholders

Stakeholders are those individuals who can be affected and can also affect the strategic outcomes of an organization that get achieved and have claims that are enforceable on the corporation’s performance. JP Morgan & Chase has many stakeholders classified into internal and external stakeholders (Hitt et al., 2020). The internal stakeholders or entities that are within the business include managers, employees, investors and the Board of Directors. The investors impact the organization by making investments of capital to keep the organization running while reaping the returns from the invested funds. The employees impact the organization in the sense that they have a stake that is direct in form of their income of employment as well as other benefits that are either not monetary or monetary. The managers are also employees and as such they have stake of employment salary and other benefits. The members of the Board of Directors are individuals who hold significant stake of shares in the corporation and as such, they impact the decision making processes of the organization. The external stakeholders are entities that are outside the business and include customers whose stake is the service value or quality. The customers impact the business in that the funds they bring in exchange for the services help generate profits for the organization. Communities are also external and hold stake in form of economic development, health and safety in the sense that when JP Morgan Chase sets up new office in a particular community, opportunities for employment get created and the economic position of the community gets improved as well. The impact of the Government on the corporation is that it holds stake in form of GDP and Taxes which makes it the significant stakeholder in the business.

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