Develop a corporate presentation based on a SWOT analysis, strategies for maximizing competitiveness and profitability, a communications plan, and an assessment of efforts related to ethics.

Week 8 Assignment 3

When an organization settles for a given corporate level strategy upon which their operations will be driven on, the decision ought to be arrived at after a lot of considerations given it is the strategy that sets the tone leading to either success or failure. Several fortune 500 companies have hired top CEOs just to guide them through the process of developing strategies that can make these companies increase their market share as well as improving sales. While some companies begin from strategy development, others only attempt to inject improvement from they already have. For an organization to optimally gain from strategies they already have, it is imperative they understand their competitive environment. Once a company is in possession of the detailed profile of its competitors, it stands a chance to develop strategies that can put it ahead of the rest.

Business-Level Strategies

The organization selected is JP Morgan & Chase, Incorporated. It is a US-based bank formed around 1799 in New York City. The company’s heritage incorporates several companies that came together to form what we have today as JP Morgan & Chase Inc. Some of the notable firms include the J.P. Morgan & Co., The Chase Manhattan Bank, among several others. Every company that merged to form the current amorphous institution during their time were either part of or close to innovations that drove finance and the growth of the United States as well as the global economies. The bank is a financial institution overseeing core operations as well as customers scattered all over the world, it finds itself in a peculiar position of leveraging its core competence in the financial sector aimed at promoting sustainability in business practices while at the same time helping customers capitalize on opportunities that achieve social as well as positive environmental impacts (Kleist et al., 2019).

The financial sector is known for heavy regulations from respective regulators hence leaving institutions with a narrow space to explore competitive advantages. Amidst all these, JP Morgan & Chase stood out as technological innovation leaders in the banking sector, coupled up with excellent customer service. The strategy involves winning the market through the creation of sustainable financial opportunities for its customers and supporting them all through. The bank is known for leading roles, some involving helping the federal government during periods of financial predicament.

JP Morgan & Chase's corporate-level strategy has been taken by some people to mean cost leadership strategy where the bank prices its products lowly to attract a high number of sales. Much as most of the products offered by the bank are lowly priced when compared to prices of competitors, a close evaluation will reveal that the bank emphasizes on innovation, which in turn makes it easy price products low (Furrer, 2016). The bank, having realized that clients will always compare products based on their prices, innovation based on affordable, sustainable products was the way to go.

I find the bank's strategy to be extremely good, especially when the world is gravitating towards automation. There is currently rich literature on where the financial sector is headed. A substantial number of such studies show that traditional banking will soon be a thing of the past. The alternative to traditional banking is technologically driven banking that incorporates fintech, digital banking, and pure internet-based banking, among others. It is, therefore, accurate to mention the fact that the company has perfected its business strategy on where the future of the industry currently lies.

Corporate-Level Strategies

When it comes to corporate strategy, it should be understood that there lies a big difference between it and the business one. For business strategy, the company CEO and his team will sit somewhere and first track the process of formulating it until it is finally adopted. However, corporate strategy takes a substantial amount of time. The company definitely will be in need of knowing things to do with orientation leading to stability and growth. In the same breadth, organizations must also be in a position to know the market targeted at any given time. After knowing the market and its characteristics, focus shifts to means of getting resources, and some of the capabilities an organization has. JP Morgan & Chase have done exemplary work throughout the years that the organization has been in the market by penetrating the global financial sector to be what it is today. The bank operates in more than 110 countries and regularly applies mechanisms to address customer complaints ( Rothaermel, 2016).

Value creation, as well as action performance aimed at increasing the final value of service or good or sometimes an enterprise. JP Morgan & Chase’s vision has been to better the lives of those seriously seek difference through hard work. The company’s business is mainly premised on its business vision, which underlines that every deserving individual should always be presented with an opportunity of trying since it is through such processes that some of the world's leading innovations came to be. It is in such circumstances that the strategy of value-creation takes center stage. The JP Morgan & Chase’s product range involves technologically innovative products offered at low prices to encourage people to change their lives through.

JP Morgan & Chase has been operating at the top level for more than two centuries, making it the most experienced banking institution in the country. Throughout its long life, the organization has gathered the necessary knowledge that enables it to maneuver through. In particular, JP Morgan & Chase leverages its technological innovation powerhouse combined with experience and massive resources in order to fulfill the needs of its clients spread out in more than one hundred countries globally. The company is currently reported to have allocated $11 billion for technological innovation that would see a complete revolution of the global financial industry (Agwu, & Onwuegbuzie, 2017). The aim is to reduce the cost of doing banking while at the same time providing clients with a whole lot of financial services that are in consonance with the company's vision.

For JP Morgan & Chase, the choice for corporate strategy is good. It is even incredible to think of the fact that throughout the over 200 years, the firm has held true to its initial promises to its only perfecting them from time. Going into the future, the organization seems to have intensified its grip on leading technological innovation in the banking sector. Currently, there is an $11 billion allocation that is aimed at dismantling the traditional banking system.

Competitive Environment

Companies use a lot of money and other resources to tame what they perceive as competition. The banking sector experiences strong competition, thus, exposing JP Morgan Chase & Co. to problems of here and there. The organization faces intense competition within the country as well as internationally. Some of the rival companies giving JP Morgan Chase & Co a run for its money are HSBC and Barclays Bank. In addition to the above competitive environment, customers within the sector have low switching costs hence intensifying the level of rivalry among these top brands. Rivals such as the HSBC has been concentrating on strategies aimed at drawing customers from JP Morgan Chase & Co. In the recent past, JP Morgan Chase & Co has been concentrating on moving the industry from traditional banking to newly arriving technology-based banking methods, yet the rivals seem to have combined forces to win over its customers (Sustainability - Comprehensive Strategy, 2020).

I consider Barclays Bank and HSBC as the biggest rivals to JP Morgan Chase & Co even though there are some rivals like Bank of America Corporation because the two banks are among the biggest banks that recorded revenue increase in a period that JP Morgan Chase & Co. recorded a drop in revenues. Also, the two banks are guilty of running ads believed to be targeting JP Morgan Chase & Co, and it is as well believed that they have managed to win over a substantial number of its primary customers.

Market Cycles

There will always be competition in the market regardless of the characteristics nature exhibited by a market. Markets are categorized into two; slow-cycle and fast-cycle markets where slow-cycle is characterized by changes that only take place after a long time. However, fast-cycle markets involve the products changing and into new innovative products are being produced in a short time.

As I see it, the HSBC would show changes in the slow-cycle market and would not change. DWR is very innovative. This is because the market focus looking at anything new to come out, there would be no need for consumers to go buy their newer products.

Sources

1. Agwu, M. E., & Onwuegbuzie, H. (2017). The strategic importance of functional level strategies as effective tools for the achievement of organizational goals. Archives of Business Research, 5(12).

2. Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.

3. Furrer, O. (2016). Corporate level strategy: Theory and applications. Routledge.

4. Kleist, R., Newsom, J., Grasz, J., Conley, A., Brodersen, A., & Turco, S. (2019). Huskers Helping Huskers: A Corporate-Level Analysis of the Nebraska Alumni Association.

5. Sustainability - Comprehensive Strategy | JPMorgan Chase & Co. (2020). Retrieved 26 May 2020, from https://www.jpmorganchase.com/corporate/Corporate-Responsibility/es-comprehensive-strategy.htm