Business Policy & Strategic Management

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Business policy and strategic management

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Introduction

For this assignment, the companies starting with “J” include JP Morgan, Johnson & Johnson and “B” is Balenciaga. JP Morgan is an American multinational financial corporation. The company operates globally and assists its customers in financial services. Most of its customers include governmental institutions, individual customers and private organizations. Johnson & Johnson is an American multinational company that deals in the production of pharmaceuticals and common consumer goods used on a daily. The company was founded in 1886 in the United States and has since grown globally. Balenciaga is a fashion company founded in 1919 and deals in the design of clothes and shoes.

Strategic management

JP Morgan operates in the competitive financial industry. The company faces competition from other key players in the industry. Over the years, the company has been popular for excellent financial services to its customers. The company combines its policy expertise with its business strategy to beat competitors. The current strategic management plan at the company is the adoption of a long-term strategy to become a digital bank as a mode of preparing for future generations (Morgan, 2017). The company’s primary objective is to offer online banking services and keep at par with the modern technology. The world has shifted to the inline scope with most companies offering their services online. JP Morgan’s latest strategy to shift services to an online platform will not only benefit the company, but also create a safe banking space for its customers.

JP Morgan has identified five segments to help in incorporation of the strategy. The main segments in the company include expansion of international business activities, strengthen the business, build a commodity market, develop both medium and small enterprises and expand the organization’s network to reach a larger clientele base. By working in these business segments, JP Morgan will easily implement its primary strategy successfully. The company not only focuses on critical factors in business but also meeting its customers’ needs (Morgan, 2017). The two most crucial metrics that JP Morgan should consider to ensure the strategy is successful are the use of surveys and online metrics. Surveys will determine the level of satisfaction to customers on the online financial services. Online metrics will determine the success rate of the strategy.

JP Morgan is a global company with over 110,000 institutions globally (Morgan, 2017). The company employs up to 250,000 people globally (Morgan, 2017). The company started its services in the United States and later grew to invest in other countries.

The company has taken up technology in offering all its services. As a primary strategic plan, JP Morgan aims at becoming a digitalized company by ensuring all its services are remotely available to customers through an online platform.

The company’s major stakeholders include the company’s management, workers, investors and its customers. The company’s management consists of the CEO who is responsible for managing all operations in the company. The staff members consists pf all employees in different departments like the human resource manager. He is responsible for hiring employees and ensuring a safe working condition for the employees (Morgan, 2017). The investors include all companies and individuals who have invested in the company. An example is an individual who has bought JP Morgan shares.

External environment

Balenciaga is a global luxury fashion brand that deals in high end clothes and shoes. The company rose from its parent company Kering and has since functioned individually, occupying the global fashion space. Some of the external environment factors affecting business functionality for Balenciaga include:

· Political factors such as government policies and the impact from trade war. Trade war between nationalities is becoming a common external factor in the business world. Some governments restrict companies from certain countries from investing (Miller et al., 2017). This makes it hard for Balenciaga to invest in areas such as war infested countries like Afghanistan.

· Economic factors such as the global economic crisis. The world is currently facing an economic crisis. The global inflation of prices makes it difficult for Balenciaga to invest in manufacturing more products since the already produced are not selling.

· Social factors such as structural changes in the fashion industry. The fashion industry keeps changing. Diversity ion the fashion industry makes it hard for Balenciaga to make sales on old fashioned products. Customers require new fashion and follow fashion trends while making purchases.

· Technological factors such as digitalization in all activities globally (Miller et al., 2017). The world is currently a global village. Most of the activities have been shifted to the online scope. This is an opportunity for Balenciaga to shift its operations online and make better profits.

· Legal factors such as business laws in different countries. Business laws and regulations differ from one country to another. Due to strict business laws in some countries, it has made it hard for the company to venture into business.

· Environmental factors such as ethical sourcing of raw materials (Miller et al., 2017). The current trends in the world call for sustainability and maintain a sustainable supply chain. This is a factor that is yet to be put in practice by the company hence making its operations unsuccessful in some countries.

Balenciaga is a global luxury fashion brand that deals in high end clothes and shoes. The company rose from its parent company Kering and has since functioned individually, occupying the global fashion space. Some of the external environment factors affecting business functionality for Balenciaga include:

· Political factors such as government policies and the impact from trade war. Trade war between nationalities is becoming a common external factor in the business world. Some governments restrict companies from certain countries from investing (Miller et al., 2017). This makes it hard for Balenciaga to invest in areas such as war infested countries like Afghanistan.

· Economic factors such as the global economic crisis. The world is currently facing an economic crisis. The global inflation of prices makes it difficult for Balenciaga to invest in manufacturing more products since the already produced are not selling.

· Social factors such as structural changes in the fashion industry. The fashion industry keeps changing. Diversity ion the fashion industry makes it hard for Balenciaga to make sales on old fashioned products. Customers require new fashion and follow fashion trends while making purchases.

· Technological factors such as digitalization in all activities globally (Miller et al., 2017). The world is currently a global village. Most of the activities have been shifted to the online scope. This is an opportunity for Balenciaga to shift its operations online and make better profits.

· Legal factors such as business laws in different countries. Business laws and regulations differ from one country to another. Due to strict business laws in some countries, it has made it hard for the company to venture into business.

· Environmental factors such as ethical sourcing of raw materials (Miller et al., 2017). The current trends in the world call for sustainability and maintain a sustainable supply chain. This is a factor that is yet to be put in practice by the company hence making its operations unsuccessful in some countries.

The three factors that have a great impact in the company are social factors, legal factors, and economic factors.

The four global factors affecting Balenciaga include:

· World economic crisis.

· COVID-19 pandemic.

· Ukraine-Russian ware making it hard to make sales in those countries.

· Changes in fashion trends and imitation. There are imitation products in the market retailing at a cheaper price. It makes it hard for Balenciaga to make sales.

Two opportunities for Balenciaga include:

· Digital innovation in business.

· Growth in diversity of the fashion industry.

Internal environment

JP Morgan’s internal environment consists of:

· Strengths. The company has a large net worth and is the largest bank in the United States thus increasing its popularity. It’s net worth helps the company invest and make more business ventures hence increasing its profitability (Sale, 2013).

· Weaknesses. JP Morgan faces stiff competition from other market competitors and companies in the current era. The banking world has attracted many investors, increasing competition in the market.

· Opportunities. JP Morgan has the opportunity to diversify its financial services to other countries in the world. Such an opportunity is crucial in helping the company invest more and make extra profits (Sale, 2013).

· Threats. JP Morgan faces a threat from the unstable mortgage market. This can cause losses to the company hence posing as a threat.

JP Morgan has a capability of making more investments in other countries. Expanding its operations will increase the company’s clientele base hence increasing its profitability. The company also has the capability to catch up with the latest technological trends. The company can shift all its business activities online and make more profits from it. However, JP Morgan has weaknesses that it needs to improve on. The company faces competition from new companies and already existing financial institutions (Sale, 2013). In this case, the company’s management should look for strategies to beta market competition and retain its business position.

JP Morgan outsources some of its services just like other companies. The company considers outsourcing more efficient and less costly than hiring new employees. The company outsources researchers and surveyors to conduct shirt and long term surveys. The company could benefit from outsourcing short term workers. It is cheaper to outsource employees for temporary and short term positions than hiring them permanently.

Business-level strategy

Johnson and Johnson is a popular company dealing in the manufacture of consumer products. The company is more popular for the production of pharmaceutical products. J & J has been producing pharmaceutical products which include medicines to its customers. In the recent past, the company has taken over the fight against COVID-19 by producing the Johnson and Johnson vaccine. Johnsons and Johnsons’ pharmaceuticals are ore preferred in the market than other brands. The company offers high quality products that meet customers’ expectations and have regularly been authorized as safe to use. There has been less complaints about the company’s pharmaceutical products hence making them more popular and best-selling in the market. Despite the pharmaceuticals been of high quality, they are affordable to all customers. Compared to prices offered by competitor companies, J & J pharmaceuticals are cheaper (Aniqoh, 2019).

Johnson and Johnson uses a horizontal integration growth strategy business model. This business model allows the company to expand its business activities to different parts of the world without limitations. The business model allows the company to diversify in the production of many products without hindering its original business plan. The company has acquired different industries in a bid to expand its activities for profitability.

The company focuses on product diversity. The company’s management has invested in diversifying its business ventures to different industries. This makes J&J one of the most profitable companies globally (Aniqoh, 2019). The company does not deal in a particular product. Apart from producing pharmaceuticals, the company also manufactures products used in daily activities such as oils, baby hygiene products and body essentials.

The company’s market segmentation is as diversified as its business operations. J&J has a diverse product portfolio hence segments markets based on the demand of the product.

References

Aniqoh, N. A. F. A. (2019). A Strategy Framwork For Deciding Between Alliances Or Acquisition Of Johnson & Johnson Pharmaceutical Company (Case Study: Strategy Farmwork of Johnson & Johnson And Cipla Inc in The Production of Anti-Infectious Drugs). Journal of Digital Marketing and Halal Industry, 1(1), 25-46.

Miller, L. E., & Victoria and Albert museum (Londres, Royaume-Uni). (2017). Balenciaga: Shaping Fashion. V & A Publishing.

Morgan, J. P. (2017). JP Morgan Chase & Co. Annual Report.

Sale, H. A. (2013). JP Morgan: An Anatomy of Corporate Publicness. Brook. L. Rev., 79, 1629.