Strengths of the JP Morgan Chase Bank
This section presents the various aspects that boost or pull behind the performance of JP Morgan Chase Bank. The strengths and weaknesses hail from the internal affairs while the opportunities and threats resulting from the external environment. The opportunities present a bright future if the company takes advantage of it. On the other hand, the company could not do anything to change the threats [presented but can strive to avoid their negative impact on the organization. The company has all the control over the internal aspects, which are the strengths and the weaknesses. Therefore, it could use the strengths available to perform better and improve the weaknesses to improve the performance position.
The organization has an advantage of having in place long time serving leaders. This enhances a rich background on their ability to serve well in the organization. The rich experience from the various subsidiaries enhances a rich basis of information on which to make decisions on. Therefore, effective and suitable decisions are possible to make at the organizational level (Grant 2016). The experienced leaders present a competitive advantage to the organization in comparison to other companies that have less experienced leaders.
High level of technical know how
The bank applies some of the highest levels of technology to manage the operations. The technology is therefore efficient and enhances a better performance of the employees. In addition, the management of the entire organization is easy as it can be controlled from a central point. Loopholes possible of being induced by some stakeholders are detected from the central point and the corrective measures induced immediately.
The organization also applies the strategic planning aspects regarding the overall management. The vision and mission of the bank are all connected to the strategic plan of the bank to ensure that the set objectives are attained. Planning works well for the organization in the establishment of the path to follow at all times. The future is therefore predicted in good time. Due to having in place the plan for the operations of the presents and future, the level of conflict is minimized. Therefore, processes flow smoothly, enhancing the attainment of better results in the long run.
Weaknesses of JP Morgan Bank
The bank management lacks an effective motivational system for the employees. For this reason, many of the employees remain in their workplaces for the salary and not out of their own will. For a long time, the organization gas concentrated on the profit maximization intention. It has then forgotten about the need to keep the employees rewarded in a fair manner. As a result, the rate of employees’ turnover rate has been quite high all along, lowering the productivity of the organization. This results in the reduction of profitability.
The bank also portrays a failure in the communication system. As much as there is an existing means of communication, it is not effective for the organization. In many cases, communication flows from the top to the bottom. Therefore, the operations take place as a result of instructions offered by the leaders to the employees. However, there is a faded chance for the employees to give feedback to the top leadership. As such, they feel alienated and only work under pressure (Lidstone & MacLennan 2017). Communication is fundamental to the performance of the organization. Two-Way communication is therefore needed to enhance better performance across the board.
Over the years, there have been cases of gender insensitivity in the leadership roles. Many of the leaders of the organization are men. Therefore, the organization does not have a fair platform for which the employees receive promotions. As a result, there is laxity on the side of the employees that feel discriminated, leading to a drop in the rate of productivity.
The organization has poor controlling techniques. The organization has in records that it applies the TQM quality control techniques. However, this remains to be a theory as implementation has not been attained fully. In some instances, the old technology still applies in the conduction of operations. In this regard, sufficient follow up is not done to ensure that such techniques are put in place (Paton & Johnston 2017). Most of the employees also lack the expertise to operate under such procedures induced to them. Therefore, they underperform due to lack of the necessary skills.
It is quite commendable that the bank has a planning strategy to cater for the future needs of the organization. However, the top leadership does not involve the lower level employees in significant decision making. This creates an impression of “us against them” in the normal operations of the organization. As such, the employees feel alienated from the organization and the significant decisions. They think that they are not part of the decisions made (Goworek & McGoldrick 2015). As the level of motivation is minimized, the employees’ productivity is also at its minimum, consequently lowering the profitability.
The macro environment presents various opportunities for JP Morgan Bank.
The population keeps on increasing from time to time. Like any other business, the ability to sell more depends on the number of potential customers coming up. As population increases from time to time, the market for the banking services also rises, creating an excellent opportunity for the company.
The political goodwill regarding the expansion of business has been improving with time. Better rules and regulations have been set for enabling a good environment for business (Wheelen, et al, 2017). The bank could do well if it takes advantage of such factors.
The level of technology also keeps on improving from time to time. Currently, the rate of improvement is quite high. Therefore, the company could do better in future if it invests sufficiently in such technology. Better technology would enable the organization to serve the customers faster and also offer high-quality services.
The economy is predicted to improve with time. Therefore, the living standard of people is anticipated to improve, allowing them to have more for investment. This is an opportunity that the bank ought to capture and utilize to and hence better results in future.
The porters’ model forces represent the various threats that the organization faces into the future.
The buyers continue having more ability as compared to the companies. This is because they have a choice presented by the many banking institutions at their disposal. To convert this into an opportunity, the organization could differentiate its products and services.
Threat of substitution
Other communication companies are continuously replacing the services offered by the bank. The bank, therefore, faces the threat of closing down if it fails to catch up (Johnson 2016). Catching up with the relevant technology would convert this threat into an opportunity.
The competition in the banking sector is quite high. Many banks are in place, and others are coming up. Therefore, the bank faces a threat of losing some of its customers to other operators.
Recommendation and conclusion
It is evident that JP Morgan has an equal share of strengths, weaknesses, threats as well as opportunities. The company ought to maximize its strengths to capture new markets and retain the current market. On the other hand, it should convert the weaknesses into strengths. For instance, it should induce a better motivational program for the employees to boost their productivity. Also, the top leadership ought to have in place a better communication procedure that allows feedback from the employees. The organization should also take advantage of the opportunities presented by the external environment and evade the threats to survive and do well in future.
Goworek, H., & McGoldrick, P. (2015). Retail marketing management: Principles and practice. Pearson Higher Ed.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.
Lidstone, J., & MacLennan, J. (2017). Marketing planning for the pharmaceutical industry. Routledge.
Paton, D., & Johnston, D. (2017). Disaster resilience: an integrated approach. Charles C Thomas Publisher.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.