A.

Case Abstract
JPMorgan Chase & Co. is a financial institution company that serve the customer in
various services. It is a company that practise financial service worldwide and is currently
competing in global market. It is now a mega company that consists banks and few other
market segmentations that relate to financial services. Since JPMorgan Chase & Co. is a
company that active worldwide, there will always be some issues regarding the ethics.
However, this giant company has already installed few strategies to counter all of the
issues. This company has also widen its market in Investment sector, retail and also card
services and auto. This company is outstandingly performed in its income statement
which related to the factor of various segments. JPM also managed to compete globally
with few mega companies which are the Bank of America, Citigroup, Wells Fargo & Co.
and online banks. There also several issues externally which involve the regulations and
the financial payments from external source.

B. Vision
To be the best financial services company in the world.

C. Mission Statement
i.

JPMorgans mission is to be the best financial services company in the world at

delivering the best customer experience in market that they serve. In doing so,
JPMorgan promote honest and ethical conduct and compliance with the law,
particularly as related to the maintenance of the firms financial books and
records and the preparation of its financial statements.

ii. JPMorgan will increase the firms global presence through an aggressive
international expansion plan. JPMorgan is focused on expanding its asset
management, investment bank and treasury and securities services segments in
Asia, Latin America, Africa, and the Middle East.

iii. JPMorgan will facilitate growth in the small business aim. In doing so,
JPMorgan added more work opportunities such as anticipates an aggressive
hiring of bankers for the foreseeable future in order to provide best service for
consumers and their clients.
iv. JPMorgan will increase the commodity demand with the growth of emerging
markets and anticipates increased business the various commodity asset classes
the firm offers. In doing so, JPMorgan is actively growing its physical branches.

D. External Audit
i.

Opportunities
a) The economic recovery is robust enough to tolerate any short-term term
downward pressures.
b) The acquisition of Sempra in 2011 of commodity dealings.
c) Segmentation of services on largest credit card issuers in the USA.
d) The acquisition of Merrill Lynch with Bank of America.
e) The implications of new regulations and a slow economy.
f)

Failure on stress tests of Citigroup in 2012.

g) Greater job employment in the USA.

ii. Threats

a) Continuous losses on mortgage business in 2011.

b) The growing of usage online banks in US marketplace.
c) Greater total assets for Bank of America in US Banks.
d) Achievement of Banks of America based from their strategy.
e) Wider operations of Citigroup in the largest banking enterprise.
f) Well Fargo expanding on the trading business and earns solid return on
investment.

g) Online bank growing rapidly in market share from large banks.

iii. External Factor Evaluation (EFE) Matrix

Weight

Rating

Average score

0.12

Opportunities
The economic recovery is robust enough to tolerate any short-term
0.04
term downward pressures.
The acquisition of Sempra in 2011 of commodity dealings.

0.09

0.36

Segmentation of services on largest credit card issuers in the

0.07

0.14

The acquisition of Merrill Lynch with Bank of America.

0.08

0.32

The implications of new regulations and a slow economy.

0.07

0.14

Failure on stress tests of Citigroup in 2012.

0.09

0.27

Greater job employment in the USA.

0.08

0.32

Continuous losses on mortgage business in 2011.

0.04

0.12

The growing of usage online banks in US marketplace.

0.05

0.20

Greater total assets for Bank of America in US Banks.

0.09

0.27

Achievement of Banks of America based from their strategy.

0.07

0.07

Wider operations of Citigroup in the largest banking enterprise.

0.05

0.10

Well Fargo expanding on the trading business and earns solid

0.07

0.21

Online bank growing rapidly in market share from large banks.

0.06

0.24

Total

1.00

USA.

Threats

return on investment.

E. Internal Audit
i.

Strengths

Communication
Between employer and the employer of company when they want to
communicate about he product in JP Morgan , the company still value

2.88

face-to-face communication between employer and the employer of

company. For JP Morgan they see that when they explain with details
to their employees, it will boost employees to do business for the
company with good and highly motivated and they they know more in
details about the product that hard to understand such as mortgage or
financial advice for new branch and easier for them to explain more indepth to customer.

Revenue
Because JP Morgan are operates under seven major business it will
lead their business revenues getting more revenues and they also doing
investment it will increase their profit and revenue.

Product
There rare product that offer by JP Morgan that re still in customer
trust to buy in the company which is card credit because their services
in this segment re well managed because it was crucial part that are
relate with customer financial management.

Income
Even though the JP Morgan are having problems in the company there
still department that generate income for their company because there
rare few department in the company are well managed to review their
management.

More than 1200 relationship managers

It help facilitate the company to growth in small business because they
are having relationship managers that can communicate with the top
management and also for each branch even though they are doing
business globally and hard to operate in same building but because of
the managers it easier for them to report to top level if there are any
problems in their branch.

Growing physical branch

Even though nowadays people more to online while doing transaction

but still confident an trusted with physical branch. From here,
company can increase their revenue, customers because they are open
up more branch at globally.

Market share
JP Morgan are having a largest market share in Wall Street with 12.3
percent wit are highest than other competitors and show that the
company are well establish and managed in globally.

ii. Weaknesses

Organizational structure
In JP Morgan, the JP Morgan has organizational design problems or
weaknesses which is there are numerous CEOs, no presidents, dual
title individuals, lack of a clear JP Morgan-versus-Chase dichotomy
and there are too many top level executives. From there, employees
sees that it problems when they want to discuss or follow instruction
from who because there are many top level in one department and they
are not properly structured.

Law department
In JP Morgan there are a few issue that relate with law which is Ethic
Issues. The company wrongly overcharged a several thousand military
families for their mortgages and they improperly foreclosed the issues
and they want to closed the issue s with minimize exposure and faster
conclusion by lower mortgage rates to 6 percent and it hade made the
company lead to major losses with $9 billion. The company in this
department are not properly reviewed and monitored and hade made
them have a flaw when they want to settle this issue.

Expanding business
the JP Morgan are slowly expanding their business into newly
emerging market or even frontier market such as Asia, Latin America,

Africa and Middle East. It can increase their number of client are it
will increased their value of market share because the company expand
into globally and worldwide known about the company.

Mortgage losses
the company continually faces mortgage loses because from the
company are having ethical issue it will lead the customer not trust
their company because the rare poorly manage in mortgage.

Revenue drops
which is in 2011 the company are having a greater loss in their revenue
because the ethical issue that relate with the mortgagethat can effect to
their business because they see that JP Morgan are are not well
knowledge in mortgage area.

Woman in top management

in western country it hard for woman to compete with man while
adjust and manage the business to compete in the markets. Woman are
hard to control emotion when it relate with money and it can lead to
problem s in the management.

Bond trading investment risky

In this market bond-trading is risky while doing investment it was a part
fixed income operations that have to be stabilize in their management
but because are having a risky it hard to control greater losses because it
relate with fixed income.

iii. Internal Factor Evaluation (IFE) Matrix

Strengths
weight
rating
1) Communication Between employer
0.09
and the employer of company
2) Increasing Revenue and profit
0.09
through investment
3) Rare product that offer by JP Morgan 0.06
4) generate income for their through
0.07
various department
5) More than 1200 relationship managers 0.06
6) Growing physical branch by open up 0.05
more branch at globally.
7) largest market share in Wall Street
0.09
with 12.3 percent
8) expanding business newly emerging
0.06
market or even frontier market
Weaknesses
1) organizational design problems with 0.08
numerous CEOs, no presidents,
dual title individuals, lack of a clear
JP Morgan-versus-Chase dichotomy
2) Ethic Issue and made the company
0.06
lead to major losses with $9 billion
3) continually faces mortgage loses
0.07
4) in 2011 the company are having a
0.09
greater loss in their revenue
5) Woman in top management
0.04
6) bond trading investment risky and
0.09
hard to control graeter
Total

3.05

F. SWOT Analysis

Score
4

0.36

0.36

4
4

0.24
0.28

4
3

0.24
0.15

0.36

0.24

0.16

0.12

2
2

0.14
0.18

1
2

0.04
0.18

i.

SO STRATEGIES
a) JP Morgan has seven major business which ease the process of acquisitions with
other well established companies.
b) The companys uniqueness is its well-managed credit card and turns out JP
Morgan to be the largest credit card issuers in the USA.

ii. WO STRATEGIES
a) JP Morgan experiences revenue drops that relate to mortgage area which
however Bank of America will decline in revenue due to slow economy
b) JP Morgan has women in top management which actually shows that there is a
greater job employment in USA.
iii. ST STRATEGIES
a) JP Morgan might be having mortgage losses but excel in other departments and
growing physical branches.
b) Online banks are currently proliferating but market share of JP Morgan is a large
market size.
iv. WT STRATEGIES
a) Lots of large banks are in the midst of enhancing their market while JP Morgan
is the midst of struggling to have its organisation in a well-organized.
b) JP Morgan is having some issues regarding Ethic Issues which leads other large
bank to move forward with cleaner image.

G. Recommendations
1. JP Morgan needs to observe how well other large banks try to compete with JP
Morgan itself. This is because some of the banks are creative in involving their
market in other market segmentation rather than only financial institutions.
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2. A well-known yet well-established company should have a good organization

structure. Good outcome is related with how well the company is being led by the
leader.
3. JP Morgan experiences bad losses in mortgage segment which it is actually need
extra care. JP Morgan has too much segmentations that need to be focused on. It
might be overseeing the performance of mortgage that leads to loss.

10