JP Morgan Chase & Co. JP Morgan Chase & Co. was formed in 2000 by the merger of JP Morgan & Co and Chase Manhattan Corporation (JP Morgan Chase, 2007). This merger created a new playing field for the corporation. JP Morgan Chase & Co. now has over $2 trillion dollars in assets and is a leader in the banking and investment industry. JP Morgan Chase has since merged with other financial institutions and simply monopolized the industry. They are recognized as one of the big four banks alongside Citigroup, Bank of America and Wells Fargo (JP Morgan Chase, 2007).
The corporation provides services to customers in many different countries and services include: Asset management, investment banking, commercial banking, private banking, securities services and treasury services (Businesses, 2010). JP Morgan Chase faces obstacles in the days ahead due to the previous mergers with the company and the current economic conditions. The company has taken over many smaller banking institutions in the last 10 years. These companies did not illustrate successful strategic management; therefore, they were forced to sell out.
The effects of the poor decision making in these mergers will result in problems for JP Morgan Chase. Chase Manhattan as well as the other mergers brought negativity with them to JP Morgan. Chase was known for dishonesty and fraud toward the end of their reign. The Inner City Press released letters exposing the fraud and dishonesty of Chase Bank (The JP Morgan Chase Watch, 2000). It is important for JP Morgan Chase to be aware of the unethical and non professional behavior of their mergers.
As JP Morgan Chase continues to merge and grow in the banking industry they will encounter more dissatisfied customers from the merger. JP Morgan Chase’s Chairman and CEO, Jamie Dimon, expresses the corporation’s aim as, “Our aim is to be the world’s most trusted and respected financial services institution. ” This is the mission of the company and also the beginning of strategic management. It is important for the company to uphold this commitment and assure customers that they are the “real deal”.
They will be responsible for correcting the poor decisions made by their merger prior to the merge. These expectations from customers may cause financial dilemmas for the company if correcting the problem is costly. The corporation should make allowances in the budget for oncoming obstacles from current and previous mergers. The company also faces threats from economic factors that are current in the world today. JP Morgan Chase is an investing company and in return generates revenue when individuals and businesses use the investment services of the company.
The unemployment rate is higher than ever as well as the cost of living increase and in return affects individual investing. These factors result in individuals using money to pay monthly bills instead of having the luxury of investing. Businesses are struggling in this economic downtime; therefore, they are not able to use investing companies such as JP Morgan Chase. JP Morgan Chase has set their objectives for strategic management and founded the strategies for implementing them in management.
It is important for them to follow these strategies daily in order to carry out the strategic management plans (Hunger & Wheelen, 2007). Strong ethical values are also important factor in strategic management and it is the responsibility of upper management and board of directors to carry out these values (Hunger & Wheelen, 2007). JP Morgan Chase should also consider external environmental variable and the effects they have on the corporation. Economic forces as mentioned previously play a major role in the success of JP Morgan Chase.
Balancing the commitment of the community and shareholders may be one of the most difficult tasks for JP Morgan Chase. The shareholders prefer the maximum profit possible in order to maximize return; however, the community wishes to be able to purchase products or services at the lowest price possible. It is the responsibility of the company to balance these two demands. In order to do this professionally and beneficially the company must have a strategic management plan. It is the responsibility of upper management to make the best decision for the company as a whole.
There will be times that the community will be affected by a decision that pleases the stakeholders and vice versa. It is important for management to make these strategic decisions and be sure of the outcome and the affects on everyone. The stakeholders should be happy simply because they are providing the investments for the company; however, it is important to keep the community happy as well in order to receive revenues. It seems that there is a fine line to walk in these situations and the company’s management team should be trained in making these strategic decisions.
In conclusion, it has been stated that JP Morgan faces obstacles simply because of all the mergers in the last several years. They are accepting all responsibilities to keep happy customers in their business despite all the hardships the merger has caused. It is also important for the budget to allow for the outreach that is needed in order to reverse all negative effects of the current merger. It has also been concluded that economic conditions in the current time is a major hardship for the company. It is important for JP Morgan Chase to practice making strategic decisions that will in return benefit the company.
References Businesses. (2010). JP Morgan. Retrieved on January 8, 2010, from http://www. jpmorgan. com/pages/jpmorgan/about/businesses Hunger, J. David and Wheeler, Thomas L. (2007). Essentials of Strategic Management (fourth edition). Upper Saddle River, NJ: Pearson Prentice Hall. JP Morgan Chase. (2007). Retrieved on January 8, 2010, from http://www. mahalo. com/jp-morgan-chase JP Morgan Chase Watch. (2000). Inner City Press. Retrieved on January 9, 2010, from http://www. innercitypress. org/jpmchase. html