Assignment on Introduction to Business

Company: JP Morgan Chase & Co.

Submitted to: Md. Mesba Uddin Chowdhury
Submitted by: Aldrich Theo Martin
ID: 16201133

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Methodology:
To make this report we need to collect different data. Those data and information
were collected from various sources.
Two types of sources:
1. Primary Data​ : We couldn’t collect any data from primary source. We mainly
focused on secondary data.
2. Secondary Data​ : We have collected our secondary data from the internet. The
links are given in the reference part of the report.

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 Table of Contents:

Serial no. Details Page No.

1 Introduction 4
2 Company Profile 4
3 Company Background 5
4 Mission of the Company 5
5 Vision of the Company 5
6 Management Team 6
7 SWOT analysis 6
8 PESTLE analysis 7-8
9 Marketing Strategy 8-10
10 Financial Planning 10-11
11 Challenges 12
12 Recommendation 12
13 Conclusion 12
14 References 13

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 1. Introduction​ :
JP Morgan Chase & Co. is an American ​multinational​ ​investment bank​ and financial
services ​holding company​ headquartered in ​New York City​. JP Morgan Chase is
ranked by ​S&P Global​ as the ​largest bank in the United States​ and the ​sixth largest
bank in the world​ by total assets, with total assets of US$2.687 ​trillion​. It is also the
world's most valuable bank by ​market capitalization​. It is one of the oldest financial
institutions in the United States. With a history dating back over 200 years, here's
where they stand today:

❖ They are a leading global financial services firm with assets of $2.6 trillion.
❖ They have a presence in over 100 markets.
❖ They have over 250,000 employees.
❖ They serve millions of consumers, small businesses and many of the world's most
prominent corporate, institutional and government clients.
❖ They are the leader in investment banking, financial services for consumers and
small businesses, commercial banking, financial transaction processing and asset
management.
2. Company Profile​ :
JP Morgan Chase & Co. is a financial holding company, which provides financial and
investment banking services. It offers a range of investment banking products and
services in all capital markets, including advising on corporate strategy and structure;
capital raising in equity and debt markets; sophisticated risk management; market making
in cash securities and derivative instruments; and prime brokerage and research. It
operates its business through the following segments: Consumer and Community
Banking; Corporate and Investment Bank; Commercial Banking; and Asset and Wealth
Management. The Consumer and Community Banking segment serves consumers and
businesses through personal service at bank branches and through automated teller
machine, online, mobile, and telephone banking. The Corporate and Investment Bank
segment offers a suite of investment banking, market-making, prime brokerage, and
treasury and securities products and services to a global client base of corporations,
investors, financial institutions, government and municipal entities. The Commercial
Banking segment delivers services to U.S. and its multinational clients, including
corporations, municipalities, financial institutions, and non profit entities. It also provides
financing to real estate investors and owners as well as financial solutions, including
lending, treasury services, investment banking, and asset management. The Asset and
Wealth Management segment provides asset and wealth management services. It offers
investment management across all major asset services, including equities, fixed income,
alternatives, and money market funds. The company was founded in 1968 and is
headquartered in New York, NY.

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3. Company Background​ :
Name JP Morgan Chase & CO.
Industries Served Banking, Financial Services
Geography Area Served Worldwide
Headquarters New York City, New York, United States
Current CEO Jamie Dimon
Revenue US$​115.627 ​billion​ (2019)
Profit US$​36.431 billion (2019)
Employees 256,981 (2019)
Main Competitors HSBC, Bank of America, Wells Fargo, Citigroup

4. Mission of the Company​ :

JP Morgan Chase’s mission statement is: “​At JP Morgan Chase, we want to be the
best financial services company in the world. Because of our great heritage and
excellent platform, we believe this is within our reach.”​ The straightforward mission
statement indicates how excellence is at the heart of everything moves inside the
company, from offering higher quality services to higher returns on the investment for
their clients.

5. Vision of the Company​ : 

The vision of JPMorgan Chase is underlined by its ​core principles​: “​Exceptional

client service, operational excellence, commitment to integrity, fairness, and
responsibility. A great and winning culture.​ ” These are the key four elements that are
over time that have allowed JPMorgan Chase to grow by providing extraordinary
results to its clients, striving for excellence, and remaining responsible and acting with
integrity and honor as well as retaining talent that enabled growth.

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6. ​Management Team:

Names Position

James Dimon Chairman and Chief Executive Officer

Ashley Bacon Chief Risk Officer

Lori A. Beer Chief Information Officer

Mary Callahan Erdoes Asset & Wealth Management CEO

Marianne Lake Consumer Lending CEO

Robin Leopold Head of Human Resources

Douglas B. Petno Commercial Banking CEO

Jennifer A. Piepszak Chief Financial Officer

Daniel E. Pinto Co-President and Co-Chief Operating Officer

Corporate & Investment Bank CEO

Gordon A. Smith Co-President and Chief Operating Officer

Consumer & Community Banking CEO

7. ​SWOT Analysis​ :

SWOT analysis is a strategic planning tool that can be used by JP Morgan Chase &
Co. managers to do a situational analysis of the company. It is an important technique
to analyze the present strengths (S), weakness (W), opportunities (O), threats (T). JP
Morgan Chase & Co. is facing its current business environment. This company is one
of the leading companies in the financial and banking industry. Jp Morgan Chase is
maintaining its current dominant position by carefully analyzing and reviewing the
SWOT analysis.

STRENGTHS​:
● Leading player in the global
financial services
● Strong liquidity and capital
● Diversified revenue stream
WEAKNESS:
● Increasing expenses
● Over dependence on certain
markets
● Fluctuating market

OPPORTUNITIES:
● Positive outlook for asset
management
● Growing credit card market
● Expand geographically
THREATS:
● Regulatory challenges
● A threat of financial crisis

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8. ​PESTLE Analysis​ :
We are using PESTLE analysis as a strategic tool to analyze the macro environment
of JP Morgan Chase & Co.

POLITICAL FACTORS ● Political stability and importance of

Money Center Banks sector in the
country's economy.
● Risk of military invasion
● Level of corruption - especially levels
of regulation in Financial sector.
● Bureaucracy and interference in Money
Center Banks industry by government.
● Legal framework for contract
enforcement

ECONOMIC FACTORS ● Type of economic system in countries

of operation – what type of economic
system there is and how stable it is.
● Government intervention in the free
market and related Financial
● Exchange rates & stability of host
country currency.
● Efficiency of financial markets – Does
JPMorgan Chase & Co. needs to raise
capital in local market?
● Infrastructure quality in Money Center
Banks industry

SOCIAL FACTORS ● Demographics and skill level of the

population
● Class structure, hierarchy and power
structure in the society.
● Education level as well as education
standard in the JPMorgan Chase & Co.
’s industry
● Culture (gender roles, social
conventions etc.)
● Entrepreneurial spirit and broader
nature of the society. Some societies
encourage entrepreneurship while some
don’t.
● Attitudes (health, environmental
consciousness, etc.)

TECHNOLOGICAL ● Recent technological developments by

FACTORS JPMorgan Chase & Co. competitors
● Technology's impact on product

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 offering
● Impact on cost structure in Money
Center Banks industry
● Impact on value chain structure in
Financial sector
● Rate of technological diffusion

ENVIRONMENTAL ● Weather
FACTORS ● Climate change
● Laws regulating environment pollution
● Air and water pollution regulations in
Money Center Banks industry
● Recycling
● Waste management in Financial sector

LEGAL FACTORS ● Anti-trust law in Money Center Banks

industry and overall in the country.
● Discrimination law
● Copyright, patents / Intellectual
property law
● Consumer protection and e-commerce
● Employment law
● Health and safety law
● Data Protection

9. ​Marketing Strategy​ :

Product​:

JP Morgan Chase provides investment banking and financial services to customers,

small businesses as well as some of the biggest corporate and government clients. The
businesses that use the JP Morgan Chase brand: Institutional Asset Management,
Investment Banking, Investment Management, Markets & Investor Services, Treasury
Services, Private Banking, Wealth Management & Brokerage. These services by JP
Morgan are provided to investors, financial institutions, corporations, municipal
entities and government. In the capital market the bank provides services such as
advise on corporate structure and strategy. It helps corporates in raising capital in debt
and equity markets. JP Morgan Chase also facilitates as loan origination and

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syndication which is the process of getting different lenders to finance the loan.
Treasury Services include transaction services which compromise of cash
management and liquidity solutions and products for trade finance. The Markets &
Investor Services segment include services such as cash securities and derivative
instruments. JP Morgan Chase also offers research and prime brokerage and risk
management solutions. Securities Services business which comes under Markets &
Investor Services includes fund accounting, administration and custody. Securities
and lending products sold to public and private investment funds, insurance
companies and asset managers. Consumer Businesses under the Chase brand: Credit
Cards, Small Business, Home Loans and Home Equity Line of Credit, Auto Finance,
Education Finance, Retirement & Investing, Personal Bank Accounts, Merchant
Services etc.

Price​:

JP Morgan Chase provide different kinds of services for which they charge different
prices. JP Morgan Chase follows competitive pricing and Interest rates are quite low.
The bank charges a brokerage percentage on the various services it provides, therefore
for large businesses make larger profits for the bank. In the credit card segment JP
Morgan Chase cut prices to remain competitive, major competitors being Citigroup
Inc, Paypal Inc and Square Inc.

Place​:

Most of the operations take place via its offices in New York City. JP Morgan has
located its Asia-Pacific headquarter based in Hong Kong and Chase, in Chicago. JP
Morgan and Chase have located operational centres at Phoenix, California, Los
Angeles, Tampa, New York and Texas. The Corporate bank has spread its operations
to one hundred countries and offers corporate solutions. Its headquarters is at London
with regional headquarters at New York, Hong Kong and Sao Paulo. The additional
operational centre is at Phoenix, Newark, Tampa, Rochester and Fort Worth.

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Card-service sector has its headquarters based in Wilmington with its offices in Elgin,
Springfield, Cebu and Mumbai. Its technology operations are situated at Manila,
Cebu, Bangalore, Mumbai, New Delhi, Hyderabad, Sao Paulo and Jerusalem.
Personal services are provided at bank branches and through automatic teller
machines (ATMs). The bank has 5,300 branches and around 15,500 ATMs. JP
Morgan Chase also has other channels such as online, mobile and telephone banking.

Promotion​:

JP Morgan Chase has a very strong brand name and most clients come to this bank
because of its long standing reputation. Main marketing at JP Morgan Chase is done
through client relation. The bank has very good relations with its clients. The
company tries to take care of all financial needs of the client. The bank has “Chase at
Work” program in which employees visit clients and give personalised services
improving the relationship. The company also has referral programs in which clients
are rewarded for getting referrals. JP Morgan Chase is using social media for its
promotion. Online ads are used and the company site also acts as a promotional
channel in which various services are advertised. The company also has a Facebook
page.

10. ​Financial Planning​ (December 31, 2018) :

Income Statement

Particulars Amount ( In Millions )

Non interest revenue $ 53,970

Net interest income $ 55,059

Total net revenue $ 109,209

Total non interest expense $ 63,394

Net interest expense $ 8,290

Net income $ 32,474

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 Cash Flow Statement

Particulars Amount ( In Millions )

Net cash provided by/(used in) operating $ 14,187

activities

Net cash provided by/(used in) investing $ (197,993)

activities

Net cash provided by financing $ 34,158

activities

Balance Sheet

Assets ( In Millions ) Liabilities & equity ( In Millions )

Total current asset $ 2,372,472 Total current $ 1,470,666

liabilities

Total fixed assets $ 74,689 Total liabilities $ 2,366,017

Goodwill $ 54,349 Total common $ 256,515

shareholders
equity

Other assets $ 121,022 Total equity $ 256,515

Total assets $ 2,622,532 Total liabilities & $ 2,622,532

equity

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11. ​Challenges​ :

During the past several years, they have faced a series of legal and regulatory issues.
These include mortgage foreclosure processes, mortgage-backed securities matters,
Anti-Money Laundering Act compliance and foreign exchange matters.

12. ​Recommendation ​:

JP Morgan Chase has faced some issues as mentioned above, some of these issues
arose from their own mistakes. The first step is to acknowledge their mistakes and
move forward. The first step in moving forward is to take full control of their actions
and to recomite to to their high company standard that they set for themselves.

13. ​Conclusion ​:

In conclusion, J.P.Morgan Chase & Co. is one of the largest and oldest financial
institutions in the United States of America. It is one of the top 10 best performing
companies in the world. Even though they have faced many issues in the financial
market, they have always maintained their business principles which made them
successful.

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14. ​References​ :

1. "History of Our Firm". JPMorganChase.com

2.“BusinessPrinciples”
https://www.jpmorganchase.com/corporate/About-JPMC/ab-business-principles.htm

3. “JPMorganChase&Co”-CNNBusiness

https://money.cnn.com/quote/profile/profile.html?symb=JPM

4. “JP Morgan Chase Mission Statement and Vision Analysis”

https://www.astrogrowth.com/blog/jp-morgan-chase-mission-statement/

5. https://en.wikipedia.org/wiki/JPMorgan_Chase

6. "JP Morgan Chase Earnings Release Financial Supplement Fourth Quarter

2019"(PDF). .jpmorganchase.com

7."Operating Committee"

​https://www.jpmorganchase.com/corporate/About-JPMC/operating-committee.htm

8. "SWOT ANALYSIS OF JP MORGAN"

https://www.marketing91.com/swot-analysis-jp-morgan/

9." PESTEL ANALYSIS OF JP MORGAN"

http://fernfortuniversity.com/term-papers/pestel/nyse4/1046-jpmorgan-chase---co-.ph
p

10. "JP Morgan Chase Marketing Mix"

https://www.mbaskool.com/marketing-mix/services/16730-jp-morgan-chase.html

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