RAMRAO ADIK INSTITUTE OF TECHNOLOGY

DEPARTMENT OF COMPUTER ENGINEERING

Project Report on :

JP Morgan Chase Co.

Project Title :

Business Portfolio analysis

Team Members :

Chaitanya Thorat – 22CE5504

Keshav Pai – 22CE5502

Siddesh Kadam – 22CE5507

Class – Division – TE-H

Academic Year- 2023- 2024

Professor’s Signature _____________________

 RAMRAO ADIK INSTITUTE OF TECHNOLOGY
Dr. D. Y. Patil University, Nerul, Navi Mumbai – 400706

Certificate
Department of _____________________________________
Year_____ Semester _______ University Seat No. _________
School Roll No. ____________________Date _____________

This is to Certify that Mr./Miss _________________________

________ has satisfactorily completed the Report & Term Work
for the subject _____________________________ as
Prescribed by the D.Y. Patil deemed to be University, in the
laboratory of this school during the period ____________ to
_____________

Faculty in-charge Head of the Department Principal

2
 Table of contents –

i. Introduction
ii. Literature Survey
iii. Business Portfolio
iv. Vision Statement
v. Organisational Goals
vi. Services
vii. Assets under management
viii. Mergers & Acquisitions
ix. Holdings
x. Net-worth/Net-Income
xi. Strategic Shifts
xii. Conclusion
xiii. Bibliography

3
 Introduction

Business Portfolio analysis –

When a business has a portfolio of products, it might face issues with

its management. It might have a problem allocating investments (product
development, promotion, etc.) across the portfolio and deciding what
products to pay more attention to. Thus, managers must analyze the
company's business portfolio in terms of how all the products are doing.

Product portfolio analysis refers to looking at a business's collection of

products to assess which ones require more or less investment.
The Boston Matrix is a valuable method of analyzing a business's product
portfolio.

The Boston Matrix is a model that helps businesses analyze their product
portfolios. It is a tool that analyzes products regarding their market share
and growth.
The Boston Matrix categorizes products into one of four areas on:

• Market share - does the product have a low or high market share?
• Market growth - is demand for the product on the market low or high?
The purpose of such a review is to determine where a company should
focus its investments and business activities. Companies can hire a third
party firm to perform this work, or they can do it internally with assistance
from key members of management. This can be part of a plan for
reorganizing, improving business strategy, or cutting costs to make a
business run more efficiently.

4
Business portfolio analysis - is the type of
corporate process that defines in which industries
the corporation will operate and how it will
allocate its resources [1]. Business portfolio
analysis is also known as portfolio
analysis or product portfolio analysis[2].

At the beginning of the portfolio analysis, it was used

in investment management. Directly into strategic management, it was
introduced during the 1960s. Several portfolio analysis techniques have
been developed since then. One of the best known is the BCG growth-share
matrix [3].

It is important to clarify an additional two concepts: business

portfolio and portfolio analysis. Kotler P. and Armstrong G. write
that business portfolio is "the collection of businesses and products that
make up the company" [4] and that portfolio analysis is "the process by
which management evaluates the products and businesses that make up the
company" [5].

5
Literature Survey

A business portfolio analysis is primarily a process of categorizing a

company’s products and services and based on their performance and
competitiveness. The categorizing helps a company recognize where they
should invest, reorganize, cut costs, and improve their overall business so
that it’s more efficient and profitable. Also showing all the holdings,
employees, the organisational goals etc and problems to tackle to.

In this topic we have provided an detailed review and analysis on the tool
BCG Matrix and given a gist on the Financial Service Giant ‘JP Morgan
Chase Co. And how this emerging brand which has over $2Trillion in
AUM(Assets under Management) and their journey, how their strategic
shifts played out & how successfull of a firm Mr. Jamie Damon (CEO) has
established as of 2023.

We tried and mentioned the maximum information for this firm, which we
had at hand on the internet. JPMorgan Chase & Co., formerly J.P. Morgan
and Company, Inc., American banking and financial services company
formed through the December 2000 merger of J.P. Morgan & Co. and
The Chase Manhattan Corporation. It is headquartered in New York City.

The Morgan branch of the corporation traces its history to J.P. Morgan and
Company, Inc. (established 1895), and Guaranty Trust Company of New
York (1864), which merged in 1959. The bank was renamed Morgan
Guaranty Trust Co. in 1969.

6
Business Portfolio –

Company portfolios contain information about the organisation's services,

products, assets, mission and goals. A portfolio is a helpful tool for planning and
creating business strategies. If you're a business professional or you want to
become one, learning what a company portfolio is and discovering how to
manage it can help you improve your knowledge and performance. In this article,
we explain what a business portfolio is, detail the steps you can follow to create
one, list potential company portfolio benefits, compare business and product
portfolios and offer helpful tips for portfolio creation.

A business portfolio is a document that contains important information about an

organisation, including details about what the organisation does, its goals,
available assets and mission. Business leaders can use portfolios to organise
information and make informed decisions. Company portfolios also help guide
business leaders when they develop strategies for reaching important company
goals.

These are some things you can include in a company portfolio:

• the company's mission statement

• current organisational goals
• investment and amounts
• services and products
• branding elements
• company assets and holdings
• copies of important certifications
• details about strategic alliances

7
Business vs product portfolios

A product portfolio differs from those for

business because the product portfolio focuses
solely on the products and services that the
organisation sells. For example, a product
portfolio may contain information about specific
physical products, including material for making
them, pricing strategies and essential equipment for production. A product
portfolio may also detail business services and the processes for selling and
distributing them. A company portfolio has a broader range of information, and
while it can contain information about products, that's not its sole purpose.

8
Vision Statement-

• In a fast-moving and increasingly complex global economy, our success

depends on how faithfully we adhere to our core principles Delivering
exceptional client service Acting with integrity and responsibility To
support the growth of our employees.

Business Principles
Certain principles are fundamental to our success and each of these principles is
how we will become the best and most respected bank in the world.
Corporate Governance
We are proud of our long tradition of integrity, honesty and respect. Because that
goes a long way in insuring trust and accountability today and into the future.

Our Business
JPMorgan Chase & Co. is the name of the holding company and the firm serves
its customers and clients under its Chase and JPMorgan brands

The original mission is to be the best financial services company in the world.
J.P. Morgan is a global leader in financial services, offering solutions to the
world's most important corporations, governments and institutions in more than
100 countries.

9
Organisational Goals-

• Aims to finance and facilitate more than $2.5 trillion over 10 years
• 10-year target to include $1 trillion for green initiatives, such as renewable
energy and clean technologies.
• Encouraging actions that set a path for achieving net-zero emissions by
2050.
• The firm will focus its efforts on small business financing, home lending
and affordable housing, education and healthcare. ($30 Billion)

JP Morgan and Chase is an established business which has been a part of the
financial services industry for more than 200 years. Although the company has
faced legal and regulatory issues as a result unstable economic environment from
the Great Recession and because of self- proclaimed mistaken actions (JP Morgan
Chase & Co., Dec 2014). Moving forward, JP Morgan and Chase continue to
identify opportunities to maintain the status of a leading global financial service
with acquisitions or mergers of smaller banking businesses as well as identifying
innovative technical services in emerging oversea markets. Boone and Kurtz
(2015) describe how an acquisition allows a large domestic business, like JP
Morgan and Chase a chance to utilize current
operations to gain an immediate presence. JP
Morgan and Chase’s operations are organized
around consumer and community banking,
corporate and investment banking, commercial
banking and asset management. JP Morgan and
Chase’s business principles are designed around
10
four core goals: exceptional client services, operational excellence, a commitment
to integrity, fairness and responsibility, as well as a great team with a winning
culture (JP Morgan Chase & Co., Dec 2014). Recently JP Morgan and Chase
announced a partnership along with Amazon and Berkshire Hathaway to build a
new ‘hybrid’ health care entity for their current as well as future employees (Terry,
2018). In addition, JP Morgan and Chase’s marketing strategy also includes new
‘hybrid’ funding models for the purpose of creating platforms that are stable and
long-term funding (Adams, 2017). These are just two of the many examples of
how JP Morgan and Chase continue a legacy of innovation.

Achievable
The goals set by J P Morgan Chase should be achievable. This means that J P
Morgan Chase should have the resources and the finances necessary for being
able to realize the organizational goals over the long haul. J P Morgan Chase
should also have the strategic leadership to be able to achieve these organizational
goals.

Time-frame defined
All goals set by J P Morgan Chase- even for the long term – have an attached
time frame. This is important to ensure that the organization is effective and
efficient in realizing its goals.an attached time frame for the goals set for the long
term future also helps in establishing a related time frame for the more short term
organizational objectives.

11
Easy to understand
The goals should be fairly simple and should be easily understood by all
employees of J P Morgan Chase. This is important as only when employees are
clear about what the goals are, their importance, and the urgency of achieving
them will they be able to relate with them and work towards achieving them.

Easy to communicate
The goals set by J P Morgan Chase should also be easy to communicate. This
means that the jargon used for goal setting and goal communication should be
clear and precise. These goals should be communicated with all managerial
levels, and all employees to allow them a directive path to help the organization
achieve these goals.

Pragmatic
The goals set by J P Morgan Chase should also be realistic in nature. This means
that all strategic goals defined by J P Morgan Chase should take into
consideration not only its internal financial position and resources but also the
skill set of its employees and the larger macro environment. This will enable the
company to set goals that will sue the core competencies of J P Morgan Chase to
help it achieve the strategic goals easily, and realistically.

Relation with job tasks

All goals should be relatable with the employees of J P Morgan Chase. This
means that all goals should directly or indirectly be tied to the job tasks and job
nature of employee

12
Services –

1. Wealth Planning & Advice

Wealth planning takes a broader view. A wealth planner will ask a lot of questions
to find out who you really are and what matters to you, and base their bespoke
advice on what they discover.

“There’s no point talking about investments before you’ve got the wealth plan
right,” says Dean Moore, head and managing director, Wealth Planning at RBC
Wealth Management in the British Isles. “Imagine you were buying a car – how
many doors do you need? Where is it going to go? The investment part is really
putting fuel in the engine to get you there. But first you need to know the
destination.”

For instance, say you’re a serial entrepreneur in your 50s and have sold a few
businesses in the past, you probably have different priorities from someone
younger who has shares in a company and “wealth on paper” but has yet to release
that money from their enterprises.

2. Investing

Investing, broadly, is putting money to work for a period of time in some sort of
project or undertaking in order to generate positive returns (i.e., profits that
exceed the amount of the initial investment). It is the act of allocating resources,
usually capital (i.e., money), with the expectation of generating an income,
profit, or gains.

One can invest in many types of endeavors (either directly or indirectly) such as
using money to start a business, or in assets such as purchasing real estate in
hopes of generating rental income and/or reselling it later at a higher price.
13
 3. Business Banking

Business banking is a company's financial dealings with an institution that

provides business loans, credit, savings accounts, and checking accounts,
specifically designed for companies rather than for individuals.

Business banking occurs when a bank, or division of a bank, only deals with
businesses. A bank that deals mainly with individuals is generally called a retail
bank, while a bank that deals with capital markets is known as an investment
bank. There are some banks that deal with both types of clients.

Business banking is also called commercial or

corporate banking. Banks provide financial and
advisory services to small and medium
businesses as well as larger corporations. These
services are tailored to the specific needs of each
business. These services
include deposit accounts and non-interest-
bearing products, real estate loans, commercial loans, and credit card services.
Banks may also offer asset management and securities underwriting to their
corporate and business clients.

4. Private Business Advisory

JP Morgan’s take on the private business advising of their firm is Managing the
day-to-day operations of your business can leave little time to consider your long-
term vision—both for the company and for you. Whether planned or not, all
businesses eventually face a transition. At the Private Bank, our specialists will

14
think through these choices with founders and families: Pass the business on?
Raise capital to fund growth? Sell a portion or all of the business? No matter the
scenario, we look to provide customized advice, aiming to connect your vision of
success for your company with your personal wealth goals.

A business advisory is a professional financial service that gives business advice

and helps make strategic plans with business owners or decision makers of a
company or organisation. Business advice can benefit any business, no matter the
size, helping them make great decisions that will target their goals and financial
needs while managing potential risks that may arise.

A good business advisor is a strategic voice that provides business and financial
advice for your business. From the fine details to big picture, their role is to
support you with decisions and direction relating to your business, finances and
employees.

In a report by The Australian Centre for Business Growth, they found 14% of
businesses failed due to poor financial management,

Whether you’re experiencing business growth, struggling with cash flow, putting
on new employees or are lacking clarity on the financial health of your business,
a business advisor will help you with your specific situation.

15
Assets under management –

Assets under management (AUM) is the market value of the investments

managed by a person or entity on behalf of clients. AUM is used in conjunction
with management performance and management experience when evaluating a
company.

When calculating AUM, some financial institutions include bank

deposits, mutual funds, and cash, while others limit it to funds under
discretionary management from individual investors.

16
Mergers & Acquisitions –

Chase Manhattan bank x Chemical Bank –

On March 31, 1955, Chase National Bank (then the nation’s 3rd largest bank) and
the Bank of the Manhattan Company (the 15th largest) merged to form The Chase
Manhattan Bank. Its reorganization as the Chase Manhattan Corporation in 1969
reflected a general movement in American banking to establish holding
companies to own banking operations that were separate from other operations
such as finance companies, which were by law excluded from the purview of
banking.

In 1996 The Chase Manhattan Corporation merged with the nation’s second
largest bank, the New York-based Chemical Banking Corporation, to form what
was then the largest bank in the United States. The merged bank kept the name
The Chase Manhattan Corporation. Chase Manhattan’s December 2000 merger
with investment bank J.P. Morgan created a diverse financial firm, J.P. Morgan
Chase & Co., with leadership in retail banking, investment banking, and financial
services.

Chase Manhattan Bank x JP Morgan –

The Chase Manhattan Corporation. Chase Manhattan’s December 2000 merger

with investment bank J.P. Morgan created a diverse financial firm, J.P. Morgan
Chase & Co., with leadership in retail banking, investment banking, and financial
services

17
Net-worth/ Net-Income –

• The total net-worth of the financial giant is estimated to be $435 Billion.

• As discussed the Assets under Management(AUM) are a staggering $3
Trillion.
• The net-income as of 2022 data is $37.6 Billion.
• Return on equity is above 16% for all common equities.

This is a balance sheet of the 3rd fiscal quarter of JP Morgan Chase Co.
which shows everything from managed revenue to expenses which help
the government with giving us a gist of how monstrous of a financial
firm/Investment bank this is

18
Annual Report (2022,2021)

19
Strategic Shifts –

• 1799-1850s –

Many institutions merged as one to form the Manhattan company; Abraham

Lincoln as the first customer. The Manhattan Company, JPMorgan Chase's
earliest predecessor institution, is chartered by the New York State legislature to
supply "pure and wholesome" drinking water to the city's growing population.

• 1860-1940s –

National banking act; Brooklyn Bridge; Panama Canal; Death of JP Morgan;

WWII Service. Following the bombing of Pearl Harbor and America's entry in
the war, our predecessor banks support the war effort abroad and at
home. Thousands of bank employees serve overseas in the military, while at-
home employees participate in blood drives and prepare packages of food,
clothing and supplies for troops stationed abroad. Our predecessors play an
important role in buying and promoting Treasury securities, sponsoring drives
and selling war bonds at branches

• 1950-1990s –

Chase Manhattan Bank; Electronic data Processing; At home Banking; Mergers,

Bank One tests an early version of home banking called Channel 2000. Bank

20
customers can view their bank balances on a television screen, pay bills and shift
money between accounts. The service works over regular telephone lines.

• 2000-present - Merges with Chase Manhattan; Mobile Banking; Woman

on the move; Chase pay; Advancing Black Pathways, JPMorgan Chase
announces a $75 million global initiative to address the economic
opportunity crisis facing young people. The initiative, called New Skills
for Youth, aims to provide young adults with skills to help them in their
job searches.

21
Conclusion –

Portfolio approaches provide a useful tool for strategists. Granted, these

approaches have limitations, but all these limitations can be overcome with a little
imagination and foresight. The real concern about the portfolio approach is that
its elegant simplicity often tempts managers to believe that it can solve all
problems of corporate choices and resource allocation. The truth is that it
addresses only half of the problem: the back half. The portfolio approach is a
powerful tool for helping the strategist select from a menu of available
opportunities, but it does not put the menu into his or her hands. That is the front
half of the problem. The other critical dimension in making strategic choices is
the need to generate a rich array of business options from which to choose. No
simple tool is available that can provide this option-generating capability. Here
only creative thinking about one's environment, one's business, one's customers,
and one's competitors can help.

22
References/Bibliography

• Zabanga.us
• en.wikipedia.org
• jpmorganchase.com
• jpmorganchase.com/jpmc/ir
• study.com
• studco.com
• slidebean.com
• manh.com
• Investopedia.com
• Etmoney.com

23