CompanyBackground: JPMorgan Chase & Co.
is an American multinational banking andfinancial services holding company headquartered in NewYork City.It is the largest bank in the United States, the world’s sixth largest bank bytotal assets, with total assets of $2.5 trillion, and the world’s second mostvaluable bank by market capitalization.
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It is also one of the largest assetmanagement companies in the world with $2.5 trillion in assets under managementand $28 trillion in assets under custody and administration. It is a majorprovider of financial services, and according to Forbes magazine is the world’sfourth largest public company based upon a composite ranking. The hedge fundunit of JPMorgan Chase is the second largest hedge fund in the United States. The company was formed in 2000, when Chase ManhattanCorporation merged with J.P.
Morgan & Co. The J.P. Morgan brand,historically known as Morgan, is used by the investment banking, asset management,private banking, private wealth management, and treasury & securitiesservices divisions. JPMorgan Chase & Co.
owns five bank subsidiaries in theUnited States: JPMorgan Chase Bank, National Association; Chase Bank USA,National Association; Custodial Trust Company; JPMorgan Chase Bank, Dearborn;and J.P. Morgan Bank and Trust Company, National Association.
The firm is built on the foundation ofmore than 1,200 predecessor institutions that have come together through theyears to form today’s company. We trace our roots to 1799 in New York City, andthey have many well-known heritage firms at J.P. Morgan & Co.The Chase Manhattan Bank, Bank One, Manufacturers Hanover Trust Co., ChemicalBank, The First National Bank of Chicago, National Bank of Detroit, The BearStearns Companies Inc., Robert Fleming Holdings, Cazenove Group and thebusiness acquired in the WaMu transaction.
Each of these firms, in its time,was closely tied to innovations in finance and the growth of the U.S. andglobal economies.
They have a vast history of accomplishments in the financialrealm. One of JP Morgan Chase’s predecessors, The Brooklyn Trust Companyprovided a majority of the 15 million needed to finance the construction of theBrooklyn Bridge. The Longest suspension bridge in the world. The historicbridge opened in 1883 and was the first to connect Manhattan and Brooklyn.Another fascinating piece of history is that JPMorgan Chase & Co., owns thebrace of dueling pistols used in the infamous 1804 duel between Alexander Hamiltonand Aaron Burr.
Aaron Burr was the first director of The Bank of The ManhattanCompany, the firm’s earliest banking predecessor. The Bank of The ManhattanCompany purchased the pistols in 1930. Salmon P.
Chase is the namesake for theChase National Bank, which later merged to become JPMorgan Chase & Co.Founded in 1877 by John Thompson, Chase National Bank was named as an homage toSalmon P. Chase, who served as Secretary of Treasury for Abraham Lincoln.Chase’s image was also featured on the $10,000 bill. In 1904, J.P. Morgan & Co.
was part ofthe largest real estate deal at that time, arranging the transfer of $40million from the U.S. government to the French Panama Canal Co. to connect theAtlantic and Pacific Oceans by way of the Panama Canal. In 1924, Chase National Bank appointedMary Andress Assistant Cashier. Chase was the first large New York City bank tohire a female officer in its main office. Andress also actively promotedbanking as a viable career choice for women. The Chase octagon logo debuted in1960 and was one of the earliest abstract company logos.
While the octagon’sappearance has evolved over the years, it has been an integral part of theChase brand for almost sixty years. The United States’ first prototype cashdispensing machine, a precursor to the ATM, was inaugurated by Chemical Bank in1969 at a Rockville Centre branch on Long Island. The first US bank to offercash on demand, 24-hour banking was on its way to becoming a convenience allcould enjoy.
In 2014, JPMorgan Chase & Co. pledged$100 million over five years to support, accelerate, and scale some of the mostinnovative efforts underway to transform Detroit’s economy. The History ofchase is remarkable, but the things they help accomplish since they been on thescene deserves recognition. To me it seems like they had their hand in a greatdeal of financing across the world.
Certain principles are fundamental to theirsuccess. They focus on how they can strengthen, safeguard, and grow the companyover time. This is how they became one of the best and most respected banks inthe world. CEO & Chairman Jamie Dimon stated, “The strength of our company has allowed usto always be there for our clients and communities – in good times and in badtimes – and this strength enables us to continually invest in building ourbusinesses for the future.” Mission Statement:JPMorgan Chase & Co.
compliments itself as a global leader in personal,business, and corporate financial services. The company provides bankingsolutions to major corporations, governments, and institutions in over 100countries. Not only is JPMorganChase& Co. the largest bank in the United States of America but also acharitable organization. With annual charitable donations more than $200million annually to nonprofit organizations that span the globe. JPMorgan Chase& Co. corporate division holds a high standard of responsibility.
Wepersonally can relate to their business motto of operating with a degree ofintegrity while adjusting to community needs during their global economicbuild. JPMorgan Chase & Co. is in pursuit to strengthen their threshold onthe banking community with increased financial capabilities, economic growth,and employee engagement/volunteerism. JPMorgan Chase & Co.
understands the economic impacton communities that suffer from financially unhealthy households. This negativeinstills a passion and commitment internally within the banking corporation topromote households to be more resilient and adaptive to innovativetechnology-based solutions. JPMorgan Chase & Co. has established afinancial solutions lab, more than $30 million dollars to promote innovationsthat can help Americans increase savings, improve credit, and build assets.
This promotion is geared towards people of color, elderly, individuals withdisabilities and low-income women. In addition, JPMorgan Chase & Co.understands the need for growth and expansion within a corporation. The companyhas perceived a global contradiction in which unemployment is high while CEO’Sare concerned with limited growth involving key skills needed for potentialexpansion. Chase understands the contradiction between unemployment and employee-basedskill-set, thus coming up with a solution to closing the skill-based deficiencygap.
JPMorgan Chase & Co. has established a new skill for awork program that establishes a five-year $250 million-dollar global initiativeto help inform and accelerate efforts in support of demand-driven skillstraining for adults. Chase vividly understands the need for adult education buthas devised a program for youth as well! With a global initiative of $75million dollars, this effort will extend skill-based learning geared towardsyouth to help tackle the unemployment crisis, thus further dampening thenegative aspect of unskilled applicants applying for pertinent skill-basedroles. With this initiative in place, Chase hopes to ensure individuals propertraining in competitive employment for skill-based jobs of the 21st century. While JPMorgan Chase & Co.
is committed toindividual/community/corporate growth, they are also making moves to utilizingrenewable energy to eliminate their ecological footprint. Chase has acommitment goal to sourcing their power consumption to 100 percent renewableenergy by 2020. This go green impact will constitute massive changes throughoutall their locations. Currently, the firm has offices and operations within 60countries, covering approximately 75 million square feet with over 5,500properties. JPMorgan Chase & Co. end goal by 2025 will be to offer 200billion in clean financing after outfitting 100 percent renewable resourcesthroughout their entire corporation.
A simple solution such as retrofitting their branches withLED lighting (an energy efficient lighting improvement over the standard bulb)will be equivalent to removing 27,000 cars off the road! With these committeddevelopments and innovations, JPMorgan Chase & Co. will be prepared forfuture engagements implementing an eligible and knowledgeable workforce gearedtowards intellectual and technological advancements. Products andServices: JP Morgan Chase & Co, is a brand known all over the world.This brand employs thousands of people and is considered a mega bank. Thecompany offers a variety of products and services to its customers ranging fromcredit cards to wealth management. Themain branches of JP Morgan Chase & Co, consists of two very largecompanies. These companies are Chase and JP Morgan. For the average every day consumera person could just walk into any of the more than 5,000 branches throughoutthe United States and open a bank account.
This would be a simple and easy stepto get you in the door with this multibillion dollar company. If you are incollege and are interested in getting a student loan; Chase would be able tohelp you with this. This company offers a savings plan specifically for collegecalled a 529 savings plan. The money that you contribute to your account growstax deferred.
This helps with tuition room and board, mandatory fees, requiredbooks, software and computers. This program can be viewed by clicking onthis link. Ifyou’re looking to invest your money into something, this company offersinvestment planning. This company has financial advisers to assist you inmaking financial investments.
They can also help consumers with good retirementstrategies. Anew NPR/Marist poll, “The Rise of the Contract Worker’s Work is Different Now”, findsthat 1 in 5 jobs in America is held by a worker under contract. Within adecade, contractors and freelancers could make up half of the Americanworkforce. Whatis becoming popular in the us are merchant savings accounts. Chase provides these accounts. A merchantsaving account allows small business to accept other forms of payment otherthan just cash. If someone wanted to make a payment for products or servicesusing their debit card, credit card, etc.
This service provided by this companywould allow them to do so. There is also a customer support service departmentfor the customers who have these accounts. This is a good service both smalland large business can rely on. Chase,also offers home and auto loans. Chase, offers competitive mortgage rates. Thewebsite offers mortgage calculators and online resources. If a customer were toprefer to talk to a home mortgage advisor all he or she would have to do iswalk into or call the branch closest to them and schedule an appointment tomeet with them. Chase also refinances homes.
If a customer was looking topurchase a new vehicle they might qualify for an auto loan through Chase.Customers find it easier if they had their auto and mortgage loans though thesame bank. Chase, is aware of the needs of their customers and try to providethe best service possible for them. If loans are consolidation through Chase Bank,the consumer will end up paying less. The interest rates would not be so high. Another popular service this company provides is assetmanagement. Asset management is designed to help clients manage their money.
Accordingto JP Morgan’s website, as of 2014 JP Morgan, has held over 1.7 trilliondollars undermanagement. JPMorgan is one of the largest asset management institutions in the world. It hasfinancial institutions from Australia to the United States. There is a websiteand branch for each country this company services.
By having offices andpersonnel all over the globe, this provides good and accurate service to theirclients. JP Morgan is very big on corporate client banking. Theyoffer a wide range of options for companies looking to invest in real estate,credit and finances, treasury services, and international banking.
On the realestate side if an apartment building owner is looking to renovate his or herbuilding and needs help JP Morgan, could offer a loan to help him bring his orher building up to code. If an investor was looking to put money in to a newconstruction project this company would be able to steer them in the rightdirection to maximize their profits. With credit and finances through JPMorgan, a business owner could get a loan to pay for equipment to help run hisor her business. If a business owner needed transportation to send his or hercompany’s products from state to state, they could get a loan to buy the trucksneeded to send their products where they need to go. Fraud protection is also aservice that is available. It does not matter if it’s for a major corporatecompany or a small business. As we rely more and more on technology there ismore potential for fraud than ever before. JP Morgan, employs hundreds ofworkers on fraud protection.
There are two branches that deal with this to tryand minimize confusion. If you have a business with a revenue of over 20million you would be dealing with the JP Morgan branch. If you have a businessunder 20 million you would contact the Chase branch. These were a handful ofthe many products and services JP Morgan Chase CO. provides. SWOT: JP MorganChase is one of the most successful business service firms in the United Statesas well as one of the oldest financial institution going back as far as 200years.
They have the leading global financial service assets of 2.6 trilliondollars, which shows their strength as a financial institution. JP Morgan Chaseoperates nationwide and even international operating in over 60 countries whilestill being able to meet consumers’ needs showing strong global presence. Thecompany shows to have an outstanding reputation with over 240,000 employees andserving millions of consumers, small businesses, and many important corporate,institutional, and government clients. This displays job securities for theiremployees and acknowledges their strong management of the company. JP MorganChase also shows diversity in the workplace as they are committed to hiring andkeeping employees from different locations, backgrounds, and experience.Diversity helps their customers and business affiliations meet their goals. JP Morgan chase is dependent on one single location, whichis North America.
Since 2003, the firm has been dependent on North America formore than 72% revenues and profits. North America, JPMC’s largest geographicalmarket, accounted for 74.4% of the total revenues in FY2014 (“JPMorgan Chase& Co. SWOT Analysis,” 2016). This has resulted in lack of expansion ofbusiness and diversification. Another weakness would be cancelling an outsourcingagreement with IBM.
This resulted to the loss of many employees and production.The decision to terminate the contract in 2004 was initiated after thepurchasing of Bank One Corp. J.
P. Morgan stated that, with its merger with BankOne, it would have the ability to manage its IT infrastructure internally andmore efficiently then through outsourcing (Garland, 2015). JP Morgan Chase hadto reassemble its IT infrastructure costing them millions of dollars. The company of JP Morgan Chase canceling their contractwith IBM closed an opportunity for growth.
The outsourcing agreement that thecompany undertakes from time to time could make it more competent by resultingin cost reduction and increased quality (“JPMorgan Chase & Co. SWOTAnalysis,” 2016). The agreement with IBM would create an important value forclients, employees, and shareholders. Another opportunity that would increaserevenue would be the growing credit card market in the U.S. JPMC’s credit cardservice division was the No. 1 credit card issuer in the US, the No.
1 in totalUS credit and debits payments volume and considered the No. 1 US credit cardissuer based on loans outstanding (“JPMorgan Chase & Co. SWOT Analysis,”2016). The company credit card services increased in sales by 11% year afteryear and continue to improve with net charge-offs down 12% in 2013.
The growthin the credit card market can provide the opportunity to increase revenue fromits card portfolio. JP Morgan Chase faces threats from many companies becauseof their operations in over 60 countries nationally and internationally. Bycanceling their contract with IBM, creates the risk of losing consumers tocompetitors declining the services of IBM, who could increase their competitiveness.The intensity of competition has increased due to non-banks. These banksare expected to compete aggressively with traditional banks to control select,more-profitable market segments (“JPMorgan Chase & Co. SWOT Analysis,”2016).
Non-banks could have a significant impact on the banking industry byoffering advantages that big banks such as JP Morgan Chase have to offer.Financial Institutions like JP Morgan Chase face regulatory challenges thatpose a threat to the business as well. The Dodd-Frank Act that was signed into law on July 21,2010, could have a great impact on the US banking industry. The Dodd-Frank Actimposes new regulatory requirements and oversight over banks and otherfinancial institutions in many ways, among which are (i) creating of the Bureauof Consumer Financial Protection (CFPB) to regulate consumer financial productsand services; (ii) creating of the Financial Stability and it also affects theway equity capital of a bank is calculated (“JPMorgan Chase & Co. SWOTAnalysis,” 2016). Increasing regulatory challenges can cause non-compliancerisk and increase compliance spending. Recommendations: Management should coachtheir employees on not to overestimate the company’s value.
The revenue lossfrom the IBM contract was a big blow to the IT department. Instead of a fewpeople making these big decisions the company should allow more people to haveinput. The contingency theory would also help placing the right leaders in theright places in this company. For example, if you have a team leader or managerwho specializes in computer programming you would place him or her in the ITdepartment. If you have another team leader or manager who specializes inaccounting, you would have that person on the banking side of the company.During the time the company is going through dips in its percentage earnings,motivating the workforce with extrinsic rewards could help.
The employees couldthen feed off each other’s motivation and work harder.