JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain
In August 2013, the United States Securities and Exchanges Commission ("SEC") opened a bribery investigation into JPMorgan's "princeling hiring" practices in Hong Kong, China's Special Administrative Region. The investment bank's Hong Kong operation hired the daughter of a senior official of the state-owned China Railway Group ("CRG") in 2007, and the son of the chairman of state-owned China Everbright Group ("Everbright") in 2010. Months after the 2007 hiring, JPMorgan successfully secured the job of underwriting CRG's initial public offering ("IPO"). Similarly, although few business deals between JPMorgan and Everbright and its subsidiaries were made before 2010, JPMorgan then successfully secured several financial advisory jobs for the company. The US Security Exchange Commission's subsequent investigation put investment bank efforts to build "guanxi" in China by hiring princelings in the spotlight.
Swot Analysis of "JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain" written by Zhigang Tao, Yihong Yao, W.H. Lo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jpmorgan Everbright facing as an external strategic factors. Some of the topics covered in JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain case study are - Strategic Management Strategies, Crisis management, Emerging markets, Ethics, Government, Growth strategy, Performance measurement and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain casestudy better are - – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, increasing energy prices, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China,
there is backlash against globalization, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jpmorgan Everbright, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jpmorgan Everbright operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain can be done for the following purposes –
1. Strategic planning using facts provided in JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain case study
2. Improving business portfolio management of Jpmorgan Everbright
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jpmorgan Everbright
Strengths JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jpmorgan Everbright in JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain Harvard Business Review case study are -
Training and development
– Jpmorgan Everbright has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Jpmorgan Everbright is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Zhigang Tao, Yihong Yao, W.H. Lo can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Diverse revenue streams
– Jpmorgan Everbright is present in almost all the verticals within the industry. This has provided firm in JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Successful track record of launching new products
– Jpmorgan Everbright has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jpmorgan Everbright has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Jpmorgan Everbright in the sector have low bargaining power. JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jpmorgan Everbright to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Jpmorgan Everbright is one of the most innovative firm in sector. Manager in JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Jpmorgan Everbright are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Superior customer experience
– The customer experience strategy of Jpmorgan Everbright in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Jpmorgan Everbright is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Jpmorgan Everbright is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Jpmorgan Everbright is one of the leading recruiters in the industry. Managers in the JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Jpmorgan Everbright is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Jpmorgan Everbright in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Jpmorgan Everbright
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jpmorgan Everbright does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain, is just above the industry average. Jpmorgan Everbright needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High cash cycle compare to competitors
Jpmorgan Everbright has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Aligning sales with marketing
– It come across in the case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain can leverage the sales team experience to cultivate customer relationships as Jpmorgan Everbright is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain, it seems that the employees of Jpmorgan Everbright don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Products dominated business model
– Even though Jpmorgan Everbright has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Jpmorgan Everbright is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Jpmorgan Everbright needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jpmorgan Everbright to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Zhigang Tao, Yihong Yao, W.H. Lo suggests that, Jpmorgan Everbright is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Low market penetration in new markets
– Outside its home market of Jpmorgan Everbright, firm in the HBR case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Jpmorgan Everbright 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Jpmorgan Everbright has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Jpmorgan Everbright has relatively successful track record of launching new products.
Opportunities JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain are -
Developing new processes and practices
– Jpmorgan Everbright can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Jpmorgan Everbright to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Manufacturing automation
– Jpmorgan Everbright can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jpmorgan Everbright can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jpmorgan Everbright is facing challenges because of the dominance of functional experts in the organization. JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jpmorgan Everbright can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jpmorgan Everbright can use these opportunities to build new business models that can help the communities that Jpmorgan Everbright operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jpmorgan Everbright in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Buying journey improvements
– Jpmorgan Everbright can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jpmorgan Everbright in the consumer business. Now Jpmorgan Everbright can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Jpmorgan Everbright to increase its market reach. Jpmorgan Everbright will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Using analytics as competitive advantage
– Jpmorgan Everbright has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jpmorgan Everbright to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Jpmorgan Everbright can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain are -
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jpmorgan Everbright can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Jpmorgan Everbright high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Environmental challenges
– Jpmorgan Everbright needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Jpmorgan Everbright can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Stagnating economy with rate increase
– Jpmorgan Everbright can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology acceleration in Forth Industrial Revolution
– Jpmorgan Everbright has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Jpmorgan Everbright needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Jpmorgan Everbright
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Jpmorgan Everbright.
Regulatory challenges
– Jpmorgan Everbright needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Jpmorgan Everbright.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Jpmorgan Everbright needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jpmorgan Everbright in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jpmorgan Everbright with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Jpmorgan Everbright will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Jpmorgan Everbright needs to make to build a sustainable competitive advantage.
