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 - – increasing household debt because of falling income levels, wage bills are increasing, increasing energy prices, challanges to central banks by blockchain based private currencies, geopolitical disruptions, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%,
technology disruption, increasing transportation and logistics costs, 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 -
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.
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.
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.
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.
Strong track record of project management
– Jpmorgan Everbright is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain firm has clearly differentiated products in the market place. This has enabled Jpmorgan Everbright to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Jpmorgan Everbright to invest into research and development (R&D) and innovation.
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.
High brand equity
– Jpmorgan Everbright has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jpmorgan Everbright to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Effective Research and Development (R&D)
– Jpmorgan Everbright has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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 -
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.
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.
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 dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Jpmorgan Everbright supply chain. Even after few cautionary changes mentioned in the HBR case study - JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jpmorgan Everbright vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Jpmorgan Everbright has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Jpmorgan Everbright even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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.
Skills based hiring
– The stress on hiring functional specialists at Jpmorgan Everbright has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain, in the dynamic environment Jpmorgan Everbright has struggled to respond to the nimble upstart competition. Jpmorgan Everbright has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Slow to strategic competitive environment developments
– As JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain HBR case study mentions - Jpmorgan Everbright takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
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 -
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.
Creating value in data economy
– The success of analytics program of Jpmorgan Everbright has opened avenues for new revenue streams for the organization in the industry. This can help Jpmorgan Everbright to build a more holistic ecosystem as suggested in the JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain case study. Jpmorgan Everbright can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Jpmorgan Everbright to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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.
Leveraging digital technologies
– Jpmorgan Everbright can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jpmorgan Everbright can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Jpmorgan Everbright can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jpmorgan Everbright to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Jpmorgan Everbright to hire the very best people irrespective of their geographical location.
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 -
Shortening product life cycle
– it is one of the major threat that Jpmorgan Everbright is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain, Jpmorgan Everbright may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Jpmorgan Everbright in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jpmorgan Everbright can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain .
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.
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.
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.
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.
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.