JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
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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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, technology disruption, there is backlash against globalization,
talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
High switching costs
– The high switching costs that Jpmorgan Everbright has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Jpmorgan Everbright digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jpmorgan Everbright has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
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.
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 -
Interest costs
– Compare to the competition, Jpmorgan Everbright has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Lack of clear differentiation of Jpmorgan Everbright products
– To increase the profitability and margins on the products, Jpmorgan Everbright needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
No frontier risks strategy
– After analyzing the HBR case study JPMorgan: Hiring Chinese Princelings Becomes a Royal Pain, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Jpmorgan Everbright needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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 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.
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 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.
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 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.
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 -
Loyalty marketing
– Jpmorgan Everbright has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
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.
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.
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.
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.
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.
Building a culture of innovation
– managers at Jpmorgan Everbright can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
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.
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.
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.
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.
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 -
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.
Consumer confidence and its impact on Jpmorgan Everbright demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
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.
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 .
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.
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.
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.
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.
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.
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.
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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Jpmorgan Everbright business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.