JPMorgan Euro Small (JESC) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for JPMorgan Euro Small (United Kingdom)

Based on various researches at Oak Spring University , JPMorgan Euro Small is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, wage bills are increasing, technology disruption, increasing household debt because of falling income levels, increasing commodity prices, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, etc

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Introduction to SWOT Analysis of JPMorgan Euro Small

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that JPMorgan Euro Small can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the JPMorgan Euro Small, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which JPMorgan Euro Small 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of JPMorgan Euro Small can be done for the following purposes –
1. Strategic planning of JPMorgan Euro Small
2. Improving business portfolio management of JPMorgan Euro Small
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of JPMorgan Euro Small

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Strengths of JPMorgan Euro Small | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of JPMorgan Euro Small are -

Cross disciplinary teams

– Horizontal connected teams at the JPMorgan Euro Small 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.

Effective Research and Development (R&D)

– JPMorgan Euro Small has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – JPMorgan Euro Small staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Analytics focus

– JPMorgan Euro Small 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 Misc. Financial Services industry. The technology infrastructure of United Kingdom is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Strong track record of project management in the Misc. Financial Services industry

– JPMorgan Euro Small is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Organizational Resilience of JPMorgan Euro Small

– The covid-19 pandemic has put organizational resilience at the centre of everthing JPMorgan Euro Small does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Innovation driven organization

– JPMorgan Euro Small is one of the most innovative firm in Misc. Financial Services sector.

Low bargaining power of suppliers

– Suppliers of JPMorgan Euro Small in the Financial sector have low bargaining power. JPMorgan Euro Small has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps JPMorgan Euro Small to manage not only supply disruptions but also source products at highly competitive prices.

Sustainable margins compare to other players in Misc. Financial Services industry

– JPMorgan Euro Small has clearly differentiated products in the market place. This has enabled JPMorgan Euro Small to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped JPMorgan Euro Small to invest into research and development (R&D) and innovation.

Ability to lead change in Misc. Financial Services

– JPMorgan Euro Small is one of the leading players in the Misc. Financial Services industry in United Kingdom. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in United Kingdom but also across the existing markets. The ability to lead change has enabled JPMorgan Euro Small in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Successful track record of launching new products

– JPMorgan Euro Small has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. JPMorgan Euro Small 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.

Digital Transformation in Misc. Financial Services industry

- digital transformation varies from industry to industry. For JPMorgan Euro Small digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. JPMorgan Euro Small 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.

Learning organization

- JPMorgan Euro Small 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 Euro Small is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at JPMorgan Euro Small emphasize – knowledge, initiative, and innovation.

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Weaknesses of JPMorgan Euro Small | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of JPMorgan Euro Small are -

Low market penetration in new markets

– Outside its home market of United Kingdom, JPMorgan Euro Small needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Lack of clear differentiation of JPMorgan Euro Small products

– To increase the profitability and margins on the products, JPMorgan Euro Small needs to provide more differentiated products than what it is currently offering in the marketplace.

High cash cycle compare to competitors

JPMorgan Euro Small has a high cash cycle compare to other players in the Misc. Financial Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, JPMorgan Euro Small is slow explore the new channels of communication. These new channels of communication can help JPMorgan Euro Small to provide better information regarding Misc. Financial Services products and services. It can also build an online community to further reach out to potential customers.

Increasing silos among functional specialists

– The organizational structure of JPMorgan Euro Small is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but JPMorgan Euro Small needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help JPMorgan Euro Small to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.

Need for greater diversity

– JPMorgan Euro Small has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Interest costs

– Compare to the competition, JPMorgan Euro Small 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.

Workers concerns about automation

– As automation is fast increasing in the Misc. Financial Services industry, JPMorgan Euro Small 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.

Skills based hiring in Misc. Financial Services industry

– The stress on hiring functional specialists at JPMorgan Euro Small 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.

Products dominated business model

– Even though JPMorgan Euro Small has some of the most successful models in the Misc. Financial Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. JPMorgan Euro Small should strive to include more intangible value offerings along with its core products and services.

Employees’ less understanding of JPMorgan Euro Small strategy

– From the outside it seems that the employees of JPMorgan Euro Small 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.

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JPMorgan Euro Small Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of JPMorgan Euro Small are -

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 Euro Small can use these opportunities to build new business models that can help the communities that JPMorgan Euro Small operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.

Leveraging digital technologies

– JPMorgan Euro Small 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects JPMorgan Euro Small can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Developing new processes and practices

– JPMorgan Euro Small can develop new processes and procedures in Misc. Financial Services 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.

Using analytics as competitive advantage

– JPMorgan Euro Small has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Financial Services sector. This continuous investment in analytics has enabled JPMorgan Euro Small to build a competitive advantage using analytics. The analytics driven competitive advantage can help JPMorgan Euro Small to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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 Euro Small 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.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. JPMorgan Euro Small can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for JPMorgan Euro Small 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 Euro Small to hire the very best people irrespective of their geographical location.

Learning at scale

– Online learning technologies has now opened space for JPMorgan Euro Small 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, JPMorgan Euro Small can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Manufacturing automation

– JPMorgan Euro Small can use the latest technology developments to improve its manufacturing and designing process in Misc. Financial Services sector. 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.

Creating value in data economy

– The success of analytics program of JPMorgan Euro Small has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help JPMorgan Euro Small to build a more holistic ecosystem for JPMorgan Euro Small products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Redefining models of collaboration and team work

– As explained in the weaknesses section, JPMorgan Euro Small is facing challenges because of the dominance of functional experts in the organization. JPMorgan Euro Small can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

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Threats JPMorgan Euro Small External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of JPMorgan Euro Small are -

Consumer confidence and its impact on JPMorgan Euro Small 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 Misc. Financial Services industry and other sectors.

Stagnating economy with rate increase

– JPMorgan Euro Small 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 Misc. Financial Services industry.

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 Euro Small.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, JPMorgan Euro Small 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 JPMorgan Euro Small prominent markets.

High dependence on third party suppliers

– JPMorgan Euro Small 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.

Increasing wage structure of JPMorgan Euro Small

– 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 Euro Small.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for JPMorgan Euro Small in Misc. Financial Services industry. The Misc. Financial Services 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.

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.

Environmental challenges

– JPMorgan Euro Small 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 Euro Small can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.

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 Euro Small needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.

Technology acceleration in Forth Industrial Revolution

– JPMorgan Euro Small has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, JPMorgan Euro Small needs to keep up with the evolution of technology in the Misc. Financial Services 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.

Easy access to finance

– Easy access to finance in Misc. Financial Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. JPMorgan Euro Small can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

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Weighted SWOT Analysis of JPMorgan Euro Small Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at JPMorgan Euro Small 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 JPMorgan Euro Small 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 JPMorgan Euro Small 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 Euro Small 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 Euro Small needs to make to build a sustainable competitive advantage.

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