Strategic Choice and Evaluation
Strategic Choice and Evaluation
Growth is important for the survival of any company. The organization can achieve this through various ways. For example, a company can design to enter into a new market or to expand its product offerings. To determine the best way to adopt, the company’s strategic goal should be to discover the way that it will expand its business to fit the market of the company (Hill, 2014). Deciding on the sustainable growth strategies will often take time because the decision makers have recognized the best approach that will enable the company to achieve profitability and sustained corporate growth but does not include a short-run maximization of profits. For strategic managers to choose the best growth strategy, they need to take time. Some strategies will not work in some organizations. Organizations must also take other factors into considerations when determining the best approach to use to achieve growth. To determine the strategy that will help JP Morgan Chase to maximize its growth potential, it is important to identify the best value discipline, the generic strategy, and the grand strategy of the organization.
Best Value Discipline
JP Morgan Chase is an organization that provides different products and services to its clients across the world. The organization serves clients ranging from small families to big businesses. The best value discipline of the company is customer intimacy. J.P Morgan is a global leader in serving the largest client franchises and businesses around the world. They are also leaders in offering wholesale financial services. Some of their clients include institutional investors, governments, hedge funds, and corporations. They also serve affluent individuals across the world.
Customers visit J.P Morgan Chase for its complete financial services platform and seamless execution. Through this strategy, the organization can structure its products and services in a manner that fits the needs of its clients (Hitt, 2012). Through this strategy, J.P Morgan Chase can build long-term trusting relationships with its clients. Customers desire products and services that meet their individual needs. J.P Morgan Chase recognizes this, and they provide good customer service to establish a good relationship with the client, and personal bankers that enable the organization to attract new customers. The existing customers also advertise the company through word of mouth, and this has enabled the company to remain competitive in the financial services market.
The banking and financial services industry is constantly changing. Organizations and their managers should, therefore, implement generic strategies. Generic strategies refer to the basic strategies that can be used in any industry or market (Freeman, 2010). The most common generic strategies that can be utilized by J.P Morgan Chase include focus, low cost, and differentiation strategy.
The focus strategy is a generic strategy that involves an organization focusing or concentrating its resources to enable it to expand or enter a new market. J.P Morgan Chase can focus on training its personnel to offer excellent services to its customers. As a service organization, customer service is very important for the organization. By focusing on training its personnel, J.P Morgan Chase will be able to stand out from other competitors in the industry.
Companies can use the low-cost strategy by offering low prices on their products or services with the intention of stimulating demand that will enable the company to gain market share in the industry. J.P. Morgan Chase can use this approach by offering a lower cost of services to attract customers. After attracting the customers, they will use other strategies such as excellent customer services to retain the customers. In this case, the organization will be able to meet the goals of the generic strategy.
The differentiation strategy refers to the approach used by organizations to make them appear better in the industry than their competitors. It usually involves offering unique products to different customer segments. J.P Morgan Chase can use this approach by offering quality and excellent customer services and unique products to its clients. This will enable them to create a long-term relationship with both the business and personal customers nationally and internationally. This will make them different from the other financial institutions around the world.
The grand strategy includes the highest policies that an organization can place into action. Grand strategies are different from the pure policies. They are normally the policies in execution. The grand strategy is very important for the organization to meet its growth strategies (Porter, 2008). The grand strategy of J.P Morgan Chase consists of a long-term and comprehensive plan for essential actions by which the organization plans to achieve its goals and major objectives supported by the company mission statement. The mission statement of the company consists of operations excellence, exceptional client service and a commitment to fairness, responsibility and integrity. The company also believes in a great team winning culture. These strategies enable the company to achieve success and continuously build communities and economies around the world.
J.P Morgan Chase aims at delivering superior and excellent long-term value for the shareholders. They also strive at maintaining a safe and reliable business culture for its clients. The organization invests a lot of time and resource in training its employees. It also vows to be socially responsible for their areas of operations. This determination helps the company to differentiate itself from the competitors and to enhance environmental, economic, and community responsibility.
Strategies to Implement
A strategy refers to a plan that integrates the goals, policies and action sequences of organization strategies (Porter, 2008). Strategies enable the company to achieve its major goals and objectives. In J.P Morgan Chase, the formulation of strategies is used to make strategic decisions. The organization needs to develop new strategies that will help it adapt to the current situation and the external environment. The company can use generic strategies to describe its competitive position in the market. The main generic strategies that the organization can implement include lowered costs, focus, and differentiation. These strategies will enable the company to remain competitive in the market. They will also be able to distinguish themselves from competitors as a unique organization (Freeman, 2010).
J.P. Morgan Chase should implement the use of modern technology to differentiate itself from its competitors. The various ways that the organization can attempt to differentiate itself is on the basis of the brand image, customer service, technology, distribution, product design or a combination of the elements. The aim of the differentiation strategy is attracting new customers with unique offerings that meet and address their needs. By implementing the differentiation strategy, the company will be able to create brand loyalty and also provide J.P Morgan Chase with solid profit margins.
The best value discipline of the organization is therefore customer intimacy. Being a customer services organization, J.P Morgan Chase should focus on structuring its services and products in a manner that fits the needs of its customers, and it will enable them to build long-term trusting relationships. The grand strategy of the organization is based on its mission statement. The mission statement focuses on operational excellence, client service, fairness, integrity, teamwork, and responsibility. The organization should focus on offering long-term value to its shareholders and maintain a safe culture across its areas of operations. The company should focus on training its employees to offer excellent customer service and to be socially responsible. Growth is important in any company. To achieve growth, the organization needs to develop the grand strategy. Grand strategy is the plan to be executed for J.P Morgan Chase to achieve its major goals and objectives. The recommended strategy that J.P Morgan Chase should implement is the differentiation strategy. This strategy will enable customers to recognize the bank as a unique company. The company can differentiate its product offering, customer service and also implement technology in its operations to differentiate itself from its competitors.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
Hill, C., Jones, G., & Schilling, M. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning
JPMorgan Chase & Co.. (2015). Environmental Sustainability at JPMorgan Chase. Retrieved from http://www.jpmorganchase.com/corporate/Corporate-Responsibility/environment.htm
Porter, M. E. (2008). Competitive advantage: Creating and sustaining superior performance. Simon and Schuster.
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