JP Morgan Chase Bank Strategic Plan

J P Morgan Chase Bank Strategic Plan


STR 581


Executive Summary3

Company Background4

Organizational Mission, Vision and Value Statements4

External and Internal Environment Analysis4

External Environmental Factors5

Internal Strengths and Weaknesses5

Strategies to Implement7

Implementation, Strategic Control, and Contingency Plans7


Functional tactics9

Action Items9

Milestones and a deadline10

Tasks and Task ownership10

Resource Allocation10

Financial Forecast and a Budget11

Key Success Factors12

Risk Management and Contingency Plan13

Organizational Change Management Strategy14




Executive Summary

JP Morgan Chase Bank is a successful bank in the banking industry. It is currently the largest bank in the US with the largest market share. To continue achieving growth and profitability, the bank requires a strategic plan. The learning team will identify the generic strategy, the grand strategy, and the value discipline that it should utilize. Analyzing the external and the internal environment is important, as it will enable us to determine the areas of improvement in the organization. The learning team will also show how aligning the new strategies to the values, and the mission statement of the company will help the organization achieve growth and profitability. To improve customer service, J.P Morgan Chase has decided to install special ATMs that will allow the customer to avoid the long lines to make withdrawals, payment, to deposit money or to check their bank balances. This strategy may face resistance to change, and the company needs to have change management techniques for it to manage the change as discussed. The project will also involve various action items, functional tactics, resource allocation and milestones and deadlines for it to be successful. A contingency plan is also essential for the organization to be able to mitigate risks that may arise due to the implemented strategy. This paper will discuss the external and internal environment of the company to develop effective strategies to ensure it achieves growth and contingency plans for identified risks.

Company Background

JP Morgan Chase Bank is an established financial institution in the United States of America. It has operated for over 200 years, and its headquarters are in New York City. The bank has grown primarily by acquiring other banks. Currently, it is the largest bank in The US and it serves in approximately 60 countries. JP Morgan Chase is a private institution that provides different services to its clients. It serves in five segments that include corporate and investment banking, consumer and community banking, global finance and treasury, commercial banking and asset management. These services have enabled the bank to prosper in the banking industry. Through strategic positioning, JP Morgan Chase has also been able to stay competitive in this market.

Organizational Mission, Vision and Value Statements

Mission, vision and value statements are written for employees, customers and other stakeholders of a company. A vision statement is a short paragraph that a corporation writes to reflect its core identity, principle, business aims, purpose, and values. A vision provides a broad aspiration image. JP Morgan Chase’s mission clearly states the company’s corporate responsibility. The mission statement says that their integrated goals are being profitable and doing good work for the public and the environment. The company strives to make the company a good corporation and a respected financial institution across the world. The vision statement states that the company wants to be the best banking and financial services corporation in the world. Their core values include an excellent platform for financial services, a great heritage, and a well-governed business. JP Morgan Chase Bank’s organizational chart is described in Appendix D.

External and Internal Environment Analysis

Our team conducted an internal and external environment analysis with the case of J.P. Morgan Chase. We identified the most important external factors in the external operating environment and the remote industry and analyzed them. We also identified the internal strengths and internal weaknesses including the banks resources and analyzed them. We assessed the competitive position of J.P. Morgan Chase and finally analyzed the organizational structure of the bank indicating its effects on the performance of the organization

External Environmental Factors

After conducting an external environmental scan, the important factors that affect how JP Morgan Chase does its business in the banking industry were identified. One of the most significant factors is political factors. Political factors shape the way the bank operates. The banking sector is federally controlled. The local, state and federal governments enact laws that govern how banks conduct their business. In 2010, the federal government passed the Dodd-Frank Act, a banking reform that contains about 1,500 provisions and 400 compliance mandates that affect how banks operate (Pollard, 2011).

Another important external factor is competition. The banking industry has become very competitive in the recent years. This is due to the innovative nature of the industry and advancement in technology. Competition is stiff in the banking sector. The final factor relates to employee retention. Retaining competent employees with the necessary skills and knowledge affects the organization. JP Morgan Chase needs this pool of people for it to continue growing in the commercial and private banking sectors.

Internal Strengths and Weaknesses

During internal analysis, the various strengths and weakness regarding the organizations operations, mission, and internal guidance were identified. JP Morgan Chase aims at maintaining its image and to improve its services. One of the internal strengths of the banks is its financial health and high return on investment. The company is financially healthy, and it has been very profitable over the last years of operations. The organizational infrastructure also enables the bank to focus on developing repeatable and sustainable approaches to implement in their operations and processes (JPMorgan Chase & Co.., 2015).

One of the main strengths of JP Morgan Chase is its huge customer base. The bank is the largest in the United States. Iterative mergers of different banks to form JP Morgan Chase are what made this bank what it is today: a financial industry leader. The size of the bank and its assets has made it a stable finance institution that can deal with fiscal shocks both in a short-term and in a long term. The bank has branches and ATM facilities all over the world. They have employed over 200,000 people. These factors ensure that JP Morgan Chase is connected to a broad market.

One of the internal weaknesses is its bad reputation. Over the years, JP Moran Chase damaged its reputation. This is due to its numerous scandals. In 2002, the bank paid $80 million to state governments as fines, after deceiving investors with biased market research. It also had a hand in Enron’s heavy losses. In 2011, the company also admitted overcharging mortgages to military personnel. The overcharged families were paid a total of $27 million (JPMorgan Chase & Co.., 2015). To avoid this, the bank should review its policies and consider consumer feedback to judge their reputation.

Another weakness of JP Morgan Chase is in their IT infrastructure. Their IT system has been inadequate to sustain their business operations. The primary cause of the failure is the cancelation of their outsourcing agreement with IBM. Productivity decreased after this, and the new consultants produced additional expenses to the company. The problem would only be addressed by allowing a large IT company like Microsoft or IBM to do the IT work. A bid to outsource alone will cause JP Morgan problems in the long run.

Strategies to Implement

An approach refers to a plan that integrates the goals, policies and actions of an organization’s strategies (Porter, 2008). Strategies enable the company to achieve its primary 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 changes with current regulatory changes 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.

Implementation, Strategic Control, and Contingency Plans

An implementation plan refers to the detailed listing of schedules, expected difficulties activities and costs involved in the achievement of the objectives and goals of a strategic plan (Hill, 2014). The proposed implementation plan to achieve growth and efficient customer services involves the installation of Automated Teller machines to replace the human tellers at drive-thru windows. Through this strategy, J.P Morgan Chase will be able to save costs associated with the employment of tellers in the branches of the bank and also make it more efficient for customers to make withdrawals, payments and deposit. The implementation should, however, be executed in the correct way by use of a plan to keep the business operations smooth while satisfying the customers’ needs. The company should consider the objectives, action items, functional tactics, resource allocation, tasks and ownerships, milestones and deadlines for it to accomplish this. The organization also needs change management strategies, a risk management and contingency plan to enhance the proposed strategic plan.


The objective of the plan is to enable the company to be competitive in the banking industry. The company will take specific actions to incorporate ATMs at current teller designated branching facilities. Every business must invest in technology for it to remain competitive. The ATMs will enable the organization to move into a new technological arena. J.P Morgan Chase will be able to be competitive in this industry. Technology in any organization is a cost and opportunity to conduct more business. The ATMs will involve a drive-thru service lane. Customers of the bank will be notified about the proposed changes and also how the drive-thru ATMs are different from the regular ATMs. The company will determine how the customer has received the new ATMs by placing a survey on customers at the places where they have placed them. The key functional areas that handle the successful completion of the project include the finance department, the marketing department, and the human resources department.

Functional Tactics

Function tactics are short-term choices that an organization can use to achieve the set goal and objectives. Some of the common short-term alternatives include communication tactics, employee involvement, and product strategy. The company uses product tactics to introduce new services using the new ATMs. This also involves improving the existing services. JP Morgan Chase aims at offering their customers with services that will make it faster than the longer queues to human tellers. The communication tactic will help the bank build relationships with their clients. The aim of the communication tactic is to ensure customer feedback is heard, and any issues addressed. Another functional tactic is enhancing its management team. A competent management team with expertise will guide the functions of the firm. It will ensure that the company can meet its short-term objectives and the long-term goals. Finally employee involvement functional tactic will boost the morale of the employees. This will result to excellent job performance (Hill, 2014).

Action Items

The main item in a strategic plan is analyzing how the company will achieve success. Action items refer o the specific statements that explain how the goals of the organization can be accomplished (Wheelen, 2011). They include the areas that will move the strategy forward. The action times are typically performed by various teams within a specified period that is normally within one and two years.

The first action item will be the confirmation of the locations where the ATMs will be installed. By confirming the locations, the organization will be able to determine the right budget for the number of machines required. This action item will be completed before June 30th. The second action item is to obtain the necessary software programs and equipment for the ATMs to ensure that they function properly. The task will be completed before September 1st. The third action item will involve the collection of quantitative data to determine the different uses of technology in various regions. This action item will be through by December 31st. All the action items will be ready by January 1st so that the organization can fully implement the new ATMs drive-thru in the next year.

Milestones and Deadlines

Milestones and Deadlines are important to ensure that a project is completed successfully. It is important that the schedule accompany the project scope to ensure the success of the project. This is because the schedule will enable the different project sections to be well aligned through to completion. In case any changes are required in the schedule, the regional managers will handle the implementation and monitoring. This will require the use of the project scope. For the regional managers to determine if the project is taking place in the required state, they will be necessary to match the project scope with the milestones (see Appendix A for the Milestones and Deadlines table long with Project Scope table).

Tasks and Ownership

Each region has a regional manager. The regional managers will handle the project’s development process. The project managers will handle the execution. The CFO and his team will control financing. The personnel will be monitored and managed by the human resources manager at the headquarters assisted by the regional HR officials.

Resource Allocation

J.P Morgan Chase needs new resources as it progresses into new technology. Resources are essential, as they will assist in the successful implementation of the project. In the process, the company will have a lot of resources that it will no longer require for the company operations. In the last few years, the sector of information technology has grown rapidly allowing companies to have the capability to perform a lot of activities and operations they could not be able to do a few years ago (Davenport, 2013). This advancement has also enabled companies to be competitive. Organizations that fail to adopt new technology lose their competitive edge, and they lose their customers to other competitors in the industry.

During J.P Morgan’s transition to the increase of ATM usage in the financial and banking services industry, various resources need to be allocated while others will be discarded. The most significant resources are the human resources. The introduction of ATMs will lead to many employees losing their jobs, as they will no longer be needed. The organization should handle this change professionally pertaining to employee retention and cross training. Another valuable resource is the facilities with stand-alone drive-thru lanes. The facilities stand in commercial real estates, and they require a solution. Money is also a primary resource that the company needs to take into account. The acquisition of the software and other facilities for the installation of the ATMs will require funding from the reserves and profits of the company. The HR department should also allocate sufficient labor, effort and time to the project.

Financial Forecasting and Budgets

Budgets and financial forecasting are the significant factors during the implementation of any strategic plan. J.P Morgan Chase operates across the world and it the largest bank in the United States. The company will incur a lot of costs in the implementation of this strategy. The installation of the new ATMs will require labor costs and capital investment in the purchase of the equipment and software needed for the facility. The total budgeted and estimated cost is $ 40,000 (see Appendix B for the budget table). The company is however expected to cover the costs during the first year of operations after the implementation of the ATMs. The ATMs will be more efficient, and the company will be able to attract and retain more customers.

The profits estimated for the first year of the implementation of the strategy is $100,000. The break-even analysis of the company involves the calculation of the revenues that are required to cover the cost at the point where the production below it will be unprofitable, and the production of it will be profitable. The company needs to earn $40,000 for it to achieve break even. The break-even chart of the company is as follows.

The break-even analysis graph shows the revenues that J.P Morgan needs to earn for them just to cover the costs incurred for the implementation of the new strategy (see Appendix C for the break even analysis chart).

Key Success Factors

The key success factors will be used to measure the success of the strategic plan implementation. To measure the success of J.P Morgan strategy, the following key success factors will be considered:

Risk Management Plan and Contingency Plan

  • Customer retention
  • Increased employee involvement
  • Improved customer service
  • Increased profitability
  • Reduced time is taken for customer service
  • Increased market share

By implementing the plan to install ATMs to replace the drive-up windows, leads to various risks that J.P Morgan Chase may face. The organization needs to identify the risks and address them to ensure the success of the plan. The company is facing the risk of losing customers who may be upset with the change in service delivery. People fear change, and this may drive them away. This is a significant risk to the company. To mitigate this risk, the organization should educate their customers on the benefits of the new concept and answer any questions that they may ask regarding the concept.

The second risk is the risk of technical problems that may disrupt operations and hence frustrating customers. To mitigate this risk, the organization should put in place rapid maintenance solution for any technical problems that may arise. The company should also maintain some drive-thru windows from where the customers can be served in the case of the ATMs breakdown. J.P Morgan should educate their clients and guide them to avoid ATM frauds. This contingency plan will enable the organization to mitigate any risks that may arise (Hayes, 2014).

The third risk is losing client private information and money. To mitigate this risk, JP Morgan should be dedicated to ensure that the investments, money and personal information to all their customers are safe. They should ensure that these are kept under secure firewalls and other protective measures. The material should be kept away from the unintended persons. Those who view the information should also be monitored through a program such as a contact manager or customer Assist. This is important for a firm that deals with millions of dollars of people each and every day. Other safety measure includes the risk analysis department that allows the organization to be updated on current risk and find ways to mitigate them

Organizational Change Management Strategies

To transit to the use of the new ATMs from the stand-alone drive-thru, J.P Morgan Chase will be required to manage the aspects of change that will arise. The employees of the company and the customers may be reluctant to accept the concept. The organization should be able to effectively manage this change. The change agility of the organization should be quick and efficient focusing on implementing change (Hayes, 2014). Their agility will ensure a successful strategy formulation.

Introducing the ATMs will require the company to go many employees. This may attract negativity to the company. The organization should come up with ways or alternatives through which they will be able to retain their personnel. The installation and change of strategy by introducing the ATMs may affect some groups of communities such as the older and less technology accepting population. The organization should acquire additional manpower to assist this group of individuals. They should also communicate the benefits of the concept to ensure that the customers accept it. With the change management strategies, the organization should focus on the different management abilities and skills to accomplish the change and maintain the organization’s strategic alignment.


JP Morgan Chase bank has been a very successful bank in the banking industry. The company has decided to improve customer service by installing special ATMs that will allow the customer to avoid the long lines to make withdrawals, payment, to deposit money or to check their bank balances. The project will involve various action items, functional tactics, resource allocation and milestones and deadlines for it to be successful. To successfully implement the strategy, the company needs to identify the risks that exist and establish contingency plans to mitigate the risks.


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Appendix A

Milestones and Deadlines

Milestone Due Date Who’s Responsible
Determine the location to install the special ATMs 6/30/15 The regional managers
Receipt of the required software 9/01/15 The regional managers
Collection and analysis of quantitative data 12/31/15 The regional managers

Project Scope

Implementation Activity Implementation Partner Responsibility
Project Initiation  
Project Proposal and its Validity Check the project requirements are according to company’s needs, time frame and various departments needed.
Project Planning & design  
Develop a schedule that Regional managers can adhere Weekly meet ups with the stakeholders to ensure the development meets the customer’s needs.
Time and Cost Budget and development process closely monitored to avoids any shortfall
Risk Planning Risks are properly assessed, and contingency planning are in place.
Monitoring & Control  
Verify/validate Management will keep track of the project is on track and budget.
Quality Quality Assurance team will be monitoring the quality and final develop product is bug/error free.
Deadlines & Milestones Developer team will strictly maintain the deadline and meets the milestones assigned.
Formal acceptance Final user quality approval is required to meet to planning and requirement for final release of the developed product.

Appendix B

The total budgeted cost

Item Cost
Labour $10,000
Equipment $ 20,000
Software $10,000
TOTAL $ 40,000

Appendix C

Break Even Analysis

Total Costs

costs Variable costs


Fixed Costs

$40,000 Revenues

Appendix D

Organization Structure at JP Morgan Chase

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