Week 2 - Interactive Assignment Environmental Scanning:

JP Morgan Chase is also known as Chase Bank is a public traded company (NYSE: JPM).   The financial giant is ranked 6th amongst the top 10 world’s largest financial institutions base on their total asset. Chase is headquartered in Manhattan, New York, they are located in over 60 countries and have a total of 5655 branches and approximately 13,284 ATMs located across the country.    JP Morgan Chase has a total asset of $2.7 trillion in the US and International markets.  Chase is considered a strong leader within the banking industry, recognized by JD Powers as one of the leaders in customer experience.  JP Morgan Chase is one of the leading experts in the following business segments consumer banking, investment banking, commercial banking, asset management, etc.  

The category of analysis chosen will review Regulatory/Legislative Trends.  According to Abraham, “all the preceding regulatory trends affecting an industry may occur at both state and federal levels, as well as in many foreign countries.” (Abraham, 2012, Section 4.3).  The banking is heavy regulated by guiding set of rules and laws that must be followed.  These regulations enable financial institutions to do business in an ethical manner.  Chase Bank compliance division must be vigilant and ensure all reporting are done according to Bank Secrecy Act and employees are properly trained to identify money laundering.  Most recent bank regulatory findings the bank cannot deposit cash into a consumer account if you are not a signer instead of a traceable instrument such as check must be deposited.  This was due to a money laundering issue that financial regulators found.  This had impacted our customers and potential customers alike. 

Chase must continue to work against any regulator findings and put a system in place to manage the process and ensure compliance by all employees.  Therefore, Chase will need to budget for the cost of additional training for the employees and compliance team.  According to Hearit, Chase survived the financial crisis as the institution positioned itself for future threats.  They survived the crisis because of the legitimacy to the public as they were transparent in their financial recordings of the business such as annual report release, annual letters to it’s shareholders.  (Hearit, L. B. 2018, pg. 239)

The projected performance in the regulatory/ legislative trends and in reviewing their most recent 1st quarter earnings report 2019, Chase continues to show impressive earnings revenue reported in excess of $29.1 billion with managed revenue up to $29.9 billion despite these findings from a compliance and regulatory standpoint they can weather the storm.

According to Abraham, “Environmental scanning is a common name given to identifying and analyzing trends that are external to the business.” (Abraham, S. 2012, Section 4.3).  After conducting an environmental scan JP Morgan Chase must continue to evolve in technology and ensure their products and service remains competitive.  Chase has a big name to uphold as the brand is recognizable nationally.  “Large and small firms that align their competitive strategies with the requirements of their environment outperform firms that fail to achieve such alignment.” (Beal, R. M. 2000, Pg. 12).

References

Abraham, S. (2012). Strategic management for organizations [Electronic version]. Retrieved from  https://content.ashford.edu/    (Links to an external site.)Links to an external site.

Beal, R. M. (2000). Competing Effectively: Environmental Scanning, Competitive Strategy, and

Organizational Performance in Small Manufacturing Firms. Journal of Small Business Management, (1). Retrieved from http://search.ebscohost.com.proxylibrary.ashford.edu/login.aspx?direct=true&db=edsbig&AN=edsbig.A59282627&site=edslive&scope=site

JP Morgan Chase, 2019.  Link Retrieval: https://www.jpmorganchase.com/corporate/investorrelations/document/cb2cc7cf-57fa-4425-8f15-c6255a862742.pdf

Hearit, L. B. (2018). JPMorgan Chase, Bank of America, Wells Fargo, and the Financial Crisis of 2008. International Journal of Business Communication, 55(2), 237–260. https://doi-org.proxylibrary.ashford.edu/10.1177/2329488417753952

Mergent, 2019.  Retrieval Link:  http://www.mergentonline.com.proxy-library.ashford.edu/competitors.php?compnumber=1643

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