JP Morgan Chase Paper

An In Depth look into JP Morgan Chase

Garrett Meaney

Palm Beach State College

An In Depth look into JP Morgan Chase & Co.

Introduction

To begin with, we all have a certain bank we go to and we for the most part stay loyal to that bank most of our lives. Many of us stay loyal to these banks and yet we have no idea how they are run on a daily basis. As citizens we tend to just jump at which bank is offering the best deal instead of evaluating their company’s principles and business ethics. During this paper we will divulge into the business foundations, operations, and history of one of the largest financial institutions in America, JP Morgan Chase. JP Morgan Chase have had a long withstanding and successful time in the

According to Chuck Williams (pg. 168, 2014), “planning is choosing a goal and developing a method or strategy to achieve that goal”. JP Morgan Chase is one of the leading financial institutions in the United States and they did not get there by not having a successful plan or setting proper goals for themselves. One of JP Morgan’s key concepts that goes into their planning is having a strong financial discipline. According to JP Morgan’s website (JP Morgan Chase, 2014) they say they must consider walking away from business where they cannot see a fair return over the cycle. This may slow short-term growth, but it underscores their commitment to grow in a sustainable way. This concept to me fits into planning because as a company they are committed to growing consistently and have instilled that into their business principles to walk away from business that does give them a fair return. Also, JP Morgan looks to reach their goals they have set by always being innovative and being on the cutting edge of the technology in their field. According to the JP Morgan website (JP Morgan Chase, 2014) they believe in relentlessly focus on integrating and upgrading technology, streamlining and standardizing their operations, all of which help to push decision-making and authority to the field. Since they plan staying relevant in their field JP Morgan knows that staying on top of the ever changing

According to Chuck Williams (pg. 666, 2013) control is defined as, “a regulatory process of establishing standards to reach organizational goals, comparing actual reports against the standards, and taking necessary action to correct any issues if needed”. In order for JP Morgan to be able to set standards and goals it must see what its competitors are doing and also what their customers are wanting the business to improve on. One major standard that JP Morgan has set is that the company would like to double the net income over the next 5 years (Business Insider, n.d.). In order to plan for these goals a company has set they must develop a budgeting process to allocate the proper assets to achieve their set standards. A suggestion by Peter Hancock, JP Morgan Chase former Chief Financial Officer, stated that he believed the risk managers should spend more time in developing enterprise-wide risk systems that will allow top managers to make tough business decisions (Christopher, Navroz & Gallagher, 2003). Tough business decisions that arise from the budgeting process is the possibility of slashing jobs because of budget cuts for that annual year. An example of this is in the year of 2013 when JP Morgan Chase had to cut 4,000 jobs and also reduce cost by $1 billion dollars (CNBC, 2013). Also, JP Morgan's cost-saving efforts come at a time when its key rivals are also moving to adjust to a