Article 18.docx - Running head EXTERNAL AND INTERNAL ENVIRONMENTS 1 External and Internal Environments Name Institutional Affiliation EXTERNAL AND

Article 18.docx - Running head EXTERNAL AND INTERNAL...

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Running head: EXTERNAL AND INTERNAL ENVIRONMENTS 1 External and Internal Environments Name Institutional Affiliation
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EXTERNAL AND INTERNAL ENVIRONMENTS 2 External and Internal Environments Introduction J. P. Morgan Chase Company is one of the biggest companies in the United States today with business ranging from investment brokers, research firm, banking industry, insurance agency. In the banking industry, J. P. Morgan Chase Bank has been able to open up branches in all the 52 states in the United States while offering commercial banking, mortgage, private banking, and investment banking to both the corporate societies and the private individual. According to the company’s website, the company was able to record a 28.4% increase in the profit margins in the third quarter of 2012 with a total asset base of $2.3 trillion. The bank has been able to uphold high levels of ethical standards towards the clients, which has translated to the increase in the satisfaction levels for the clients thus leading to the huge profit margins that the company has experienced. The global platform that the company uses has been the main value adding factor that has promoted the long-lasting relationships that the bank has had with most of its clients around all its branches. Segments of the General Environment The first segment of the general environment that influences J. P. Morgan Chase Company is the macroeconomic segment. This segment mainly deals with the factors that are closely related to the running of the normal business of operations in the bank (Farrell, 2012). Considering that J. P. Morgan Chase Bank mainly deals with offering mortgages to its clients, it is affected by factors such as inflation, interest rates, and a change in the currency exchanges. According to the company’s website, the bank recorded a decrease in the number of mortgage clients based on the increase in the interest rate, which was higher than the first and second half of 2012. These factors also affect the banking industry in the same way as they affect the bank.
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EXTERNAL AND INTERNAL ENVIRONMENTS 3 In some of the cases that can be seen, the banking industry has been severely affected by inflation whereby the savings that the bank have decrease in value as the rate of inflation goes higher thus meaning that the banking industry has to increase its charges to the clients. In most cases, the clients will lose trust in the banking industry thereby affecting the profit margins. The second segment of the general environment that influences J. P. Morgan Chase Company is technology (Grand, 2011). In the banking industry, technology is considered to be a very important factor to consider because most of the banks use secure networks to communicate from one branch to the other, which is the case for J. P. Morgan Chase Bank. Technology has also helped to reduce customer congestion in the bank branches considering that the bank can enter details needed online thus reducing the time for each of the clients. J. P. Morgan Chase
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  • Winter '16
  • Professor Obura Oluoch
  • Chase Bank, J. P. Morgan Chase Bank

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