The merger of JP Morgan & Co and Chase Manhattan Corporation in year 2000 paved way for JP Morgan Chase & Co. This amalgamation was meant to generate a new business platform for a corporation, which is currently rated to posses over $2 trillion dollars in assets as well as being ahead in the banking and venture industry. In addition, this able group has fused with other fiscal institutions that include Wells Fargo, Citigroup and Bank of America, thus monopolizing the banking sector as a whole. Based on these mergers, it is worth noting that customers globally are therefore in a position to enjoy services like commercial banking, asset management, treasury services, security services and private banking among many more others (JP Morgan Chase, 2002).
What is the most important problem facing JP Morgan Chase?
JP Morgan Chase appears to be facing impediments in the future business relations due to the preceding unions with the flimsy upcoming corporations and the existing financially viability circumstances. Although the firm has taken control of numerous smaller banking organizations over the last ten years, it was observable that these companies did not exemplify efficient tactical supervision hence forcing a sell out. Moreover, poor decision-making in the customer service and public relations departments in terms of settling for mergers have proved to be the important problem facing JP Morgan Chase Company (Russell, 2009).
The impact associated with the materialization of the information technology; predominantly e banking has seen the merged corporations threaten to pull away from the amalgamation and run independently due to their advances in provision of better services and products. A good example is Wells Fargo, which is known for efficient delivery of security services. Since the merge, business has not been penetrating into the desired markets like before. Therefore, the need implementation of advanced technological prerequisite of strategic practices makes them feel like pulling off to run parallel commercial transactions (JP Morgan Chase, 2002).
Nevertheless, one problem that affects the JP Morgan Chase & Co is the destruction of customer confidence that was accelerated by these impulsive amalgamations. Some banking institutions are viewed to have fetched pessimism with them to JP Morgan. A good example is Chase Manhattan as well as the other mergers who are identified with fraud and deceitfulness towards the conclusion of their period of influence in the banking and venture business. Letters divulging the deception and treachery of Chase Bank were released to the populace by the Inner City Press thus creating all the possible motives of pushing potential investors and clients away (JP Morgan Chase, 2002).
It is essential for JP Morgan Chase to have an awareness of the unprincipled and non-proficient behavior of their mergers in order to curb the cases of customer dissatisfaction as they continue to expand in the banking and investment mergers. Political shrewdness is necessary to assist the corporation in coping with the authentic tribulations that may be facing the whole banking segment in subsequent years of operation. All this should be done in consideration that the corporation’s main aim is to be the most respected and trusted economic services foundation in the world (Russell, 2009).
How do you balance between your commitment to shareholders and your commitment to the community?
The dilemma and challenges faced by JP Morgan Chase are how to sustain their good relation with their shareholder by ensuring that all of their service provisions for banking clients stick to the excellence and eminence expected by the shareholders or their investors. It is worth noting that the inevitable precision is that the banking sector is usually a muddle in terms of lack of impressive assurance to shareholders and their obligation to the society, which ends up in credit write-downs, terrains of wrecked dreams, and secondary contributions for the future evolution.
In addition, the company faces a setback in sustaining good relation with the shareholders and investors because of the issues related to their dividend pay out system and inefficient e-banking system that concerns conviction and dependence of the shareholders to the corporation. In order to settle the issue of poor commitment to shareholders, JP Morgan Chase ought to ensure that all their activities stick to construct solutions to the questions of trust and dilemmas faced to protract their competitive advantage and good relations to all stakeholders. Moreover, the management should as well reflect on sustainable focus on the core directorial principles that ensures achievement of their mission and objectives (Russell, 2009).
In conclusion, the JP Morgan Chase supervision team is supposed to exemplify integrity and genuineness in all their banking operations and business merger activities. There should also be an exercise of implementation of strong commitment in promoting the corporation’s values in order to comprehend their business precedence and institute decision-making processes, which are in agreement with premeditated course of better shareholder and investor relations (Russell, 2009).
J.P. Morgan Chase & Co, (2002). JP Morgan Chase: WetFeet insider guide. Indianapolis, IN: WetFeet, Inc.
Russell, D., (2009). JP Morgan Chase (JPM): Out of Silver Bullets