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Strategic ManagementStrategic Management
Analysis of JCGAnalysis of JCGJanus Capital Group Inc.Janus Capital Group Inc.
Kaleemullah khanKaleemullah khan
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Company introductionCompany introduction
Company Structure:Company Structure:
Janus Capital Group consists ofJanus Capital Group consists of
Janus Capital Management LLCJanus Capital Management LLCInvestment Technology LLC (INTECH)Investment Technology LLC (INTECH)
Acquisitions:Acquisitions:
Janus had 80% investment in Perkins,Janus had 80% investment in Perkins,Wolf and McDonnell & co.Wolf and McDonnell & co.
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Historical backgroundHistorical background
Agency problemsAgency problems
Unethical issues and their ImpactsUnethical issues and their Impacts
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Janus Crisis ManagementJanus Crisis Management
ApproachesApproaches::
There are two ways to handle the crisis:There are two ways to handle the crisis:
a) Reactive Approacha) Reactive Approachb) Proactive Approachb) Proactive Approach
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VisionVision
Suggested vision statement:Suggested vision statement:
To be the premier Asset ManagementTo be the premier Asset Management
Group of international standard andGroup of international standard andrepute, adding real value to our customersrepute, adding real value to our customersand stakeholders through deliveringand stakeholders through deliveringstrong and consistent investmentstrong and consistent investment
performance.performance.
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Mission statementMission statement
To get investors where they want to go.To get investors where they want to go.
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Mission Statement EvaluationMission Statement Evaluation
MatrixMatrixCOMPONENTSCOMPONENTS
Customers yesCustomers yes
Products ServicesProducts Services NoNo
MarketsMarkets NoNo
Concern for Survival, Growth, ProfitabilityConcern for Survival, Growth, Profitability yesyes
TechnologyTechnology NoNo
PhilosophyPhilosophy NoNo
Self-ConceptSelf-Concept NoNo
Concern for Public ImageConcern for Public Image NoNoConcern for EmployeesConcern for Employees NoNo
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Suggested Mission statementSuggested Mission statement::
Our mission is to build wealth through ourOur mission is to build wealth through ourunique investment technique atunique investment technique atinternational level for our clients. Weinternational level for our clients. We
endeavor with our sound philosophy,endeavor with our sound philosophy,dedicated team of professionals anddedicated team of professionals andcustomized infrastructure to launch andcustomized infrastructure to launch andmanage growth, core, international, valuemanage growth, core, international, value
and risk managed funds and to provideand risk managed funds and to provideinvestment advisory services to our clientsinvestment advisory services to our clientswho qualify advice.who qualify advice.
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External AuditExternal Audit::
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USA GDP trendUSA GDP trend
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Porters Five Forces for JCGPorters Five Forces for JCG::
Supplier Power
)Medium(
Threat of
Substitutes
)Medium(
Barriers to
Entry
)High(
Buyer Power
)Medium(
Rivalry
)High(
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STAGE 1: THE INPUT STAGE:STAGE 1: THE INPUT STAGE:
IFEIFE
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Strengths W R WR
Ranked in top 10 leaders .15 3 .45
Distribution network .10 4 .60
Well recognized brand .10 3 .3Diverse product line .10 3 .30
Unique investment process .05 4 .20
Consistent Performance .05 3 .15Merger with well established firms .02 3 .06
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Weaknesses W R WR
Allegation against Janus causing highpenalties
.08 1 .08
Tarnished image/goodwill .10 2 .20
Declining revenues .05 2 .10
Increasing costs .10 2 .10
Weak performance of printing &fulfillment segment
.10 2 .20
TOTAL IFE 1.00 2.64
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EFE MatrixEFE MatrixEFE MatrixEFE Matrix
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Opportunities W R WR
Emerging markets of Asia .15 1 .15
Increasing awareness aboutinvestment management
.15 4 .60
Investment alternatives .10 2 .20
Technological advancement .10 4 .40
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Threats W R WR
High level of competition .15 3 .45
High regulatory environment .15 4 .60
Recession in economy .05 3 .15Fluctuations in financial markets .10 3 .30
Interest rate & exchange rates
fluctuations
.05 2 .10
TOTAL EFE 1.00 2.95
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CPM MatrixCPM Matrix
Janus T. Rowe price
CSFs Wt Rating Wtd Score Rating Wtd Score
Market share 0.10 3 0.30 3 0.30
Financial position 0.15 3 0.45 4 0.45
Product Quality 0.08 3 0.24 3 0.24
Customer Loyalty 0.02 2 0.04 4 0.08
Distribution 0.5 3 0.15 3 0.15
Global Expansion 0.10 2 0.20 3 0.30
Org. Structure 0.10 1 0.10 4 0.10
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Janus T. Rowe price
CSFs )contd( Wt Rating Wtd Score Rating Wtd Score
E-commerce 0.15 3 0.45 1 0.15
Customer Services 0.10 3 0.30 2 0.20
Price competitive 0.05 2 0.10 2 0.10Mgt. experience 0.10 2 0.20 2 0.20
Total 1.00 2.53 2.73
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MATCHING STAGEMATCHING STAGE
TOWS Strengths S Weaknesses W
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TOWS Strengths S
Ranked in top 10 leaders
Distribution network
Well recognized brand
Diverse product line
Unique investment process
Consistent performanceMerger with well established firms
Weaknesses W
Allegation against Januscausing high penalties
Tarnished goodwill
Declining revenues
Increasing costs
Weak performance of printing &fulfillment segment
Opportunities O
Emerging markets of Asia
Awareness about investment
managementAlternative Investment
Technological advancement
SOStrategies
Launch its brands in Asia
)O1, S2, S3(Promotion of its retirement
funds )O3, S7, S6(
WOStrategies
Employ latest technologyfor increasing the
performance of printing &fulfillment segment
Alternative investment toimprove financialperformance
Threats THigh level of competition
High regulatory environment
Recession in economy
Fluctuations in financial markets
Interest rate & exchange ratesfluctuations
STStrategiesPromotion of diversified
product line )T1, S4(
Investment process use forminimize fluctuations ofmarkets )T4, S5(
WTStrategiesDevelop social
responsibility program torepair goodwill )T1, W2(
Develop relationship withregulatory authorities
)T2, W(
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Space matrixSpace matrix
Environmental Stability )ES(
Technological changes -3
Rate of inflation -4
Barriers to entry -2
Competitive pressure -4
Risk involved in business-4
Average ES= -3.4
Financial Strength )FS(
Return on investment +2
Leverage +3Liquidity +5
Working capital +4
Cash flow +2
Average FS= 3.2
External Strategic PositionInternal Strategic Position
Y-axis= FS+ES = 3.2+)-3.4( = -0.2
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Industry Strength )IS(
Growth potential +4
Profit potential +4
Financial stability +3
Technological know-how +4
Resource utilization +4
Ease of entry into market +2
Average IS= 3.5
Competitive Advantage CA
Market share -3
Product quality -2
Product life cycle -3
Customer loyalty -3
Competitions capacity utilization -4
Technological know-how -3
Average CA= -3
External Strategic PositionInternal Strategic Position
X-axis= CA+IS = 3.5+)-3( = 0.5
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AggressiveConservative
Defensive Competitive
-
-1
-2
-3-4
-5
-6
1 2 3 4 5 6
65432
1
-6-5-4-3-2-1
ES
IS
FS
CA
.)5.-,2(
JANUS
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BCG MATRIXBCG MATRIX
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Dogs
IVPrinting and
fulfillment section
Cash Cows
IIIJANUS,
PERKINS
Question Marks
I
Stars
II
INTECH
Low
0.0
Relative Market Share Position
High
1.0
Medium
.50
High+20
Medium
0
Low
-20
Industry
Sa
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Grand Strategy MatrixGrand Strategy Matrix
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Quadrant II
1. Market development
2. Divestiture
3. integration
JANUS
RAPID MARKET GROWTH
SLOW MARKET GROWTH
WEAK
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION
Quadrant I
Quadrant III
Quadrant IV
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DECISION STAGEDECISION STAGE
QSPM MatrixQSPM Matrix
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QSPM Matrix of Janus Capital Group Inc.
Strategy derived from QSPM is divestiture
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Conclusion and Suggestions:Conclusion and Suggestions:
To build their vision as well as modified mission statementTo build their vision as well as modified mission statement
To liquidate the Printing and fulfillment sectionTo liquidate the Printing and fulfillment section
prevent unethical behavior before it happens by providingprevent unethical behavior before it happens by providing
training and counseling to its employeestraining and counseling to its employees
To diversify their business and add some of IslamicTo diversify their business and add some of Islamicsecurities to their portfolios of different securities (relatedsecurities to their portfolios of different securities (relatedproduct diversification )product diversification )
Emerging Asian market (market development).Emerging Asian market (market development).
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