St. MGT - Presentation

 

Strategic Management Analysis of JCG Janus Capital Group Inc. Janus Capital Group Inc. Kaleemullah khan  

 

Company profile

 

TYPE JNSFOUNDED

PUBLIC COMPANY   1969

FOUNDER(S)  FOUNDER(S)   HEADQUARTERS KEY PEOPLE

THOMAS H. BAILEY DENVER, ME GARY D. BLACK (CEO)

INDUSTRY  INDUSTRY   REVENUE TOTAL ASSETS

INVESTMENT $ 1.117 BILLION (2007) $160 BILLION

EMPLOYEES WEBSITEHTTP

1,213 (2007) WWW.JANUS.COM/

 

Company introduction Company Structure:

Janus Capital Group consists of  Janus Capital Management LLC Investment Technology LLC (INTECH) Acquisitions: Janus had 80% investment in Perkins, Wolf and McDonnell & co.  

 

Historical background Agency problems Unethical issues and their Impacts

 

 

Janus Crisis Management Approaches: There are two ways to handle the crisis: a) Reactive Approach b) Proactive Approach

 

 

Vision Suggested vision statement:

“To be the premier Asset Management Group of international standard and repute, adding real value to our customers and stakeholders through delivering strong and consistent investment performance.”

 

 

Mission statement

“ To To get investors where they want to go.”

 

 

Mission Statement Evaluation Matrix   COMPONENTS Customers Products Services

yes   No

Markets No Concern for Survival, Growth, Profitability  No Technology 

 

Philosophy 

No

Self-Concept  Concern for Public Image Concern for Employees

No No No

yes

 

Suggested Mission statement: “Our mission is to build wealth through our  unique investment technique at international level for our clients. We endeavor with our sound philosophy, dedicated team of professionals and customized infrastructure to launch and manage growth, core, international, value and risk managed funds and to provide investment advisory services to our clients who qualify advice.” who qualify advice.”  

 

External Audit:

 

 

USA GDP trend

 

 

 

 

Porters Five Forces for JCG: Supplier Power (Medium)

Barriers to Entry (High)

Rivalry (High)

Buyer Power (Medium)

 

Threat of  Substitutes (Medium)

 

STAGE 1: THE INPUT STAGE: STAGE 1: THE INPUT STAGE: IFE

 

 

Strengths Ranked in top 10 leaders

W R WR .15 3 .45

Distribution network

.10 4

. 60

Well recognized brand

.10 3

.3

Diverse product line

.10 3

. 30

Unique investment process

.05 4

. 20

Consistent Performance Merger with well established firms

 

.05 3 .02 3

.15 .06

 

Weaknesses Allegation against Janus causing high penalties

W R WR .08 1 .08

Tarnished image/goodwill Declining revenues

.10 2 .20 .05 2 .10

Increasing costs

.10 2 .10

Weak performance of printing & fulfillment segment

.10 2 .20

TOTAL IFE   

1.00

2.64

 

EFE Matrix

EFE Matrix

   

Opportunities

W

R WR

Emerging markets of Asia

. 15 1

. 15

Increasing awareness about investment management

. 15 4

. 60

Investment alternatives

. 10 2

. 20

Technological advancement

. 10 4

. 40

   

Threats High level of competition

W R WR . 15 3 . 45

High regulatory environment

. 15 4

. 60

Recession in economy

. 05 3

. 15

Fluctuations in financial markets

. 10 3

. 30

Interest rate & exchange rates fluctuations

. 05 2

. 10

TOTAL EFE 

1.00

2.95 

   

CPM Matrix Janus

T. Rowe price

Wt

Rating

Wt’d Score

Rating

Wt’d Score

Market share Financial position

0.10 0.15

3 3

0.30 0.45

3 4

0.30 0.45

Product Quality

0.08

3

0.24

3

0.24

Customer Loyalty Distribution

0.02 0. 5

2 3

0.04 0.15

4 3

0.08 0.15

Global Expansion

0.10

2

0.20

3

0.30

Org. Structure

0.10

1

0.10

4

0.10

CSF’s

   

Janus

T. Rowe price

Wt

Rating

Wt’d Score

Rating

Wt’d Score

E-commerce

0.15

3

0.45

1

0.15

Customer Services Price competitive

0.10 0.05

3 2

0.30 0.10

2 2

0.20 0.10

Mgt. experience

0.10

2

0.20

2

0.20

Total

1.00

CSF’s )cont’d(

2.53

2.73

   

MATCHING STAGE

   

TOWS 

Strengths – S  Ranked in top 10 leaders Distribution network  Well recognized brand  Diverse product line

Weaknesses – W   Allegation against Janus causing high penalties Tarnished goodwill  Declining revenues Increasing costs Weak performance of printing & fulfillment segment  







Unique investment process Consistent performance Merger with well established firms

Opportunities – O  SO Strategies SO  Strategies Emerging markets of Asia  Awareness about investment  Launch its brands in Asia management  )O1, S2, S3(  Alternative Investment  Promotion of its retirement Technological advancement  funds )O3, S7, S6(  

 

Threats – T  ST Strategies ST  Strategies High level of competition Promotion of diversified High regulatory environment  product line )T1, S4( Recession in economy  Investment process use for  Fluctuations in financial markets minimize fluctuations of 









Interest rate & exchange rates fluctuations 

markets )T4, S5(



WO Strategies WO Strategies Employ latest technology for increasing the performance of printing & fulfillment segment Alternative investment to improve financial performance WT Strategies WT Strategies Develop social responsibility program to repair goodwill )T1, W2( Develop relationship with regulatory authorities )T2, W(

   

Space matrix Internal Strategic Position

External Strategic Position

Financial Strength )FS( Return on investment Leverage Liquidity Working capital Cash flow

Environmental Stability )ES( +2 +3 +5 +4 +2

Technological changes Rate of inflation Barriers to entry Competitive pressure Risk involved in business -4

Average FS= 3.2

Average ES= -3.4

-3 -4 -2 -4

 

 Y-axis= FS+ES = 3.2+)-3.4( = -0.2

 

Internal Strategic Position

External Strategic Position

Competitive Advantage CA Market share Product quality Product life cycle Customer loyalty Competition’s capacity utilization Technological know-how

Industry Strength )IS( -3 -2 -3 -3 -4

Growth potential Profit potential Financial stability Technological know-how Resource utilization

+4 +4 +3 +4 +4

Ease of entry into market

+2

-3 Average IS= 3.5

Average CA= -3

X-axis= CA+IS = 3.5+)-3( = 0.5

   

FS

Aggressive Conservative

6 5 4 3 2 1

CA

IS

  1- 2- 3- 4- 5- 6-

1 1234-

Defensive

56ES

2

3

4

5

6

(2.-,5.)

JANUS 

Competitive

   

BCG MATRIX

   

Relative Market Share Position High

Medium

Low

1.0

.50

0.0

High +20

Stars II

Question Marks I

INTECH Medium

0

In d u st ry

Cash Cows III  JANUS,

Dogs IV Printing and

PERKINS

fulfillment section

Low -20

S  a  

Grand Strategy Matrix

   

RAPID MARKET GROWTH

Quadrant II  2.

Market development Divestiture

3.

integration

1.

 

WEAK COMPETITIVE POSITION

Quadrant I 

JANUS  STRONG COMPETITIVE POSITION

Quadrant III 

Quadrant IV 

SLOW MARKET GROWTH

   

DECISION STAGE QSPM Matrix

   

QSPM Matrix of Janus Capital Group Inc.

Strategy derived from QSPM is divestiture

   

Conclusion and Suggestions: To build their vision as well as modified mission statement To liquidate the Printing and fulfillment section prevent unethical behavior before it happens by providing training and counseling to its employees To diversify their business and add some of Islamic securities to their portfolios of different securities (related product diversification ) Emerging Asian market (market development).