st. mgt.presentation

8/9/2019 St. Mgt.presentation

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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
http://e/sm%20project/Janus%20matrix.XLThttp://e/sm%20project/Janus%20matrix.XLT


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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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