Strategic Management

Analysis of JCG
Janus Capital Group Inc.
Kaleemullah khan
 Company profile
TYPE PUBLIC COMPANY
JNSFOUNDED 1969
FOUNDER(S) THOMAS H. BAILEY
HEADQUARTERS DENVER, ME
KEY PEOPLE GARY D. BLACK (CEO)
INDUSTRY INVESTMENT
REVENUE $ 1.117 BILLION (2007)
TOTAL ASSETS $160 BILLION
EMPLOYEES 1,213 (2007)
WEBSITEHTTP 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 get investors where they want to go.

Mission Statement Evaluation
Matrix
COMPONENTS
Customers yes
Products Services No
Markets No
Concern for Survival, Growth, Profitability yes
Technology No
Philosophy No
Self-Concept No
Concern for Public Image No
Concern for Employees No
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.
External Audit:
USA GDP trend
Porters Five Forces for JCG:
Supplier Power
(Medium)

Barriers to Rivalry Threat of

Entry (High) Substitutes
(Medium)
(High)

Buyer Power
(Medium)
STAGE 1: THE INPUT STAGE:

IFE
 Strengths W R WR
Ranked in top 10 leaders .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 .05 3 .15
Merger with well established firms .02 3 .06
 Weaknesses W R WR
Allegation against Janus causing high .08 1 .08
penalties
Tarnished image/goodwill .10 2 .20
Declining revenues .05 2 .10
Increasing costs .10 2 .10
Weak performance of printing & .10 2 .20
fulfillment segment
TOTAL IFE 1.00 2.64
EFE Matrix
EFE Matrix
 Opportunities W R WR

Emerging markets of Asia .15 1 .15

Increasing awareness about .15 4 .60

investment management

Investment alternatives .10 2 .20

Technological advancement .10 4 .40

 Threats W R WR
High level of competition .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 .05 2 .10
fluctuations

TOTAL EFE 1.00 2.95

 CPM 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
 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 0.10
Mgt. experience 0.10 2 0.20 2 0.20

Total 1.00 2.53 2.73

MATCHING STAGE
 TOWS Strengths S
Ranked in top 10 leaders
Distribution network
Well recognized brand
Diverse product line
Unique investment process
Consistent performance
Merger with well established firms
Weaknesses W
Allegation against Janus
causing high penalties
Tarnished goodwill
Declining revenues
Increasing costs
Weak performance of printing &
fulfillment segment

Opportunities O SO Strategies WO Strategies

Emerging markets of Asia Employ latest technology
Awareness about investment Launch its brands in Asia for increasing the
management )O1, S2, S3( performance of printing &
Alternative Investment fulfillment segment
Promotion of its retirement
Technological advancement funds )O3, S7, S6( Alternative investment to
improve financial
performance

Threats T ST Strategies WT Strategies

High level of competition Promotion of diversified Develop social
High regulatory environment product line )T1, S4( responsibility program to
Recession in economy Investment process use for repair goodwill )T1, W2(
Fluctuations in financial markets minimize fluctuations of Develop relationship with
Interest rate & exchange rates markets )T4, S5( regulatory authorities
fluctuations
)T2, W(
 Space matrix
Internal Strategic Position External Strategic Position

Financial Strength )FS( Environmental Stability )ES(

Return on investment +2 Technological changes -3

Leverage +3 Rate of inflation -4
Liquidity +5 Barriers to entry -2
Working capital +4 Competitive pressure -4
Cash flow +2 Risk involved in business
-4

Average FS= 3.2

Average ES= -3.4

Y-axis= FS+ES = 3.2+)-3.4( = -0.2

 Internal Strategic Position External Strategic Position

Competitive Advantage CA Industry Strength )IS(

Market share -3 Growth potential +4

Product quality -2 Profit potential +4
Product life cycle -3 Financial stability +3
Customer loyalty -3 Technological know-how +4
Competitions capacity utilization -4 Resource utilization +4
Ease of entry into market +2
Technological know-how -3
Average IS= 3.5
Average CA= -3

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

 FS
Conservative Aggressive
6
5
4
3
2
1

CA IS
1- 2- 3- 4- 5- 6- 1 2 3 4 5 6
1-
(2.-,5.)
2-
3-
JANUS
-
4-
5-
Defensive Competitive
6-
ES
BCG MATRIX
 Relative Market Share Position
High Medium Low
1.0 .50 0.0
High
+20
Stars Question Marks
II I
INTECH
Medium
0
Cash Cows Dogs
III IV
JANUS, Printing and
a S yrt s udnI

Low
-20 PERKINS fulfillment section
Grand Strategy Matrix
 RAPID MARKET GROWTH

Quadrant II
1. Market development Quadrant I
2. Divestiture
3. integration
JANUS
WEAK STRONG
COMPETITIVE COMPETITIVE
POSITION POSITION

Quadrant IV
Quadrant III

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).