Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Bank of America SWOT Analysis:
Bank of America is one of the principal financial institutions across the globe with a broad range of customers that include individuals, small businesses, middle-market businesses and large corporations. The company also has a diverse range of products and services including asset management, banking, investing and other financial products. Currently, Bank of America is regarded as America's largest bank holding company in assets and the second largest in market capitalization ("SWOT Analysis of Bank of America," 2010). Bank of America basically operates in the United States, Europe, Canada and Latin America with its headquarters in Charlotte, North Carolina.
In addition to having a workforce of 284,000 employees, the company serves a diverse range of customers in over 150 countries around the world and has a strong relationship with the Fortune Global 500 companies. Since it market position is supported by a well-established distribution network which is unparalleled by its competitors, it enjoys a dominant market position with which it gains a competitive advantage over other companies in the industry.
Strengths:
First, the company is one of the leading financial institutions in the world with franchises across businesses that provide it with scale benefits. While it's a basic dealer in 16 countries, Bank of America is among the top three companies in significant capital markets areas worldwide. Secondly, the company has stable revenue and earnings which is as a result of its revenue streams that are...
Over the last few years, the company has been able to register revenue and profits' growth on an adjusted basis because of the varied revenue stream. The other strength of this company is the potency of its balance sheet and the support it receives from government in times of crisis to avoid liquidity and solvency.
Weaknesses:
While the company serves clients in more than 150 countries, it only generates 10% of its sales in international markets and 90% sales in the United States. There is a likelihood of the persistence of the increasing loss trend at Global Card Services which will have a significant impact on the overall returns for the company.
Opportunities:
Bank of America received financial aid under the Troubled Assets Relief Program (TARP) in 2008 which brought a huge burden in terms of cash outflow. The repayment of this loan is an opportunity for the company to save cash outflow in terms of dividend payments which will in turn expand the company's profitability. The other opportunity for the company is investments in emerging markets that is likely to raise its growth rate and profitability ("Bank of America Corporation," 2011). These markets provide profitability growth and expansion for Bank of America because of their accelerated growth.
Threats:
One of the major threats for the company is the proposals for regulatory reforms being discussed both nationally and internationally because of the recent financial crisis. Such regulatory reforms are…
References:
"Bank of America Corporation Code of Ethics." (n.d.). Bank of America. Retrieved July 14, 2011, from http://phx.corporate-
ir.net/External.File?item=UGFyZW50SUQ9ODM3NDZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
"Bank of America Corporation: Company Profile." (2011, March 17). Data Monitor. Retrieved July 14, 2011, from http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?vid=3&hid=2&sid=c5fcfc40-8896-4c80-9b4f-1cff34028b14%40sessionmgr14
Moynihan, B.T. (2011, June 5). Investor Relations: Corporate Governance. Retrieved July 14,
2011, from http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol-govhighlights
People for Tomorrow. Retrieved July 14, 2011, from http://mba-lectures.com/marketing/SWOT-analysis-marketing/1155/SWOT-analysis-of-bank-of-america.html
Bank of America was one of the largest recipients of the troubled assets relief program (TARP) which was created in 2008. The U.S. Government made the terms of the TARP program very favorable to the bank. As a result, in December, 2009 the bank was able to repurchase all shares of TARP Preferred Stock. Paying off TARP quickly saved the bank over $25M which would have been cash outflow
Red Cross SWOT analysis SWOT analysis was invented in order to help companies in defining their strategies in the backdrop of the dynamic and increasingly competitive business environment. Its name was derived from the fact that it is used to examine the strengths as well as weaknesses of a given firm.It are also used to examine the opportunities as well as strengths of an organizations external environment. Meyer (2003) indicated that
Business Studies Strengths and Weaknesses of Kraft Foods Kraft Foods is a major U.S. firm that has undergone change in recent years. To assess the firms' current position, as well as look to the potential for future strategies, a common tool is a SWOT analysis. The SWOT analysis examine the firm and its environment, examining influencing factors by looking at the strength, weaknesses, opportunities and threats faced by the firm. This paper
The Bank of America is not leveraging its assets effectively at present, and this is something that makes it a relatively unattractive investment. In addition, the Bank of America may not be in a position to take advantage of an upswing in the U.S. economy, because the retail housing market is still depressed and the Bank is likely gun-shy about building back its mortgage business. The bank has probably
S. banking industry." By 1974, the card has virtually assumed its contemporary form: "What an amazing transformation has taken place since Bank of America began marketing the precursor to Visa with its 1974 ad campaign 'BankAmericard. Think of it as money.'" 3. GOALS-OBJECTIVES-STRATEGIES. The companies overall strategy can be summed up in terms of its commitment to identifying what its customers want and being there on a "firstest-with-the-mostest" basis. Taken together,
Bank of America Vision and Mission Statement and Long-Term Objectives The mission statement of Bank of America (BOA) is that the actions of individuals working in tandem build strong communities and businesses such as BOA are obligated to support the communities that it operates in and serves. The vision of the BOA Company is to become the finest financial corporation in the world. Thus, the Bank of America plans to use its