Case Studies in Management
Bank of America Corporation
Harris-Stowe State University
Bank of America Corporation has been one of the leading banking companies in the United states with over 5,800 banking locations and another 300 abroad. One of the reasons that they are leading the front is because of the IT system that they have implemented. BoA has so many opportunities for online banking, whether it be from your laptop, mobile device or tablet. Also, with their new ATM systems you can deposit cash or a check without ever talking to an employee. One of the largest reasons for Bank of America’s ...view middle of the document...
The vision statement is more to the point and less wordy saying that they want to be the worlds finest financial services company and they believe that this vision is a very appropriate and achievable goal. BoA’s objectives and strategies would simply be consumer connivence. I believe there ultimate strategy is to keep the consumers happy and making banking with them easier then ever. Constantly updating and implementing new ways to bank is what consumers desire and BoA do so.
Bank of America is the largest U.S.-based financial holding company, with a sizable U.S. presence, strong customer base, and large deposit holdings. The bank’s global assets equal to $2.261 trillion. Faced with pressures from investors, regulators, and the overall economy, Bank of America has initiated several recent steps to clean up its act. They have agreed to more than $12 billion in settlements related to mortgages, sell half of its China construction Bank stake to raise capital, secured further capital by selling its Balboa insurance business, sold its Canadian credit card business, exiting its credit card businesses in the U.K. and Ireland. Additionally, it has put other international credit card units up for sale.
BoA is cutting 3,500 jobs in the current quarter and working on a broader restructuring that could eliminate thousands of additional positions. Although this move has a negative impact on domestic jobs, it helps BoA as a company cut down on its costs. Bank of America also faces litigation problems driving up its expenses. If the bank is forced to pay out billions in litigation costs for mortgages that later defaulted, it could drain earnings for years and contribute to further losses across the financial industry. Optimistically thinking, when the economy rebounds, Bank of America will outdo its competitors considering the fact that they hold the largest market share in the U.S. and owns a large customer base.
Weak trend in U.S. consumer behaviors ultimately impact Bank of America’s products...