Free Essay

Bank of America

In: Business and Management

Submitted By hola13
Words 381
Pages 2
Bank of America Corporation is an American multinational banking and financial services corporation headquartered in Charlotte, North Carolina. It is the second largest bank holding company in the United States by assets. As of 2010, Bank of America is the fifth-largest company in the United States by total revenue, and the third-largest non-oil company in the U.S. (after Walmart and General Electric). In 2010, Forbes listed Bank of America as the third biggest company in the world. Despite its success Bank of America is facing some issues with entering the Chinese credit card market. Some problems Bank of America is facing is, the strong sense of values to cultural beliefs among the Chinese customers, some card issuers show little loyalty to their primary cards, and are unprofitable to the market. There are various steps Bank of America should take in order to remain a segment leader. The first step Bank of America should take is to gain the support of the government by getting the Chinese people to understand the benefits of having credit a card. They should do surveys showing why Chinese customers not interested in credit card usage. They should also become very well acquainted with other banks that have already entered China to see how they became successful. The second process is to develop an infrastructure to have more atm’s and banks so they are easily accessible for the Chinese customers. Have more atm’s in place where Chinese customers can access them for example, in convenient stores, grocery stores or other major stores Chinese customers may use. They should also build more banks, so the Chinese customers not traveling long distances for a bank. The third step is to make a market niche for citizens that attract younger citizens through advertising. Bank of America should also go to school and business to share information on credit cards. They should also look to offer online shopping. This would be beneficial to the customers as well as Bank of America. The fourth and final recommendation is to have workshops on personal money management and use that to expand in the Chinese market. This would give Chinese individuals the necessary knowledge they need and use it to take advantage of the benefits of using credit card.

Similar Documents

Premium Essay

Bank of America

...Bank of America is very unique in their feature of being the best in convenience, clarity, and choice through the solutions that meet’ customer’s needs at every stage of their financial lives. Bank of America has 5 main principles and those are: to be customer driven, have a great place to work, manage risk, have operational excellence, and deliver for their shareholders. Bank of America is expanding and...

Words: 857 - Pages: 4

Premium Essay

Bank of America

...Introduction: The Bank of America was formed in 1998 after the merger of California based Bank of America and the Nations Bank of North Carolina. At the end of the 20th century the bank stood as the second largest bank in the American market with close to 4500 branches operating in 21 states. Most of these branches were located in high growth markets of the south and west coast. Globally, it employed 1, 40,000 employees across 190 nations, over $8 billon in revenues, $360 billion in deposits and some $600 billon in assets. However the markets had been consolidating for sometime with the total number of banks in America having reduced to 7000 from an figure of 14000 first recorded in 1985. Intense competition characterized the market and the challenge for national banks was to be able to localize product and service offerings for their customers. Financial services had traditionally been looked upon as commodities by banks and lack of experimentation marked the sector. The sector was however slowly realizing that traditional methods of cost reduction and other control mechanisms could only take growth so far. ‘Organic Growth', a higher wallet share of existing customers was a concept of much relevance in the highly competitive market. For achieving this Bank of America had given more freedom to individual bank managers to undertake more responsibilities....

Words: 15439 - Pages: 62

Premium Essay

Bank of America

...Case Analysis: Bank of America: Mobile Banking Introduction Bank of America is one of the largest U.S. bank holding companies; it was founded in 1904 and expanded with several acquisitions. Mobile banking was launched in 2007 and within three years Bank of America had 4 million active customers using this service. Mobile banking may be the single biggest innovation the global banking industry has seen. From smart phones to tablets and laptops, banking customers are pushing their institutions to develop more mobile services. This success prompted line-of-business managers to request more functionality in the bank's mobile application that was specific to their businesses such as credit cards and mortgages and to determine how this change would affect their clients. Bank of America offers applications for over 800 devices, which include smart phones and BlackBerry devices. Bank of America was struggling to position their mobile banking service in the continuously changing industry. “The banking industry was fragmented, with thousands of banks offering retail and wholesale banking services.” (Gupta & Herman, 2010, p.2) Recognizing the potential impact mobile technology could have on the entire banking industry, Bank of America must decide on how to position itself within the mobile banking industry....

Words: 272 - Pages: 2

Premium Essay

Bank of America

...Assignment 1: Bank of America April 26, 2015 Bank of America is one of the largest retail banking brand in the United States. Bank of America began as a small regional North Carolina National Bank and has become one of the largest companies in the world. Bank of America services individual consumers, small, middle market businesses and large corporations. 1. Outline the talent management program that led to success for the company. Bank of America has always been a leader in the financial services industry. Its philosophy of talent management and development is driven by seven guiding principles that create a mindset that is pervasive across the bank’s executive ranks. The seven different philosophies are stated below: 1. Leaders really do matter in managing and driving accountability, results and culture. 2. Performance rules: Top performers, then high potentials 3. Talent is an enterprise resource. 4. Today’s top-performing leaders are not necessarily tomorrow’s. 5. A broad set of experiences and assignments is the best classroom; yet, a balanced approach is necessary for development. 6. Today’s top 100 must leave a legacy of future talent by teaching, mentoring and serving as role models to others on what it takes to succeed. 7. Invest in the best and focus the rest....

Words: 1520 - Pages: 7

Free Essay

Bank of America

...Investing in Bank of America Bank of America Corporation (NYSE:BAC) is one of the largest banking institutions in America. Bank of America (NYSE:BAC) headquarter is located in Charlotte, North Carolina, and is a member of the Federal Deposit Insurance Corporation (FDIC). Bank of America Corporation as any other company or banking institutions has its vicissitudes in the stock market because of the financial crisis in 2009. As one of the world’s largest financial intuitions, Bank of America serves approximately 58 million consumers and small businesses around the world, doing business with one out of every two households in the United States and 99 percent of the U.S. Fortune 500 companies. The company has approximately 5,700 banking centers and approximately 17,800 ATMs. (Webmedia, 2011, para 2) When investing in any company it is in the investor’s best interest to be aware of its Strengths, Weaknesses, Opportunities, and Threats (SWOT). An SWOT analysis is a tool for auditing an organization and its environment. An SWOT analysis is the first stage of planning and helps marketers to focus on key issues. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. The strengths, weaknesses, opportunities, and threats (SWOT) analysis is a helpful tool when reviewing a business profit margin....

Words: 345 - Pages: 2

Free Essay

Bank of America

...Bank of America was forced to welcoming U.S. taxpayers as the company’s largest shareholder. BOA stock was down by 65 percent and almost 90 loss within a year, the shareholders decided to remove Ken Lewis as Chairman and allowing him to remain CEO for a limited time. A $500,000 salary cap had to be introduced by Obama administration for all executives of the banks who were receiving bailout dollars Ethical Dilemma. This refers to a situation between two moral...

Words: 2993 - Pages: 12

Premium Essay

Bank of America

...Secondly, federal banking regulation dictated that banks should not be active interstate. This forced the Bank of America into moving its interstate banking operations into a new organization, which ultimately became First Interstate Bancorp (Goldsmith, 2010). In 1958, the Bank of America (BankAmerica) created the BankAmericard credit card, which was rebranded in 1975 as the VISA card. It was not until the 1980s (after the 1967 Bank Holding Company Act) that the Bank of...

Words: 1299 - Pages: 6

Free Essay

Bank of America

...Bank of America research paper Kim Adams Wilmington University Bank of America's history dates back to 1904, when Amadeo Giannini founded the Bank of Italy in San Francisco to cater to immigrants who were denied service from other banks. Shortly following the opening of Bank of Italy the San Francisco earthquake struck, causing most banks to halt all lending practices. Giannini managed to rescue funds to start lending within a few days of the disaster to those who was willing to rebuild. Bank of America was formed when Giannini consolidated his Bank of Italy with Bank of America. As of 2010, Bank of America is the 5th largest company in the United States by total revenue, as well as the second largest non-oil company in the U.S. (after Walmart). In 2010, Forbes listed Bank of America as the 3rd biggest company in the world. (CNN Money) As one can imagine, all industries from mom and pop stores to multi million corporations have felt the wrath of the economic downturn. To make the statement that any bank is performing desirably would be a slight exaggeration. Prior to the recession, banks (including Bank of America) were content with relaxed lending guidelines, contracting out any brokers, and questionable appraisers. The above noted coupled with American’s constant desire for more, set the United States up for a perfect storm. The share price, like the US banking market in general, has dipped significantly from its relatively recent highs....

Words: 2595 - Pages: 11

Premium Essay

Bank of America

...WHO: * Jen McDonald, SVP of Bank of America (Digital Marketing Group) * Douglas Brown, SVP of Bank of America (Mobile Product Development) * David Carrel, SVP of Starcom Agency (Strategy and Analysis) WHEN: January 2010 WHERE: Bank of America Headquarters; Charlotte, NC WHY: Functionality of apps to meet different needs and specific businesses. By providing apps to the different target groups such as:...

Words: 5971 - Pages: 24

Free Essay

Bank of America

...Bank of America 3/12/12 History of the company: The bank of America has become one the most well known banks in the world. In fact this success is due to it several historical merges, especially with the bank of Italy, founded by Amadeo Giannini in San Francisco in 1904. The founder and president of Bank of America agreed to the merging on 1929. It operated under the name Bank of America, and in 1958 the bank harnessed the technology that lets credit cars to be linked directly to bank accounts by introducing bankamericard, and this was the progenitor of VISA. Bank of America first expanded to the borders of California with its acquisition of Seattle-based Seafirst Corporation in 1983. From this, the company expanded in Idaho, Arizona, Washington and Oregon, and it was the largest in history. In 1998, the company was purchased by NationsBank, which moved the headquarters to charlotte North Carolina. The bank suffered serious losses when the director was not able to pay back the large hedge fund it loaned. NationsBank structured the purchase as a merger and renamed the merged company the bank of America Corporation. The company had assets totaling 570 billion dollars, with 4800 branches situated across 22 states. It is currently the largest bank in the United States. Comentario [RN3]: I got lost with the dates during your presentation. There are some more here, but the history could have been made clearer with specific dates and actions....

Words: 2133 - Pages: 9

Free Essay

Bank of America

...Brittany Murphy http://www.bankofamerica.com/ More than 175,000 Bank of America associates provide financial products, services, ideas and solutions to customers and clients in 50 states and the District of Columbia. The company is poised to take on Citigroup as the largest provider of financial services and investment services by expanding its investment services network in the coming year. Bank of America has been experiencing tremendous growth against all odds and has made quite a name for itself despite the traditionally aristocratic, sometimes stuffy banking environment. Examine Bank of America's Website. Identify the key members of the Bank of America executive management team. Brian Moynihan, Catherine Bessant, David Darnell, Anne Finucane, Charles Holliday Jr., Christine Katziff, Terry Laughlin, Gary Lynch, Thomas Montag, Charles Noski, Andrea Smith, Ron Sturzenegger, Vruce Thompson are all key members on the Bank of America executive management team. My first impression of these highly educated people was how much of an impact each individual makes to the company. For example Brian Moynihan, the Chief Executive Officer leads one of the world’s largest financial institutions. Catherine Bessant is the Global Technology and Operations executive at Bank of America and is a member of the company’s executive management team. She is responsible for delivering end-to-end technology and operations across the company....

Words: 484 - Pages: 2

Free Essay

Bank of America

...Bank of America’s CEO and Chairman Ken Lewis, in an effort to purchase Merrill Lynch at the cost of $50 billion misled shareholders by not disclosing all the facts pertaining to the merger. CEO and Chairman Ken Lewis could not have known the controversy and ramifications that would follow his deception or neglect. Or, as he stated himself, there was no intent of deception. The ethical issue here is whether or not Ken Lewis intentionally deceived the shareholders of Bank of America in order to acquire Merrill Lynch. Many question the ambitions of CEO Ken Lewis who had already acquired Countrywide Financial after their failure and now he is acquiring Merrill Lynch. It is reported that Lewis’ investment in Countrywide Financial was $2 billion and his takeover of Merrill Lynch was $44 billion. Reports say that over the last five years Mr. Lewis has spent $100 billion on acquisitions. (Bill Taylor) These acquisitions included MBNA, LaSalle Bank, Fleet Boston and U. S. Trust. It appears that Ken Lewis has built himself a nice little empire. The question here is whether Mr. Lewis acted unethical in his acquisition of Merrill Lynch. Did Ken Lewis bite off too much at the expense of others? We would need to look deeper into the circumstances surrounding his acquisition of Merrill Lynch. Merrill Lynch was a failing company and as part of Bank of America’s agreement to save it, the CEO of Merrill Lynch asked for bonuses for himself and other top management persons....

Words: 1075 - Pages: 5

Premium Essay

Bank of America

...Identify the issue you consider to be the most critical for the I & D team to address and discuss how the Systems Model of Change might be applied to resolving that issue. The most critical issues facing the Innovation and Development team are how the opening of more branches will affect the team’s ability to develop new products and services. The Systems Model of Change approach takes a look at the “big picture” perspective of organizational change. The Systems Model of Change has four components input, strategic plans, target elements of change, and outputs. The System Model of Change can be applied by developing the “what” and “how” the innovation and Development team and branches will perform. The team will has to decide what the input is for the Innovation & Development team. This can be done in a very clear and concise mission statement. Once an agreement is reached on the input they must then develop the strategic plan to reach the goals set in the mission statement (inputs). The strategic plan will outline the company’s directions and steps needed to achieve the goal. The target elements of change also need to be defined. The last step, output, will represent the end results of the change. The Innovation and Development team has already developed a mission statement. The mission of the Innovation &Development team is to provide a test bed for creative ideas to increase customer satisfaction and grow revenue. Now the team has to figure of the “how”......

Words: 1007 - Pages: 5

Premium Essay

Bank of America

...The average profitability of the largest banks grew to outstrip the profitability of the industry’s smallest banks; an outcome traceable to increased competition from bank and nonbank financial firms, new technology that reduced the advantage of banks having a local presence, and the development of services that could be offered over wider geographic areas (www.mheducation.com). A new type of financial-services holding company (FHC) was created in 1999 as a result of passage of the Gramm-Leach-Bliley (GLB) Act. Provided these entities hold strong capital positions and possess sound management, they are permitted to bring together under the same corporate umbrella, commercial banks, investment banks, insurance companies, and selected other affiliated companies that are “financial in nature” and “compatible” with banking (www.mheducation.com). The FHCs come closest to mirroring the organizational structures and service menus of leading European banks, such as Deutsche Bank AG of Frankfurt and HSBC Holdings based in London, by offering the broadest array of services of any financial-services provider (www.mheducation.com). With joint approval of the U.S. Treasury Department and the Federal Reserve Board the menu of services FHCs can offer may be expanded in the future....

Words: 2378 - Pages: 10

Premium Essay

Bank of America

...WHO: • Jen McDonald, SVP of Bank of America (Digital Marketing Group) • Douglas Brown, SVP of Bank of America (Mobile Product Development) • David Carrel, SVP of Starcom Agency (Strategy and Analysis) WHEN: January 2010 WHERE: Bank of America Headquarters; Charlotte, NC WHY: Functionality of apps to meet different needs and specific businesses. By providing apps to the different target groups such as: Merrill Lynch brokerage, mortgages,...

Words: 5890 - Pages: 24