Bank of America is one of the world’s largest leading financial institutions and ranks 21st in the Fortune 500 (Fortune 500, 2013).
In this paper, I will go over a strategic and operational plan for Bank of America based on a SWOT analysis. These plans will seize opportunities, build on strengths, minimize weaknesses, and counteract threats found in the SWOT analysis. Organizational Planning Bank of America Corporation provides a range of financial services including investment banking, corporate banking, asset management, retail banking, and credit card services.
Its mission is to offer lending and investing products that serve low- and moderate-income individuals and families, improve underserved low- and moderate-income communities, and create sustainable practices for the long haul (Bank of America Mission Statement, 2014).
The company’s market position is supported by a strong distribution network, unmatched by its competitors. The company enjoys a dominant market position and leverages its position to gain competitive advantage over its peers. However, regulatory changes and weak global economic growth compounded by uncertainties could hurt its margins. (Marketline, 2013) Strategic Plan
A good strategic plan for Bank of America is to grow its banking sector in the US. Per Marketline (2013) with its strong market position, Bank of America is well positioned to harness the growing potential of the US banking sector with its retail footprint covering approximately 80% of the US population. This is an opportunity for Bank of America to grow its banking sector in the US. Bank of America will need to build on its strengths such as its favorable business mix diversification and strong capital adequacy to cushion insolvency risks. As per Marketline (2013) favorable business mix is helping the company to serve a large customer base.
The Business plan on Selling Insurance Products Through Banks
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In knowing the threat of weak economic growth and intense competition, Bank of America can work on measures to thwart these identified risks. The possible effects to the stakeholders could be: increased profits for its shareholders and increased workload for employees. organizational plan A good organizational plan for Bank of America would be to seize the opportunity in the growing mobile banking market. According to industry sources, mobile banking users worldwide is estimated to reach 530 million in 2013, up from just over 300 million in 2011 (Marketline, 2013).
To grow in the mobile banking market Bank of America should build on its strengths by continuing its initiatives to improve its mobile banking services such as the launching of new mobile applications. This will benefit its customers by improving its ease of access and could affect employees by reduced staff. Conclusion In conclusion, the two described plans can help Bank of America grow and will affect many stakeholders. Those that will benefit are the shareholders, customers and those that will be negatively impacted will be the employees.
