Bank of America Business Analysis Part III
MGT/521
November 7, 2012
Bank of America Business Analysis Part III
The purpose of this paper is to finalize my examination of Bank of America’s position within a marketplace in which is should dominate and come to a consensus of whether investing in this company will provide reasonable returns and be an asset to my investment portfolio. I’ve conducted two previous analyses that included a SWOT analysis to examine how Bank of America is positioned externally and what are its internal advantages and opportunities. I then conducted a financial analysis to determine its financial health by looking at ratios, rates of returns, balance sheet, income statement and cash flow. Amongst this, it was also critical that I focus on the recent legal proceedings and outcomes as it has a direct impact and correlation to the value of the stock and the confidence consumers have in its image and products. The overall aim of this analysis is to ultimately determine if Bank of America is a sound investment and to be able to present to my clients the reason for my decision. It is important to maintain a sense of transparency to promote a sense of ethics and sound reasoning. This sort of ethical decision making will allow for further confidence and financial security of my firm and its employees. In order to make a final determination, there are a set of organizational characteristics that I will examine. Initially, I am going to look at how Bank of America has taken on strategic initiatives to adapt to the new market in which it exists. I will also research how recent economic trends are influencing Bank of America, the strategies the company is using for adapting to the changing market, tactics Bank of America plans to implement to achieve its strategic goals and the role that Human Resource Management plays in helping Bank of America achieve its strategic goals. All of this information will formulate a sound basis for making an important investment decision.
Bank of America’s Strategic Initiatives According to the Bank of America (2012) website, the company has undertaken a four tier approach to changing the way it does business in this new market. I will outline the four initiatives and examine how each of these subjects will ultimately lead to the company positioning itself in a better way given the last 4 years of turmoil that the company has faced.
Lending
Bank of America has had a variety of lending issues that include the subprime mortgage debacle that left many with foreclosed homes during times of high unemployment. According to the Bank of America (2012) site “Bank of America believes on of the strongest ways we can help address climate change is through our lending practices and Commercial Real Estate Banking services. Applying these resources as part of our business strategy can help stimulate environmentally sound, profitable innovation leading to economic growth, new job creation and new markets.” This is a great corporate statement put forth by the Public Relations department but doesn’t necessarily woo me as an investor. In nature, the statement is very vague and could even be misleading.
Investments
According to Bank of America (2012) website it states “We possess the resources, experience and capabilities to match our investments to the unique needs of each of our clients. Our focus includes strategic investments in businesses and technologies that address climate change, such as developing low-carbon technologies and alternative energy companies. We’ve invested, for example, in companies that can foster energy from the sun or from the rise and fall of ocean waves and convert that energy into electric power. We’re also creatively using investments to help preserve forest, which are central to the fight again global climate change.” As an investor and mutual fund manager, this is an inspiring vision of how Bank of America is invested in the future of global
Related Documents: Bank Of America Business Analysis
Example SWOT Analysis A start-up small consultancy business might draw up the following SWOT Analysis: Strengths: • We are able to respond very quickly as we have no red tape, and no need for higher management approval. • We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers. • Our lead consultant has strong reputation in the market. • We can change direction quickly if we find that our marketing is not working…
Analysis of Business Specialties Paper Amber Brocks, Jennifer Perez, Edgar Martinez, William Bowman, Greg Parrott, Nani Shelton, and Courtney Ball GEN/480 January 24, 2013 Camela Johnson Introduction Our firm, The Efficiency Advisors is a management consulting firm that specializes in the business and operations of a company to help become more efficient. The Efficiency Advisors helps startup companies, small to mid-sized businesses & nonprofit organizations thrive through emerging…
Analysis of Business Specialties Team A Heather Banks, Janet Bragg, Erica Golden, Natasha Miller, Alva Peralta Gen/480 November 10, 2014 Kim Clark Analysis of Business Specialties Introduction There are many organizations that exist within society. Although there are many organizations within society, some organizations are more successful than others. There are a variety of reasons why some organizations are more successful than others. The goal of a management consulting firm is to help the…
Business Analysis Part 1 Marc Kouadio University of Phoenix MGMT/521T May 30, 2012 Dr. Nicholas Sherwin Business Analysis Part 1 To explain the role of the mutual fund manager, you must first understand the purpose of a mutual fund. The mutual fund is defined as an ensemble of portfolio where different investors put their money to reduce the risk. A mutual fund manager is a professional expert and adviser responsible of investing the investors’ money. The mutual fund manager has different…
Business Analysis Part II MGT 521 Management Sept 3,2012 Tom Kenfield Business Analysis Part II Company Financial Health When reviewing the financial summary of Apple, I learned a lot of things about their financial health. The health of the financial company continues to increase due to the fact that they’re such a big international company. Apple announced that their net profit for Q3 of 2012 was $8.8 billion (Apple.com). Compared to the net profit this time last year, there has been…
for a current major manufacturer) will analyze the overall category including its size/revenue, etc. as it exists today. You will then look at your company and the key competitive manufactures/brands/revenue, market share, etc. Once the overall analysis is completed you will look at the key manufacturers positioning, key segments/sub-segments, benefits and determine an unmet category need that is sufficiently large to market toward. You will develop a new product to meet that need, as well as,…
Business Analysis Corporations are in business to make a profit and compete in the ever-changing economy. Challenges are inherent when the consumers are in economic turmoil and businesses suffer. “Financial advisors rely on ratio tools to assess a firm’s financial condition, using calculations and financial ratios developed from the firm’s financial statements” (Nickels, McHugh, and McHugh, 2010, Chapter 17, Understanding Accounting and Financial Information). Financial ratios are especially useful…
of nowadays business. This reader covers so many areas of the business globalization. First, the author made an introduction of the globalization at the beginning of the reader. Briefly introduce the change of market and business environment in Australia and New Zealand in the past 30 years. After that, the author focus on the global perspective area, he thinks that under the globalization, manager must to consider learning additional languages because companies in a globalized business world increasingly…
Instructions Introduction to Business (Keating section) Business Analysis Team: Students may work individually or in teams of 2 or 3 persons (no more than 3). If working in a team, please appreciate that there will be one additional requirement. I will ask all team members to evaluate the performance of their teammates and based on those evaluations, the final grade of individuals on that team may be adjusted up or down from the team score. Choose any one business enterprise to analyze. It will…