Tuesday 2 January 2018

Bank of America (in 2010) and the New Financial Landscape Case Study Sample

Author Name: Adam Oliver
Institution Name: Crystal G. Collin

This entry was posted in Thecasestudysolutions.com on by Online Case Study help



  • The Case Study Help is related to Bank of America. The real challenge or business problem pertaining to Bank of America is related agility, as the bank was unable to change their strategies and requirements according to the necessities and expectations of the customers. It is essential for the companies to provide their services according to the demand and requirements of the companies, but it was not in the case of BOA. Moreover, the changing financial landscape was yet another major issue which has been envisaged by the company which has affected over their positioning and pushed them more towards the verge of the bankruptcy. BOA should realize the factor that customer orientation is the key in which they failed completely in translating the same to their business. The next heading of the report will be discussing the major recommendations related to strategies that could translate some efficiency for them, especially in the long run. 
  • Strategies are located at the heart of an organization. The organizations which are efficient in terms of managing their strategies are the one that can sustain their operations in the market with proper effectiveness and zeal. There are two different types of strategies that can be used by the companies such as Red Ocean Strategy and Blue Ocean Strategy. Based on the current economic times of the United States, and the situation of Bank of America, it is recommended to the company to use Red Ocean Strategy. Prior to the arrival of the recent economic crisis, the strategy that undertook by BOA into their consideration was Merger and Acquisition (M&A), as they were tried to merge with other banks in order to strengthen their position. However, due to the utilization of the Red Ocean Strategy, the company can get a complete idea about their recent pitfalls and potential problems that will allow them to improve their domestic commercial business mortgage function to satisfy the needs of their customers in a more secure and efficient manner. This particular strategy will allow the company to bring something new within their services and connection to compete easily and perfectly with their competitors. Some of the major competitors of Bank of America are JP Morgan, Citi Group and Wells Fargo, which have already improved their business mortgage functions that could be a sort of role model for BOA to flourish in the banking industry.
  • There are numerous articles which have been highlighted in the connection of the Global Financial Crisis (GFC). Most of the articles have highlighted the reflection of the financial crunch and problems over the financial institutions. The article of Peters et al. (2012) also suggested red ocean strategy to the banks which have been affected heavily from the recent economic downturn. They highlighted the factor of re-checking the strategies and policies for the banks through which they can overcome on the problems, along with decreasing the cost of their operations. One of the article written by Chang et al. (2013) found that changing of the bank’s policies and strengthening the business mortgage function are some important provisions through which financial institutions can prevent them from the bankruptcy (Dell'Ariccia et al. 2008). One of the articles which have been discussed by Reinhart and Rog-off (2008) revealed that the combination of blue and red ocean strategies are essential, as blue ocean strategy enable the companies to increase the factor of differentiation, long with decreasing their service pricing to compete with their peers with ease and sheer efficacy.
  • Finance Assignment Help: The first element of the Balance Scorecard is Finance. BOA has attracted numerous shareholders through its high dividend payout function along with the ability to minimize the agency problem from the company. In terms of Internal Process, the bank has focused on the Retail and General banking that can allow them to expand their network positively. The third factor is learning and development. The company fosters these changes and focuses more towards the framework of continuous development and enhancement to comply with its objective. BOA should focus more on their customers, as they are the most important individuals for them.
  • The VRIO Analysis of the Bank of America is showing that the bank is highly efficient and valuable as far as managing their well-being in the market. The bank has the notion of both, the financial as well as not-financial resources that makes their capabilities very high and efficient. Apart from that their strong portfolio within the eyes of the Government, along with strong customer base makes the bank more competitive and efficient. The company has its international presence as well that will allow them to further strengthen their position in the market. However, proper communication is essential here to comply with all of these objectives with complete emphasize over the technological efficiency. 

  
References

Chang, S. S., Stuckler, D., Yip, P., & Gunnell, D. (2013). Impact of 2008 global economic crisis on suicide: time trend study in 54 countries. Bmj, 347, f5239.

Dell'Ariccia, G., Detragiache, E., & Rajan, R. (2008). The real effect of banking crises. Journal of Financial Intermediation, 17(1), 89-112.

Peters, G.P., Marland, G., Le Quéré, C., Boden, T., Canadell, J.G. & Raupach, M.R., (2012). Rapid growth in CO2 emissions after the 2008-2009 global financial crisis. Nature Climate Change, 2(1), pp.2-4.

Reinhart, C.M. & Rogoff, K.S., (2008). Is the 2007 US sub-prime financial crisis so different? An international historical comparison (No. w13761). National Bureau of Economic Research.

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