Bank of America Facts Bank of America was first founded as the Bank of Italy by Amedeo Giannini in San Francisco,

California on October 17, 1904. The bank was renamed Bank of America in 1929

Mission Statement Our mission is to offer lending and investment products that:

Serve low-and moderate-income individuals and families Improve underserved low- and moderate-income communities Create sustainable practices for the long haul

Vision statement "We believe, very simply, that it is the actions of individuals working together that build strong communities, and that business has an obligation to support those actions in the communities it serves."

Objectives The Diversity Network helps our associates appreciate the value of the diverse workforce at Bank of America and develop skills we need to build teams out of that diversity. The Diversity Network can: Assist associates in understanding and valuing diversity in all its forms Enhance leadership, management and communication skills and provide useful information on professional development Increase understanding of the needs and priorities of our diverse associate and customer base

Help associates develop professional contacts throughout the company

VISION Every business has the responsibility to support society in building strong communities and we believe that our organization speaks with actions through collective working in building those strong communities MISSION Our mission is: Maintaining good and trusted ethical practices Helping to serve the communities of all levels Laying path to achieve the goal of serving low income families COMPETITIVE PROFILE MATRIX CRITICAL FACTORS Reliability in service Delivery Customer acquisition system Consumer awareness Online banking Market share Advertising 0.13 4 0.52 2 0.26 1 0.13 0.11 3 0.33 2 0.22 2 0.22 0.11 1 0.11 3 0.33 2 0.22 0.08 3 0.24 4 0.32 1 0.08 0.09 0.07 2 2 0.18 0.14 2 2 0.18 0.14 3 1 0.27 0.07 0.15 Weight CITI bank 3 Weighted score 0.45 3 TD bank Weighted score 0.45 2 BOFA Weighted score 0.30

Market expansion Brand name Customer service

0.05

0.10

0.15

0.15

0.09

0.27

0.27

0.27

0.12

0.24

0.24

0.24

TOTAL

2.4

2.61

2.1

ANALYSIS If we compare CITI bank with BOFA in reliability it is hard for BOFA to compete. It needs lots of efforts to sustain the reliability. Now in delivery of the product BOFA is the highest position as compared to other two banks. All the banks were losing the process in customer acquisition system because all the three banks which we compared were lagging behind I think TD bank is leading is providing online banking services more extensively as compared to other banks. Coming to market share CITI bank holds the position. And now in market expansion and acquisitions BOFA and also TD bank were good in distributing their service. But the brand name is such that all of the three banks holds the same. For customer service it is such that all the three banks should increase their service. EXTERNAL FACTOR EVALUATION MATRIX OPPORTUNITIES WEIGHT RATING WEIGHTED SCORE Large customer base Market share Customer service International expansion New plans 0.08 4 0.32 0.11 0.12 0.16 0.10 4 2 3 3 0.44 0.24 0.48 0.30

THREATS Losing customers Downward economy Credit card default Poor implementations New banking regulations could crimp income 0.15 0.08 0.05 0.05 0.10 1 1 2 3 2 0.15 0.08 0.10 0.15 0.20

TOTAL

100%

2.46

If we observe carefully it is clear that there threats which were bothering more than opportunities. I found that all of the factors which were mentioned in the Threats should be considered as serious. Apart from that the opportunities were good, but the bank should take more action on the threats. The bank has a chance to hold the new regulation which will become a huge burden to the customers. A strict policy should be made in order to stop this credit default. Not only that but the weak economy should be considered serious

INTERNAL FACTOR EVALUATION MATRIX INTERNAL STRENGTHS Good brand image Loyal employees Financial ratios Capable team Strong work force Product and service 0.04 0.05 0.06 0.04 0.04 0.08 4 3 4 4 3 3 0.16 0.15 0.24 0.16 0.12 0.24 WEIGHT RATING WEIGHTED SCORE

innovation Dividend policy and capital management Robust growth INTERNAL WEEKNESS Saturated market Declining interest margins Week whole sale operations Geographic asset allocation Decreasing asset quality 0.10 1 0.10 0.12 2 0.24 0.08 1 0.08 0.05 0.12 1 2 0.05 0.24 0.10 3 0.30 0.12 4 0.48

TOTAL

100%

2.52

So, according to me I can say from this chart that apart from strengths the bank should consider the week points because these were the major points in attaining growth of the bank. The whole sale operations should increase in order to promote the up coming products. Cars should be taken that asset quality should not be decreased. Care should be taken to get more outcomes in the form of new policies to serve customers more. Making customer analysis by contacting them directly gives really a good increase in the companys growth. SWOT ANALYSIS STRENGTHS Diversified range of banking and non-banking financial services & products Innovations in products and services give it a major strength in attracting customers

Convenience (online banking, mobile banking, large retail branch availability) WEAKNESS Weak wholesale banking operations Not as nimble as smaller, regional operators The company has lost the ability to compete head-to-head in an environment where it lacks a size advantage Fails at handling public relations Failing in social media presence Declining net interest margins OPPORTUNITIES Expansion in international markets Further consolidation in the banking industry Merrill Lynch acquisition Declines in the loan loss provision are hopeful for Bank of America to drive earnings growth in 2012. THREATS Financial economic turmoil Restrictions in capital markets Integration of Merrill Lynch Bad Publicity Bank faces a threat from defaults in residential lending and credit cards Bank of America continues to face pressures from lower-than-historical tangible capital ratio

BCG MATRIX

QUESTION MARKS These are new products in markets with a high growth rate. They enter the market with a small market share. In order to improve their position, it takes investments, especially in marketing. Normally, such products do not generate profits. Bank of America Merrill Lynch today announced the creation of a strategic platform to enhance the delivery of its global liquidity product offering. The Global Liquidity Platform encompasses operational, liquidity and product-specific components, or modules, that offer clients robust liquidity concentration products, global account connectivity and enhanced reporting capabilities. I think this product of liquidity offering is much of no use to offer clients on global connectivity. So I believe this product is question mark CASH COW The brand name, market expansion and also the acquisitions constitute to the cash cow where more revenue will be coming in. not only these but also I noticed that delivery of a product to the consumers is the main thing in cash cow which gives lot of revenue.

STARS In this, The bank should generate large amounts of cash by making mergers and also acquisitions. The company should encourage stake holders for investing and buying new stocks. A lot of revenue can be generated by acquiring new customers and by generating leads into revenue.

DOGS In this stage un wanted expenses should be avoided by minimizing the number of dogs in the company. It should be beware of expensive turn around plans. It should be in a position to deliver cash or otherwise liquidate. This is when the bank is in low growth and also when the bank is in low market share.

SPACE MATRIX The SPACE matrix is broken into four quadrants where each quadrant suggests a different type or a nature of a strategy. Aggressive Conservative Defensive Competitive Internal strategic position Competitive(CA) -1 Market share -1 Brand image -2 Technological changes -1 Customer loyalty -2 Product introduction -2 Control over share holders: 1.5 Total axis x score: 2.16 Financial(FS) +2 Working capital +3 Return on investment +3 Return on assets +4 leverage +4 Liquidity External strategic position Industry strength(IS) +4Growth potential +3Resource utilization +5Financial stability +3Consolidation +3Profit potential +4Ease of entry Average : +3.66

Environmental(ES) -1 Technological changes -4 Competitive pressure -2 Interest rates -2 Barriers to promote products -1 Price elasticity of demand

+5 Net income +3 Inventory turnover Average : 3.42 Total Y axis score: +1.59

-1 Demand elasticity Average : -1.83

FS

CA

IS

ES

so if we observe carefully it is such that an average of 2.07 is observed and the graph is shown above. A lot of improvements should come in leverage and also liquidity and also the percentage of net income should also increase. It is also found that the growth potential and also technology changes plays a major role in setting up Bank Of America in good shape.

GRAND STRATEGY
Rapid market growth

Market development Product development Technological changes Resource utilization

Market share Customer loyalty Product Introduction Brand Image

Weak competitive position

Strong competitive position

Liquidation Retrenchment Unrelated diversification

Mergers and acquisitions Financial stability Net Income Potentiality

Slow market growth

From this graph it is clear that the market growth can be obtained by making all these mentioned developments like product, technology and also carefully utilizing the resources. These all come under the part of rapid market share growth. And now coming to weak competition it is dangerous to have too much liquidation and also retrenchment. It is also such to have the un related diversification which needs lot of improvement in order to gain from this position. I can also say that the bank should need to do mergers and acquisitions in order to prove itself more competitive. Not only the mergers but also it needs to work hard to prove it self that it has good financial stability. The bank also needs to process in the way to prove it has lot of potentiality. Market share, customer loyalty and also the brand image matters for the bank in order to prove it has strong competitive position

RECOMMENDATIONS From all the observation I can say that the bank should focus mainly on consumer awareness and also on the market share . not only that but also it should interest in promoting products by advertising. The online banking should be more competitive such a way that it should do survey on consumers about what they really want. By doing this there is a scope its market share and also the market share should be increased by promoting different types of financial products for saving money and also the bank should take care of small merchants and offer them the credibility so that they can take of banks business. I think the bank should take another chance by getting back the customers which they lost because of their poor performance and also service. By doing this we can get loyalty for the lost consumers. Also the bank should concentrate on poor implementations. And more over according to me this bank can gain credibility when it gives support to consumers in the hard times of economic crisis. So for doing that the bank should prepare its ground from now itself. The bank should maintain its financial ratios and also it should take care of capital management such a way that these should not go down. The company should concentrate on geographic asset location and also asset quality should be increased. The bank should not take over the sick units because the bad publicity of getting down will get more rumor. Care should be taken more for liquidation and also retrenchment in order to overcome this weak competitive position.