Customers and Geographic areas
As seen in the products/services BOA serves, the customer can be mainly divided into the individual and the business. Each strategy focuses on each target, meeting their customers’ needs. The major customer groups are individuals, companies and institutional investors. Bank of America provides individuals with many different financial products and services to help plan for their financial life. It helps companies plan for their financial development and provides financial products such as loans. As for institutional investors, Bank of America helps them to analyze the global market and gain competitive insights.
And BOA operates in more than 35 countries throughout U.S. & Canada, Latin America, Europe, Middle East, Africa, and Asia. It gives the great competitiveness for BOA to be on the forefront of the banking market. (Bank of America, 2016)
B. Organizational hierarchy: tiers and span of control
Bank of America shows a divisional corporate hierarchy, which large sections of the business enterprise are segregated into semi-autonomous bodies. Each group is specialized in its own service. Also it has a group leader, Executive officer or Vice President. Under the leader’s operation, these divisions can focus on their own field. As every group has its own leader, the effective operating company is
…show more content…
As mentioned before, the bank has international markets and broad scope of products. In order to take only advantages from functional form (U-form) and multidivisional form (M-form), BOA has holding companies across North America and the global markets, and client-facing product divisions as well. In addition, one of noticeable things is about Merrill Lynch & Co., Inc. Bank of America simplifies structure by allowing Merrill Lynch to use their name and brand as the subsidiary even after merger. (Bank of America,
... to service our current needs. It is also important that they are committed to the ongoing investment in technology required to deliver the securities, cash and investment management support services we require. The Bank of New York is a well-established financial institution that has outlasted numerous financial hardships, including the Great Depression. It has a long history of providing excellent services to its customers. In the present day, The Bank of New York continues to live up to that reputation by offering its customers a variety of financial services. The future can only get better for the Bank of New York. With the technological era in full swing, the Bank of New York is taking full advantage by specializing in technological securities. In conclusion, The Bank if New York is a historical financial institution that played an important role in the economic growth of the United States. No other bank can say that it has done as much for the United States as has done the Bank of New York.
In recent times, the very well know Commonwealth Bank is now the second largest Australian registered establishment on the Australian Securities Exchange (ASX) as of January 2008. Also noting that the COM Bank made a Market Capitalisation of AU79.86 billion at the end of the financial year (June 2011). (1)
Known as the kingpin of wall street J.P Morgan was known for many ambitious endeavors. J.P Morgan became one of the richest and most powerful businessman in the world during his era. He was one of the most powerful bankers of his time who founded private banks and industrial partnerships in the late 1800s. He financed railroads, and helped establish many major corporations such as U.S Steel, International Harvester and General Electric. He was born in New England to a prominent family and his father was a banker and founder of Aetna Insurance company. He started to work for his father’s firm Duncan, Sherman & Co as a clerk. The Morgan’s started to grow their wealth through directing foreign investments into American businesses. Morgan started to take his fathers responsibilities after the Drexel Morgan merger. This extended the
The Wholesale Banking segment (which includes TD Securities) provides capital market products and services to corporations, governments and institutional investors in
The good news for community banks is people do agree that regulations against them and regulations against big banks should be different. One important person being Fed Chair Janet Yellen. In a digital article Yellen says “community institutions should not be regulated like large ones.” She agrees that a one-size-fits-all approach is unproductive and that the Federal Reserve must continue to monitor and modify regulations for community banks so that they don’t cause any unnecessary harm. The article talks about how community banks may only make up 10% of the banking industry in terms of assets, but they make up about 97% of all U.S. banks number wise.
The advantage of Wendy’s organizational structure is that it is a control for support in global operations. This enables the effectiveness of the centralized function based groups. They implement policies and the necessary strategies in the organization.
The Federal Reserve System is the central bank and monetary authority of the United States. The Federal Reserve was authorized to ensure sufficient money and credit in the banking system as it was needed in order to grow the economy. The Federal Reserve System was implemented in 1913 in order to reduce panic that the banks are going to steal money. The Federal Reserve has many tools to achieve their goal of controlling and improving the United States central banks and monetary decisions. There are three major monetary tools that the Federal Reserve uses that affects the money supply. These three major tools are open-market operations, discount rate, and reserve requirements. Without these tools the Federal Reserve would have no basis and would
1. Explain the company’s market niche in historical context. Buffet and his company Berkshire Hathaway have succeeded in investment business by buying the stocks which everyone else sells. He has been making profit by buying the stocks which are under real value which Buffet estimates. To do so, he buys stocks when the market price drops because of scandals, accidents, or economic depression.
Berkshire Hathaway Inc. is an American holding company headquartered in Omaha, Nebraska, US. The company wholly owns nine companies, owns 38.9% of Pilot Flying J; 26.7 of six other companies. Since 2016 the company has become shareholders to huge airline carriers and is one of the top three owners to the largest airline company. Each year Berkshire Hatchways and averaged annual growth in book value since 1965.
The Bank of America, the second largest bank holding company in the United States by assets after JP Morgan Chase (Forbes, 2013) was originally founded in 1904 as the Bank of Italy. The Bank of America is now a multinational and financial services corporations with its headquarters located in Charlotte, North Carolina. In 1998 North Carolina National Bank started a series of acquisitions of several banks (including the Bank of America in 1998). The newly-merged bank took the name Bank of America and maintained its headquarters in Charlotte, North Carolina (Bank of America: Our Heritage, 2014). In the 2000s. Bank of America continued to expand with the acquisition of FleetBoston (2004), MBNA (2006), investment management company U.S. Trust (2007), mortgage company Countrywide (2008), and Merryl Lynch in 2009 (Gupta & Herman, 2012).
Bank of America main corporate-level strategy was the directional growth strategy uses horizontal concentration for a competitive advantage market share. Also the acquisition of Countrywide and Merrill Lynch. Its economic value creation included keep service costs low, keep equipment costs low, and increase consumer’s perceived value. Its cost leadership strategy included broad target as their competitive scope, lower prices and lower expenses, and improve operations management.
High school seniors takes deep breaths and parade onto the stage. The beginning of a new chapter awaits as they make the journey from one point of the stage to the end. They reflect on what they have been taught in those many years of high school. The most terrifying fact while graduating high school is the next step: making it on their own. Because they have taken part in the appropriate classes, the students are certain that they have gained the correct knowledge to begin making their mark on the world. In high school, it is crucial to achieve the appropriate classes in order to feel ready to take on the world ahead as an adult. However, many students lack proper education. One key example is financial literacy. Financial literacy is the
As a young teenager, I was over curious and as a result had a habit of asking plenty of questions. One day my father left the door to his office open and the flickering of lights drew me into his office as he sat in front of his computer. It was as if I had been hypnotized, my mind was perplexed as the screen raced from green to red and back to green again… like nothing, I had ever witnessed. It had to be some sort of game he’s playing I thought to myself. “Why is your computer flashing?”
The bank's international presence covers 21 countries through 40 overseas branches, 3 representative offices and 17 branches of the bank's overseas subsidiaries. It has approvals for opening branches in Trinidad and Tobago, Ghana, Australia and Bahrain. It set up a global loan syndication centre in London in 2000 and plans to set up two syndication centers in Dubai and Singapore.
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)