Abstract The paper addresses the reasons for the merger. The author relates which of two banks is the dominant company and why and what happened to the stock of both companies since the merger announcement. The paper describes the way this merger affected employs and the benefits to shareholders and customers.
From the Paper "In October of ..., Bank of America Corporation announced that it had agreed to buy Fleet Boston Financial Corporation in an all-stock merger valued at ....billion. This merger would create the second largest bank in the United States. Bank of America was the third largest bank by assets with .... billion as of September ... . Fleet Boston ranked seventh in the U S with .... billion in assets. The merged company would be second only to Citigroup, Incorporated in terms of total assets. Analysts estimate that the ..."
Tags: The Fleet Boston/Bank of America merger. dominant company, stock price, cost, benefit, government approval, employment, layoff, downsizing, shareholders
Abstract This paper assess the external environment of the financial services industry and specifically preforms an internal and external assessment of the BofA. The author includes a strategy assessment. The paper recommends to the Bank of America on the way to maintain and strengthen its competitive position.
From the Paper "The report presents the findings of a strategic management analysis of Bank of America Corporation a financial services company that participates in most facets of the financial services sector. Bank of America is a nationwide financial services company in the United States and the company is the country's third largest banking company when measure by total assets behind CitiGroup in first place and J. P. Morgan Chase in second place. This report begins with an assessment of the external ..."
This paper analyzes the Bank of America (BOA), incorporated in 1968 as a provider of financial services and products throughout the United States and in selected international markets.
Abstract This paper relates that, as of 2005, the Bank of America had $1.2 trillion in assets and approximately 175,000 full-time employees in 190 countries, managed through four business segments: 1) Consumer and commercial banking; 2) asset management; 3) global corporate and investment banking and 4) equity investment. The author points out that the company's business model is based on recognizing its domestic and international consumers' needs and identifying more effective ways of delivering products and services to satisfy them, for which BOA has been an industry leader for years. The paper relates that the most glaring problem is the need for the company to concentrate on using its expertise in CRM (customer relationship management) to identify opportunities for improving its customer service in other countries where it is newly arrived and where the relationship between the country managers and its key executives remains formative. Many charts and graphs.
Table of Contents
Company Background
Company History
Milestones/Critical Events
Size, Markets, Market Share
Locations
Detailed Description of Business, Products and Services
Consumer and Commercial Banking Asset Management
Global Corporate and Investment Banking Equity Investments
Vision and Mission
Goals-Objectives-Strategies
Business Model
Company Performance
Management Characteristics
Bank of America Key Executives
SWOT & Analysis of Core Competencies, Capabilities, and Competitive Advantage
Strengths
Weaknesses
Opportunities
Threats
Direct Competitor Comparison
Major Issues / Problems
From the Paper "The term "bank" credit card is more accurately labeled a "universal" consumer card today, and this ubiquitous card was the brainchild of Bank of America. According to Robert D. Manning, the credit card as it exists today first emerged in 1958; the author notes that businesses stood to gain from this innovation for several reasons despite the added transaction costs. The universal bank credit card (1) offered a competitive alternative for consumers who shopped with proprietary retail credit cards, (2) lowered the merchants' costs for their own credit programs by reducing bookkeeping expenses, (3) eliminated cash-flow bottlenecks by reimbursing purchases within days, and (4) provided a path to a potentially large customer base that included all of Bank of America's clients. By the summer of 1958, Bank of America mailed out almost 100 million unsolicited credit cards."
Abstract Bank of America is a large corporate entity with a global presence. This discussion explores the company's operations in the United States and the United Kingdom. This discussion identifies the full range of products Bank of America offers both in the United States and the United Kingdom. In addition the paper describes the company's market, structure and competitive environment. The company begins by taking a look at Bank of America's Domestic and UK Operations.
From the Paper "According to Multexinvestor Bank of America became a corporation in 1968. Bank of America is headquartered in Charlotte, North Carolina. Bank of America currently has facilities throughout the country in states that include; Virginia, North Carolina, the District of Columbia, Florida, New Mexico, Nevada and Arizona. (BAC Full Description) The company operates in several locations in the United Kingdom including London, Bank of America is one of the largest financial institutions in world and serves millions of customers a day in the United States. Although the company operates in the United King its operations are on a much smaller scale. In fact most of the company's profits are made domestically."
Abstract This paper provides a financial analysis of Bank of America. It reviews the company's performance over the last seven years and provides an overview of balance sheets and income statements. In addition, the paper discusses Bank of America's financial ratio analysis. It then examines their current activities and provides a review of future expectations. The paper contains several financial tables.
Table of Contents:
Summary
Current Activities
Bank of America Challenges and Expectations
Ratio and Variance Analysis
Summary
From the Paper "For Bank of America, the challenges are first to keep the strong growth Retail banking and Card Services moving forward, including working to ensure the integration of the Fleet acquisition is completed and contributes to growth in market share in key global locations including the U.K. The effects of the company's growth-by-acquisitions strategy can be seen throughout the financial analyses provided here, including the impact on revenues and debt. The Global Wealth and Investment Management Business Group, by far the most under-performing of all Bank of America groups, is most likely going to see selective and highly targeted acquisitions in nations that bank of America sees potential to grow this Business Groups' performance. Global Corporate and Investment Banking will seek to compete for effectively with its Business Lending Segment, and look to bolster Capital Markets and Advisory Services, which is considered 2nd tier by many investment analysts. Clearly Bank of America will be challenged to grow their earnings beyond Retail Banking and Card Services in the near-term."
Abstract This paper explains that the code of ethics at Bank of America is instrumental in forging the organizational culture. First, the paper identifies this company's organizational type and describes behaviors associated with it. Based on this analysis, the paper then recommends that the bank change some aspects of its culture. In particular, the paper suggests that the bank focus on creating a culture in which employees encourage one another to meet goals and be more productive.
Table of Contents:
Introduction
Current Culture
Cultural Type
Behaviors associated with the Cultural Type
Targets for Cultural Change
Potential Benefits and Risks of Cultural Change
Conclusion
From the Paper "The primary targets for change are humanistic-encouraging and achievement. The most apparent gap is humanistic-encouraging. In this category, there is a 74% difference between the actual percentile score and the ideal score. The second target for change is in the area of achievement. As it relates to humanistic encouraging norms the organization should focus on being more personable, the company should also focus on creating a culture in which employees encourage one another to meet goals."
Abstract This paper outlines the background of the Bank of America and its goal of opening a branch in in Moscow, Russia. The paper analyzes the target market, the bank's objectives in its international expansion, and its marketing strategies. According to the paper, there is stiff competition in Moscow that must be taken into consideration. However, with the help of an incredible marketing strategy, the desire for Russia to globalize and transact with other countries, and with products and services aimed at suiting possibly unmet needs, there is a possibility for success.
Outline:
Company Background
Target Market
Objectives
Goals
Marketing Strategy
Conclusion
From the Paper "Bank of America began as the Massachusetts Bank, opening its doors on July 5, 1784 in the United States (Bank of America, 2006). As one of the largest financial institutions in the United States, working toward becoming the largest in the world, Bank of America serves small- and middle-market organizations as well as larger corporations with their range of services and products from banking and investing to financial- and risk-management. Presently, the bank serves more than fifty-seven million customers at more than five-thousand and seven-hundred locations and seventeen-thousand automatic teller machines (ATMs). These physical locations are in addition to online banking where more than twenty-two million users are active (Bank of America, 2007b)."
Abstract This paper examines the merger process of two major banks - Nationsbank and Bank of America. It focuses on the issue of change, showing how it benefits the organization as a whole. The concept of coping with change in an organization is analyzed in the context of this merger.
From the Paper "An organization is an ever evolving and changing entity; and, all organizations undergo changes at some stage in the history of their existence. The environment in which an organization operates and functions in today's dynamic market is also constantly changing. Change is normal and life's one salient certainty. While change is good for an organization"it helps stimulate the organization to grow"change can be difficult to implement in an organization (Mukherjee and Mukherjee, 2001). Technological and equipment change is easier to handle than changes in the human resources. More than physical and other resources, changing the mindset and the human factor may ultimately come to represent the new competitive edge for a corporation. How an individual, a group or a department relates to change determines the achievement of success for any organization."
Abstract This paper presents a marketing audit of Bank of America, looking at the many changes that have taken place over the past four years, through a variety of merger and acquisition activities that have posed numerous marketing challenges. A large section of the paper is primarily concerned with consumer and small business retail banking and credit card activities. The author has also included some illustrations and tables for clarification.
Outline:
Executive Summary
Environmental Aspects
Markets
Technology
Customers
Marketing
Objectives
Strategies & Tactics
The 4 Ps
Products & Prices
Promotion
Place
Profit & Loss Analysis
Conclusion
References
From the Paper "Bank of America, completed its acquisition of MBNA on Jan. 1, 2006. At the close of this $35 billion acquisition, Bank of America had "...40 million active credit card accounts on its ledger, making it one of the leading worldwide payments-services companies and issuers of credit, debit and prepaid cards based on total purchase volume" (CBS News, 2006.). A few years prior, on October 23 of 2003, Bank of America announced its intent to purchase Fleet Bank for $47 billion. At the time, Bank of America was already the industry leader in consumer banking. The merger gave Bank of America immediate access to the northeast region of the United States. "The new BofA would have 5,700 branches and control 9.8% of the USA's bank deposits" (USA Today, 2003).
"Over the past few years, Bank of America has not been the only bank to take part in merger and acquisition activities within the banking industry. Consolidation within the industry has been on the rise. In January of 2004 J.P. Morgan Chase bought Bank One. In May of 2004, Citizens Financial purchased Charter One while SunTrust purchased National Commerce. In May of 2005, Wachovia purchased Golden West bank. Within the past 20 years, the industry has experienced a massive consolidation. According to the American Banker's Association, in 1987 17,325 banking institutions existed. By the end of 2005, this number had shrunk 8,832. At the same time, the number of banking offices increased from 84,543 to 92,379 and the number of branches increased from 67,218 to 83,547. Merger and Acquisition activities varied greatly by state, size, and purpose."
Abstract This paper assesses and describes the supply chains for three American banks: Bank of America, AmSouth, and Suntrust. The paper discusses how these supply chains were modified from 'brick and mortar' institutions to adapt to the age of the Internet.
From the Paper "A host of major banks, including but hardly limited to, Citigroup, J.P. Morgan Chase, Bank of America, Fleet Financial, Wells Fargo, and UBS Paine Webber, are in the early stages of forming alliances with software companies and service providers in the business-to-business field, according to the AMR report. These alliances will allow for an improvement in the supply chains and make conducting business more efficient."
Abstract This paper examines three online banking sites--Bank of America, Citibank, and Wells Fargo--and discusses the legal and confidentiality issues that they must face.
From the Paper "As Americans improve their computer skills and grow more comfortable with banking over the Internet the hackers phishers and other fraudsters are honing their nefarious skills as well ..."
Tags: online banking, privacy, security, Citibank, Bank of America, Wells Fargo
Abstract This paper focuses on investing and the pros and cons of investing in the following companies: Continental Airlines, Washington Mutual Bank, Bank of America and Jet blue Airways.
From the Paper "According to Yahoo! Finance, Continental Airlines is a United States air carrier engaged in the business of transporting passengers, cargo and mail. As of year-end, Continental Airlines flew to domestic and international destinations and offered additional connecting service through alliances with domestic and foreign carriers. It directly served European cities, seven South American cities, Tel Aviv, Hong Kong and Tokyo as of December."
Tags: issues, concerns investing, Continental Airlines, Washington Mutual Bank, Bank of America, Jet blue Airways
Abstract An examination of the entry of Canadian banks into the American banking market. The paper shows how their greatest competition remains the American commercial banks, and shows how their attempt to enter the real estate market has succeeded. It shows how Canadian Banks already realize a healthy portion of the US real estate market and it is expected that this growth will continue into the future.
From the Paper "The Canadian economy has paralleled the US economy for the past year. Following the events of September 11, 2002, the Canadian economy and the US economy took dips and many on both sides of the border feared recession. However, these circumstances were short-lived and both economies quickly resumed their normal pattern. The US economy is strong and many Canadian Banks are poised to take advantage of eager investors in the United States. Many of these Banks have established a presence in New York City. One of the main reasons for this move is the strength of the US dollar. Foreign Banks used to have a competitive edge over American Banks, but legislation has evened the playing field. The chief competition for Canadian Banks operating in the US is, of course, other US Banks."
Abstract A merger occurs when two or more companies combine to form one, where the buying firm absorbs all the asset and liabilities of the selling firms. This paper discusses the necessity for bank mergers in order to cope with the changing industry. It examines the six main reasons why companies merge and the different types of merger that exist. It uses as an example, the successful merger between Nations Bank and Bank of America.
From the Paper "Larger mergers may create larger assets for the company, but bankers are still left in the dark with what to do with those assets. These days, auto dealer are more likely to handle auto loans, credit cards are received through the mail, and mortgage brokers can provide great deals on mortgages. Not to mention the invention of online banking. Now there are online services that will search the Internet to get the best prices on a CD?s, credit cards, consumer loans and mortgages. Banks are starting to find that they are now not only in competition with other banks, but with software companies as well."
Abstract The paper begins by defining what outsourcing and globalization are. Next, it explains in detail the effects of outsourcing in America, including short and long term effects. It gives complex analysis of how different sectors of the economy will be affected including IT, labor and manufacturing. The paper uses outside sources including expert economists, presidential advisors and federal reserve bank quotations. The paper mostly covers the economic impacts but also briefly looks at politics to cover all of the bases. The paper concludes by saying that although outsourcing might result in some job losses at the outset, the overall benefit to the economy is huge and will undoubtedly help America remain competitive in future markets.
From the Paper "Quantifying the effects of outsourcing on the United States' economy is tough, but the McKinsey Global Institute has estimated that for every dollar spent on outsourcing to India, the United States reaps between $1.12 and $1.14 in benefits. This might not seem like much, but when you multiply that billions, the revenues add up very quickly. One of the hardest hit sectors of the economy, according to critics of offshore outsourcing has been IT, but according to Catherine Mann of the Institute for International Economics, even conservative estimates of the globalization of IT has boosted U.S. gross domestic product (G.D.P) by $230 billion over the past seven years."
Tags: offshoring, GDP, unemployment, Federal, Reserve, Bank
