Investing in Bank of America
Investing in Bank of America Bank of America Corporation (NYSE:BAC) is one of the largest banking institutions in America. Bank of America (NYSE:BAC) headquarter is located in Charlotte, North Carolina, and is a member of the Federal Deposit Insurance Corporation (FDIC). Bank of America Corporation as any other company or banking institutions has its vicissitudes in the stock market because of the financial crisis in 2009.
As one of the world’s largest financial intuitions, Bank of America serves approximately 58 million consumers and small businesses around the world, doing business with one out of every two households in the United States and 99 percent of the U. S. Fortune 500 companies. The company has approximately 5,700 banking centers and approximately 17,800 ATMs. (Webmedia, 2011, para 2) When investing in any company it is in the investor’s best interest to be aware of its Strengths, Weaknesses, Opportunities, and Threats (SWOT). An SWOT analysis is a tool for auditing an organization and its environment.
An SWOT analysis is the first stage of planning and helps marketers to focus on key issues. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. The strengths, weaknesses, opportunities, and threats (SWOT) analysis is a helpful tool when reviewing a business profit margin. In this paper I will present the strengths, weaknesses, opportunities, threats (SWOT) analysis; as well if I suggest Bank of America Corporation (NYSE:BAC) is a stock that I would suggest an investor to invest in. In addition, I will identify Bank of America’ stakeholders, explain if their needs have been met and how.
SWOT Analysis Strengths •One of the largest banking institution in America •Range of Financial Services: individual consumers, small and medium business accounts, corporations, investments, credit cards, asset management •Range of Banking Options: online banking, mobile banking, automatic teller machine (ATM) •ReputationWeaknesses •Customer dissatisfaction •Fluctuating Annual Percentage Rates (APR) •Bad debts •Foreclosure •Global banking •Operational cost •Economy Opportunities •Acquisitions •Expansion overseas •Mergers •Economic Growth •Change in regulationThreats •Economy Unemployment •Other banking institution •Change in technology •Regulation •Deregulation Bank of America’s Strengths Strengths in an SWOT analysis can be defined as internal characteristics of the company compared to other companies within the same industry that gives the company that competitive edge. Bank of America Corporation (NYSE:BAC) has several strengths. Bank of America Corporation (NYSE:BAC) has arrange of services as a banking institution. It offers individual accounts, small business accounts, corporation, investments, credit cards, and asset management.
It offers a wide variety of products, for example, mobile banking, teller banking, automatic teller machines (ATM) that allows the customer the ability to bank as if he or she were inside of a banking facility, home loans, and reputation. Bank of America’s Weaknesses Weaknesses in an SWOT analysis can be defined as internal characteristics of the company compared to other companies within the same industry that gives the company a disadvantage. Bank of America Corporation (NYSE:BAC) has it weaknesses when it comes to customer dissatisfaction because of constant nnual percentage rate (APR) changes, bad debts, foreclosures, global banking, operational cost, and economy. Bank of America’s Opportunities Opportunities in an SWOT analysis can be defined as external chances that will allow the company to enhance its sales and profits within the industry. Bank of America (NYSE:BAC) as any other banking institution in the industry has room for growth and opportunity. Bank of America’s opportunities consist of acquisitions of insurance and mortgage lending companies, expansions overseas, mergers, economic growth, and change in regulation.
Bank of America’s Threats Threats in an SWOT analysis can be defined as dare defined as external elements that can cause a hazard to the company. Threats Bank of America face include the economy, unemployment, competition with other bank institutions, change in technology, regulations, and deregulations Bank of America’s key Stakeholders According to Business Dictionary a stakeholder is a person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization’s actions, objectives, and policies (Business Dictionary, 2011).
Bank of America’s stakeholders include its investors, shareholders, customers, board of directors, executives, employee, government and its agencies, vendors, and the community from which the business obtains it resources. Bank of America balances the stakeholder’s needs by offering a range of products to its customers. For example, customers have the option at the automatic teller machine (ATM) that allows them the ability of conveniently to deposit checks at the automatic teller machine and receive a receipt with a copy of the check printed on it.
In addition, customers may also deposit cash into the automatic teller machine and have the number of bills noted on the receipt. Another way Bank of America meets the needs of the stakeholder’s it offer incentive plans for the employees as well as competitive pay. For example, if a female employee becomes pregnant she is allowed at least one month paid maternity leave. Bank of America Corporation (NYSE:BAC) shareholders needs are met by having voting rights that affect the banking institution as a whole, and dividends.
Serving America as one of the largest financial institutions Bank of America Corporation (NYSE:BAC) meets the needs of the government by following the rules and regulations that has been mandated. In addition, paying the company’s debts and developing such a large span of products allow Bank of America Corporation (NYSE:BAC) the ability to increase the company’s customer base as well as keep the company’s reputation as one of the largest financial institution in America. Summary The Bank of America Corporation (NYSE:BAC) is one of the largest banking institutions in America.
Bank of America Corporation as any other company or banking institution has its vicissitudes in the stock market because of the financial crisis in 2009. As any other financial decision requires investor to conduct an in depth research. Bank of America Corporation is exchanged on the New York Stock Exchange (NYSE) with the stock number of BAC. According to Bank of America website, the stock quote is as follows: Table 1 Stock Information Historical Quote Date Requested10/09/11 The date you requested is not available. The previous trading day is10/07/11 Closing Price$5. 0 Volume285,598,200 Split Adjustment Factor1:1 Open$6. 32 Day’s High$6. 33 Day’s Low$5. 88 Copyright 2011 Bank of America Corporation When considering investing in a financial institution Bank of America Corporation (NYSE:BAC) investors should be aware that his or her needs are met through dividends and financial satisfaction. Bank of America Corporation also has a website that allows it investors to go in and track their dividends, receive updates on his or her investment as well as join webcast the board of director’s conduct.