This paper analyzes the organizational and customer value situation of the bank with a view to making strategic proposals for improvement.
The fact that BOA is a multinational corporation operating in several countries of the world gives them the upper hand over their competitors who have no global footprint. BOA’s global presence opens doors for unbounded opportunities for the bank to grow their revenues and profits(Degryse & Ongena, 2002). However, the global presence of the bank poses formidable challenges to the corporation. One of these challenges is to be found in the area of human resources. The bank must comply with the specific labor laws of every country where they operate. This is a daunting task with serious implications on the banks resources.
Compliance with employment laws can be even more demanding where a country is divided into regions or states, and each has their labour laws(Degryse & Ongena, 2002). For example, each of the fifty or so states of the United States has their laws that govern employment. The bank must comply with the laws of all these states. Not doing so could result in legal suits that could cost the corporation a lot of money. Besides labor laws, the bank must comply with the taxation requirements of all the countries where they operate. Again, this is a demanding task that if not well managed could cost the corporation.
Compared to two of their majorcompetitors, namely J.P. Morgan Chase Bank and Federal Credit Union (CFE), BOA is quite competitive. The main source of this competitive edge, though narrow, is the ban’s charges compared to what their rivals charge(Weinstein, Clasen, Lorenzo, & Roberson, 2014). For instance, with respect to a 48-month, car loan, BOA charges interest at the rate of 2.24% against Chase Bank’s 2.33% and CFE’s 3.35%. While this difference might appear marginally, it makes all the difference in a competitive environment with ...Show more