The purpose of the RoE analysis is to analyze and determine the generated profit of Bank of America from its shareholder's equity. If there has to be a conclusion, then it would definitely indicate that BAC is hardly generating income from investment of funds and that if it does, then the investments are exposing diminishing characteristics (Bank of America Corporation, 2012)
For BAC, the main services and products include consumer banking services, credit cards, corporate banking and financial advisory services. The Company has kept and maintained good results in the last decade, with over 150 hired executives working for the organization, and very few cases of terminations experienced (Goldsmith & Carter, 2009)
7% since 2002. The organization also had financial strengths in intangible assets, with a goodwill valuation of about $65 billion, which is a higher position compared to the company's competitors (Larson & Ganesh, 2007)
There is also the effect of the demographic trends, where the company benefits due to many clients. The United States has had an increase of the trends of late, due to increased birth rates, reduced incidences of death and increase in the number of immigrants in the United States (Shrestha & Heisler, 2011)
In most cases, studies have shown that organizations will experience turnaround and decline stages after the maturity stage. The organization's leadership has the obligation to safety from the last two stages (Ward, 2003)
Bank of America has the ability to leverage a large innovation proficiency to differentiate itself in a very advanced and competitive market. This in turn successfully raises the supposed service values among its clienteles and consumers and even decreases its own cost of service in the end (DePamphilis, 2012)
Business Strategy This level of strategy encompasses the manner in which the company competes within a certain market, sector or industry. In order to succeed and also win, a business division or department has to adopt and implement a strategy that establishes a competitive edge or competitive advantage over its main rivals (Galbraith, 2005)
In addition, the company is a major rival as it is the second biggest bank in terms of deposits, debit cards issued, and services offered for home mortgaging (Wells Fargo Company Website, 2015). In the year 2014, the bank was mentioned and acknowledged as having the most valuable bank brand for the second year in a row (Haigh, 2014)
This is because every bank in the banking industry has a certain level of monopoly power over its own brand, because no other entity can produce the same brand, although the products and services are differentiated substitutes. In addition, there are numerous buyers and sellers in the banking industry; companies have the freedom to enter as well as exit from the banking industry (Mudida, 2003)
Strategy Levels Strategies can be defined as the determination of the long run objectives of a company or business, the adaptation of different courses of action and the apportionment of the resources which are necessary for undertaking these objectives. When it comes to corporations and companies, there are three different levels of strategy (Rugman, 2002)
SWOT Analysis SWOT analysis is a useful method that is employed by a company for ascertaining its Strengths, Weaknesses, Opportunities, and Threats. The company can make use of this technique to ascertain the internal and external factors and how they have an impact on the company, not only in the present but also in the future as well (Warner, 2010)
The head offices of the Bank of America are located in Charlotte, North Carolina. Presently, the organization offers its services in more than 150 nations, and has affiliations with most of the companies listed in the Fortune 500 as well as over 80% of the Fortune Global 500 companies (Wood, 2014)
They should be educated when and when not to use the company emails for personal communications. (Smith, & Burg, 2012)