Business Model and Stragegic Plan Part 2: SWOT Analysis Bank of America

Business Model and Strategic Plan Part II: SWOTT Analysis Bank of America
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External analysis
The environmental analysis focuses on the strengths and weaknesses that are part of internal factors affecting the business, while the opportunities and threats are the external factors affecting the financial service industry (Harrison & John, 2013). The legal and regulatory framework affects the performance of industry players in the baking and financial service industry. There has been increased scrutiny on the banking and financial service industry in the U.S since the 2008/2009 financial crisis. New regulations required that banks raise more money for mortgage wrongdoing settlement, but the government’s role has been to increase regulation and punish banks that fail to adhere. The Dodd Frank Act is still being effect where the banks need to look more into the credit worthiness of the borrowers, but this also prolongs the credit approvals (Draeger & DuBois, 2012). The boom and bust that affects the economy has a direct impact on investments, but there has been progress in reducing unemployment and improving investor confidence in the economy since the 2008/2009 crisis. The likelihood of a raise in the interest rates is a challenge to the industry since the timing is the most important aspect to limit losses in investments. There is a challenge for the industry to deal with speculative bubbles especially in the real estate sector, while oil prices are at an all time low in a decade’s time signaling challenges to the energy sector.
Internal analysis
The strategy of the new division is to provide financial services to clients better than any other financial services company, for the individual investors, companies as well as institutional investors. The intelligent portfolios will enable the new division to meet the objectives to deliver services to the customers and clients. Diversification and asset allocation will be crucial to the success of the strategy, while launching online services to reach out to more customers and clients will be taking into account client risk tolerance (Neal, 2015). The intelligent portfolio is an innovative product that may prove successful owing to the gaps in the financial service sector, where there are high costs and difficulties to access timely and relevant information about investments. The strategic focus of the division is successful when the employees and workforce are choosing the most effective investment strategies taking into account risk tolerance to improve performance while engaging the clients to achieve their desired outcomes.
Supply chain
Strategic sourcing can reduce inefficiency in the business operations, where the bank will rely on the services of the staff without consultants to increase self-sufficiency. This will be achieved by streamlining the processes by relying on the technology to cut costs will linking clients with information. The streamlining processes also improve the division’s competitiveness as the processes are streamlined. As such, the technology solution provide an opportunity together relevant information to facilitate analysis (World Market Intelligence, 2013). The intelligent por...