Summative Assessment 3: Global Expansion Report

Internal Factor Evaluation Matrix (IFE) Strengths

Weight

Rating

Weighted Score

1.

Bank of America serves clients in more than 150 countries and has a relationship with 99% of U.S. Fortune 500 companies

0.10

3

0.30

2.

21 in the Global 500. Bank of America Corp.

0.04

3

0.12

3.

BOA serves approximately 55 million consumers, clients and small businesses around the world, doing business with one out of every two households in the U.S

0.07

4

0.28

4.

BOA has approximately 4000 banking centers and approximately 16,000 ATMs

0.09

4

0.36

5.

The company’s new Merrill Edge account enables customers to manage their banking and

investing activities through an integrated platform.

0.05

3

0.15

6.

BOA lowered their long-term debt by $76 billion in 2011.

0.05

3

0.15

7.

Revenue diversification is helping the company to serve a large customer base, as well as helping it to offset volatility in its revenue streams

0.06

4

0.24

8.

Decreased Non-preforming loans by 5 billion in 2011

0.05

4

0.20

Weaknesses

Weight

Rating

Weighted Score

1.

International markets only account for approximately 10% of the bank's revenue.

0.09

2

0.18

2.

BOA efficiency ratio has increased over 10% in the last year to 85.59%

0.06

2

0.12

3.

EPS of -0.37 in 2010 and 0.01 in 2011

0.06

2

0.12

4.

Net income loss of 2.2 billion in 2010

0.07

2

0.14

5.

BoA’s revenues have been declining since 2009 at a compounded annual change rate of 12% to $93,454 million in 2011

0.10

1

0.10

6.

The representations and warranties provision in 2011 included $8.6 billion related to the BNY Mellon Settlement and $7.0 billion related to other exposures.

0.05

2

0.10

7.

Bank of America has a ACSI index rating of 68

0.06

2

0.12

TOTALS

1.00

2.68