Question: for the purpose post we will assume bank of america...
For the purpose post, we will assume Bank of America will be expanding its business globally, and will examine the Banking Industry in at least one foreign country with an eye to global expansion. Scan current authoritative business sources to locate and discuss some global factor that pertains to the banking industry, Bank of America. Why does this global factor matter, and how should a company’s leadership respond?
Banking industry/sector is booming throughout the world. Bank of America one of the leading banks in the United States and has good reputation in the market. If Bank of America opts for global expansion then it will have to conduct a market research on the target market and should find the global factor which can impact the sustainability of its expansion.
Consider the foreign market UK which is a potential market, when considering the banking industry and in terms of the population. PESTLE analysis can be performed to evaluate the effectiveness of the market and identifying the global factors that will best facilitate expansion.
- Political: The banking industry can be impacted easily through political changes and interests. In UK, the Bank of America can implement its expansion strategy effectively with proper procedures. Politics has long been an influential factor for most businesses expansion. Laws created based on political climate determines how business expand into a foreign market.
- Economical: The economical factor of the market is very vital for the operations of the banking organization. The monetary and fiscal policies of the market can evaluate the sustainability of the banking sector. Since the UK market is economically stable and attracts the foreign direct investments. It can be an ideal market for Bank of America.
- Social: The population of the UK is investment oriented and is highly educated which makes the operations of the Bank of America effective in UK. The younger generation which is investment oriented will play a main factor in ensuring that banks succeed in this foreign market.
- Technological: The technological updates in the banking sector is highly appreciated in UK which is an opportunity for Bank of America. Technological advances in the bank industry has revolutionize the industry on a whole. In order for banks to stay afloat, they must invest in technology to ensure their success, especially in a new market such as the UK.
- Legal: The legal part is critical and crucial in UK as the rules and regulations are strict. Knowledge of laws and how they will have an impact of operations will be key factor for business expansion into a foreign market.
- Environmental: This factor also acts as an opportunity for Bank
When considering these factors, the global factors which can affect the Bank of America for its global expansion can be economical and the social factors. Knowledge of environmental impact will also play an important role in business expiation. Knowing the environment will be impacted is crucial. Local market research will aid in determining these factors.
One of the major global issues that is faced by the banking industry is the increasing competition based on the technological advancement. Not only the traditional players in the industry are using technology for offering better services for creating a differentiation but there are also new business models that are evolving with the help of technology. The financial technologies companies are evolving and offering a challenge to ways in which banking was carried out traditionally. The use of information and digital technology has completely changed the way in which the financial services were delivered. The banks are synchronizing their global operations by the help of the IT and digital technologies. Hence, all the players in the sector are required to upgrade their business by using the latest technologies so that they can face this challenge. Without developing technologically, it will not be possible for the banks to face the competitive threat and only the banks offering latest technological services will be able to survive at the marketplace. Hence the company’s leadership should respond to this situation by adopting latest technology to offer best services to the clients. The leadership of the companies need to set aside special budgets for developing the companies technologically.
For Zookal: Please read my post and make it more professional by adding and editing to the writing. Please also assist with answer more feedback on Why does this global factor matter, and how should a company’s leadership respond? Thank you!