BANK OF AMERICA

Bank of America

Operation management in banking

Introduction

The international economic environment is now increasingly characterized by its dynamism and globalization. Trends such as the growing interdependence among countries, regional blocs, the rise of emerging economies in Latin America, as well as the amazing technological advances in different sectors, constitute an increasingly competitive global environment and changing. As a result of these trends, the phenomena of globalization of markets and internationalization of companies have increased even more, it is essential for employers to have a cosmopolitan outlook and international economic activity and rethinking economic concepts and strategies in a model very open economy (Seward, 2011).

However, in a short time, this situation has undergone significant changes. The international economy in the second half of the century just ended has evolved considerably, taking a number of trends that imply the idea of economic internationalization and gain competitive advantage among which are:

1.Progressive growth of trade and production

2.Growth in dollar prices of commodities worldwide, mainly due to rising commodity prices and exchange rate variations.

3.Growth of manufactured goods in international trade.

4.Relentless progression of direct investment abroad.

5.Ongoing development of international technology transfer.

6.Progressive increase of international capital movements.

7.Growing economic importance of international cooperation.

Gaining competitive advantage

The internationalization of a company involves expenses and to compensate them, adds value to the company. The goal of a multinational company is to be competitive advantages to be obtained to enable it to outperform the competition. Most companies who decide to internationalize adopted the old system of trial and error. The decision on what and how many markets to address, how to enter, and the organization to adopt there are incremental decisions that require widespread analysis of a strategic nature (Wall, 2011).

Operation Management

1 - The original customer expectations

The new expectations of clients with new technologies have been highlighted by various studies: consumers focus on the state for banking operations, one in four consumers will never attend his agency and is a target for the banking, customers, if they remain attached to the agency, are seeking a way in ICT to meet their expectations in terms of proximity, attention and intimacy in the council. The potential is enormous. In 2002, about 12 million French Internet users had 1 million online accounts, and by 2005, the number of Internet users will double and that accounts fivefold (Fields, 2010).

2 - The current market

Currently the supply of Remote Banking is complete. The service can be provided by banking called "exclusive", that is to say, without stop or permanent structure, or a traditional bank willing to provide this service in conjunction with agencies. The coexistence of traditional networks and the Internet within the same bank seems gained, number of independent online banks have been absorbed by existing institutions or coexisting with traditional banks.

3 - A multichannel strategy

The technological revolution in information and communication has enabled new forms of distribution of banking services such as banking and financial institutions has led to a multichannel distribution strategy. Indeed, three options are available for banking strategy: Multi-channel strategy undifferentiated leaving ...