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1 Bank of America Expansion to Russia Student’s Name Institutional Affiliation Course Title Tutor’ s Name Date Learning Organizations and Value Creation Review the 6 key elements of a learning organization (Ch. 11 of Strategic Management, by Dess). Complete the table below. Evaluate the extent to which the company you’ve selected to assess in this course epitomizes each of the 6 elements. Justify your determination with examples. Learning Organization Element Extent to which the Hig company epitomizes this element Mediu Low Provide a sentence justifying your determination. h m Example x [This] is why I believe it is medium. Inspiring and motivating people with a mission or purpose x Because its purposes is to expand success and barrier factors. Developing leaders x Effective leadership has been developed through strong human Extent to which the Learning Organization Element Hig company epitomizes this element Mediu Low Provide a sentence justifying your determination. h m relations hence motivating people to higher productivity levels. Empowering x The Bank of America has not employees developed a mindset that will encourage creativity of the employees. Accumulating and x The bank of America has not sharing internal accumulated and shared enough knowledge information about its internal knowledge. Gathering and x The bank of America has practiced integrating external globalization by integrating with information people of Russia so as to provide a basis for effective communication. Challenging the status x Bank of America has not broken its quo and enabling principals of management to the ones creativity that will attract local skills and adopt Extent to which the Learning company epitomizes Provide a sentence justifying your Organization this element determination. Element Hig Mediu Low h m the work ethics the locals are familiar with. Recommend at least 1 step the organization's leaders could take to enhance 1 of the elements and explain how that could help the organization create more value. I would that the Bank of America develops a mindset that encourages creativity among its employees. The Bank of America needs to accumulate and share internal knowledge by promoting information, skills and expertise sharing among employees. I would recommend that the Bank of America breaks their management principals to the ones that will attract local skills and adopt the work ethics that the locals are familiar with. References: Rexrode, C. (2021). Bank of America Continues to Slash Exposure to Russia. WSJ. Retrieved 12 April 2021, from https://www.wsj.com/articles/bank-of-america-continues-to-slash- loans-in-russia-1406669761. Memorandum To: Chief Executive Officer Bank of America Expansion to Russia From: Date: Subject: Plan to create economic, social and environmental value. Executive summary. The overview for the Bank of America is to expand its banking services across Russia. The memorandum is aimed at identifying the main problem which needs to be solved and that include how Bank of America can achieve its expansion goal. The memorandum is also aimed at providing analysis of the expansion problem and providing possible solutions for the problem. The memorandum is also used to provide a summary of the strength and organizations of the Bank of America through analysis of strengths and weaknesses as well as appropriate recommendation. Strength and weaknesses of Bank of America. The Bank of America expansion to Russia has diverse strengths and weaknesses. Its strengths from competence 1 analysis is that the bank has a huge customer base that covers the United States, Virgin Islands as well as Puerto Rico (Rexrode, 2021). Work diversity has also been ensured by the Bank of America and therefore earning it a good public image. The Bank of America has also merged and acquired other organizations such as Merrill Lynch therefore rising to be the largest wealth management company. However, the Bank of America also has its weaknesses. The Bank of America has not adequately empowered its employees through development of a mindset that will encourage and motivate employees towards a higher production level (Rexrode, 2021). Besides this, the Bank of America has not accumulated and shared enough information about its internal knowledge adequately. Information is power and therefore Bank of America should work towards sharing of basis knowledge about its organization to the targeted population at large. The Bank of America also has not challenged the existing state of affairs regarding management and control towards attracting local skills and adoption of work ethics familiar to the Russian population. It also needs to develop and adopt modern technology to help its customers effectively control their cashflow and protect them from fraudulent charges. Recommendations for converting strengths into weaknesses from competence 1 analyses. For a company to convert its strengths into weaknesses to strenghths, it must first recongnize and accept its weakenesses rather than living in denial of them.The Bank of America expansion to Russia needs to engage in sustainable growth that is customer oriented . Examination of external factors reveal that there is a worldwide shift towards virtual technology in the banking industry. Bank of America expansion to Russia needs to increase the accessibility to credit cards in the countries outside the United States of America apart from its digital and mobile platforms. A summary of Porter’s Five Forces. Porter’s five forces analyses the strengths of Bank of America expansion to Russia with regards to diverse industrial forces. These industrial forces include threats of new entrants, power of buyers, power of suppliers’ power of substitutes, rivalry and competitors as well as competitors ("Porter's 5 Forces", 2021). Russia has already developed banks such as Burbank, VTB Bank, Alfa Bank among many others which makes it difficult for the Bank of America to enter the market according to Porter’s Five Forces analyses. Citizens of Russia can compare the profits and interest rates offered by their existing banks to determine where they would move their loyalty to. This therefore increases their power. The power of suppliers for the Bank of America expansion to Russia is low. This is because most of the consumers are knowledgeable and can consider factors such as prices charged for services offered by the Bank of America ("Porter's 5 Forces", 2021) . Substitutes for the Bank of America is high due to pre-existing indigenous banks in Russia than can offer same services that Bank of America would. Great rivalry also exists between the Bank of America and the local Russian banks because both banks originate from countries that are well endowed economically hence having a greater attraction to give to their customers. Bank of America has a lower number of complementors because most indigenous banks in Russia have direct connection to the locals because they are familiar with their language and culture. A summary of findings on the Diamond of National advantage. The diamond of national advantages states the home country of a company is very crucial to the success of the company. The competitive chance of a nation dependent on the ability of a bank to be more innovative. The diamond of national advantages enables the creation of a healthy competition between local rivals, home-based suppliers and local customer. One of the most important advantage of diamond of national is creation of industrial rivalry between the companies that do sell the same product or services the majors banks that might be on competition with the Bank of America in Russia are VTB banks, Alfa bank and Russian agricultural bank (Jasiński, 2017). This competition is important because it ensures that the companies have improved on the weakness that they have to make itself very competitive compared to the other banks. It provides the necessary factors of production such as infrastructure and communication systems that enhances growth. The availability of the skilled personnel within Russia would make the bank successful (Jasiński, 2017). The demand condition which refers to the size and nature of the customers that will be visiting the bank is also a national advantage because domestic market always tries to improve on the services to the local hence the attraction of the international customer hence the economic growth. Russian is considered to be among the leaders of banking systems of the world because of the growth of other industries in the world. Which will support the growth of the Bank of America. A summary analysis of the firm as a learning organization. The Bank of America is doing very well in inspiring and motivating people with their mission because it appears to be extending its success by expanding its barriers factors. Globalization is also one of the factors that has ensured the growth and improvement of the bank because it enables the interaction of the company with other companies, the technological improvements has also factored the growth of the bank because it ensures effective communication and other activities of the banks are followed to the latter. On developing the leaderships an effective leadership had been develop through an interactive session with different individuals in the company. The banks have not yet developed an effective means to encourage it employees to be creative. On sharing of the internal knowledge the Bank of America has not shared its internal information with the customer or marketing society. Through globalization the banks of America have been able to gather and integrate the external information by providing an effective means of communication among the failures of the bank is not being able to accommodate the local skills. Strategic Recommendation. It is recommended the banks to be include customer-focused strategies in its sustainable growth. The analysis of the environment shows that there is a technological shift in the global markets into virtual banking and company has some credits on card prints. To ensure a good management of the financial wealth, the company should not only focus on digital and mobile banking but also ensure that it has increased it level to the access of credit cards to other countries. The ban should also ensure that involvement of the local from Russia and other countries are in their banking procedures by adopting the work ethics that the locals are familiar with. It should also ensure that the local have access to the information that they need to know about the company by sharing its knowledge of expertise with the locals. The Bank of America should create a mind-set that encourages its employees to be creative. References. Porter's 5 Forces. Investopedia. (2021). Retrieved 12 April 2021, from https://www.investopedia.com/terms/p/porter.asp. Rexrode, C. (2021). Bank of America Continues to Slash Exposure to Russia. WSJ. Retrieved 12 April 2021, from https://www.wsj.com/articles/bank-of-america-continues-to-slash-loans-in- russia-1406669761. Jasiński, L. (2017). The Generalization of the Comparative Advantage Theory. Journal Of Vasyl Stefanyk Precarpathian National University, 4(3-4), 21-33. https://doi.org/10.15330/jpnu.4.3-4.21-33 Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved. Copyright 2020 by University of Phoenix. All rights reserved.