Bank Of America Economic Environment

Economic Environment Impact Business is vitally affected by the economic, social, technological, global, competitive and political environments. Whether it has been a direct effect or an indirect effect, Bank of America has experienced impacts within the company due to each of these specific environments. Being a financial institution, the company Bank of America is directly impacted by the economic environment. Throughout the company’s history, Bank of America has survived each economic downturn thus far. This would likely be due to strategic planning and actions by the company. Surviving the economic crisis between 2007 and 2012 was not an option for many financial institutions. The U.S. recession began in December 2007 and ended in June 2009. (Rampell C., 2010). The crisis played a significant role in the failure of many financial institutions. A downturn in economic activity lead to the 2008–2012 global recession. (Nuemark, D., 2015). Since the summer of 2008, The world has experienced the greatest destruction of wealth in its history. “The current financial crisis is the worst the world has seen since the Great Depression of the 1930s” (Effects, para.1, 2015). The economic environment had produced a crisis for the company Bank of America during the years 2008 to 2012. The company began downsizing

In April and May 2014, Bank of America sold two dozen branches in Michigan to Huntington Bancshares. (Huntington, 2015). The economic environment at the time caused some of Bank of America’s customers to locate another location for banking. As part of the company’s new strategy, Bank of America began strong focus on growing its mobile banking platform. “As of 2014, Bank of America has 31 million active online users and 16 million mobile users” (Bank of America, para. 6, 2015). Due to the company’s quick reaction to the economic downturn, it was able to stabilize and continue