The company Bank of America is a prime example of an organization striving to expand to become a global organization and the importance of managers within an organization. Bank of America is the nations second largest bank and under the control of CEO Ken Lewis, it is now the largest credit card issuer in the United States. Ken Lewis began as an entrepreneur within Bank of America and is now named the CEO. Before Ken Lewis was CEO he worked as a credit analyst for Bank of America for 37 years. He was named President of the company in 1999, then CEO in 2001.
During his current term as CEO he directed the company to purchase MBNA, making it the largest credit card issuer in the US, and Bank of America also became the nations largest consumer bank. Lewis has a strong sense of organizational commitment, stating, “not only do I want Bank of America to be the biggest and the best, but not just the best bank but the best company in the world. ” This attitude to go above and beyond is important in order for Bank of America to grow and be the best it possibly can.
Ken Lewis is described as “tough, no nonsense, and no excuse” leader pushing his employees to maximize their creativity and abilities as a learning organization. He possesses many of the personality traits of a successful CEO; setting high standards for himself showing his high self esteem and need for achievement. His ability to the lead the company for expansion and growth into new markets shows that he is using a corporate-level strategy leading the company to become a global organization.
Bank of America has set goals to continue to compete with competitors and become a global organization. Setting these goals show that BOA is aware of their task environment and the competitors that lie within it. Lewis has purchased over a quarter of a Mexican bank with expectations to strengthen relationships with the Hispanic market. Also they purchased 10% of a construction company in China. Expanding their operation into the global market will allow them to compete with their biggest competitor Citigroup, which is the largest financial company in the world.
Keeping up with competitors is one of the most important forces that an organization faces. Taking these actions are important for Bank of America to continue profits, keep up with competition, and to expand in the global market. Bank of America is a growing organization with over 176,000 employees and is continuing to grow by expanding its markets globally. The company’s purchase of MBNA not only made it the largest credit issuer in the United States but also allows them to compete with their largest competitor Citigroup.
The company’s CEO, Ken Lewis, controlled many of the decisions made in order to take these actions. Ken Lewis is an excellent example of the importance of mangers within an organization. Top managers are ultimately responsible for the success or failure of an organization. They control the four-principle tasks planning, organizing, leading, and controlling. Managers make important decisions on a daily basis in order to keep their companies profitable and to be able to continue to expand.
The success of Bank of America is proof that Ken Lewis is using the best of their resources in order to achieve their goals. Citations * Jones, G. R. , & George, J. M. (2011). Essentials of contemporary management. (4th ed. ). New York, NY: The McGraw-Hill Companies, Inc. * “Destination CEO Video Series. ” Business Week TV. Web. 17 Oct. 2011. <http://www. mhhe. com/business/management/videos/DestinationCEO/BankOfAmericaCEO. html>.