The structure conduct performance model was the model that was utilized to determine the US banking structure. This model would determine firm conduct that would estimate the performance of United States' banking systems. The SCP model includes perfect competition, monopolistic competition, oligopoly and monopoly to the US baking system in order to determine the performance. The banking of United States included number of customers, cost structures, vertical integration and alliance due to the SCP model. The performance of US banking system will be increased in the case of accounting and profits.
2. Porter's five forces
The five forces are power of suppliers, power of buyers, threat of substitutes, rivalry among existing competitors, threats of entry and so on. The Bank of America's position will be greater in the case of accounting and profits. The customer was satisfied by the accounting methods of US banking systems. US banking system were having the competitive advantage among global markets in the case of industry structure, firm conduct and performance. Due to the competitive advantage the degree of product differentiation, cost and vertical integration will be improved. Some of entry barriers are in the case of economic scale, reputation, product differentiation, capital banking requirements and high switching costs of buyers and so on.
3. VRIO analysis
This was the analysis that was the part of strategic scheme of a firm and the process of VRIO possesses the vision statement that continues on objectives and internal and external objectives of American banking systems. This VRIO analysis was also continued on strategic choice and strategic implementation of US banking system.
VRIO analysis can gain the resources, capabilities and competencies could be gained by the VRIO analysis due to the effectiveness of VRIO analysis. This analysis fell into the internal analysis that internal analysis evaluated the United States' banking systems in the case of resources and the capabilities of firm. The Value, Rarity, Imitability and Organization were the factors of VRIO analysis that could be gained US banking systems.
4. Value chain analysis
Value chain analysis was the chains of activity in the case of operating the industry including US banking system in order deliver the effective products and services. The value of chain analysis could be gained the value and activities of American banking system. The independent activities of United States banking systems were delivered by the US banking systems. It was also contributed in the functions of American banking systems including R&D services, design of services and processes, customer services and marketing &sales etc. these functions governed the requirements for the design, customer aspects of business as well as the products of American banking system that's why value chain analysis was essential to the functions of US banking systems.
5. Business level strategy
The business level strategy was the strategy that represented the methods to the organization in order to conduct the business effectively. The business strategies were also used by the large organizations and the organizations were having the different business functions. In the case of small organizations, the operations of business could be allotted separately by the business strategies to the employees in small organizations. This type of strategy was used to provide the guideline for owners, employees and managers in order to provide the organizational innovation in the case of products and services.
The types of business level strategies were utilization of human resources, identification of market niches, development of distinctive advantages, monitoring product strategies and so on.
6. Corporate level strategy
The corporate level strategy was the strategy that covered the organizational objectives, missions and goals in order to satisfy them for organizational success. The corporate level strategies were also utilized by the large organization in order to satisfy their requirements. The corporate level strategy planning was the output planning to the larger organization in order to increase their products and services. The corporate level strategies were also use to deliver the key decisions to large organization. In the case of multi-divisional organizations the capital, staffing and resources could be allotted by the corporate level strategies. It also developed the distinctive capabilities, competitive advantages and resources in each unit in the case organizations.
7. Analysis of firm's performance
The performance of firm could be analysed by the cash flow assets, asset growth, cash flow margin, cash flow return, and leverage as well as market-to-book ratio. It was the business concern that involved in the case of two or more people and the firm was also transformed into the goods and services of the organization. The firm compares to its competitors and the industry average by the ratios of profit, leverage, and liquidity as well as the markets. The larger number of firms was not having any firms.
Profitability ratios
Net profit margin
Return on assets
Activity ratios
Accounts receivable ratios
Inventory turnover
Total asset turnover
Leverage ratios
Debt ratio
Total assets
Total liabilities
Liquidity ratios
Current ratio
Calculations of current assets
8. Diagnosis and recommendations
United States banking system will be facing some problem in future and the problem will make negative influences to American banking systems. American banking will be having problem in the case of cascading cross-defaults. The stock prices will be affected heavily by the negative influences in US banking system. The US financial system will be having the problems due to the lack of profits due to accounting problems. These problems will make the negative influence to the US banking system. The lack of unity and the less production will also make the problem to US banking systems.
Recommendations for US banking
US banking have to concentrate in the case of accounting, financial services, and revenue of banking services that's why they can able to prevent the upcoming negative influences in the bank. The low production could be reduced by the implementation of financial strategies in US bank. The lack of unity will be the major problem in US banking that can be mitigated by the implementation of better coordination among the banking members in American banking systems. The economy will be increased by developing the status of banking systems and profit of American bank will be raised by the high banking services in US.
