Please write a response to the below overview describing how you understand the challenges for that company and the recommended strategy. Write about what you saw valuable in terms of that student’s work.
Wells Fargo Bank is one of the nations largest financial companies, which offers banking services, insurance, investments, mortgage, and consumer and commercial finance services through more than 8,600 bank branches within the United States and its headquarters is located in San Francisco. With offering several different banking products and services it was easy for Wells Fargo to become a leader in the banking industry. Recently, Wells Fargo has been in the news media for creating over 2 million consumers bank accounts, such as; checking, savings, and credit card accounts. These accounts were said to be opened without consumer’s consent, with its primary purpose to increase market shares. Not only has these events left Wells Fargo’s consumers enraged, it also enraged the United States government and other legal offices. Since Wells Fargo’s negative findings they have fired approximately 5,300 employees. These employees were said to be terminated because of management and lower level employees were blamed for these actions. These unethical practices have impacted consumer’s trust, as well as made customer’s unsure of their information and finances being protected by Wells Fargo.
Wells Fargo did not only dominate in community banking, but it is also the leader in mortgage lending and offers insurance and investment services as well. The variety of financial products that Wells Fargo has to offer made its financial company a one stop shop, able to adhere to a consumer’s every financial need from A-Z. Not only was Wells Fargo leading in financial products and services, it also was the first bank to incorporate a easy to use online banking and mobile app. With consumers from the east to west coast, being innovative made it easy for consumers to do banking transactions.
Not only has Wells Fargo loss monies by paying out millions of dollars to case settlements and retiring CEO’s. Wells Fargo also faces stiff competition with JP Morgan (Chase), Bank of America and Citibank. Once being the leader in its industry, Wells now tainted name has made consumers seek banking products with their competitors, causing the bank to incorporate new strategies. After utilizing different tools and conducting several different matrixes, such as: EFE, IFE, Competitive Profile, SWOT, BCG, Space, IE, Grand Strategy and QSPM matrix. I have determined that although Wells Fargo has had some challenges with in the past year it is still in a position to remain in the industry and needs to change some of its operations in order to stay competitive.
In Conclusion, when analyzing the strengths, weaknesses, opportunities and threats of this financial institution, I noticed that its overall size is its biggest strength. Its size has helped Wells Fargo remain afloat. Wells Fargo is indeed a star as shown in the BCG Matrix. Stars are strong and can hold their own. Stars will most likely remain in the industry for a long haul. Also, Wells Fargo well recognized strong brand is also considerably useful when revamping new strategies and operations. Following the company’s mission statement “We want to satisfy our customers’ financial needs and help them succeed financially” when incorporating new strategies is essential for Wells Fargo.