Wells Fargo Company

Introduction Wells Fargo Company was established in 1852 in the city of San Francisco during gold rush era. Henry Wells and William Fargo came up with the idea of providing express money delivery services as means of exploiting gold rush venture. The company offers banking services and greatly secures its customer’s deposits, an achievement that earns them reputation as dependable company.Advertising We will write a custom case study sample on Wells Fargo Company specifically for you for only $16.05 $11/page Learn More Wells Fargo formed a network of marketing spreading over hubs such as New York, New Jersey, Central America as well as Pacific Ocean region. The express delivery business was however halted owing to new developments after First World War; the company was later possessed by Norwest Corporation. Wells Fargo in its new composition participates in food production business as well as movie industry while still providing banking services to clients. The company invested in modern technology for the purposes of advancing their banking services. They later obtained a fiscal company known as Wachovia which was facing shut down owing to loses. Wells Fargo experienced growth which has enabled expansion of its operations to international destinations that feature 130 countries worldwide. Strengths One of the greatest assets possessed by Wells Fargo is its dependability nature especially within banking sector. The company has been marked by clients as a reliable entity which can be entrusted with valuable deposits for safe keeping. The Company recognizes consumers’ worth and as such places priority and focus on attending to clients’ needs adequately, hence enabling them to realize monetary gains. Also within the Banking industry, the organization has embraced modern technology for the purposes providing efficient services. Wells Fargo offers wide range of services capable of boosting its capital and increases its earnings. The presence of the business within international market in over one hundred and thirty countries has enabled them explore many diverse opportunities within their investments. The organization exploits its outstanding image in within the global market as well as extensive customer connections to advance its objectives. At Wells Fargo a customers are recognized as friends and kings, a policy that has enabled the organization maintain its client base even in during economic crunch. Usually, customers experience need for various services at certain stages of their lives; this prompted Wells Fargo to design their products in a way that satisfies all consumer desires at different stages. They also cater for diverse customers representing variety needs within the market. Their Loans are affordable and pocket friendly as they focus on enabling their clients to get more value on capital.Advertising Looking for case study on business economics? Let's see if we can help y ou! Get your first paper with 15% OFF Learn More Customers are also able to open up accounts with minimal in-puts. These accounts come with offers on monthly charges where individuals with regular deposits are at some point exempted from payment of monthly fees. High level of morality and integrity within the company in its interaction with business partners has also contributed to its growth. With the belief that a vibrant community has a positive impact on business, the company has invested in the community through donations and moral support. Weaknesses The economic crunch negatively impacted Wells Fargo in its various business operations, since it was experienced at the time they had acquired Wachovia that was heavily in debt. The company has experienced difficulty in attaining a leading position in the industry in spite of its heavy investments in technology. Opportunities The company stands to gain from the international market share owing to its presence within 130 c ountries. Its entry into the European Market with about 36 outlets and subsequent investments in up-coming markets such as the BRIC nations also puts it at a good stand point to explore available opportunities and advance its brand. The diversities in product and nature of clients’ presents an avenue for trying out new products capable of satisfying customer needs. By exploring the attributes of close market relationships, there are signs that point to company’s relational advantages. Threats The multiple services that Wells Fargo offers to its clients have made the company vulnerable to threat from competitors. Such multiplicity also poses a risk to the entire return on investments. Minor competitors threaten to take over Wells Fargo market share owing to their specialty in certain investments that forms only part of the company’s product diversification. It remains challenging for Wells Fargo to operate as leader within the industry owing to this diversity in the provision of services especially while fighting economic down turn. There is also the threat from the 2010 US Fiscal Legislation passed by the US congress that will hold back the company’s development. The rise in non accruing loans in Wells Fargo coupled with the decrease of the same in other Banks is threatening to pull financiers away from the Company. SWOT analysis diagram Internal Strengths – Dependable – use of modern technology – Wide range of services – Higher percentage market share – Efficient customer care Weaknesses -Higher debt rate – Lack of efficient leadership within market External Opportunities – Wide market share – Product diversity Threats – Threat of competitors – Risk on entire return on investments -2010 US Fiscal Legislation This case study on Wells Fargo Company was written and submitted by user Kailyn Phillips to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Wells Fargo Company This article is going to discuss different ways and situations of analyzing a company’s, profitability, sustainability and its moving forward.Advertising We will write a custom essay sample on Wells Fargo Company, Its Profitability, Sustainability and Moving Forward specifically for you for only $16.05 $11/page Learn More The article is also going to highlight different types of analysis and how they differ from one another in relation to purpose and profitability. The article is going to have a look at Well Fargo’s analysis. There are different situations, which lead to the company’s analysis. The company might choose to assess various sections that constitute to the whole company for various purposes. One of the main purposes of conducting an analysis on a company is to determine its position in relation to profitability. A company’s profitability is never stagnant; a company is moving either forward or backwards. A company will never be at the same position in relation to profitability. There are different types of analysis; they differ from one another in regards to purpose and methodology. A research will always have a unique way through which it looks at the details presented in the aim of research. The SWOT system of analysis is one of the most effective methods of analyzing a business organization. The SWOT analysis highlights strengths, weaknesses, opportunities and threats. Through this analysis an organization is evaluated into the fine details. The company’s strengths can be seen in the ranking it has received from world renowned financial analysts. The company is listed as the best small business lender, best agricultural lender, second best debt card issuer, second best prime home-equity lender, third best mutual fund provider among the U.S. Banks. For instance, the company is the 18th most respected company in the world. This was a ranking established by Barrons. Wells Fargo has bee n ranked as the 17th most profitable company all over the United States. The organization has received the â€Å"Aaa† credit rating from Moody. The company has a good relation with the community, the customers, and the team members. The company has been ranked as the 41st in relation to revenue in the United States. This ranking was given by the Fortune 500. Another area where the company’s strength is displayed is in relation to organization. The company’s organization structure is set up in a manner that helps various departments and branches to work as a single body. The Wells Fargo Bank has been established as the first bank in the United States as of 2008 (Fradkin, 2002).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The company has two major weaknesses. These weaknesses are presented in bad mortgages and low debit card market share. One of the major areas where other competitors beat this company is in relation to debit cards. Whereas other financial institutions are focused on providing debit cards for their customers, this company has been left behind. For this cause, Wells Fargo has been constantly loosing customers. The market share that the company continues to lose every other day where debit cards are being used in the market is a loophole through which competitors continue to enjoy other benefits. The other weakness of the company is in relation to bad mortgages. As a lender, there are mortgage problems that the company continues to face every day as the credit market continues to experience problems (Navarro, 2006). The opportunities the company is presented with, include reduced competition, cross-selling options, consolidating industry, international expansion, and Wachovia. In relation to international expansion, the company is looking to establish a strong presence in the international market as well as increasing the growth a nd profits. In the event the company is to venture out into international markets, it would experience improved synergies and the customer base would increase. The opportunities would also improve the company’s financial stability as well as enhancing the individual economies in the countries where it has been established. Innovation will increase the company’s profitability (Ferrell Hartline, 2010). The threats that the company faces include mortgage issues, credit market crisis, slow expansion of mortgages, credit cards write offs, housing crisis, and government intervention. The credit market is perceived as a threat mainly because of the effect it has on cost of borrowing. Shareholders fail to benefit mainly because the free cash flow is interrupted. This also affects margins adversely. The housing crisis has two major effects that qualify it as a threat to the operations of Wells Fargo. The housing crisis is responsible for the decrease in value of equity and com pany assets as well. This has the effect of making business slow and reducing its profitability. The pressure also affects the growth of equity and cash flow. Although the government is a big customer for the company, there is always some pressure on the intervention it provides. In the event the company intervenes, the effect is felt on stock. The stock is usually under pressure in the event such intervention is launched. The government involvement in business also comes with its adverse effects.Advertising We will write a custom essay sample on Wells Fargo Company, Its Profitability, Sustainability and Moving Forward specifically for you for only $16.05 $11/page Learn More For instance, the government has been associated with past problems and these have led businesses to experience huge losses. In the event the company ventures into a market where the industry is regulated by the government, there are adverse effects that the company is set to experi ence. These adverse effects are usually rooted in the manner the government makes its decisions. In the light of the fact that the government makes decisions, various businesses are set to flourish. Taking into consideration that these decisions are not based on the welfare of the citizens, the businesses will suffer, too. The involvement of government in business is also a risky affair as it brings it political risks. Credit card write offs also decrease the profitability of Wells Fargo (Fradkin, 2002). References Ferrell, O.C. and Hartline, M. (2010). Marketing Strategy. Ohio: South-Western Cengage Learning. Fradkin, P.L. (2002). Stagecoach: Wells Fargo and the American West. New York: Simon Schuster Publishers. Hume, J.B. and Thacker, J.N. and Wilson, R.M. (2010). Wells, Fargo Co. stagecoach and train robberies, 1870-1884: the corporate report of 1885 with additional facts about the crimes and their perpetrators. North Carolina: McFarland Co. Navarro, P. (2006). The Well-timed Strategy: Managing the Business Cycle for Competitive Advantage. New York: Wharton School Publishing. Paul, R. Elder, L. (2006). Critical thinking: Tools for taking charge of your learning and your life (2nd ed.). Upper Saddle River: NJ: Prentice Hall.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This essay on Wells Fargo Company, Its Profitability, Sustainability and Moving Forward was written and submitted by user Marcelo Newton to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.