Wells Fargo Number




Overthe time, the banking industry has tremendously grown to accommodateother services such as financial advising to their clients inaddition to the usual banking services. With the massive evolution ofthe banking industry, organizations has over the time developed oradopted different managerial strategies in order to remain in thebusiness or face the issues of being forced out of the business. Oneof the major organizations in the banking industries that haveundergone numerous changes over time to remain the business is theWells Fargo. This paper is a case study on the Wells Fargo company,which is one of the giants in the banking, financial holdingservices, as well as financial advising services not only in theUnited States but even globally. The company’s core productsinclude Banking services such as online, ATM, business, wholesale,government, and institutional forms of banking), others includeMortgages, Credit Services and Insurance, Investment (Rau&amp Wells, Fargo &amp Company, 2001).

  1. History, Development, and Growth of Wells Fargo Company over Time

AnAmerican multinational financial services holding as well a bankingcompany, ‘WellsFargo &amp Company’has become of the giant companies in the sector. Its mainheadquarters is located in San Francisco, California united states,with different other offices in other parts of the country. In termsof ranking, the company holds the fourth position in the bankingsector in the United States, in terms of assets. However, it’sranked first in terms of market capitalization. Through pout itsdifferent services the company has maintained a name within thecountries elite companies (WellsFargo, 2015).

Sinceits establishment in the year 1852, the company has grown to become arecognized establishment in the banking industry. William Fargofounded the company and Henry Wells, hence taking the name ‘Wells,Fargo &amp Co’the company was founded during the time when gold business wasprominent in the port of San Francisco. During its initial times inoperations, the company offered services such as banking (sellingbank papers and buying gold) and express (express delivery of goldand other valuables). The company (Wells Fargo) earned its reputationamong people in those early days through its rapid and responsiblydealing with people’s money (Moody&amp Mays, 2005).

Thecompany used the fastest means available to deliver customers’goods, this led to the establishment of the overland mail company in1858, and in the next ten years, the company had managed to connectto other regions, taking the advantage of the then rapidly usedrailway transport. By the year 1910, the company had managed tolink-up 6000 locations, hence increasing its popularity in America.Since its establishment, the company either acquired or joined othercompanies, which would help in the expansion if the wells Fargocompany. In 1860, the company gained control of the ButterfieldOverland Mail Company, in 1905 the company separated its expressoperations and banking services. Using the famous name ‘Stagecoach’the company’s image grew and survive mighty events and into thefantastic growth of the 20thcentury (Rau&amp Wells, Fargo &amp Company, 2001).

Afterseparating its services, the banking sector managed to survive the1906 disaster, and from that point, the company embarked onrebuilding its banking sector. Between the years 1910s and 20s, thecompany served as commercial banks as it supported the wests rapidlygrowing agricultural sector. The bank’s management was credited forhelping it survive the great depression, and in turn, it served thenation during WWII, and laid its foundations in serving theincreasing number of customer’s after the war era (Hill&amp Jones, 2012).

Oneof the major aspects that have developed the company to grow in itsoperations is the adoption of positive innovations such as technologyadvancement to meet their customer’s needs. The Wells Fargo companyhas been a pioneer in bringingbanking convenience to its customers. Throughout the 20thcentury, the company saw its growth from a single office in Franciscoand expand into other regions in the 1960s, Wells Fargo become anorthern California regional bank where it built branches almostevery place where people lived from mountains to coastal regions. In1980s, the company continued to grow and it eventually establishedand launched its online services.Todayin the 21st&nbspCentury,with extensive and diversified financial services, the&nbspWellsFargo&nbspnameonce again extends “Ocean-to-Ocean,” “Over-the-Seas,” and, ofcourse, On-Line (Wells Fargo, 2015).

  1. The identification of the company’s internal strengths and weaknesses

Sinceits foundation, the company has become one of the recognized in theindustry with its customer increasingly growing almost on dailybases. Some of the company strong aspects that have been on theforefront in contributing to its enormous growth include one of themajor strengths that has contributed to the growth of the company toits current position globally, is its management that has beeneffective in implementing the company vision and mission statements(Rau&amp Wells, Fargo &amp Company, 2001).Moreover, the company has a very wide distribution network, which hasbeen an advantage in terms of the company’s business performance.In addition, the company has diversified earning distribution acrosssegments, which in turn increased its sources of income and finally,the company possesses strong credit discipline (Hill&amp Jones, 2012).

Despitethe numerous internal strengths, the company is faced with someinternal weaknesses, which has derailed its performance compared toits competitors. One of its prominent internal weaknesses is theissue of low customer satisfaction as well as limited internalpresence finally, dealing with banking reputation has as wellderailed the company’s internal performance, since the recession in2008, many banks has needed the assistance from the government tohelp them re-establish themselves again (Hill&amp Jones, 2012).

  1. The Nature of the external environment surrounding Wells Fargo

Theexternal environment of the company has had a direct impact to acompany’s performance in the industry. Some of the external factorsinclude government participation through regulations to control theindustry. With the increase in the use of online platforms, there hasbeen an increased set of regulations. Additionally, the externalenvironment has as well offered both positives in terms ofopportunities as well as demerits in terms of threats (Hill&amp Jones, 2012).The external environment is continually growing hence offering moreand diverse business opportunities to the company through theemerging markets as well as acquisitions, which has been continuallybeen part of the company’s history, hence contributing to thecompany’s expansion. The negative external environment has hinderedthe growth and performance, such environment includes completion fromother like minded industries as well as general business performanceof the country such as inflation and economic slowdown (Vandermey,2014).

  1. Wells Fargo’s SWOT analysis (Wells Fargo &amp Company SWOT Analysis, 2014)


  • Listed in the respected company’s in the Barron’s 2010

  • Leader in terms of market share

  • Reputation management + unique products to its costumers

  • Highly recognizable advertising campaign / Marketing Recognition

  • Solid and positive reputation


  • Limited international presence

  • Weak asset quality

  • Low brand loyalty

  • Internet security breaches

  • Government Policies/ Regulation

  • Low customer satisfaction


  • Increasing number of immigration population

  • Growth and advancement in the commercial banking industry

  • Beneficial acquisitions, i.e. the acquisition of Wachovia

  • Technology implementation in the industry, making operations easier and timely, i.e. online services

  • Emerging markets + historically low rates


  • Consolidation in the banking industry in the united states

  • Increase in the number of regulations on the contingent commission

  • Increasing number of online scam cases

  • The Meltdown of the US asset-backed securities market

  • Competition + economic slowdown and inflation

  1. Corporate-level strategy that the company is pursuing

Corporatelevel strategy entails strategic decisions made by a business, whichinfluence the entire business organization. Some considerable partsof corporate level strategy include mergers and acquisition, humanresources management, resource allocation, and financial management.There are three types of corporate level strategy, however, withreference to the Wells Fargo Company the company is pursuing thevalue-creating strategy. This is a corporate level strategy thatentails the company seeking to outdo its competitors by gaining moremarket share, as it plans to add real and perceived value to thecompany through exploiting economies of scope hence reducing costwhile increasing efficiency (Hill&amp Jones, 2012).

  1. The nature of the company’s business-level strategy

Business-levelplans are almost the same to the corporate level strategy however,they focus upon one business instead of a range of businesses. Withreference to Wells Fargo company, the company is at the identifyMarket Niches.This level entails conducting of economic analysis as well asidentifying specific consumer demand with an intention of satisfyingthe customer demands. The business strategy deployed by the companyhelps to meet the low customer satisfaction level as analyzed in theSWOT analysis (Hill&amp Jones, 2012).The company has effectively combined the business level strategieswith the corporate level strategies to effectively meet the company’sstrategic plan as well as its objective to reward their customersglobally.

  1. Company’s structure/control system vs the company’s strategy

TheWells Fargo company structure has been a on the forefront in helpingto implement the company’s strategic plans. An overall chair or achief executive officer leads the company’s management structure.There are ten other departments, which are each headed by thedepartment chair. These departments include wholesale banking, homeand consumer finance, financial officer, community banking, brokerageand retirement services, technology and operations, chief auditor,transition officer, credit department, and finally, law andgovernment relations. The company’s structure and control systemhave helped match, the company’s strategies. These entail puttingthe customer first, increasing the company’s revenue, reducingexpenses, achieving the company’s values and vision, and finallyconnecting with the stakeholders (Vandermey,2014).

  1. Recommendations

Thecompany has been on the forefront in achieving the company’smission, and vision statement, which has been the company’sfoundations for its operations, and success in its operations. Thebest course of action that would help the company in its operationsis to target increase their brand loyalty as well increase customersatisfaction, which would be influential. Additionally, the companyshould exploit its strengths in order to increase its globalperformance, such as their effective management, unit, as well astheir highlyrecognizable advertising campaign/Marketing Recognition. Moreover,the company should exploit the opportunities such use of technology.Moreover, the company should embark on exploiting the opportunitiesas analyzed in the SWOT analysis. This would positively help thecompany to expand its performance compared to its competitors.

Inconclusion, the company has undergone numerous events both positiveand negative such, depression and war, even greater post-warprosperity, social changes and ever-faster communicationstechnologies,Wells Fargo’sattention to customers’ business has seen it through these greatevents and brought success. Nevertheless, the company has undergoneevolution over time and acquisition of other business premises toexpand its customer base as well as its services to the people. Fromthe information provided, its clear that the company has diversifiedinto different sectors which has been one of one of its strengths inincreasing its customer base. Throughout the company’s history, thecompany has been made of acquisitions, but has maintained the nameWells Fargo with its trademark name ‘stagecoach’.The current company (Wells Fargo) is a result of 1998, a mergerbetween Minneapolis-based Norwest Corporation, and the original WellsFargo.


WellsFargo. AboutWells Fargo.Retrieved on 18thJan 2015. From


Hill,C. W. L., &amp Jones, G. R. (2012).&nbspStrategicManagement.Cengage Learning.

Rau,M., &amp Wells, Fargo &amp Company. (2001).&nbspTheWells Fargo book of the gold rush.New

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Moody,R., &amp Mays, V. (2005).&nbspWellsFargo.Lincoln: University of Nebraska Press.

WellsFargo &amp Company SWOT Analysis. (2014).&nbspWellsFargo &amp Company SWOT Analysis,


Vandermey,A. (2014). Why Wells Fargo Speaks Softly.&nbspFortune,&nbsp169(9),24.