Wells Fargo Case Study - Myassignmenthelp.com

1. CASE STUDY: WELLS FARGO

2. Introduction • The management of Wells Fargo & Co (WFC), a US-based banking and financial services company. • Suffered the biggest setback in its history on February 02, 2018. • When the Federal Reserve (Fed) of the United States prohibited the company from expanding its operations until the issues surrounding the opening of fake accounts were resolved.

3. VIOLATIONS • As part of the Gr-eight Initiative, all bank staff were assigned cross-selling goals. • Every branch was assigned daily sales objectives. • The shortfall was added to the next day's objectives if the branch failed to meet the targets. • Employees were rewarded with 15-20% bonuses if they met their goals. • TOXIC WORK ENVIRONMENT • The firm has an ethical program in place, as well as a policy for whistleblowers. • Anyone who was worried about the situation may call a hotline and alert senior management of any infraction committed.

4. UNETHICAL PRACTICES • According to a complaint filed in 2011. • District managers were meant to conduct four daily review meetings to assess the performance of each branch and its workers • The meetings were held to track daily sales objectives on an hourly basis in order to keep staff engaged. • CORRECTIVE MEASURES • The CFPB issued the first order for action against WFC, after which the management agreed to pay the appropriate compensation to the consumers. • The Senate and the House of Representatives summoned Stumpf to testify.

5. THE AFTERMATH • Shearman & Sterling, an outside law firm, was then engaged to undertake an independent inquiry into the situation. • Stumpf was ordered to hand up US$ 41 million in unvested equity that had been given to him. • Carrie Tolstedt, the chief of retail banking, has been ordered to give up US$ 19 million in unpaid stock awards. • While the inquiry was underway, Stumpf also agreed to sacrifice his pay. On October 2, 2016, he eventually resigned.

6. SWOT ANALYSIS OF WELLS FARGO • WELLS FARGO: STRENGTHS • BRAND VALUE • SERVICE PORTFOLIO • WELLS FARGO: WEAKNESSES • RISING PRICES • SCANDAL OVER FAKE ACCOUNTS

7. SWOT ANALYSIS OF WELLS FARGO • WELLS FARGO: OPPORTUNITIES • EXPANSION OF THE BUSINESS INTO SMALLER TOWNS • MARKETS IN THE PROCESS OF DEVELOPMENT • WELLS FARGO: THREATS • COMPETITORS • INVESTIGATION

8. PESTLE ANALYSIS OF WELLS FARGO Political Factors: Wells Fargo • Political stability • Military invasion • Extent of corruption • Government bureaucracy • Economic Factors: Wells Fargo • Economic system • Intervention by the government • Exchange rates and currency stability

9. PESTLE ANALYSIS OF WELLS FARGO Social Factors: Wells Fargo • Population demographics and skill level • In society, there is a class structure, a hierarchy, and a power structure (gender roles, social conventions etc.) Technological Factors: Wells Fargo • Wells Fargo & Company rivals' recent technology advances • Technology's influence on product offerings • Impact on cost structure in the Money Centre Banks industry This Photo by Unknown Author is licensed under CC BY-SA-NC

10. PESTLE ANALYSIS OF WELLS FARGO • Environmental Factors: Wells Fargo • Weather • Climate change • Laws related to environment pollution • Legal Factors: Wells Fargo • Employment law • Health and safety law • Data Protection • Consumer protection act and e-commerce act.

11. ContactUS Phone Number - US - +1-515-393-6211AUS - +61-3-4000-0033 UK - +44-121-285-4112, Singapore- tel: +1-647-696-8006, NZ - +64-98880721, UAE - +971-8000320360 Mail ID - contact@myassignmenthelp.com Website -https://myassignmenthelp.com/case-study/wells-fargo-swot-and-pestel-analysis.html