Case Analysis Of Wells Fargo's Scandal
East Tennessee State University
Case Analysis conducted on Wells Fargo’s Scandal.
Wells Fargo and Company is a financial institution that provides banking services (community banking, wholesale banking), investment management, cross- selling and mortgage for individuals and organizations internationally. Wells Fargo and Co. has been in existence since 1852; it was known as both a shipping company and a bank. During this time period, Wells Fargo provided the fastest and most reliable means of transporting and delivering gold dusts, important documents and other valuable freight. Alongside with providing transportation services, Wells Fargo served as …show more content…
In terms of assets, they are the fourth largest bank in the US, which puts them in a good financial position.
Weakness: With the recent scandal, Wells Fargo and Co. is currently facing some legal issues. The customer satisfaction and the brand loyalty has gone down significantly.
Opportunities: Ability to offer multiple products and expanding in other countries.
Threats: With the recent scandal, Wells Fargo are beginning to lose their customer base; customers are shutting out their Wells Fargo’s account and purchasing to other competitor’s brand.
According to the SWOT analysis listed above, Wells Fargo has established a good brand name in the financial industry; although they have low customer satisfaction, they can have the ability to expand in other parts of the world.
In striving to keep increasing the bank’s revenue, Wells Fargo & Company’s management subjected its employees to unjustified demands in meeting unrealistic sales targets, which resulted in unethical behaviors by the employees that affected …show more content…
From this quote, it is obvious that the management of Wells Fargo are well aware of the unethical means employees are using to reach the sales target. In due course, one can conclude that the management of Wells Fargo is exercising inappropriate leadership over the organization. The management of Wells Fargo only cares about increasing sales revenue and meeting sales targets, but they do not care about how the employees meet the sales target. They enforce decisions on workers. The loss of jobs is a threat the management holds against workers if they do not comply with their decisions. The most shameful thing is that the management of Wells Fargo has the knowledge and sufficient information on how to legally run a company yet, they decided to set an aggressive and unreasonable sales target for their