Case Analysis Of Wells Fargo's Scandal

Amazing Essays
Case Analysis conducted on Wells Fargo’s Scandal.
Akande, Sodiq.
East Tennessee State University

Case Analysis conducted on Wells Fargo’s Scandal.
Introduction
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.

Problem Statement
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

Related Documents

  • Decent Essays

    He should have reevaluated the closing of the Vail office because it was the office that was making the most profit and had the opportunity of eventually bringing back the top client. Everyone saw the closing of the office to be unfair, particularly the head of the Vail office Mike Rollins. Although the downsizing resulted in lowering the labor costs, it cost the company in the area relating to its skilled workers, relationships between the organization, it clients and staff was interrupted as well as feelings of negativity from the surviving offices and managers. The Vail office had highly qualified people that could have been transferred to other offices, but wasn’t given the opportunity to do so. The downsizing did not improve the company’s long term financial health because there had to be a second round of layoffs for that very reason.…

    • 1873 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Having a set of rules and policies that doesn’t follow GAAP would then question the shareholders to rely on such a big company like Halliburton. Halliburton would simply adopt a revenue recognition policy in which would permit the system to commit overstatement of revenue by recognizing certain amount of revenue before it had occurred and been truly earned. Another inadequacy in the corporate system would be the fact of having a weak whistle blowing policy. Many of its employees were in fear of committing the whistle blow, since their confidentiality wasn’t well protected and there were chances of retaliation from Halliburton. The last inadequacy I would describe would be the fact that there should have been a better working environment around Halliburton.…

    • 908 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Lacking those traits caused a turnover with the managers and their employees. It had a snowball effect because the turnover of employees also meant sales went down for the company. This leads to a concern that some managers only perform well when a person of higher power appears. Some managers will be more productive, and have more effective performance when a district manager or human resources appears. This problem of poor character can lead corporations into bankruptcy (Conger & Hollenbeck, 2010).…

    • 2384 Words
    • 10 Pages
    Decent Essays
  • Decent Essays

    one in the store. This is due to the fact that TheStore has trimmed the company employees down below an acceptable level for conducting normal business operations. The lack of employees has produced an initial increase in monetary savings but the prolonged effects of not having adequate employees will yield a large decrease in the revenues over an extended period Fd gqert q4tq gqert notice a lack of employees manning the store. If you have a question about a product arted a joke Which started the whole I st someone down to assist you with your inqucdtrt;qwerkqwe’r233343240234l’iry. Often times you will feel as if you are the only one in the store.…

    • 52230 Words
    • 209 Pages
    Decent Essays
  • Decent Essays

    There is a fair amount of blame to be spread around for the collapse of Enron • Arthur Andersen – Allowing the fees to cloud their professional judgement. To allow for questionable and complex accounting practices to continue via the SPE’s. Also, the destruction of Enron audit documents • Enron – Kenneth Lay/Jeffrey Skilling – The emphasis that was placed on a big profitable bottom line to increase the value of their company and their direct reward for such profits. They discounted the loyalty and the harm that it would have when the scandal began to unravel would have on their employees. • SEC – Lack of oversight at the time to allow for these type of activities to occur.…

    • 824 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Holding Jim Snelling responsible for his unethical behavior. That would clear the bad reputation of the company at large and concentrate the blame on one person hence wining the client and competitor’s favor Contracts and Procurements Code of Ethics The code deals with all the contract processes that an organization does. Jim’s case involves violation of this ethical principle by using the competitor’s price list to bid. Also, Jim does not include a fair procurement contract amount. He does not account for all the charges that would be incurred to fulfil the contract.…

    • 1140 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    From the time they started issuing the bribes, they knew they are doing something unlawful. Consequently, although the theory would support the idea that they may have harmed people in order to maximize profit and expand its business, individualism concept will not support them in this case because they achieved profits through illegal practices. On the other hand, these bribes did not only harm people of the communities but it as well has a negative impact on the company 's image. Being that Wal-Mart is among the largest corporation across the globe, this scandal will not only affect the de-Mexico subsidiary, but also all companies across the globe. Therefore, the profit maximization theory would argue that it is a horrible choice to pay off their way, as they will lose the profit.…

    • 1615 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Ethical Behaviors

    • 1527 Words
    • 7 Pages

    Many considered the bailouts as every cool and wrong because it said a bad precedent for the government. Much of the problem stems from AGI 's incentive program and culture that placed a high expectation for results on executives while not placing much responsibility on them. This is why employees at AGI Took large risks in order for my returns yet they did not bear the consequences when the decisions were wrong or unethical. Instead, they were bailed out by the US government. Outside auditors raised concerns about the evaluations of the derivatives that AIG supplied them and however the executives of AGI at the time assured investors and auditors that AGI ad correctly identified their evaluations were correct.…

    • 1527 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Case Study: The Body Shop

    • 1903 Words
    • 8 Pages

    The Body Shop failed to succeed in the business environment even after hiring the management consultants. This was a very important issue as a person you never know whether the consultant team advice will help you to boast up or will make you fall down. Restructuring an already working system is far more difficult to handle and is itself a disaster due to the already working employees who might take the decision of the consultants as an outsider’s point of view. Also the consultants may not know the procedures…

    • 1903 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    They could use the money to get the company out of the jam they were in that they had to have layoffs. The company also wastes time on paper work to fire employees Matthews states in her article. In the end, we just find layoffs are negative in many more aspects, not just for the person being let go. Layoffs do not spare the company time and money that they…

    • 1523 Words
    • 6 Pages
    Decent Essays