Wells Fargo has a strong foundation of corporate culture that is embedded in the vision. It states that its service, financial advice, and employees are the strengths of the business. It focuses on every aspect of the corporation’s stakeholders: team members, customers, communities, and shareholders. It focuses on how employees are able to adhere to the highest standard of efficient and ethical business practices. What Wells Fargo lack is the future vision of the company’s operation. Its long-term objective is to emphasize integrity since it is not a commodity but the most rare and precious attributes of personal business. It does not address how the business will gain a bigger share of the national or global market. …show more content…
Wachovia was overcommitted in credit default swaps, which brought subprime mortgage problems during the global economic recession. Moody’s Credit Rating lowered 2 levels citing that Wells Fargo’s capital position has weakened and Wachovia’s assets could hurt earnings. Also, Wells Fargo had to cut dividends to solidify the balance sheets. In January 2009, the recession made Wells Fargo lose half the value of its shares.
Wells Fargo has great opportunities from the global economic recession. Numerous investment banks have disappeared and created a void in investments. This gives a window for Wells Fargo to attempt a new sector of the investment business. Another, large national banks are getting bigger, which means that Wells Fargo is able to leverage its gain during the recession to expand internationally. Since there is lack of regulation that creates a grey area of products and services that bank offers, Wells Fargo can try to lobby regulations that can change its brand as being ethical.
Some threats that Wells Fargo faces are that larger banks worldwide are attempting to expand globally. Foremost, the larger banks in U.S. are also growing as rapidly as Wells Fargo after the recession, which creates greater competition in banking