Wells Fargo Company was launched in 1852 in California and offered financial services majorly in the United States of America (Hight & Hight, 2011). It is widely recognized due to the efficient service delivery to millions of people which contributed to building and maintaining a good reputation. Wells Fargo was ranked as the third largest bank in the United States in terms of market capitalization. The organization is acknowledged due to the high distribution of its branches and ATMs across the States. Wells Fargo provides distinct certificates of deposit ranging from a fixed rate to step-up rate, savings and checking accounts, brokerage, and loan services such as home mortgages, personal and student loans. The interest rates are customer friendly which gives the firm a competitive advantage over its competitors.
The key external factors that can affect Wells Fargo success are technology and population increase. Technology continues to advance over time. Thus all sectors including banking are forced to embrace it since people are almost used to technology. The presence of technology has affected Wells Fargo both positively and negatively. Customers practice online banking today since Wells Fargo bank launched it. The online banking has benefited the clients in that it is a cost-effective and time-saving customers do not have to travel to the banks. Online banking makes banking transactions easily accessible and convenient since there are no queues experienced. Wells and Fargo’s launch of the smartphone application was as a result of the technological advancements. The customers can navigate through the mobile app with limited access to the internet to perform a variety of banking services like checking and requesting for loans. Artificial intelligence and the use of robotics can be implemented to enhance banking and offer security. However, an adverse effect can result from the use of technology in the banking system. Fraudulent hackers may hack individual accounts and drain the money in the bank accounts.
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Additionally, personal accounts can be logged in by anyone and perform transaction as long as they have the passwords; thus privacy is not guaranteed. Population increase can affect the banks negatively by exerting downward pressure which may result in decreased demand for loans and mortgages. On the contrary, the rising populations can result in increased customer flow and more transactions that translate to increased revenue.
Distinct stakeholders are essential for the success of any organization. Stakeholders include anyone who has an interest and takes part in a business like owners, customers, communities, sponsors, employers, and employees (Dam & Marcus, 2012). The stakeholders can influence the financial performance of the bank by practicing their powers. Customers and suppliers decisions can impact the performance of an organization. If customers are satisfied with the services offered, they develop a positive attitude which increases the likelihood of coming back for more services thus elevated profits. Every successful business has a good relationship with the community. The community supports a firm that considers them through charity works and other community programs. The business management needs to consider the ethical background and uphold their values since they are immediate customers. When customers are not happy with the setting and service delivery, there is a low probability returning hence fewer transactions and decreased profit margins. Suppliers may refuse to supply if the agreements made in the beginning are not met. This would alter the normal functioning of the bank where losses will be experienced. In general, customers and suppliers have economic power.
Partners possess a variety of roles which include monetary assistance, legitimacy and voting powers. The partners’ monetary assistance aids the improvement and efficient learning of daily activities. When some partners fail to provide with finances or withdraw their support, the bank may suffer the challenge of insufficient funds which may distort the firm’s reputation. Partners are mandated with ensuring legitimacy. If partners are reluctant in observing whether the set standards are achieved, harmful activities like stealing may be introduced which are detrimental to the functioning of the business. Operating against the law calls for risk of fine or closure which later affects the financial position of the company. Partners exercise in the voting of leaders and representatives of an organization. Voting persons of integrity in bank leadership positions is a guarantee that the money is safe. However, voting people whose integrity is questionable can result in loss of finances thus, affecting the overall performance of the business.
Owners offer oversight and act as directors who are in charge of management in a business. The Wells Fargo owners perform strategic and operational decisions that dictate the company’s financial position. The directors are mandated to ensure efficient and compliance with organization’s obligations. If the owners conduct are not responsible enough and instead aim at misapplying the assets and making secret profits, the business will automatically decline in its financial performance which may result to loss of customers or collapsing.
Sponsors provide financial assistance and providing business guidance to the management. Sponsors operate under the condition that the business delivers the intended benefits. Failure of attaining the goals within a specified time may prompt their support withdrawal. Perhaps, Insufficient finances to offer loans and other banking services would be the resultant which will affect the business status. Sponsors with selfish gains may render the business risky and position it at the verge of collapsing since they will influence the business to function as their intentions and not as per the initial terms.
Employees are critical stakeholders that every business needs for proper functioning. Employees interact with the customers as they offer assistance with care in specific departments. Duties like marketing, accounting and production are conducted by employees, thus acting as pillars for the business (Bach & Edwards, 2013). Motivation and competence in employees majorly depend on how the management treats them. Employees whose needs are not catered may slow down or strike, an action that affects the business operations and profitability.
Corporate social responsibility (CSR) entails policies set by an organization and must comply with the regulatory standards. CSR aims at guiding a firm to provide social friendly services that do not exploit the customers. A significant controversial CSR was evidenced in 2016 when Wells Fargo could not account for creating over a million unauthorized checking and savings accounts and overcharging those who had defaulted on mortgages which were concluded as a way of achieving unrealistic goals (Bagley, 2019). Wells Fargo was forced to pay fines totaling to 185 million US dollars by the federal regulatory authority. These occurrences greatly affected the credibility of the bank since some customers feared whether their accounts were legitimate. In conclusion, stakeholders must be responsible for maintaining corporate social responsibility.
References
Bach, S. & Edwards, M. (2013). Managing Human Resources: human resource management in transition . Hoboken, N.J: Wiley.
Bagley, C. (2019). Managers and the Legal Environment: strategies for business . Australia: Cengage.
Dam, N., & Marcus, J. (2012). Organisation and management: An international approach . Groningen: Noordhoff Uitgevers.
Hight, D. & Hight, S. (2011). Fruita . Charleston, S.C: Arcadia Pub.
