Fargo & Co In Detail It Puts Essay

Download this Essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Essay:

Fargo & Co. In detail. It puts light on the financial performance of the organization. The core products and competitive advantage of the organization have also been analyzed by the preceding paper. In addition to that this paper also highlights the SWOT analysis and the Porter's five forces model of Wells Fargo & Co.

Wells Fargo & Co.

Wells Fargo & Co. is a stable and renowned name in the banking industry. This organization has a commendable history of growth and success. Its mission and vision has enabled it to navigate successfully through the complicated and critical times of recession and economic downturn. It has been in the business since last many years and has gained a stable and prominent share in the financial and banking industry of the United States of America. (Amundson, 2011)

Company Background

Wells Fargo & Co. started operating officially in the year 1852. They opened their first office in San Francisco. This office was established during the gold rush. After that the organization started expanding from California to the rest of the United States of America. In the year 1910, the organization was operating at 6000 locations around the nation. After the First World War the government over took all the locations of the organization and it was left only with its San Francisco location. Wells Fargo & Co. remained resilient and started expanding once again. In the year 1980, Wells Fargo & Co. was the eighth largest bank of the United States of America and by the year 1990 the organization gained all its previous locations back. (Amundson, 2011)

Wells Fargo & Co. had a merger with First Interstate Bankcorp in the year 1996. In the year 1998, it again had a merger with Norwest. In addition to that, it also merged with Wachovia in the year 2009. Apart from that, Wells Fargo had a merger with a number of other companies and it also made various commendable achievements. (Amundson, 2011)

Resources, Capabilities, Core Competencies and Value Chain

Wells Fargo operates in a number of product lines. All these lines and the services associated with them are listed below;

Banking: In this line the organization offers the services of; online banking, ATM banking, business banking, wholesale banking and government and institutional banking. (Amundson, 2011)

Mortgage: In this sector the organization offers the service of home banking and mortgage. (Amundson, 2011)

Credit: The services provided in this line include, debit and consumer credit cards, personal credit management, auto dealer services and education financial services. (Amundson, 2011)

Insurance: This product line includes two services, namely Wells Fargo insurance and rural community insurance services. (Amundson, 2011)

Investments: The products included in this line are; retail brokerage, wealth management, retirement, Norwest equity partners, Norwest venture partners, Lowry Hill and capital markets. (Amundson, 2011)

Financial Analysis

The Wells Fargo organization had a net income of 5,171 million dollars on 31st March 2013. The net income reported an increase of 22% when compared to the income of last year. On March 31st 2013, the total assets of the organization had a value of $1,404,334 and the total liabilities and equity amounted to $1,436,634. The company witnessed a non-interest income of 10,760 million U.S. dollars according to the 2013 financial statement of the organization and the non-interest expenses of the organization equaled 12,400 million U.S. dollars. According the quarterly report of March 2013, the total stock equity of Wells Fargo & Co. equaled 162.1 billion U.S. dollars. The income applicable to the common stock of Wells Fargo & Co. was reported to be 4,931 million U.S. dollars. The earnings per share of Wells Fargo & Co. were reported to be 0.93 U.S. dollars and the organization had a total comprehensive income of 4,718 million U.S. dollars. The company, according to its March 2013 quarterly report, witnessed a net cash flow of 16,217 million U.S. dollars. (United States Securities And Exchange Commission, 2013)

The share price of Wells Fargo & Co. As of 25 July 2013 was $43.65. The company had a total asset to equity ratio of 11.37%. The profit margin of the organization was reported to be 21% and it had a Return on Equity (ROE) of 12%. The dividend yield of the organization is 2.70 and the organization has an EBITD Margin of 40.90. The asset turnover of the organization was reported to be 0.10. (United States Securities And Exchange Commission, 2013).

Apart from its good financial performance and diversified product line, the organization also manages its risks in an effective manner and provides high quality advices to its customers. (Amundson, 2011)

Value Chain

The value chain of the organization consists of five primary elements. These elements are listed below;

People: The people who work for the organization. The organization aims at attracting and retaining a valuable workforce which can work in a collective manner and can lead the organization towards its targeted goals. (Amundson, 2011)

Ethics: The organization aims at developing a relationship with its employees, customers and share holders on the basis of highest ethical standards. The organization aims at developing trustworthy and transparent relations with its employees. In addition to that, it also provides its customers and share holders with authentic information regarding all the aspects of the organization. (Amundson, 2011)

Customer Preferences: The organization aims at taking the steps that would benefit the customers the most and that would be best for the customers of the organization. For the organization, the preferences, demands and benefits of the customers are its top most priorities. (Amundson, 2011)

Diversity: The organization believes that diversity is the most effective tool for combating competition. Therefore, it aims at providing its customers with a diversified product and service line. A product and service line that can cater all most all the varied needs of the customers is what the organization wants to provide to its customers. (Amundson, 2011)

Leadership: leadership is the most important element of any organization. Wells Fargo & Co. aims at developing a leadership that can motivate the employees and satisfy the customers and other stakeholders. Human resource is the most important element of any organization and Wells Fargo & Co. aims at developing a leadership that can bring the best out of its human resource. (Amundson, 2011)

Value Creation

With the help of its core competencies, resources, including a diversified product and service line, the organization can create value for all its stake holders. The organization can cater all the needs of its customers in an effective manner. In addition to that, the organization can also strengthen its stand in the market and banking and financial industry and can create value for its share holders and creditors. By using its resources for the training and development of its employees the organization can create value for its employees. (Amundson, 2011)

If the organization uses all its resources effectively then it can create sufficient value for all its stake holders and can further stabilize its share in the industry of banking and finance. (Amundson, 2011)

Analysis of General Environment

The two factors of the general environment that can have an influential impact on the operations of the Wells Fargo organization and the industry in which it operates are the political and economic trends. These trends and their impacts on the concerned organization are listed below; (Amundson, 2011)

Political Trends:

The political environment of the organization includes all the important legislations that are implemented by the government in relation to the financial matters. These legislations include new consumer watchdog, breakup authority, financial early warning system, tighter leash for financial firms, mortgage reform and fiscal and monetary policies of the government. (Amundson, 2011)

The company and its business are greatly affected by the fiscal and monetary policies of the government. Especially, the policies that govern the supply of money and credit in the United States of America have an influential impact on the organization and the industry in which it operates. This is because these policies determine the availability or non-availability of the bank loans in the economy and they also identify the rates of interest that are being paid and charged on the loans. (SMIF, 2007)

Wells Fargo operates in a very competitive banking and financial industry and the implementation of rules, laws and policies make this industry more competitive. In this industry various banks, security firms and insurance companies can merge together to form a 'financial holding company'. Such mergers can elevate the level of the competition to higher levels. (SMIF, 2007)

In addition to that, a number of regulations regarding the regulatory system of the financial institutions are being introduced in the congress. These regulations can the change the ways in which the organization operates in an unpredictable manner. If these legislations are implemented then they can increase or decrease the cost of doing business. They can also have an influential impact on the competitive balance that the organization maintains between the banks, savings associations, and other financial institutions that it holds. (SMIF, 2007)

The organization…[continue]

Some Sources Used in Document:


Cite This Essay:

"Fargo & Co In Detail It Puts" (2013, July 27) Retrieved December 9, 2016, from http://www.paperdue.com/essay/fargo-amp-co-in-detail-it-puts-97490

"Fargo & Co In Detail It Puts" 27 July 2013. Web.9 December. 2016. <http://www.paperdue.com/essay/fargo-amp-co-in-detail-it-puts-97490>

"Fargo & Co In Detail It Puts", 27 July 2013, Accessed.9 December. 2016, http://www.paperdue.com/essay/fargo-amp-co-in-detail-it-puts-97490

Other Documents Pertaining To This Topic

  • Fargo Publishing Company One Issue

    Giving the department supervisors the authority to take responsibility over each individual employees' hours to ensure accuracy should allow for the catching of errors and purposeful overstating of time, while allowing the employees to enter their time into the computer themselves gives opportunity to report accurate data the first time. By using simply mathematical equations, Fargo will be able to measure the benefits of implementing these recommendations. Single-factor productivity can

  • Lesson Plan Amp Reflection I Didn t Know

    Lesson Plan Amp; Reflection I didn't know what state you are in so was unable to do state/district standards! Lesson Plan Age/Grade Range; Developmental Level(s): 7-8/2nd Grade; Below grade level Anticipated Lesson Duration: 45 Minutes Lesson Foundations Pre-assessment (including cognitive and noncognitive measures): All students are reading below grade level (5-7 months) as measured by standardized assessments and teacher observation Curricular Focus, Theme, or Subject Area: Reading: Fluency, word recognition, and comprehension State/District Standards: Learning Objectives: Students will develop

  • Branding New Service Dominant Logic

    Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands

  • Investigations Workplace Violence

    Workplace Violence Everyday in the United States millions of Americans leave their homes and enter the places of their employment. Captain Among these millions, most report to work unaware of the prevalence of workplace violence or fully understand the gamut of actions that represent such violence. It is typical of the media to only report high profile cases including a former employee or a worker losing control - the most

  • The Philosophy of Neo Confucianism

    Neo-Confucianism is a philosophy which was born from the need to explain the existence of man and the universe in a manner which was just as complex as the Buddhist one. The philosophers which belong to this school of thought took the core of the Confucian philosophy and enriched it with contributions from other philosophies. It can also be stated that neo-Confucianism is a reaction to various provocations of philosophical

  • Co Occurrence of Substance Use Behaviors in Youth Co Occurrence

    Co-Occurrence of Substance Use-Behaviors in Youth Co-occurrence of Substance Use Behaviors in Youth Retrieved https://www.ncjrs.gov/pdffiles1/ojjdp/219239.pdf Author Biographies: Biographical information of the authors is not made available in the research bulletin. A search online indicates that Carl McCurley shares a passion for analyzing and improving outcomes for court-involved children, youth and families that he was able to apply in the Models for Change program at the National Center for Juvenile Justice. McCurley, Director Administrative

  • Co Curricular Activities High School Can

    2007)." The authors also explain that there is a great deal of interest in the concept of school engagement because it is believed to be influenced by environmental changes (Fredricks et al., 2004; Dotterer et al. 2007). As a result of racial and ethnic achievement gaps, the study of school engagement amongst students of color is essential to closing these gaps. Previous research uncovered a pattern of underachievement in

Read Full Essay
Copyright 2016 . All Rights Reserved