Fins 5530 Wells Fargo’s Strategy
FINS 5530Assignment 1[pic 1]Xuankang ChenZ5175530ContentsAttempted Answers to Case Questions 2Question 1 2Question 2 2Question 3 3Wells Fargo 4Community Banking Strategies 51.Accessible to Households 52.Cross-Selling 53.Rewards and Pressure 6Raise of Misbehaviour 61. Culture – Sales Speak Louder 62.Incentives – Sales Rewarding System 73.Pressure – Management by Measurement 7Peers Comparison 8Damages 8
References 9Attempted Answers to Case QuestionsQuestion 1What was Wells Fargo’s strategy for competing in the community banking area? (3 marks)Wells Fargo has a well-developed infrastructure to provide households easy access to their facilities, and by doing so, people are willing to use Wells Fargo’s services because it isconvenient.Cross-Selling of financial products to its existing customers maintain a good customer relationship as well as provide monetary discounts and convenience. People are willing to purchase new services with familiar locations and staff as well as a history of trust.Both rewards and pressures stimulate employees. On the one hand, they receive monetary bonus and promotion opportunities for better performance. On the other hand, they are facing high pressure for missing sale goals. These two strategies improve employees working efficiency.Question 2An anonymous senior executive of Wells Fargo has been quoted as saying regarding the misconduct document in this case, “While our actions might be considered by some to be wrong, we were acting in the best interests of our shareholders. Just look at the share price performance.” Based on the information provided in the case and its appendices, what is your opinion on this statement? (3 marks)