Case Analysis Of Issue At Wells Fargo Essay

Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.

Knowledge is considered as one of the most important and competitive resource for sustenance of the organisation (Zack, 1999). It can be compared to the strategic resource that can be used and applied in various frames of the organisation. Experienced managers in the organisations believe that company can receive strategic advantage through knowledge and not the strategies or actions implemented by competitors. Knowledge can be regarded as a strong approach that opens numerous ways of success. It is that weapon that help organisation to evaluate solutions in financial and other professional difficulties.

The organizations values are to reflect the mission statement as closely as possible. They describe the core qualities of the organization as well as the actions and behaviors towards clients, employees, partners, community members, etc. The values that my organization will employ and portray are those showing the honesty, integrity, dedication, and loyalty to the clients, workers, and community. They will also portray the value of the employees to the successful treatment of the clients. The values will show the level of skill, knowledge, and expertise that the employees possess. Honesty is an important value to have because if a client knows the staff and organization is truthful the success rate will greatly increase because of its creditability. Conveying a strong value of honesty to clients as well as everybody else involved with the organization provides stability and admiration to the organization and the employees, showing a client who has severe trust issues that he or she can trust the staff who in the beginning is complete strangers that he or she will be able to build their trust issues with other people

our companies. Values are the beliefs of what are most important to us in our lives. Ethics

Corporate values are ‘the operating philosophies or principles that guide an internal conduct of the organization and its association with its clients, partners and shareholders’. It is also a fundamental and long-lasting belief that specific mode of conduction highly valued by the organization’s membership’ according to IBM corporate responsibility report (2002, What is the value of company).

Values and ethics are essential in the workplace. It establishes how a company is run and remains profitable. Leaders are the key to demonstrating and creating the organization’s culture, ethics and values. It has to start at the top of the organization including the Chief Executive officer, board and owners. Leaders’ internalization and manifestation of the values in how they operate have a great influence on the employees. Every organization must start with a foundation, a code of conduct, code of ethics and a statement of values ( Ferrell, O.C., John Fraedrich, and Linda Ferrell).

On September 8 2016, the Consumer Financial Protection Bureau (CFBP) announced that it was taking an enforcement action against Wells Fargo Bank . Wells Fargo is a Fortune 100 company and one of the "Big Four Banks" of the United States. Investigations conducted by the Bureau revealed that employees of the bank created unauthorized deposit and credit card accounts across the country to meet sales goals. Over the years, the bank’s employees opened over 1.5 million fraudulent bank accounts and 0.5 million fake credit card accounts for customers, to meet sales targets and obtain bonuses. The affected consumers, were being harmed by the associated charges and fees for these accounts. The fees include insufficient funds or overdraft fees for the deposit accounts and annual fees for credit card accounts.

Wells Fargo was established in 1852 by Henry Wells and Williams Fargo who joined a group of other investors to form a transportation and banking company. In 1849, gold was discovered in California, which encouraged a huge demand for its cross country shipping and by 1852 Wells Fargo shipped its first consignment of gold. Wells Fargo also established merger deals with Pony expresses which made them one of the pioneers of pony transportation. This company later expanded to a company that offered not just pony and gold transportation services, but also offered banking services by purchasing gold and selling paper bank drafts as good as gold. In 1905, the banking branch of the company merged with the Nevada National Bank and established its new headquarters in San Francisco. ("Wells and Fargo start shipping and banking company", 2016).

The ethics of the bank requires that there is ethics of integrity. It is supposed to be created through a culture in the bank and it should be one of the banks priorities because this is a business and they gain the profits from the people they serve on daily basis. Even if the bank shall survive this wave of scandal is so difficult now to convince any client to join this Wells Fargo which shall cause them a lot of money. Also all the old customers may start withdrawing and looking for other banks which they feel are more secure when they are keeping the money for them. It is so hurting and distrustful for a banking instead of accruing money in the accounts of their customers what they wells was doing was that it was misusing their money and giving them extra fees.

I believe that it is also important to support an organization culture including some key values including the following: integrity, great customer service, unity, respect and compassion and excellence. (Newstrom, 2014, p. 100).

Wells Fargo founded in 1852 is known for being a financial services company. Wells Fargo provides banking, insurance, investment, mortgage, and consumer and commercial financial services through more than 8,600 locations, 13,000 ATM’s, online, and mobile devices. Wells Fargo is headquartered in San Francisco, California but has a vision of being decentralized from that location. Being decentralized allows each location to act as a headquarters to provide their customers with specific financial services. Wells Fargo employs approximately 268,000 employees to serve 70 million customers.

We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows.

Hiding or divulging information: Goldman bet against their clients several times. They knew material information on certain investment; however, they never communicated that to their clients because they were making money off them.

On the 18th of March 1852, a joint stock company was established to provide banking and express services in California named Wells Fargo (Wells Fargo, 2017). Nowadays, Wells Fargo is one of the largest financial institutions in the United States. Wells Fargo maintains 70 million customers in 130 countries which rank them based on the Forbes magazine among the top 10 publicly traded companies in the World (Wells Fargo, 2017). The institution themselves describes their vision statement of their operations as satisfying customers financial needs and help them succeed financially (Wells Fargo, 2017). Furthermore, Wells Fargo adopted five core values (People as a competitive advantage, Ethics, what is right for customers, diversity & inclusion and Leadership) (Wells Fargo, 2017) into their operations which align with the vision statement and represent the foundation of work (Wells Fargo, 2017). Besides the vision and the core values of Wells Fargo, the strategy of acting on the financial market is important. Hence, Wells Fargo wants to deepen relationships and attract new customers, serve their customer anywhere and everywhere and consistently earns trust by offering financial security through a risk-focused culture (Wells Fargo, 2017). Compiling the

When examining the values of a company, one must take into account the different metrics which make up the way that a company is perceived. Vision, Image, and Culture of a company must be aligned in order for a company to achieve an optimal result. When there is a gap in the cohesiveness of these aspects, a company will experience setbacks or