Raechelle Martin Ciara Dortch Brene

Raechelle Martin Ciara Dortch Brene BUAD499.001 Wells Fargo Corporation 2009 Team Case Analysis Dr. Mathis March 13, 2012

Objective and Strategy Wells Fargo main objective is to be the number one financial services provider in each of their markets. Their long-term objective is to compete effectively and ethically. They expect all team members to adhere to the highest possible standard of ethics and business conduct with customers, team members, stockholders, and the communities that it serves while complying with all applicable laws, rules, and regulations that govern its business. Wells Fargo uses the strategy of producing strong balance sheets and steering through the pitfalls that plagued many of its larger competitors. They also plan to capture more mortgage and banking businesses in its geographic area.

Major Competitors Wells Fargo's major competitors are Bank of America, Citigroup, and US Bancorp.

Internal Strengths Wells Fargo's Internal Strengths include; the 41st in revenue among all U.S. companies ranked by Fortune magazine, the 17th most profitable company in the United States, 33rd largest employer in the U.S., 18th most respected company in the world ranked by Barron's, "Aaa" credit-rated by Moody's, the only Standard and Poor's "AAA" bank in the U.S., among the top 50 companies ranked by Diversity Inc., Retail Banker of the year according U.S. banker, number one commercial real estate lender (number of transactions, and the 18th among the world's most valuable brands according to Financial Times. They also made some great strides in the U.S that strongly contributed to its strengths. It was the number one small business and agricultural lender, the number two debit card issuer and prime home-equity lender, and the number three mutual fund provider among U.S. banks. Wells Fargo has done so good; it's also the leading innovator in use of internet and using e-commerce in the financial industry.

Internal Weaknesses In the first half of 2009 after completing the deal with Wachovia, Wells Fargo's debt ratio was reduced two levels by investor services. As a result their capital position was significantly weakened and the likelihood of Wachovia's assets would hurt earnings. In January of 2009 Wells Fargo's shares lost half of their value, falling to the lowest level since 1997. Their net income decreased from 8.4 in 2006 to 2.8 in 2008. Return on Asset decreased from 1.73 in 2006 to 0.44 in 2008. Return on equity also decreased from 19.52-4.79 according to selected banks key financial data. Compared to its competitors, Wells Fargo has the least employees External Opportunities In July 2009, Wells Fargo began expanding its securities business that it largely inherited form Wachovia. In the fall of 2008 Wells Fargo considered acquiring Wachovia