Question

Build a 12 month timeline on how wells fargo can be a better company

Answer 1

Wells Fargo is an American Multinational Bank with its headquarters in San Francisco California. The bank provides services to about 6000 branches at present and is the worlds fourth largest bank as per Market Capitalization.

The bank is well known across the United States and presents itself as one of the biggest lenders. However recently it has been facing problems in terms of delivery of services, and has decided to shut down arround 600 of its branches to reduce costs and solve the problem of non performing assets for the company.

A 12 month suggestive timeleine on how the company can improve itself is as follows:-

1) Increasing Customer Confidence:-

At a time, when a company is seeking to close operations due to financial issues, it becomes increasingly important to increase customer confidence of current customers. Companies such as American Express in the financial segment have been able to do this due to the superior quality of service which they provide to the end customer.

In the first month the company must lay focus on increasing their customer confidence and ensuring that people are interested in the products or services being offered. Customer service therefore should be the prime focus of the company in the first month.

2) Reducing Non Performing Assets:- ( Stopping Leakages)

In the subsequent months, the company should try and reduce their non performing assets to a bare minimum. Meaning that existing accounts which are not helping the company in gaining any revenue should be minimalized. This will help in ensuring that leakages if any can be reduced as much as possible for the firm.

3) Handling Media Pressure:-

Wells Fargo also needs to handle media pressure with utmost care. The company needs to clear the air over what it has done in the past. The company has been accussed of opening fake credit card accounts without consent and has induldged in other motor vehicle loan issues which need clearing.

The company  thus must handle the media carefully and ensure that the media is handled in the best possible manner to ensure brand repositioning.

4) Handling Investors and Employees:-

The key is to communicate propertly with current investors and employees. You need to be transparent in the way business is conduted and you need to spell this out correctly to the existant staff and investors respectively.

Once the investors and employees are aware of the issues that were created previously and see an intent to change, revival could be possible.

5) Explore untapped markets:-

Countries such as India and China are high growth markets where the revenues of companies such as American Express in terms of their Credit Card revenue has increased over a period of time. In the United States the average growth rate of 2% is considered good whereas in countries such as China and India double digit growth rates are anticipated. In this situtation it becomes increasingly important for the company to be able to tap these markets and create new investment and earning portfolios for itself respectively.

Conclusion:-

We can conclude by saying that as a bank, it is important that wells fargo does the following key things:-

1) Bring back investor confidence and employee satisfaction

2) Reduce losses and Non Performing Assets

3) Increase revenue through expanding in untapped markes and restructuring finances.

If you have any doubts you may ask the same in the comments section