Case Analysis: Wells Fargo
The likelihood of a business having as much success as Wells Fargo has does not come without its drawbacks. With growth and expansion, this company has seen a variety of different issues, ranging from small to large. The problems that have affected this company have done so in more ways than one, and it is through this analysis in which we can see how Wells Fargo has responded to each. By looking into the company’s recent mistakes, we will be able in what ways the company works through its mistakes, develops a solution to solve them, and finally puts into place ways in which to prevent them. Beginning with the smallest mistake of the three, Wells Fargo paid out $8.5 million due to a lack of disclosing privacy reminders to customers over the
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Wells Fargo created client accounts without permission and without notifying the affected client. Due to this, the company will be forced to pay a $185 million fine. In comparison with the $8.5 million fee, this is at a much larger scale, and will have more consequences than just the loss on money. Stockholders, suppliers, clients, and many others who support the company will have to readjust their view on the bank. They will face decisions such as staying with Wells Fargo, as well as be affected by other implications that the fake accounts have caused. Likewise, competitors and those who are against the company succeeding will learn from Wells Fargo’s mistake. Those on this side of the scenario benefit, whether that be from receiving the recently affected Wells Fargo’s client, or clients who are new to banking and are repelled from Wells Fargo due to their decisions. Also mentioned in the article was the effect that this issue had on employees. A teller of almost six years discontinued employment with the company due to being pressured by upper management. She explains that her instructions were to meet “monthly credit goals” and refer customers to bankers that sold products at a higher profit. The entire situation that Wells Fargo has created affects an incredibly large number of people, such that it is difficult to understand how monetary damages can be of enough value to make up for the mistakes that have been
Wells Fargo created client accounts without permission and without notifying the affected client. Due to this, the company will be forced to pay a $185 million fine. In comparison with the $8.5 million fee, this is at a much larger scale, and will have more consequences than just the loss on money. Stockholders, suppliers, clients, and many others who support the company will have to readjust their view on the bank. They will face decisions such as staying with Wells Fargo, as well as be affected by other implications that the fake accounts have caused. Likewise, competitors and those who are against the company succeeding will learn from Wells Fargo’s mistake. Those on this side of the scenario benefit, whether that be from receiving the recently affected Wells Fargo’s client, or clients who are new to banking and are repelled from Wells Fargo due to their decisions. Also mentioned in the article was the effect that this issue had on employees. A teller of almost six years discontinued employment with the company due to being pressured by upper management. She explains that her instructions were to meet “monthly credit goals” and refer customers to bankers that sold products at a higher profit. The entire situation that Wells Fargo has created affects an incredibly large number of people, such that it is difficult to understand how monetary damages can be of enough value to make up for the mistakes that have been