Case Study Wells Fargo
Wells Fargo OFS Case Write-Up
Shi Xu (Nick)
* Wells Fargo Online Financial Services Overview: * Wells Fargo Online Financial Services provide financial services to its customers via World Wide Web.
* Value Chain: Capital suppliers | Products/Services | Distribution | End users | Technological Development | Human Resources | Infrastructure | Risk Management Guidelines |
* Porter’s Five Forces: * SupplierOverall: Low * Bank capital supplier: many depositors Low * CustomerOverall: High * Buyer information availability: compare online High * Buyer price sensitivity: interest rate High * Threat of New EntrantsOverall: High …show more content…
However with the proliferation of PCs, great opportunity lies in the online banking service. Wells Fargo OFS has first-mover advantage and has adopted the “land rush” strategy to sign up as many customers as quickly as possible. The major challenge Wells Fargo faces is that it needs a set of clearly articulated, objective measures of performance to help them achieve their long term goal.
Implementing the Balanced Scorecard
* Reasons for Wells Fargo OFS to develop a Balanced …show more content…
The shifting competitive landscape in the Internet market requires OFS to frequently change the priority of its initiatives and address new competitive threats to keep up with customer demands. OFS need a tool to help them synchronize their strategy with what they were doing on a daily basis and translate that into measureable results.
Recommendations: * Treat Online Financial Service as investment centers because it will help managers to make better investment decisions. * Limit the number of measures in order to focus the organization on the most important performance drivers. * Clearly identify the cause-and-effect relationships in the balanced scorecard by measuring the strength of the linkages among measures in the different perspectives. * Establish feedback systems such as employees’ suggestions within the company as a measure in the learning and growth section of the Balanced Scorecard and review them on a monthly basis.
Balanced Scorecard for Increase Revenue per
Shi Xu (Nick)
* Wells Fargo Online Financial Services Overview: * Wells Fargo Online Financial Services provide financial services to its customers via World Wide Web.
* Value Chain: Capital suppliers | Products/Services | Distribution | End users | Technological Development | Human Resources | Infrastructure | Risk Management Guidelines |
* Porter’s Five Forces: * SupplierOverall: Low * Bank capital supplier: many depositors Low * CustomerOverall: High * Buyer information availability: compare online High * Buyer price sensitivity: interest rate High * Threat of New EntrantsOverall: High …show more content…
However with the proliferation of PCs, great opportunity lies in the online banking service. Wells Fargo OFS has first-mover advantage and has adopted the “land rush” strategy to sign up as many customers as quickly as possible. The major challenge Wells Fargo faces is that it needs a set of clearly articulated, objective measures of performance to help them achieve their long term goal.
Implementing the Balanced Scorecard
* Reasons for Wells Fargo OFS to develop a Balanced …show more content…
The shifting competitive landscape in the Internet market requires OFS to frequently change the priority of its initiatives and address new competitive threats to keep up with customer demands. OFS need a tool to help them synchronize their strategy with what they were doing on a daily basis and translate that into measureable results.
Recommendations: * Treat Online Financial Service as investment centers because it will help managers to make better investment decisions. * Limit the number of measures in order to focus the organization on the most important performance drivers. * Clearly identify the cause-and-effect relationships in the balanced scorecard by measuring the strength of the linkages among measures in the different perspectives. * Establish feedback systems such as employees’ suggestions within the company as a measure in the learning and growth section of the Balanced Scorecard and review them on a monthly basis.
Balanced Scorecard for Increase Revenue per