Competitiveness and Strategic Management Wells Fargo and Company

Introduction

There is a company that engages in refining business, risk management practices and monitors governance to support the success of financial part of its communities and customers. The name of that particular company is the Wells Fargo which is an American international financial service holding company and a banking institution. The team members in this group, do their work diligently and ethically and receives values and add value to the community as a whole. Caring for the communities and customers is an embedded culture this company engages in. This culture is carried out through business operations and practices, community engagement and humanitarianism.

Positive Effects of Technology and Globalization

Changes in technology and globalization has had a positive effect on the activities of the corporation. The communication barriers that previously hindered the smooth running of operations within the company have been diminished. Notably, communication is a vital part of ensuring the development of a business organization (Pilot, 2015). Due to globalization, the company has seen a rapid increase in the number of customers wishing to be associated with it. The association is only economically based, meaning that the rapid increment in associations leads to a strategic increase in profits gained. In addition to fame and wide acclamation, through globalization, the company can trade or rather offer services on a broad platform. The latter, couples to give the prospective investors the courage to invest in the corporation owing to its sequential managerial and supervision systems.

Technology Advancements and Challenges

In technological advancement concerns, the company may in one hand see technology as an evil whereas on the contrary, as a bold move. Through technology, the company has set up security systems within the premises in which its offices are established. The security systems within these are automated to help combat crime or rather theft in case there is any. Technological advancements have also worked to ensure that the operations within the offices operated by the corporations run smoothly every day (Bruneckiene, Pekarskienė, Guzavičius, Palekienė, & Šcovienė, 2015). However, technology may also have been a nightmare to the corporation in the recent past. The company’s reckless action to open up unauthorized accounts between 2011 and 2015 and to generate charges that the customers were not informed of, made them be fined a total of $185 (Pilot, 2015). The fine was a significant loss, and this wouldn’t have happened were it not for the technological advancements that made the customers learn of the issue. The scandal could furthermore cause the company loses its customers to other institutions that offer the same services as Wells Fargo does. The court fine and the workout will be a huge blow to the company and its employees.

Rational Investment Decisions and Improved Management

In the recent past, the corporation has made a lot of irrational investment decisions that have seen it incur huge losses and also develop a weak relationship with its clients. The poor decisions have resulted in pressure from so many institutions and the customers forcing the organization to reconsider its recent irrational decisions in investment programs. The scandal the company found itself in the recent past gave its competitors an added advantage over it. Concerning the industrial organization model, the company is likely to make rational investment decisions that don’t put their investors’ money in jeopardy. The company management is also likely to change methodologies of solving chaotic instances that the corporation may be caught in as a result of weak management or rather supervision(Hitt, Ireland, & Hoskisson, 2015). All these factors that have tried to weigh down the corporation will make it strive to get back to where it was it the economic market thus improving its overall success.

Resource-Based Model for Success

The resource-based model does an internal scrutiny into the firm’s unique internal capabilities and resources to serve as a basis for making the company earn above average. The company strives to make improvements in its areas of weakness so that it can remain outstanding in its service delivery to customers, to do this the company has to acquire the prerequisite resources to create a leeway for improvement. Other than that, the corporation may work on its strategy and the firm’s primary source of returns to act as a basis for constraints elimination. Eliminating constraints is one of the ways of ensuring the success of the business.

Importance of Vision and Mission Statements

If the company manages to eliminate the constraints from its path, develop better strategies for the business and also acquire the unique resources required to develop the business, then the business will perform beyond average (Hitt, Ireland, & Hoskisson, 2015). In the case where the management of the firm is incapable of seeking better economic strategies to develop the business, acquiring the prerequisite resources needed to run the business and lack the capabilities to detect a problem in the organization, then the organization is doomed to perform below average.

Through the company’s vision statement, it intends to satisfy its customers’ financial needs and help them succeed financially by developing a lifelong relationship with each client. The vision statement encourages the employees to work toward the betterment of the relationship of the customers and the organization. The report also urges the employees to develop formidable ties with the customer that will last for long, and in so doing, they choose to prefer the organization to the others. If this vision statement is followed to the latter, then the corporation is certainly likely to experience an improvement in its performance.

The company has a unique mission statement that is divided into seven priorities. The mission is embraced as a priority because it forms the core values of the corporation. The mission intends to put the customers at the frontline as a way of making them a priority and also grow their revenue in the process. Through the mission, the organization also intends to follow its vision statement, connect with stakeholders and the community and also manage its risks. In any case, the corporation sticks to the seven prioritized pillars of its mission statement, and its success will always be guaranteed.

Role of Stakeholders in Success

The corporation has all the three types of stakeholders; primary, secondary and key stakeholders. To foster the full success of the activities of the company, it is vital to include all the three interested parties in the management of the organization. This is attributed to the fact that the primary stakeholders are likely to be affected directly by the corporation either positively or negatively by an action made by the agency. On The other hand, secondary stakeholders are likely to be affected indirectly by the actions made on the company’s behalf by the key stakeholders.

If the Key stakeholders take actions that are liable to impact the primary stakeholders negatively then the negativity is also likely to affect the Secondary stakeholders with the same magnitude (Hitt, Ireland, & Hoskisson, 2015). When the primary stakeholders are affected negatively, the performance of Wells Fargo Company is likely to decline. However, when the key stakeholders’ decision impact positively on both the Primary and secondary stakeholders, then there will be an adjustment in the general output of the business resulting in more profits. The positivity will lead to the business’ success.

References

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015). Strategic management: Competitiveness & globalization : concepts and cases.

Bruneckiene, J., Pekarskienė, I., Guzavičius, A., Palekienė, O., & Šovienė, J. (2015). The impact of cartels on national economy and competitiveness: A Lithuanian case study.

Pilot, M. J. (2015). Driving sustainability to business success: Management system integration and automation--the DS factor.