SWOT analysis of Wells Fargo Bank HRM

Introduction

Wells Fargo is a stable and long term company providing financial products such as banking, mortgages, credit cards, insurance, and investment services to consumers and business clientele. Wells Fargo's mission, vision, and values have propelled them through rough financial times in the great depression as well as the current economic downturn. Wells Fargo has a proven history of success and overcoming obstacles. Change management and the ability to adapt to new environment will be of the utmost importance to Wells Fargo over the next few years. The financial reform act has made many drastic changes to the way that companies do business in the financial industry which will directly affect the multi-billion dollar financial institution. Wells Fargo must ensure that their upper level management pays close attention to the external environment with emphasis on Human Resources Management in the organization.

Discussion

Company Background

Wells Fargo has been in business since 1852. Their first office opened in San Francisco during the gold rush. The stage coach was used to transport gold and other valuables. Wells Fargo helped establish the Great Overland Mail service continuing to use the stagecoach but also adding steam ship, rail road, pony rides, and telegraph. From their humble beginnings they expanded from California to the rest of the nation. In 1910 they had 6,000 locations nationwide. Then the federal government took over due to the First World War leaving Wells Fargo with just their initial San Francisco location. Once again Wells Fargo was resistant and expanded again (Hungerford 1949).

By 1990 they gained back all of their locations across the nation. In the 1980's Wells Fargo was the seventh largest bank in the nation.

Wells Fargo continued to expand throughout the Midwest with their merger with Norwest in 1998. The merger combined the largest bank presence on the West coast with the largest presence in the Midwest. After the merger the bank rated first in financial services in the western hemisphere, mortgage origination services, internet banking, agriculture lending, student loans, small business loans, commercial real estate, auto finance, and insurance agency sales. Wells Fargo merged with Wachovia in 2009 gaining greater presence on the East coast and Southern states. Wells Fargo now had banking presence in 39 states and the District of Columbia (Lincoln & Krishna 2009).

SWOT Analysis

Internal Environment Scan

Strengths

•19th on the Fortune 500 list in 2010

•Among the world's most 50 respected companies in Barron's 2010

•Ranked #1 Green bank in Newsweek, 2009

•Asset Leverage

•Market Share Leadership

•Unique Products

•Reputation Management

Weaknesses

•Weak Asset Quality

•Limited International Presence

•Low Debit Card Market Hold

External Environment Scan

Opportunities

•Acquisitions

•Asset Leverage

•Emerging Markets

•Product / Service Expansion

•Historically Low Rates

Threats

Competition

Economic Slowdown

Product Substitution

Government Regulations/Changes

Rising Rates/Inflation

Importance of Human Resources in Wells Fargo Bank

According to Hollenbeck, Gerhart, and Wright, Human Resources Management are “the policies, practices, and systems that influence employees' behavior, attitudes, and performance”. The role of human resources management within businesses has been evolving since the 1950s. These changes have brought about a significant ...