Strategic Planning-Wells Fargo Bank - Case Study Example

? Strategic Planning-Wells Fargo Bank Strategic Planning-Wells Fargo Bank Part One ENVIRONMENTAL ANALYSIS This analysis entails three elements, which include general environment, industry environment, and operating environment. 1.1. General Environment This environment entails the patterns in the wider society, which influences the banking industry, and especially Wells Fargo Bank. In this case, this environment has seven main segments, which include demographics, economic, political/legal, social cultural, technological, global, and physical environment patterns (Ireland el at, 2009). a. Demographic Trends Demographic patters offer a description of the changes, which involve sizes, age structure, geographic distribution, ethnic mix, and distribution of income (Ireland el at, 2009). These patterns enable the business to focus on understanding demographics of a certain area. Apparently, Wells Fargo Bank needs to understand alterations, which occur in different parts of America. Nevertheless, Wells Fargo has focused on the ability customize their market; for instance, numerous bankers are multi-lingual in order to increase their ability to deal with diverse population. b. Economic Trends Increasing rate of unemployment has been associated with high rates of interests and foreclosures. Well Fargo is focusing on avoiding the subprime market, which they feared more compared to their competitors during economy downfall. Moreover, the bank was able to pay the “bailout”, which was provided by the government and led to substantial profitability in 2010. During this recession, the Well Fargo identified ways of assisting their customers and remaining profitable despite these economic conditions. c. Political Trends There are strict political and legal implications in the banking and mortgaging industry in which Wells Fargo Bank operates. In fact, these implications have effects, which lead to financial reforms laws. On the other hand, there are resent issues, which are influencing the trading in the financial industry. d. Social Trends Wells Fargo has depicted increased interest in taking their social responsibility; in fact, they have a vision of building their corporate vision to assist their customers and ensure that everyone is succeeding in the community. On the other hand, they focus on offering members of the society equal chances of opportunities and prosperity for different walks of life. Therefore, they are struggling in being socially responsible through their financial services. e. Technological Trends There are technological patters, which have become prevalent in banking industry; through in other situations it poses threat to financial businesses. There are numerous programs and firms that are operating online and they are exploiting technology as a source of competitive advantage. f. Global Trends Apparently, Wells Fargo does not operate in the global market; through they deal with customers from different counties and ethical background. In this case, the bank has identified the need for understanding the global perspective, which is highly applicable in to their business. g. Physical Trends The company runs efficiently, whereby they take numerous steps of protecting the natural resources, and this has significant benefits to the future generation. On the other hand, they Wells Fargo bank has gained ability to engage their customers and communities in stewardship effort, through which they achieve significant impact (Wells Fargo, 2009). h. Industry Environment The industry environment entails the barriers to entry into the market, suppliers bargaining power, buyers bargaining power, availability of substitutes and competitive rivalry; in this case, industry environment is perceived in these dimensions. i. Operating Environment Operating environment entails five segments, which include competitors, creditors, customers, labor, and supplies. In this case, the competition has decreased significantly due to four choices in the financial industry. Wells Fargo offers credit to investors, thereby making it a publicly trade government supported bank. The bank considers the customers to be vital; hence, they focus on providing them with value based services. On the other hand, there are no labor shortages in the banking industry; in fact, numerous banks are closing as a result of economy, though there are numerous people to fill the need of financial institutions. Suppliers in the banking industry are irrelevant due to lack of product exchange; in fact, this is a service industry. 1.2. Internal Environment Analysis: SWOT a. Strengths On the strengths associated with the Wells Fargo is being recently ranked nineteenth in among the Fortune 500 companies in 2010. Moreover, it is among the fifty most highly regarded companies in Barron’s 2010; in fact, it was first as a green bank in the Newsweek during 2009 (Rind, 2011). Wells Fargo has assets for leveraging; in fact, it has attained market share leader through their unique products and good management reputation. b. Weaknesses Wells Fargo has a week quality for their assets and limited international presence. On the other hand, they have few numbers of customers who use the credit cards (Rind, 2011). 1.3 External Environment Analysis: SWOT c. Opportunities The bank has an opportunity of acquiring asset leverage, and venturing in emerging market. On the other hand, there are chances of expanding their products and services, and they have acquired history of low rates (Rind, 2011). d. Threats Wells Fargo is experiencing a significant level of competition in the industry, which can lead to decreasing market share. On the other hand, there are situation where economic slowdown, increasing rates and inflation has a negative impact on the bank. There are threats faced by the Wells Fargo due to product substitution (Rind, 2011). Other threats are situations where government regulations pose a threat to company. 1.4 Application of Information Results from this environmental analysis can be utilized by managers in the Wells Fargo to make decisions, which involve capitalizing on their strengths and opportunities. On the other hand, this information can enable the managers to indentify the weaknesses, which they should deal with and threats that should be mitigated. Apparently, this can serves a way of facilitating achievement of organizational objectives in Wells Fargo Bank. Leadership Apparently, leadership cannot be regarded to be an exclusive domain entailing senior managers; in fact, leadership in Wells Fargo involves creating an interconnection between the organization visions and achieving customer satisfaction. In this case, leadership is considered an act of establishing, sharing, communicating their vision to other stakeholders in the organization. On the other hand, they are expected to have ability of motivating other people understanding them and making the embrace the organization vision. Leaders take accountability by sharing the credit and shouldering their blame, and through this way they can offer other people a chance of taking responsibility and opportunity for success. Leaders have a role of inspiring the team in the process of implanting a strategic plan, whereby he urges them to have confidence, and also inspires them to have confidence in themselves. As a leader in Wells Fargo Bank one takes the responsibility of identifying people who will be involved in implementation of strategic plan in order to achieve the organizational objective. Nevertheless, this is a responsibility that requires collaboration with a team focused on implementation process. Therefore, there is need for establishing a team of employees with relevant skills required for executing operations, which will result to achievement of organization goal. In this case, members of strategy implementation committee would be selected on the basis of their skills and qualification in order to fill the gaps in the organization. On the other hand, there is need to offer training and development programs to members of these teams, which will enable them deal with challenges resulting environment. Furthermore, through these programs members of these teams are able to acquire necessary skills to support implementation process. Customers can also be included in the process, whereby the organization can focus on their feedback regarding the response time. Apparently, this evaluation can be considered a source of competitive advantage, while leaders are not expected to wait for the feedback gathered from the headquarters. Furthermore, leaders should not rely on the policy manuals in order to execute the strategic plan effectively. Instead, they should consider themselves to the equivocal partners in the team charged with responsibilities of achieving organizational vision. Leaders are expected to assist the team members in pitching members of the team by focusing on satisfying their needs. On the other hand, they should also be available by taking the personal ownership in dealing with problems experienced by customers in order to achieve organizational objective. The type of training that can ensure that the team is most effective is coaching, whereby a leader takes the role of coaching members of these teams. Apparently, coaching does not rely on being authoritative and forceful personality. Coaching requires a conviction regarding inherent knowledge and talent among members of the committee involved in overseeing the implementation process of the strategic plan. This teaching style ensures that members of this team are able to develop ideas; in fact, these members are also tested and these results are shared for other business and functions in the company. Leaders are expected to establish an interconnection with their vision and share their passion and discipline, and this makes their vision achievable. Therefore, this makes the team members to understand the level by which leaders are able to care for team members. Nevertheless, leaders should also focus on learning from each other and this forms a source of advantage. Apparently, leaders are able to share ideas and are able to search for other new ideas, which can contribute to implementation of a strategic plan in the organization. Leaders search for ideas in company in order adapt to the processes that leads to improved customer experiences, retain customers, and attract prospectus customers. In this case, this contributes significantly towards achievement of objectives such as increased profitability and reduction of operating costs. Sharing of ideas among leaders has served as a source of intelligent and survival in the industry. It also facilitates promoting positive change in the organization and utilizing the knowledge and experiences from members of the team (Wells Fargo, 2011). Part 2: 2.1. Concepts and Practices in Areas of Strategic Planning a. Concepts Conventional development planning: focuses on establishment of a perception that planning is a means of formalizing with organizing development in complex societies in planning, and this was considered an invention during the twentieth century. Conventional education planning: strategic planning proofed to be applicable in indicatively and defectively applicable in education sector. Key criticisms: Critics claims that people are focused on planning and preparing a plan without ample implementation. b. Practices Strategic planning is steered by the entire sense of direction. Strategic planners focus on sensitivity to the environment. Managers’ focus on the results since the strategic planning is result-oriented. Managers focus on mobilizing their instruments in the planning process. Managers focus on planning through increased flexibility in implementation process. Manager undertake annul operational plans 2.2. Implication to the Workplace These concepts and practices have significant implications in the workplace, whereby they facilitate the process of strategic planning in the organization. Apparently, the manager focuses dealing engaging in these practices in order to deal with issues such as diversity in the work place; in fact, this facilitate achievement of organizational objective. References Ireland, R., Hoskisson, R., & Hitt, M. (2009). Analyzing the General Environment. In R. Ireland, R. Hoskisson, & M. Hitt, Understanding Business Strategy. Mason: South-Western CENGAGE Learning. Rind, C. (2011). Wells Fargo SWOT Analysis. Retrieved September 14 2013 from, from Free SWOT: http://www.freeswotanalysis.com/swot-analysis-of-banking-sector/162-wells-fargo-swot-analysis.html Wells Fargo. (2009). Corporate Social Responsibility Report 2009. Retrieved September 14 2013 from:https://www.wellsfargo.com/downloads/pdf/about/csr/reports/wf2009corporate_citizenship.pdf Wells Fargo. (2011). News Release. Retrieved September 14 2013 from Wells Fargo: https://www.wellsfargo.com/press/2011/20110315_Japan Read More