Running head: WELLS FARGO CORPORATION 1

Wells Fargo Corporation

Strategic Plan 2016-2018

Anuradha Srinivasan & Sherine Mitto

GR 508 Management Policy

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Executive Summary

The Executive Management team of Wells Fargo (the Bank) has constructed a 2016-

2021 Strategic Plan. This plan will give a brief overview of the Bank and highlight its mission

and vision statements. It will then address the key business objectives through the use of an

elevator pitch, marketing plan and operations plan based on the SWOT analyses, the

performance indicator conducted, and a review of the Banks financial statements.

The Bank currently encompasses five primary business services community banking,

wholesale banking, fiduciary services, brokerage and custody and wealth and investment

management ("Wells Fargo Company Facts, information, pictures | Encyclopedia.com articles

about Wells Fargo Company," 2016). The Bank continues to promote itself as a global financial

service provider, offering a strong brand.

Overview

Wells Fargo was founded on 18 March 1852 ("History of Wells Fargo Wells Fargo,"

2016). However, banking business did not commence until 13 July 1852, where the Bank offered

a comprehensive range of financial services to individuals and corporate clients. Presently, the

Bank has been a pioneer in bringing banking convenience to its customers as it provides the

following services: banking by telephone, drive-up tellers, express lines, credit cards, automated

teller machines, and online banking ("History of Wells Fargo Wells Fargo," 2016).

Based on our research and development initiative, it was noted that Wells Fargo was the

largest bank in North America in relation to the physical presence ("Wells Fargo History - FAQs

- Wells Fargo," 2016). Wells Fargo Corporation has 6,314 branches across the United States and

several subsidiaries and affiliates in 9 countries worldwide. Additionally, Wells Fargos

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marketing and advertising styles are very well-known and recognizable globally. Nonetheless,

the biggest competitors of Wells Fargo are Bank of America, JP Morgan Chase, and Citigroup.

As a result, requiring a strategic plan to stay ahead of the game ("Wells Fargo History - FAQs -

Wells Fargo," 2016).

First, we had to identify the Banks main goals and objectives to establish and elevator

pitch of the key to success (Holly, 1987). As such, the Executive management team looked at the

banking industry trends, competitors analysis and target customer to analyze the current market

and find out how consumers perceptions have changed since the last strategic plan in 2010

(Feinberg, 1979).

After the trends had been analyzed, our team created a SWOT analysis that provided a

summary of the Banks internal strengths and weakness as well as its external threats and

opportunities (Jackson, Joshi, & Erhardt, 2003 and Holly, 1987). Thus, using the information to

establish our 2016-2021 marketing plan for the Bank.

Through the examination of the Banks industry analysis and financial statements, our

team also came up with a new operating plan which will assist with meeting our goals and

opportunities presented below. After our new service launches and implementation, we will

conduct a review of the Bank's progress in relation to the services setup to our customers.

Lastly, our team feels confidently projected that the new services bring in 100 new

customers per year, and 60 new home loans per year which will ensure brand loyalty and enforce

Wells Fargos customer loyalty.

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Elevator Pitch

The below information provides a summary to address the Banks progress since 2010 (Ireland,

Hitt, Camp, & Sexton, 2001).

Table 1

Elevator Pitch Summary

Product oriented

Outdated systems

Inefficient retail network

Limited brand awareness

From 2010 Deficient risk practice

A regional commercial bank

Reinforced risk infrastructure

Global capabilities up-tiered

Today 2016 Diversified portfolio

Relationship banking

Real-time platform

More productive & integrated

Rising recognition

But still we have areas for improvement

Build a differentiated brand positioning

Increase digital sales

Upgrade compliance infrastructure

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Improve quality of end to end processes

Cultural shift to improve satisfaction

Mission and Vision Statements

Mission Statement:

"Our product: SERVICE. Our value-added: FINANCIAL ADVICE. Our competitive

advantage: OUR PEOPLE" (Alchin, 2016)

Vision Statement:

We want to satisfy our customers financial needs and help them succeed financially.
(Alchin, 2016)

SWOT Analysis

The following chart provides a summary of the Banks internal strengths and weakness as well

as its external threats and opportunities (Jackson, Joshi, & Erhardt, 2003 and Hungerford, 1949).

Table 2

Wells Fargo SWOT Analysis

1) A very strong financial lending company

2) Strong credit-rating

3) Strong regional brand awareness

4) Global bank with local presence

Strengths
5) Ability to leverage off group expertise

6) FDIC Insured
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7) Highly recognizable advertising campaign

8) 2nd largest bank in home mortgage servicing, deposits and debit card

1) Highly Competitive Market

2) Economy & Recession

3) Low customer-care and satisfaction

Weaknesses 4) Federal Regulation

5) Lacking in international recognition as compared to competitors.

6) International brand awareness may be low

1) Online frauds and scams.

2) Stricter compliance needed to conduct banking business

Threats
3) International laws and regulation may change which could impact the

banks international expansion.

1) Margins in the current markets are healthy

2) Expansion in other countries

Opportunities 3) Low-interest rates

4) Highly competitive market

5) Wealthy potential customer base in a small geographical area where

service quality rather than pricing is the key motivator.

After analyzing the strengths of Wells Fargo Corporation, it was noted that Wells Fargos

strong financial position and its global presence are the biggest strengths (Feinberg, 1979). As

noted under the Executive Summary, they are physically the largest bank in the United States.
WELLS FARGO CORPORATION 7

The banking industry is still expanding and growing market as such, we see Wells Fargos

banking services to be a cash cow instead of a dog when using the Boston Consulting Group

matrix. When the team examined the marketing measures that Wells Fargo use, it was noted that

they are a highly recognizable brand; consequently, their marketing recognition is also a strength

(Jackson, Joshi, & Erhardt, 2003).

Wells Fargos weaknesses include the fact that they lack in international acclaim as

compared to their competitors, as well as general banking weaknesses such as the economy,

regulation, and problems with the current economy that banks face (Ireland, Hitt, Camp, &

Sexton, 2001).

As for threats, it was focused on internal policies and procedures in relations to

compliance and security of the company (Feinberg, 1979). In the banking industry the biggest

threat is fraud. As technology enhances the team recognizes that it has to keep up with protection

software and double up on internal firewalls because a big threat is losing customer loyalty if

such measures are not taking (Jackson, Joshi, & Erhardt, 2003).

Finally, opportunities, as the banking industry, is a highly competitive market through

research and marketing Wells Fargo will continue to expand in other countries as margins in the

current markets are healthy (Jackson, Joshi, & Erhardt, 2003). Maybe the acquisition of another

bank would assist with being highly competitive and customer expansion.

Goals

"Our number one goal when we get up in the morning is not about making money, it's about

serving customers. That is the reason for a business. The result is you make money"

- John Stumpf, Chairman & CEO, Wells Fargo

("Wells Fargo CEO: Our goal is NOT to make money", 2015)

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October 2016 & Quarter 3 Goals (Hungerford, 1949):

A Recognized Brand

Brand awareness up from 80%

Top of mind in some key markets

Leveraged on strategic partners

Efficient marketing costs down 30%

The most reputable brand according to our customers

Relationship Banking:

Customer satisfaction up in all channels

Risk profile of portfolio upgrade

Diversified portfolio

Expand model to include more affluent customers

More diversified revenue sources

Improve cross-selling

One year Goals (Hungerford, 1949):

The below information summarized the Banks goals for the coming year.

Table 3

Short Term Goals

Put the customers first.

Best in class client experience

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Goal #1 Double physical network productivity

Re-energize our organization as one team.

Empower team growth and development

Goal #2 Talent successfully retained

Strongly engage team members

Achieve diversified and profitable growth.

Better efficiency ratio than the competitors

Goal #3 Double ROE

Become a $1 billion net income bank

With the highest principles and a strong risk and control

foundation.

Goal #4 Straight through processing

IT secure solutions

Control environment upgrade

Greater commitment to the community

Wells Fargo Bank has five strategic priorities that provide direction for all our business

decisions.

Five years long-term goals (Jackson, Joshi, & Erhardt, 2003):

Focus on the Customer:

Deliver exceptional service quality

Put customers needs first

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Deepen customer relationship and sell products and services that customers need and

want

Practice fair and responsible banking

Needs-based cross-selling built on trust, integrity and services excellence

Strengthen Financial Performance:

Grow earning assets with a disciplined approach

Pay close attention to the risk assumed

Look for the opportunity to grow non-interest revenue

Focus on customer retention and deepening relationships with existing customers

Manage expenses

Build the Best Team:

Retain and develop talent

Strengthen employees engagement to maximize the companys productivity

Measure performance

Work as one team and one bank

Enhance Risk Management:

Understand the risk we take and obtain appropriate compensation for that risk

Prudently manage capital and liquidity

Proactively management our strategy relative to upcoming regulatory changes.

WELLS FARGO CORPORATION 11

Management Performance:

Set clear expectations and directions

Monitor success and hold employees accountable

Consistent measurement

Celebrate and coach

Figure 1. The below graph illustrated the Banks five year goals in an image.

Key Performance Indicators

A key performance indicator (KPIs) is a valuable tool for monitoring the critical drivers

of optimal working capital. Our treasury department and other executive heads will work

together to determine the indicators needed to ensure your business is running efficiently. They

are specific triggers that immediately alert the Bank of necessary changes and provide useful

information to groups outside of Treasury ("Use key performance indicators to monitor working

capital - Working Capital: Best Practices," 2016).

Our KPIs fall into four key areas:

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1. Financial: Financial KPIs analyze the impact of the firms financial actions, especially

how they affect growth and profitability (Nigrini & Johnson, 2008). This usually deals all

the financial statements of the firm, such as balance sheet, cash flow statements,

estimates, forecasts, etc. From these financial statements, various financial ratios can be

calculated such as gross profit margin, net profit, accounts receivables, the cost of goods

sold, turnover and so on. Such financial KPIs give the management information on the

financial health of the firm and the landscape in which to operate, and thereby creating a

competitive advantage over competitors (Nigrini & Johnson, 2008).

2. Customer: Customer oriented KPIs provide a measure of the quality of goods and

services offered, how they meet the customers requirements and expectations, as well as

help the management gauge the level of customer satisfaction (Feinberg, 1979). These

KPIs include customer attrition rate (for credit cards, loans, savings account, etc. to give

more clarity), SLA Adherence, Payout processing rate, Loan disbursement time,

Transactions per branch and so on (Nigrini & Johnson, 2008).

3. Internal Business Processes: These KPIs relate mostly to the internal workings of the

firm. Project management processes, Quality management processes all fall under this

category. Total employee headcount by branch/department, Employee to trade/customer

capture ratio, Productivity rates per employee/branch/department, Customer loan pull

through rate, Cycle times for various banking processes will all fall under Internal

business process and enable quality control systems and processes to be put in place for

efficient and smooth operations (Nigrini & Johnson, 2008).

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4. Learning and growth: While profits and revenues are important, so is the well-being and

satisfaction of the employees. Employees who are satisfied and valued in their jobs, will

perform better and improve productivity further. This category of KPIs measures how the

firm enables change, innovation, sharing of knowledge and information. Furthermore, it

measures the staff morale, on-the-job training, and internal growth pattern of employees.

The examples of KPIs in this sector would include employee training hours, employee

work hours, absenteeism, employee satisfaction index, patents pending, the number of

ethics violations, learning rate, R&D expense rate, R&D hours, Employee diversity rate,

etc (Nigrini & Johnson, 2008).

Wells Fargo continues to monitor all the KPIs mentioned above and hence can proactively

recognize and respond to changes and challenges (Nigrini & Johnson, 2008). It continues to offer

an optimum method to counteract current market gaps, as well as the expectations of customers

through various instruments and operations plans. While it continues to work with existing

clients on bettering the service offered to them, it will also work hard to diversify and expand its

customer base. KPIs enable the bank to keep all the processes in check, and measure their

progress objectively and improve their quality of service better (Feinberg, 1979).

Target Customers

Wells Fargo provides banking, investments, insurance, and consumer financial services

to more than twenty million customers. It does not discriminate its customers but looks at their

financial history of their customers. Wells Fargo has a customer base spanning all nationalities,
WELLS FARGO CORPORATION 14

improving service in the Hispanic community, and analyzing demographic data to further

increase its customer base.

Relevant Variables Describing Segment

There are different variables that are used to describe the customer segment are age, the

level of educations, the number of people in the household, the income level of the household,

etc. Age is relevant in the banking industry because age dictates how the customer spend their

money. The level of education is an important factor because people who have more education

have more knowledge about their financial resources. The number of people in the household

can determine how much is being spent on essentials.

From this general factors, we can split the Wells Fargo customers into the following

categories or segments.

Age:

Young Adults/Millennials The demographic between the age of 18 and 25 is an

important segment with people looking to start a bank account and create a life-long

relationship with their financial service provider. They are looking for education and

home loans. They are focused on ease of use, especially online banking and mobile

banking.

Seniors This demographic may be looking to secure their retirement, set up trust funds,

manage their estates and funds, etc. They are looking for personalized service, and put a

face to the website, and look for someone that they can trust.
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Income:

Low-Income Families: 40% of the banks customers are low to middle-income groups.

They may be living pay check to pay check, and they dont have much of savings

options. However, they may be interested in credit card loans and tax services.

Middle-Income Families: They are looking to improve their status, home loans to secure

their first home, and financing and refinancing options.

Wealthy Families: This is one of the target demographics of Wells Fargo, who are

looking to the financial service provider to make more money from their resources, and

excellent tax services to save them a lot of money.

Nationality:

Foreign Families: These people might look for a global presence, bilingual services

and to establish themselves in a new country via car loans, personal loans, and home

loans.

Occupation:

Farmers: They look for a financial service provider who understands their needs, and

whom they can trust.

SMEs: Small and Medium Enterprises, which form a majority of the business in the

country are looking for banks that will work with them, provide quick, short order

loans when they need them and secure their assets and finances.
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Corporations: These are a different set of customers, who look for large loans for a

short period of time, excellent corporate tax attorneys and investing, marketing and

asset management services.

Industry Analysis

At present, the banking industry is being transformed from the traditional over the

counter transactions to a more technology savvy 24/7 service provider. As the banking sector

transforms, it brings lots of uncertainty of what will in the next ten years ("Cayman Islands

Monetary Authority - Statistics & Regulated Entities," 2016). Nonetheless, many banks took the

initiative to upgrade their systems, abide by the stricter regulation of banks and still simplify

their business and operating models.

Since the 2008 Financial Crisis, large complex institutions were dampened, resulting in

new competitor banks and non-banks entry. Consequently, many new players are entering the

profitable banking business mainly through technology. According to Millennials, banking

customers also seek change as traditional banking fewer influences them ("Banking Industry

Outlook | Deloitte US | Center for Financial Services," 2016).

The following graphs show the current trend with new entry to the banking industry and

its banking assets as at 2016 ("Banking Industry Outlook | Deloitte US | Center for Financial

Services," 2016):
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Figure 2. Private Sector Credit graph (Solutions, 2016)

Figure 3. Banking Assets as at 2016 (Solutions, 2016)

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According to the Cayman Islands Monetary Authoritys (CIMA) website, the total

foreign assets and liabilities, reported US$1.39 trillion and US$1.44 trillion as at June 2015,

respectively ("Cayman Islands Monetary Authority - Statistics & Regulated Entities," 2016).

Figure 4. The following graph is a summary of the cross-border assets and liabilities trend
(Solutions, 2016)

It was also noted that the international assets and liabilities as at June 2015 booked $24

billion of assets and liabilities by the 184 banks, respectively ("Cayman Islands Monetary

Authority - Statistics & Regulated Entities," 2016). The domestic economy booked $60 billion

with other legally domiciled licensed entities considered as resident entities ("Cayman Islands

Monetary Authority - Statistics & Regulated Entities," 2016).

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Figure 5. Graph is a summarizing of the domestic assets and liabilities in foreign currency trend

("Cayman Islands Monetary Authority - Statistics & Regulated Entities," 2016)

Additionally, CIMA noted that the market size is growing, and the reputation of sensible

regulation comparable to other international financial centers coupled with a competent

workforce of lawyers, bankers, and accountants. As such, banks represented some 45 countries

from across the globe ("Cayman Islands Monetary Authority - Statistics & Regulated Entities,"

2016).
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Figure 6. Banks by Region as at 2016 ("Cayman Islands Monetary Authority - Statistics &
Regulated Entities", 2016)

Competitive Analysis & Advantage

Competitive Analysis

The main rivals of Wells Fargo are the other three of the "big four" major American

banks which are Bank of America, JPMorgan Chase, and Citigroup. It should be noted that these

four financial entities collectively hold an estimated 35% - 40% of all American bank deposits

and serve the majority of personal and commercial accounts in the United States. The assets were

used as indicators to determine the size as the services that the banks provided did not

necessarily have fixed prices, and some products did not have any prices at all (Maverick, 2015).

As the result, our team found that JPMorgan Chase is the largest has the largest total deposits.

Although JPMorgan Chase was the topped bank in total deposits, Wells Fargo is still the world's

biggest bank by market capitalization, with a market cap of US$277 billion. Thus, deeming

Wells Fargo the largest bank by physical size ("Domain Brokerage providing Global Naming

Assets Solutions - AMERICABANKER.COM," 2016).

Still, the market challengers of the banking industry are JP Morgan Chase, Bank of

American and Citibank; making Wells Fargo a market follower as its total assets is less than the

abovementioned banks. As such, our executive team focused more on the market niches in the

banking industry specifically, on the competitors noted above. However, it was pointed out that

the competition is not only with banking institutions, but also will non-banks such as Interactive

Brokers which provides direct access trade execution and clearing services to financial
WELLS FARGO CORPORATION 21

institutions and professional traders for a wide variety of electronically traded products ("About

the Interactive Brokers Group | Interactive Brokers", 2016); resulting in a no gap market.

Competitive Advantages

Our Executive team found a plethora of different kinds of competitive advantages such as

location, staffing, unique products or services, strategic alliances and joint ventures, and online

experience. Having a competitive advantage creates greater value for the banking business.

Wells Fargo focuses on the following three kinds of core competitive advantage: ("Building

competitive advantage | Scotiabank," 2016):

Cost/Comparative advantage is one of our bank's ability to market a service or product at

a lower price than its rivals.

Differential advantage of Wells Fargo's services or products differs from its competitors

where customers are able to view it as the better option.

Wells Fargo employees have a niche advantage regarding their skills, knowledge, and

expertise of the banking industry.

Wells Fargos banking market position and pricing strategies link to its competitive

advantage when compared to the other banks. As such, knowing our competitive edge will help

your business stay competitive and most importantly, keep you in business ("Building

competitive advantage | Scotiabank," 2016).

Marketing Plan

Positioning Statement
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Wells Fargo is currently the number one American international banking and financial

service institution headquartered in San Francisco, California. The Bank has operated across 35

countries and had over 70 million customers globally where it focuses on customers wants.

Customers choose Wells Fargo as the bank has a well-known image for being most valuable

bank brand and customer friendly. Some of the Banks competitors include Bank of America and

JP Morgan Chase. However, those banks mainly provide services to larger corporations and not

individual personal loans. As such, Wells Fargo is positioned as customer oriented bank who

cares about the small families and their dreams (Jackson, Joshi, & Erhardt, 2003).

Thus, Wells Fargo will benefit from several plans to increase its revenue and profits in

each of its areas and several new complimentary businesses. The overall strategic plan across all

business areas is to utilize more proactive marketing combined with improved data management.

Wells Fargo has a reputable brand and has a strong foundation on which to build and develop

(Jackson, Joshi, & Erhardt, 2003). Our past experiences demonstrate that improved relationships

and consistent marketing will increase revenues and eventually profitability. In addition, there

are several themes that overlay that strategic planning for this business.

Marketing Objectives

Our general theme will be to market Wells Fargos unique strengths and position in the

marketplace as a truly regional and international financial services provider.

As such, the Bank will develop a new marketing campaign focusing on its customers and

creating a brand loyalty and reinforcing the Banks image through the low-risk investments and

loans promotions. The key to the profitability of the Bank is to grow the deposits base where the

growth of deposits enhances the Banks main income stream, including transactional fee income

derived from activities such as wire transfers.

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The campaign will commence in a particular area, which was selected based on the target

market in the general population such as North American, Europe, China and other countries in

which Wells Fargo has a subsidiaries or branches. As this segment contains a diversity of

classes, from middle lower class to upper lower class, all of which are customer targets in the

marketing strategy.

Wells Fargo will continue to undertake commercial lending. However, we intend to

pursue a strategy of lending to strategic clients that may general increased business in all of the

Banks other business areas. For example, secured lending may be offered to new clients on the

basis that the new client brings their fiduciary business to Wells Fargo as well.

Based on the Banks objectives, we will focus on the products, price, place, and

promotions. A marketing mix will be utilized to determine how the products would best be

accommodated for promotion and placement, and how to execute such strategies.

Performance Measurement
In 2017, the Bank will measure the effectiveness of the marketing plan on their loans and

overall profits by calculating the new costs provided by the marketing campaign; for instance

focusing on the job salaries and marketing and advertising costs from past year. It should be

noted that the Bank expects an increase in its home loans based on the above projections. As

home loans are where, Wells Fargo earns the majority of its profits, particularly our margins. As

such, the Bank will use the following to measure how effective the campaign will be:

1. The management team will calculate the percentage increase in home loans, profit

margins, and profit over the past three years to figure out an effective average increase.
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2. The management team will calculate the percentage increase in home loans, profit

margins, and profit from past year and the current year from when the new service was

implemented.

3. The management team will compare the percentage increases in step 1 to step 2 to see if

there was a notable difference between average increase and increase from the year of

implementation.

Human Resources Team

Overview:

The role of the Human Resources (HR) Division is to work as a strategic partner with

the Banks group to achieve alignment with the organizations HR related goals. The HR team

consists of a Senior Manager, Assistant Manager, HR Administrator, HR Generalist, Employee

Relations & Recruitment Specialist and a Learning & Development Specialist (Jackson, Joshi, &

Erhardt, 2003).

HR is primarily responsible for payroll, time and attendance, performance appraisal,

benefits administration and absence management. HR is also responsible for complying with

personnel policies, employment law, and governmental regulations (Jackson, Joshi, & Erhardt,

2003).

The HR Division provides guidance and support to the managers and employees on all human

resource related issues.

HR encompasses the following areas of focus and service:

Delivery of competitive compensation and benefits

Meaningful recruitment, work permit processing, and job description analysis

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Performance management

Talent management, employee development and succession planning

Objective, Scope and Limitations:

Wells Fargo strives to attract the best-qualified individuals possible. No person shall be

discriminated against with respect to any individual hire, wages, promotion, dismissal, or other

stipulations of employment, by reason of sex, race, or any reason provided their ability to work is

not impaired, political belief or the exercise of any rights under the Labour Law or any other

Law (Jackson, Joshi, & Erhardt, 2003).

The goal of the HR function is to secure a leading bank position through driving the

People Strategy and delivering perceived high-quality HR services in partnership with the

business. To ensure compliance with the Banks policies, procedures, and benefits, Group

Internal Audit will perform periodic audits on the following:

Payroll Processing (Benefits, 401K and Pension Plans)

Personnel Administration

Segregation of Duties

Policies and Procedures and Regulatory Compliance

System Access and User Functionality

Insurance

Disaster Recovery and Business Continuity

Outstanding Control Issues

Policy:
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The HR Division carries out all hiring of new employees or filling vacant positions

internally and externally. All new positions should be included in the Annual Business Plan put

together by the applicable Business Head (Ireland, Hitt, Camp, & Sexton, 2001). Copies of the

approved Business Plans must be submitted to the Senior Vice President Human Resources in

order that the hiring process may begin.

The process for filling vacant positions will commence when notice of resignation is

received or termination of employment, whichever comes first. The HR Division will always

look within Wells Fargo to fill any vacant or new positions. Once all internal possibilities are

exhausted external employment will be considered. The Chief Executive Officer will be involved

in the hiring and approval process of Business Heads (Feinberg, 1979).

The respective Business Head will be involved in the hiring process by interviewing and

concurring with a new hire or an internal promotion or transfer. Except for Senior Vice

Presidents and above and the Chief Internal Auditor, the Senior Vice President Administration,

and Human Resources must approve all new hires. Final approval by the Board of Directors is

required for all positions Senior Vice President and above (except for the Chief Internal Auditor

position which must be approved by the Audit Committee).

Regulatory Authority must be sought from the Cayman Islands Monetary Authority for

these positions, and our Insurance Company must be notified when the employee joins. If the

hiring of a senior position is to go through an employment agency the Senior Vice President

Administration and Human Resources in consultation with the applicable Business Head or the

Chief Executive Officer will select the agency to be used (Ireland, Hitt, Camp, & Sexton, 2001).

Advertising for New or Vacant Positions Internal & External:

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Once authorization to fill a new position has been received, or a position becomes vacant, the

next process will be to advertise the job (Wells Fargo, 2007). All prospective employees must

complete and submit an application for employment together with a resume or curriculum vitae

before they are given a letter of offer. Even if a Senior Member of staff produces a resume, we

still require a Job Application Form to be completed. External advertising will normally be

performed via the local Cayman Newspapers and should include the requirements for the job as

stated above together with the salary range (Wells Fargo, 2007). The required information is not

limited to, but should include: The application in relation to the position to be filled

Responsibilities and duties assigned to the job

The level of the job

Experience required

Education

As at 12 September 2016, the current vacancies are open:

Senior Financial Analyst

Wealth Management Associate

Marketing Analyst

These positions are envisioned to be filled over the next year to complete your strategic goals.

Operations Plan

Wells Fargo has applied a variety of operations principles to further improve its

operational models and to the implementation and organization of its projects. These principals

and models help in managing the firms toward development of the community and enhance the
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effectiveness, as well as showing sustainable improvement in all sectors (Wells Fargo, 2007).

These operational model are:

1) Focus and distinctive preference

2) Country proprietorship

3) Partnership and Compatibility

4) Managing toward results and effectiveness

This will help Wells Fargo to distinguish between the projects it will undertake and how

these projects will be executed. These operational principles and models will be applied to all of

the firms programs and projects.

Financial Projections

Wells Fargo & Company is a financial services company with about $1.8 trillion in

assets. In 2015, they had a net income of $22.9bn and earnings per common share (EPS) of

$4.12. They have ended 2015 strongly as the world's most valuable bank by market

capitalization ("Wells Fargo & Company Comparisons to its Competitors, Market share, and

Competitiveness by Segment - CSIMarket," 2016).

WFC and Market Capitalization:

As can be seen from the below figure, WFC has improved steadily over the years in

market capitalization. Most of the growth can be implied from the steadily increasing stock price,

without a dramatic increase in the number of shares outstanding ("Wells Fargo & Company
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Comparisons to its Competitors, Market share, and Competitiveness by Segment - CSIMarket,"

2016).

WFC has been steadily above BoA, Citi and JPM in market capitalization as seen from

the figures below.

Figure 7. Market Cap Chart (Yahoo Finance, 2016)

Figure 8. Market Cap Benchmarks (Yahoo Finance, 2016)

Balance Sheet and Liquidity

WFC balance sheet developed to a positive 6% in 2015 to $1.8 trillion as noted above

(Yahoo Finance, 2016). They have increased their liquidity and improved quality of assets, and

further improved their capital. Their core now included $11.5bn from the GE Capital commercial

real estate loan purchase. Investment securities, liquidity position, and regulatory expectations
WELLS FARGO CORPORATION 30

have all increased and improved their position over the past year ("Wells Fargo & Company

Comparisons to its Competitors, Market share, and Competitiveness by Segment - CSIMarket,"

2016).

Below are the financial statements for Wells Fargo for 2015, 2014 and 2013 (Yahoo
Finance, 2016).

Table 4

Wells Fargo Income Statement (All numbers in thousands)

Revenue 12/31/2015 12/31/2014 12/31/2013
Total Revenue 90,033,000 88,372,000 88,069,000
Cost of Revenue 963,000 1,096,000 1,337,000
Gross Profit - - -
Operating Expenses
Research Development - - -
Selling General and Administrative 48,728,000 47,667,000 47,338,000
Non Recurring - - -
Others 3,688,000 2,765,000 3,813,000
Total Operating Expenses - - -
Operating Income or Loss - - -
Income from Continuing Operations
Total Other Income/Expenses Net - - -
Earnings Before Interest and Taxes 36,654,000 36,844,000 35,581,000
Interest Expense 3,013,000 2,929,000 2,952,000
Income Before Tax 33,641,000 33,915,000 32,629,000
Income Tax Expense 10,365,000 10,307,000 10,405,000
Minority Interest 893,000 868,000 866,000
Net Income From Continuing Ops 22,894,000 23,057,000 21,878,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income
Net Income 22,894,000 23,057,000 21,878,000
Preferred Stock And Other - - -
Adjustments
Net Income Applicable To 21,470,000 21,821,000 20,889,000
Common Shares
(Yahoo Finance, 2016)
WELLS FARGO CORPORATION 31

Table 5

Wells Fargo Cash Flow (All numbers in thousands)

Period Ending 12/31/2015 12/31/2014 12/31/2013

Net Income 22,894,000 23,057,000 21,878,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation 3,288,000 2,515,000 3,293,000
Adjustments To Net Income -47,580,000 -26,748,000 -13,994,000
Changes In Accounts Receivables -623,000 -372,000 -13,000
Changes In Liabilities -6,804,000 15,667,000 -7,177,000
Changes In Inventories - - -
Changes In Other Operating Activities -4,029,000 -8,327,000 9,670,000
Total Cash Flow From Operating Activities 14,772,000 17,529,000 57,641,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures - - -
Investments - - -165,094,000
112,947,000 135,162,000
Other Cash flows from Investing Activities 5,712,000 6,782,000 11,602,000
Total Cash Flows From Investing Activities - - -153,492,000
107,235,000 128,380,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid -8,826,000 -8,143,000 -6,970,000
Sale Purchase of Stock -4,231,000 -5,351,000 -283,000
Net Borrowings 49,707,000 34,360,000 24,414,000
Other Cash Flows from Financing Activities 55,353,000 89,637,000 76,749,000
Total Cash Flows From Financing Activities 92,003,000 110,503,000 93,910,000
Effect Of Exchange Rate Changes - - -
Change In Cash and Cash Equivalents -460,000 -348,000 -1,941,000

(Yahoo Finance, 2016)

Table 6

Wells Fargo Balance Sheet (All numbers in thousands)

Period Ending 12/31/2015 12/31/2014 12/31/2013

Current Assets
Cash And Cash Equivalents 713,998,000 669,180,000 560,878,000
Short Term Investments - - -
Net Receivables - - -
Inventory - - -
WELLS FARGO CORPORATION 32

Other Current Assets - - -

Total Current Assets - - -
Long Term Investments 1,362,068,000 1,274,408,000 1,167,426,000
Property Plant and Equipment 8,704,000 8,743,000 9,156,000
Goodwill 25,529,000 25,705,000 25,637,000
Intangible Assets - - -
Accumulated Amortization - - -
Other Assets 102,090,000 100,299,000 87,571,000
Deferred Long Term Asset Charges - - -
Total Assets 1,787,632,000 1,687,155,000 1,523,502,000
Current Liabilities
Accounts Payable 73,365,000 86,122,000 66,436,000
Short/Current Long Term Debt 97,528,000 63,518,000 53,883,000
Other Current Liabilities 1,223,312,000 1,168,310,000 1,079,177,000
Total Current Liabilities - - -
Long Term Debt - - -
Other Liabilities - - -
Deferred Long Term Liability Charges - - -
Minority Interest 893,000 868,000 866,000
Negative Goodwill - - -
Total Liabilities 1,594,634,000 1,502,761,000 1,353,360,000
Stockholders' Equity
Misc. Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 9,136,000 9,136,000 9,136,000
Retained Earnings 120,866,000 107,040,000 92,361,000
Treasury Stock -18,867,000 -13,690,000 -8,104,000
Capital Surplus 60,714,000 60,537,000 60,296,000
Other Stockholder Equity -1,065,000 2,158,000 186,000
Total Stockholder Equity 192,998,000 184,394,000 170,142,000
Net Tangible Assets 167,469,000 158,689,000 144,505,000
(Yahoo Finance, 2016)

Table 7

Estimated Growth

Growth Estimates WFC Industry

Current Qtr. -2.90% 1.42
Next Qtr. -1.90% 0.69
Current Year -2.90% -0.11
Next Year 4.20% 0.23
Next 5 Years (per annum) 8.66% 0.08
WELLS FARGO CORPORATION 33

Past 5 Years (per annum)

(Yahoo Finance, 2016)

Stock price of WFC in the past 5 years:

Figure 9. Stock Price of Wells Fargo WFC (Financial Times Wells Fargo & Co, 2009)

WFC and Financial Ratios:

Financial ratios help in comparing the financial information of one company with others

in the industry. Here is the comparison for WFC for 2015, as calculated by YCharts. As it can be

seen, WFC has better PS Ratio, Price to Book Value, and EV to EBIT ratios, better than all other

firms in the industry. It also has the highest Debt to Equity Ratio, but a low current ratio.
WELLS FARGO CORPORATION 34

Figure 10. Current Valuation (Financial Times Wells Fargo & Co, 2009)

WFC and Financial Projections:

Revenue Estimates

Figure 11. Revenue Estimataion (Financial Times Wells Fargo & Co, 2009)

Figure 12. Average Growth Rate (Financial Times Wells Fargo & Co, 2009)
WELLS FARGO CORPORATION 35

Earnings Estimates

Figure 13. Earnings Estimation (Financial Times Wells Fargo & Co, 2009)

Figure 14. Forecast (Financial Times Wells Fargo & Co, 2009)

Share Price Forecast:

Figure 15. Share Price Forecast (Financial Times Wells Fargo & Co, 2009)

Dividend Estimate:
WELLS FARGO CORPORATION 36

Figure 16. Dividend Estimation (Financial Times Wells Fargo & Co, 2009)

Recommendation & Conclusion

Based on the Executive team research and analysis reports, we concluded that the Banks

capital and strategic plans are deeply connected as capital management influences the strategic

decisions of the Bank (Wells Fargo, 2007). As such, we have a strategic objective to promote

better information in the market, building confidence among businesses in their understanding of

the finance options available (Feinberg, 1979). By raising businesses awareness of finance

options or making it easier to find them, supply and demand for finance will be brought together

more efficiently.

For the next five years, the Bank will focus on (1) improving the supply of finance

available to firms in areas where market is not doing well, (2) help build a diverse finance

market for businesses with numerous choice of options and providers and (3) help secure better

provision of information in the market connecting finance and businesses providers (Hungerford,

1949).

Wells Fargo aims to be in a position to understand at all times how we are performing

against our remit and strategic goal. We have created a framework which breaks performance

measurement into two areas Strategic Key Performance Indicators (KPI) and Operational and

Financial KPIs (Nigrini & Johnson, 2008).

WELLS FARGO CORPORATION 37

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