An Investigation of Wachovia
Table of Contents
1. Background
1.1 Company History………………………………………………… 1
1.2 Driving Force……………………………………………….......... 1
1.3 Location…………………………………………………….......... 1
1.4 Quick Summary of:
1.4.1 Employees…………………………………………….. 1
1.4.2 Revenues Growth……………………………………… 2
1.4.3 Income Growth………………………………………… 2
1.5 Website…………………………………………………………….2
2. Products/Services
2.1 Major Categories of Products/Services………………………….. 2
2.2 Target Marker……………………………………………………. 3
2.3 Important Characteristics of Wachovia………………………….. 4
2.4 Differentiation from Competitors………………………………… 4
2.5 Market Share……………………………………………………… 5
2.6 New & Upcoming Features………………………………………. 5
3. Market Analysis
3.1 Industry Characteristics……………………………………………6
3.2 Current State of Technology……………………………………… 6
3.3 Competitive Analysis……………………………………………... 7
3.4 Social/Legal/Ethical Issues……………………………………….. 9
4. Financial Information
4.1 Ownership Structure……………………………………………… 12
4.2 Income Statement & Balance Sheet Analysis……………………. 12
4.3 Trend for:
4.3.1 Share Price………………………………………………13
4.3.2 Investment Performance……………………………….. 14
5. Recommendations
5.1 Current Technology & Improvements
5.1.1 Strategic Management…………………………………. 14
5.1.2 Products & Service Offerings…………………………. 15
5.1.3 Customer Relations……………………………………. 16
5.1.4 Human Resources……………………………………… 17
5.1.5 Marketing & Sales…………………………………….. 18
5.1.6 Accounting and Finance………………………………. 19
5.1.7 Distribution of Money………………………………… 19
5.1.8 Alliances & Partnerships……………………………… 20
1.1 Company History
Wachovia was formed in 2001 by the merger of Wachovia Corporation and First Union Corporation. Wachovia National Bank was formed in Winston, North Carolina in 1879. The name Wachovia came from the Latin name for the German word Wachau. In the mid eighteenth century Moravian settlers gave the name Wachau to a tract of land in North Carolina because it resembled a piece of land along the Danube River called Der Wachau.
First Union Corporation was formed in the early Twentieth century funded by a $100,000 stock issue. The company’s first headquarters were in a hotel in Charlotte, North Carolina. The company later merged with First National Bank of Ashville to form First Union National Bank of North Carolina.
1.2 Driving Force
The current Chief Executive Officer of Wachovia is Ken Thompson. Thompson has been with the company since 1976 and previously held the CEO position at First Union Corporation. Wachovia is the fourth largest holding company in the U.S. and is the third largest full-service brokerage based on assets.
1.3 Location
Wachovia headquarters is located in Charlotte, North Carolina, but the company has operations internationally. The company operates 3,900 financial centers and retail brokerage offices in forty-nine states and around the globe.
1.4.1 Employees
Wachovia has 95,000 employees world wide. Of those ninety-five thousand, there are ten thousand-five hundred registered financial service representatives.
1.4.2 Revenues Growth
In 2003 Wachovia had revenues of 24.4 billion dollars compare to 23.51 billion dollars in 2002. The increase in 2003 was the third consecutive year that Wachovia has seen year-end revenue growth. Currently, Wachovia has experienced fifteen percent revenue growth in the first two quarters of 2004 and an eleven percent decrease in revenues in the third quarter.
1.4.3 Income Growth
Wachovia has seen income growth for nine consecutive quarters dating back to the second quarter of 2002 when compared to prior year income. Net Income in 2003 was 4.2 billion dollars compared with 3.6 and 1.6 billion dollars in 2002 and 2001.
1.5 Website
The Wachovia corporate website is www.wachovia.com
2.1 Major Categories of Products/Services
Wachovia Corporation is one of the nation’s largest providers of financial services to retail, brokerage, and corporate customers.
Revenues of $10,161 million in the fiscal year ended December 2014 was seen by the organization, an increase of 5.3% over 2013.The company 's operating profit was $419 million in fiscal 2014, as compared to an operating loss of $22 million in 2013. Its net profit was $402 million in fiscal 2014, an increase of 34% over 2013 (Sutter Health, 2016).
Rexrode, C. (2010, June 16). Former Wachovia exec pleads guilty in embezzling scheme | WCNC.com Charlotte. Charlotte News, Weather, Traffic, Sports WCNC.com. Retrieved January 13, 2012, from http://www.wcnc.com/news/business/Former-Wachovia-exec-pleads-guilty-in-embezzling-scheme-96497129.html
Bristol-Myers Squibb is the product of a merger between Bristol-Myers and Squibb Company in 1989. Bristol-Myers was originally Clinton Pharmecuticals, a failing drug manufacturing firm. In 1887 William McLaren Bristol and John Ripley Myers invested five thousand dollars in the company and on December 13, 1887 became president and vice president respectively. In 1898 the name was changed from Clinton Pharmecutical Company to Bristol,Myers Company. In 1899, after Myers's death, the comma was replaced by a hyphen. In 1856 Edward Robinson Squibb founded a pharmecutical company in Brooklyn, New York. In 1895 the company became E.R. Squibb & Sons when Squibb passed most of the responsibility to his sons. The company was then sold to Lowell M. Palmer and Theodore Weiker in 1905. Then in 1989 came the merger of Bristol-Myers and Sqibb creating, what was then, the second largest pharmecutical enterprise in the world.
The financial statements for Exxon in 2014 are a slightly declined than it made in 2013. Exxon experienced decrease in operating income from 2013 to 2014 of $74 billion to $61 billion. Operating income indicates how much a company earned from business activities, the company has less profitable. Their operating margin Exxon made in 2014 is also decreased. It is 4% less than they made in 2013. Exxon must figure out their operating performance, include Cost of Goods Sold or fixed costs and increase revenue performance. The sales revenues that companies made in 2014 are $365
Total Asset Turnover – Dropped from .64 in 2001 to .58 in 2002 to .55 in 2003. The reason is big increase in Total Assets.
The L.A. Times reported the unethical business practices in 2013, and aided in exposing the fraud. This report directed to a 2015 lawsuit against Wells Fargo by the city of Los Angeles. They were fined $185 million and Wells Fargo terminated 5,300 employees, nearly 1% of the U.S. workforce. Therefore, the federal regulators got involved and this resulted in WF announcing they were going to pay the $185 million fine. The purpose of the announcement was the bank’s executives wished to have the matter behind them. However, due to the firing of the employees and creating the fake accounts, it caused a public uproar and caught the government officials attention (the U.S. Senator Elizabeth Warren and U.S. Treasure Secretary Jack Law). They scolded Wells Fargo for the misconduct and asked John Stumpf to resign. Though, Stump wanted to continue and lead the team to success. In addition, a former consumer banking chief, Carrie Tolstedt, who had resigned during the summer and reportedly collected $125 million. She ran the unit that was responsible for the millions of fake accounts may be have million dollars in penalties. However, since she decided to retire in July, there are no indication that she will face any
Wells Fargo is an extremely popular bank that many people, including me, use. Wells Fargo is an American bank that is the third largest bank in the United States, the first two being JP Morgan Chase and Bank of America respectively. The bank’s headquarters is located in San Francisco and since I am from this city, I would love to intern at the company and maybe work at the bank in the future. There are many things I love about this bank, however, the most enjoyable asset about Wells Fargo is its convenience in both the overall bank and in tracking your purchases and your card by simply putting your username and password onto the Wells Fargo website.
I don’t want them here if they don’t represent the culture of the company,” says John Stumpf, the company’s longtime chief executive, in an interview with The Washington Post. It is obvious that simple employees and managers could not break the law if someone from the top did not allow them to do so. But the executive board of Wells Fargo claimed that they only fired 1 percent of below employees and some managers for fraudulent accounts, but they also might be involved in that business crime, although to build a case against a company executive, prosecutors would have to show “they knew there was a plan to create false accounts to drive up sales,” said Brandon L. Garret, a professor at the University of Virginia School of Law. Even if it appears that the executive purposefully attempted to avoid knowing about the fraud, prosecutors may be able to build a case. Because they don’t have to participate if there is willful negligence.
Revenue, in another word – sales, is the most straightforward figure in the income statement. The figure shows that the revenue of Domino’s Pizza is steadily growing during the past 5 years, which signal strong fundamentals to investors about the performance of the business. Although the expense is growing along with revenue as well during the past 5 years, the profit still remains strong growth as the business of Domino’s is expanding continuously.
A Review of Management Techniques and Practices at Wells Fargo Bank. Over the past 150 years, Wells Fargo Bank has become one of the largest financial institutions in the North America. Wells Fargo Bank is much more than a bank. It’s a premium financial service provider.
The company has approximately 38,000 employees worldwide. About more than 7,600 employees are dedicated to research and development. All research is conducted in more than 55 countries and the manufacturing plants are located in 13 countries. Eli Lilly's products are marketed in 125 countries.
Wells Fargo is the third largest bank holding business in the United States. They were established in 1852, and have been widely trusted and generally scandal free since their company began doing business (Wells Fargo, 2016). That is, until July of 2016. In 2016 it was revealed that Wells Fargo’s employees were creating fraudulent accounts in peoples’ names without their permission or knowledge. The damages were severe, and the company has had to completely rebuild their reputation. While the company received a lot of social stigma through their fiasco, their finances were surprisingly unchanged. While the company is still dealing with the publicity of the scandal, they are handling it gracefully, and with the policies that they
The Bank of America, the second largest bank holding company in the United States by assets after JP Morgan Chase (Forbes, 2013) was originally founded in 1904 as the Bank of Italy. The Bank of America is now a multinational and financial services corporations with its headquarters located in Charlotte, North Carolina. In 1998 North Carolina National Bank started a series of acquisitions of several banks (including the Bank of America in 1998). The newly-merged bank took the name Bank of America and maintained its headquarters in Charlotte, North Carolina (Bank of America: Our Heritage, 2014). In the 2000s. Bank of America continued to expand with the acquisition of FleetBoston (2004), MBNA (2006), investment management company U.S. Trust (2007), mortgage company Countrywide (2008), and Merryl Lynch in 2009 (Gupta & Herman, 2012).
This chart shows the net revenues and net earnings for the years of 2013-2009. As you observe the net revenues have been consistent in the 18,000 for at least 3 years in a row. This is a good trend for the Kraft Food Group. The trend for the net earnings is sporadic. The net earnings is also called the bottom line. This shows the amount of money that is left over after paying all of the expenses. Kraft Food Group needs to cut down on its expenses.
It operates and franchises convenience stores around the world. It has been the prominent franchise in the convenience store industry for 46 years. (http://franchise.7-eleven.com) 7-Eleven is part of an international chain of convenience stores that is operating under 7-Eleven Japan Co. Ltd. The US subsidiary of the Japanese firm has its headquarters are located in One Arts Plaza building in Downtown Dallas, Texas. (http://corp.7-eleven.com) 7-Elevens are located in many different countries. Few of the largest markets being Japan, United States, Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. They all have very similar 7-Eleven stores from the interior to exterior. The company entered franchising in 1964, also signing the first U.S. are licensing agreement in 1968. 7-Eleven operates more then 9,400 stores in Japan and Hawaii. (http://franchise.7-eleven.com)