CASE STUDY 5 1. Industry and Market: Wells Fargo majors in financial and banking services and has a huge market capitalization due to its worldwide operations. 2. External Environment: The financial crisis in the US from 2007 to 2009 saw many financial and banking institutions suffering huge losses leading to massive merges to prevent bankruptcy. 3. Internal Environment: Through the purchase of Wachovia Corporation in 2008, the company improved its new mortgage business and became a top-performing bank in the United States. 4. Financial Analyses: The acquisition of Wachovia Corporation was worth $ 15 billion. This acquisition accounted for 11.2% of mortgages. 5. Economic Condition for Industry: Despite the financial crisis, the company achieved high levels of operational efficiency and market penetration by adding about 3400 retail branches for its network. 6. Key Trending Factors: Trending factors include heavy mortgage lending and bank merging. 7. SWOT Analysis. · Strengths: The Company’s biggest strength is adjustments in the mortgage business. · Weaknesses: Certain instances of customer and employee dissatisfaction are a weakness that the company has. · Opportunities: Lack of success by the company’s competitors was its main opportunity. · Threats: Maintaining the success in the mortgage business through mortgage lending is a threat. 8. Key issues of the case: Key issues of the study include the financial crisis, economic stress and heavy mortgage lending by banking institutions. 9. Critical issue of the case that needs attention first: Financial crisis is a critical issue in this study because it has several effects to the society. Therefore, maximum attention has to be focused on this issue. 10. Assumptions in the recognition of this critical issue The financial crisis affects every person in the society because of the stress it puts on the economy. Assumptions made in the recognition of financial crisis as a critical issue include the following: financial crisis affects everybody, and there is a solution to financial crisis. 11. 2 to three alternatives to address this critical issue Slashing taxes, cutting regulations and limiting financial leverage are alternatives of addressing the issue. 12. Choose one of the alternatives to implement Limiting financial leverage is an implementable alternative. 13. Describe the overarching strategy you propose and within which this alternative fits Imposing strict limits on the financial leverage is a strategy of implementing the alternative. Encouraging banking organizations to impose strict limits on financial leveraging will reduce the amount spent on leverage. 14. Explain your plan to implement this alternative Financial and legal functions of any organization are very crucial in implementing objectives put in place. 15. Identify the critical organizational functions of the organization needed for implementation Financial organizational functions set a limit by which the organiza ...