Order ID | 53563633773 |
Type | Essay |
Writer Level | Masters |
Style | APA |
Sources/References | 4 |
Perfect Number of Pages to Order | 5-10 Pages |
Analysis of International Business Theory
Company Description
Link: https://www.wellsfargo.com/about/
Wells Fargo and Company tends to be an American Multinational financial service
organization with its corporate headquarters in San Francisco, California, with
operational headquarters located in Manhattan and the managerial offices distributed
throughout the United States as well as globally.
The organization focuses on offering banking services, investment and mortgage
products, and services, credit card services as well as personal, small business, and
commercial financial services (Wells Fargo, 2021). The organization has more than
7200 locations, more than 13000 ATMs, online and mobile banking, and offices in
approximately 31 countries.
Wells Fargo was founded in the year 1852 by Henry Wells and William G. Fargo who
developed an innovative startup to aid clients to develop businesses as well as
manage their finances in the rapidly changing world.
Wells and Fargo were dedicated to identifying creative solutions as well as
advocating for more inclusive communities and this continues to be the inspiration
for the generations of change-makers to develop the history of what’s next (Wells
Fargo, 2021).
The reputation of Wells Fargo as one of the most significant organizations across the
globe in regards to integrity as well as principled performance is mainly dependent
on the organization focusing on always doing the right thing, in the most appropriate
approach, and also complying with rules and regulations which govern the
organizational business.
Additionally, the organization has also been able to earn trust from its client by
behaving in an ethical way and also holding all the team members as well as
directors accountable for the decision they make and the actions they take (Wells
Fargo, 2021).
The organization prioritizes the building of trust from its client population, community
partners, team members, regulators, shareholders, government officials, and other
related stakeholders to be able to remain competitive in its field of business.
The field of business continues to change and Wells Fargo focuses on continuously
improving its business by making things right and transforming itself to meet the
ever-changing financial needs of its diverse client population around the globe (Wells
Fargo, 2021).
Through making significant progress, the organization does not stop seeking
opportunities to improve its business, to be in a position to effectively achieve its
vision which is “To satisfy our customers’ financial needs and help them succeed
financially.” Fundamentally, the organization tends to echo its mission statement but
stresses adding a sense of leadership to make it an effective vision statement (Wells
Fargo, 2021).
On the other hand, the mission statement of Well Fargo is “Helping Customers
Succeed Financially,” the precision of this mission statement provides an indication
of how specific and clear the organization is when it comes to mandating and
prioritizing the financial needs of its clients' population.
Additionally, through its core values “what's right for customers, people as a
competitive advantage, ethics, diversity and inclusion, leadership,” Wells Fargo
supports its vision and mission statements by revealing what the organization
considers to be crucial for the overall success of its business operations (Wells
Fargo, 2021).
Executive Summary
International business does only enhance financial and economic interdependence
among the nations around the globe but also tends to promote the integration of
political and social factors. Moreover, the contemporary factors that promote the
need for and shape globalization are financial, technological, economic, social and
political aspects.
It is quite important to attain an adequate understanding of the potential sources of
globalization because they tend to have a diverse contribution which makes it not
uniform across the globe. Additionally, the intensity, as well as the extent of
international business, tends to differ across the various regions and nations hence
providing an indication that the various aspects impacting international business tend
to have diverse effects on the economy’s the developed and developing nations due
to the structural condition to the countries.
International business or globalization is a significant part of the global economic
activity, with projections arguing that within the next several years the total dollar
value of international trade will be much bigger than the total dollar value of trade
within borders with all nations combined.
Additionally, through the aid of international business or globalization, the economies
around the world have become more integrated as this trading approach focuses on
promoting interconnectivity, and interdependence through the establishment of
socio-cultural, political as well as economic relations across diverse geographical
distances.
Wells Fargo is a financial organization that has attained a significant reputation while
operating on the international market. However, the organization was involved in the
fake bank accounts scandal in 2020 and this has significantly impacted the
organization’s participation in international business and trust from its diverse
stakeholders.
Sources identified that the Wells Fargo organizational culture was identified as
unethical following the fake bank account scandal and as a result despite the
scandal being resolved the organization still suffers from mistrust which leads to the
reduced business turnover experienced by the organization.
Thus, for Wells Fargo to be in a position to effectively participate in the international
markets it needs to develop an organizational culture that comprises a strong and
ethical set of beliefs that are significantly supported by the organization’s business
structure and strategy.
Introduction
With the advancement of technology, it has been quite easy for all business sizes to
profit from the numerous advantages of international trade. Often by seeking
international ventures an organization can achieve significant opportunities to
enhance its business operations as well as develop a reputable brand image.
Fundamentally, the international business may be described as the act of trading
products, services, capital, technology, and knowledge across national borders and
on an international scale (Shenkar et al., 2014). Often this comprises cross-border
transactions of product and service among two or more nations. International
business is also termed globalization.
However, there are several benefits of an organization engaging itself in international
business. The benefits include the ability to increase its revenue as the population of
the target client increases (Naz & Ahmad, 2018).
This means that every nation that an organization adds to its list tends to open a new
path for the business to grow hence increasing its revenues. Another significant
benefit for engaging in international business is the ability to enhance the
organizational reputation as achieving success in a single nation may influence
success in the other adjacent nations hence raising the organizational profile within
its market niche.
Also, through enhancing the organizational reputation the company’s credibility tends
to increase both in the globe and the local markets (Shenkar et al., 2014).
Another major benefit of engaging in international business is the ability to specialize
in particular goods and services as the international markets provide the organization
with new avenues that tend to spark innovations and creativity which are aimed at
promoting the company’s products and services.
Moreover, international business or globalization is a significant part of the global
economic activity, with projections arguing that within the next several years the total
dollar value of international trade will be much bigger than the total dollar value of
trade within borders with all nations combined (Naz & Ahmad, 2018).
Furthermore, through opening up, significant economies such as Russia and China
among others which had been closed off to the outside investors as well as
producers have contributed to the rapid growth of globalization (Shenkar et al.,
2014).
Additionally, through the aid of international business or globalization, the economies
around the world have become more integrated as this trading approach focuses on
promoting interconnectivity, and interdependence through the establishment of
socio-cultural, political as well as economic relations across diverse geographical
distances.
Additionally, international business does not only enhance financial and economic
interdependence among the nations around the globe but also tends to promote the
integration of political and social factors. Moreover, the contemporary factors that
promote the need for and shape globalization are financial, technological, economic,
social, and political aspects.
It is quite important to attain an adequate understanding of the potential sources of
globalization because they tend to have a diverse contribution which makes it not
uniform across the globe (Naz & Ahmad, 2018).
Additionally, the intensity, as well as the extent of international business, tends to
differ across the various regions and nations hence providing an indication that the
various aspects impacting international business tend to have diverse effects on the
economy’s the developed and developing nations due to the structural condition to
the countries.
Discussion and Analysis
The increasing need for any organization across the world to participate on the
international business platform tends to cause increased competitiveness in this
area. Thus, most of the organization’s already participating in international business
are forced to develop new approaches to remain relevant and competitive.
For an organization to be able to achieve a successful entry into the international
market there several essential aspects that it needs to put into consideration before
venturing into the international business such as cultural differences, ethical
approaches, global marketing approaches among others.
Wells Fargo is a financial organization that has attained a significant reputation while
operating on the international market. However, the organization was involved in the
fake bank accounts scandal in 2020 and this has significantly impacted the
organization’s business and trust from its diverse stakeholders.
According to data released by Wells Fargo it indicated that the fake bank account
scandal contributed to new consumer checking account reducing by approximately
41% by November 2020 as well as consumer credit cards reduces by approximately
45% (Maxfield, 2016).
Thus, to be in a position to rebuild trust in the international market Wells Fargo
needs to restructure its international business approach by focusing on several
aspects mainly the cultural difference and ethics. These two aspects will enable the
organization’s client population to trust and feel free to conduct business with the
organization.
Culture is mainly described as the shared norms and values within the organization
("Special issue on international marketing, strategic orientations and business
success," 2010). Also, it tends to be a reflection of customs, beliefs, traditions, and
religions of a specific population.
Culture tends to be quite an essential tool to conduct business in both the local and
the international markets because it aids the organization to develop products and
services that are in alignment with clients' beliefs, language, culture, or nature. The
Wells Fargo organization culture was identified as unethical following the fake bank
account scandal and as a result despite the scandal being resolved the organization
still suffers from mistrust which leads to reduced business turnover (Maxfield, 2016).
Ethics of the business and social responsibility contributes significantly to developing
an effective organizational culture as well as brand equity. This means that if one
aspect is not effectively addressed an organization may not be able to develop a
culture that promotes its image and business.
For instance, in the Wells Fargo situation, the organization was indicated to have
poor business ethics and as a result, allowed the employees to cheat to meet the set
goals. Thus, the top management needs to understand that business ethical conduct
tends to have a significant impact on the employees as well as the brand attitude
compared to the organizational image and the social responsibility activities
(Maxfield, 2016).
This means that despite Wells Fargo having CSR programs that promote the well-
being of the communities it may not be in a position to cover up for the ethical
misconduct it participated in (Bryan, 2016). This is because the CSR tend to aid the
communities, social causes among other related social aspects, but for clients
whose credit score were compromised due to unethical behaviour suffered from first-
hand pain from the organizational brand.
This makes it essential for the organization to develop a more ethical organizational
culture to ensure trust, towards the company has been restored. Thus, for Wells
Fargo to be in a position to effectively participate in the international markets is to
develop an organizational culture that comprises a strong and ethical set of beliefs
that are significantly supported by the organization’s business structure and
organization (Bryan, 2016).
Through the aid of the new organizational culture, the workforce will be in apposition
to understand what the top management requires of them to respond towards any
situation, the workforce will develop a belief that their expected response is the most
appropriate one, as well as the workforce, will develop an understanding that they
will be rewarded from demonstrating and promoting the values of the organization.
Ethics also tends to play a crucial role in international business as it tends to reflect
the interests of various organizational stakeholders during the business process.
Moral and ethical issues are also essential in global marketing to enable the
organization to point out, satisfy as well as be in a position to anticipate the
preferences of the client population and the organization’s market aspirations (Lütge
& Uhl, 2021).
Often ethical business conduct and corporate social responsibility (CSR) tend to be
quite beneficial to the organization’s client population in diverse approaches. The act
of business ethics often tends to relate to the approach the organization’s internal
culture ensures that ethical behaviours are created based on ethics and compliance.
On the other hand, through the use of the CSR programs an organization can
establish as well as manage relationships with a wide range of stakeholders and be
able to promote its brand identity. Thus, the CSR programs are not often utilized as
aspects of business operation and ethical decision making but as tools to enable the
organization to be able to give back to the community (Samiee & Chirapanda, 2019).
In regards to Wells Fargo’s situation business ethics tends to have contributed to the
negative business impact of this multinational financial organization. This has
contributed to the increase of mistrust of the organization’s business operations from
its stakeholders around the globe.
The issue of mistrust for the organization tends to carry significant weight in regards
to the success of the business as it risks losing its client to its competitors (Omar,
2009). Thus, Wells Fargo needs to review and improve its business ethics standards
to be in a position to rebuild its trust and be able to compete at the global platform.
The organization has been able to develop a major brand identity for itself through its
CSR programs that mainly focus on philanthropy activities for different communities
around the globe. For instance, in 2018, Wells Fargo donated $444 million to 11,000
nonprofits that supported affordable housing, small business, education and
sustainability and provides a report on “Living our Commitment” promising $1 million
a day to nonprofits this year.
This demonstrates an excellent commitment to CSR and as a result enabling the
organization to remain relevant in the financial field.
Conclusion
International business comprises cross-border transactions of products and services
among two or more nations. This business approach tends to be quite beneficial to
the organization in diverse ways such as increasing the revenue turnover. Through
venturing into international business an organization opens a new path for the
business to grow hence increasing its revenues.
International business or globalization is a significant part of the global economic
activity, with projections arguing that within the next several years the total dollar
value of international trade will be much bigger than the total dollar value of trade
within borders with all nations combined.
Additionally, international business does only enhance financial and economic
interdependence among the nations around the globe but also tends to promote the
integration of political and social factors.
Moreover, factors such as financial, technological, economic, social and political tend
to promote the need for and shape globalization. Furthermore, it is quite important to
attain an adequate understanding of the potential sources of globalization because
they tend to have a diverse contribution which makes it not uniform across the globe.
In addition, the increasing need for any organization across the world to participate
on the international business platform tends to cause increased competitiveness in
global trade. Thus, most of the organization’s already participating in international
business are forced to develop new approaches to remain relevant and competitive.
Wells Fargo is a financial organization that has attained a significant reputation while
operating on the international market. However, the organization was involved in the
fake bank accounts scandal in 2020 and this has significantly impacted the
organization’s participation in international business and trust from its diverse
stakeholders.
Sources identified that the Wells Fargo organizational culture was identified as
unethical following the fake bank account scandal and as a result despite the
scandal being resolved the organization still suffers from mistrust which leads to the
reduced business turnover experienced by the organization.
Thus, for Wells Fargo to be in a position to effectively participate in the international
markets it needs to develop an organizational culture that comprises a strong and
ethical set of beliefs that are significantly supported by the organization’s business
structure and strategy.
Recommendations
One significant recommendation is that the Wells Fargo top management needs to
enhance the current organizational culture by ensuring that it comprises a strong and
ethical set of beliefs that are significantly supported by the organization’s business
structure and strategy.
This will ensure that Wells Fargo can rebuild trust and maintain a competitive
advantage over other financial institutions on the global platform. Another
recommendation is that Wells Fargo needs to promote its business ethics conduct by
encouraging its workforce around the globe to always demonstrate ethical conduct
and their compliance with the organizational ethical standards.
This will ensure that the clients are effectively met and as a result enhancing their
competitive advantage over their competitors in the financial field. Another
recommendation is that the Wells Fargo top management needs to set more
reasonable and achievable goals to ensures that the employees are not forced to
engage in unethical conduct to just meet set goals, while indirectly they are ruining
the reputation and integrity of the organization.
This recommendation will enable the employees to remain motivated and be able to
achieve both their personal, professional and organizational goals more effectively
and as a result, promoting the brand image of the organization. The last
recommendation is that Wells Fargo top management needs the entire workforce to
develop business approaches that ensure the clients’ financial needs are prioritized
and not just focusing on meeting the organizational goals.
This recommendation will ensure that the organization develops new and effective
approaches to attract the target clients which will in return enhance the company’s
competitive advantage.
References
Bryan, B. (2016, October 14). We just got the first look at how Wells Fargo's fake-
accounts scandal is hurting the business. Business
Insider. https://www.businessinsider.com/wells-fargo-business-impact-from-fake-
account-scandal-2016-10?r=US&IR=T
Lütge, C., & Uhl, M. (2021). Business ethics in the age of globalization. Business
Ethics, 2-23. https://doi.org/10.1093/oso/9780198864776.003.0002
Maxfield, J. (2016, December 30). Wells Fargo's fake accounts scandal is still having
a big impact on business. Business Insider. https://www.businessinsider.com/wells-
fargo-fake-accounts-scandal-impact-on-business-2016-12?r=US&IR=T
Naz, A., & Ahmad, E. (2018). Driving factors of globalization: An empirical analysis of
the developed and developing countries. Business & Economic Review, 10(1), 133-
158. https://doi.org/10.22547/ber/10.1.6
Omar, O. (2009). Ethics and international marketing. International Marketing, 478-
506. https://doi.org/10.1007/978-1-137-28789-2_16
Samiee, S., & Chirapanda, S. (2019). International marketing strategy in emerging-
market exporting firms. Journal of International Marketing, 27(1), 20-
37. https://doi.org/10.1177/1069031×18812731
Shenkar, O., Luo, Y., & Chi, T. (2014). International business in an age of
globalization. International Business, 19-36. https://doi.org/10.4324/9780203584866-
5
Special issue on international marketing, strategic orientations and business
success. (2010). International Marketing Review,
27(5). https://doi.org/10.1108/imr.2010.03627eaa.002
Wells Fargo. (2021). About Wells Fargo. Wells Fargo – Banking, Credit Cards,
Loans, Mortgages & More. https://www.wellsfargo.com/about/
Bibliography
Bryan, B. (2016, October 14). We just got the first look at how Wells Fargo's fake-
accounts scandal is hurting the business. Business
Insider. https://www.businessinsider.com/wells-fargo-business-impact-from-fake-
account-scandal-2016-10?r=US&IR=T
Lütge, C., & Uhl, M. (2021). Business ethics in the age of globalization. Business
Ethics, 2-23. https://doi.org/10.1093/oso/9780198864776.003.0002
Maxfield, J. (2016, December 30). Wells Fargo's fake accounts scandal is still having
a big impact on business. Business Insider. https://www.businessinsider.com/wells-
fargo-fake-accounts-scandal-impact-on-business-2016-12?r=US&IR=T
Naz, A., & Ahmad, E. (2018). Driving factors of globalization: An empirical analysis of
the developed and developing countries. Business & Economic Review, 10(1), 133-
158. https://doi.org/10.22547/ber/10.1.6
Omar, O. (2009). Ethics and international marketing. International Marketing, 478-
506. https://doi.org/10.1007/978-1-137-28789-2_16
Samiee, S., & Chirapanda, S. (2019). International marketing strategy in emerging-
market exporting firms. Journal of International Marketing, 27(1), 20-
37. https://doi.org/10.1177/1069031×18812731
Shenkar, O., Luo, Y., & Chi, T. (2014). International business in an age of
globalization. International Business, 19-36. https://doi.org/10.4324/9780203584866-
5
Special issue on international marketing, strategic orientations and business
success. (2010). International Marketing Review,
27(5). https://doi.org/10.1108/imr.2010.03627eaa.002
Wells Fargo. (2021). About Wells Fargo. Wells Fargo – Banking, Credit
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