Discussion Board Forum 2 ThreadTopic: EnvironmentThinkabout two environments you have experienced.The first environment is one that did not confront the brutal facts, where the people (and the truth)
Hello Class,
When looking at what makes great companies, there are many ways to look at the solutions. Two possible ways are the ways of the fox and the hedgehog (Collins, 2011). The fox is good at multiple things and can multitask with the best of them (Collins, 2011). The hedgehog is good at one thing but can work toward bringing other things into the one thing (Collins, 2011). Collins looked at Wells Fargo and had some pretty big claims (Collins, 2011). The company has some very suspicious skeletons in its closet. I believe that Collins made a correct judgement in 2001 when looking at Wells Fargo (Collins, 2011). One journal writes, “Wells Fargo just proved, again, that no scam is beneath America's financial institutions. And no institution is above being watched by a federal agency," Huffington Post business writers Emily Peck and Ben Walsh wrote in an analysis titled "Wells Fargo Just Made The Case For Elizabeth Warren's Bank Agency” (Moritz, 2016, p. 1). This is a prime example of a hedgehog method going awry. Wells Fargo believed that they were going in the right direction when they realized that the profit per employee was the important thing (Collins, 2011). Wells Fargo decided that it was more important for money than responsibility, in this author’s opinion. One journal writes, “The customers--at least 1.5 million of them--whose personal information was used to create accounts they didn't want, need or request were also victims. Oh, they didn't lose much money--only a fraction of the customers were ever charged bogus fees, and Wells Fargo made them whole with refunds averaging $25” (Moritz, 2016, p. 1). By focusing on the profit per employee, Wells Fargo was focusing on the wrong aspects. This led to a lack of trust in the company. One journal writes, “Yet this study also found that banks that were better able to directly respond to media critique more effectively navigated the financial crisis. This study underscores the importance of careful communication in managing shareholder and stakeholder concerns and rebuilding public trust in their corporations” (Hearit, 2018, p. 237). If a person loses trust in their bank, then they are not going to put any of their money in the bank. This will lead to the bank not having the funds to continue to operate. It is important for the bank to start rebuilding its trust with its customers. One journal writes, “According to a statement from the bank, "strong growth in Arkansas" has inspired Wells Fargo to "enhance the financial services it provides middle market companies" here” (Handley, 2013, p. 1).
God Bless,
Taylor Miolen
References
Collins, J. (2011). Good To Great. New York, NY: Harper Business.
Handley, K. (2013). Wells Fargo lands in WLR [Electronic version]. Arkansas Business, 3, 1-3.
Hearit, L. B. (2018). JPMorgan Chase, Bank of America, Wells Fargo, and the Financial Crisis of 2008 [Electronic version]. International Journal of Business Communication, 55(2), 237-260.
Moritz, G. (2016). Wells Fargo's other victims [Electronic version]. Arkansas Business, 22, 1-3.
