The Uses of Spatial Analysis In Organization - Research Paper Example

? The uses of spatial analysis in "organization Introduction Research is an ongoing procedure that entails several steps.The steps transpire in a recommended progression, in the diverse research models. The progression seeks to meet goals like congruence, accuracy, and many more. There are general steps that apply to all techniques research. They major steps entail the collection of data. This is the accomplishment of the relevant information together with evidence about the subject of study. In addition, the other step is the analysis of data. This involves the critical assessment of the information got from sources. The other step entails data storage and reflection. The findings’ implications appear via techniques like graphs. Another crucial step is the report writing. The steps follow each other in an explicit sequence. However, in doing all these, there are different methods of research that can be adopted in obtaining the required information, and this exclusively depends on the kind of research that is to be carried out or even the objectives. One of the techniques that can be used in research is the spatial analysis. In this paper, we are going to look at what spatial analysis, and how it can be used, particularly at the Wells Fargo company. Literature review According to White & Engelen (1997), the comprehension of spatial data distribution from that happen in space presently constitute a big challenge to the exposition of the central question in several areas of knowledge, whether in environment, health, and even agronomy. Such stories are increasingly becoming regular, following the presence of affordable or cost effective (GIS) Geographic Information System with interfaces that are user-friendly. However, Parker, et al (2003), in their article argue that these systems enable the variables’ spatial visualization like individual populations, life indexes’ quality or even company sales in an area by the use of maps. In order to achieve that, we find that it is sufficient to have a geographic base, such as the municipalities’ maps and database, as well as the GIS is in a position of presenting a map that is colored to enable the visualization of the phenomenon’s spatial pattern. In addition to the visual viewpoint phenomenon’s spatial distribution, it is very important that the available patterns are translated into measurable considerations and objective. While White & Engelen (1997), give their description of what spatial analysis is Miller, (2004), asserts that it involves all of the formal mechanisms that are used in the study of entities by the use of geometric properties, geographic properties or even topological properties. Spatial analysis as a phrase means various or different mechanisms, whereby majority are still in the initial stages of development, by the use of various analytic methods and used in different areas like astronomy, where it is used in the studies of the galaxies’ positioning in the cosmos, and chipping of fabrication engineering. Moreover, it is always used in a much constricted sense in the description of the mechanisms that are used in the structures at the scale of humans, particularly in the appraisal of the geographic data. Sometimes, it is even used in referring to particular mechanism in one research area like the description of geostatistics (Goodchild, 1987). In their article, Fotheringham & Rogerson (1993), say that there are some complicated issues that normally come up in this kind of analysis, whereby most of them seem not to be defined in a clear manner, as well as not resolved well, however, they form the foundation for the present research. The one that appears to be the most critical one is the difficulty of the definition of the specific location of the entity’s that are being investigated. For instance, when we take a look at the study on the health of human beings, we find that the position of individuals could be defined with a point or mark put at their dwelling place, or even with a mark that is put at their places of work, or even by the use of a line which is used in the description of the trips that they make maybe weekly; and every alternative has its own considerable impacts on the mechanisms that can be for the appraisal as well as on the summations that can be got. Fotheringham, (2000) adds that some other matters in the system include the mathematical ideas’ limitations, the presumptions that are needed by the available statistical methods, and the difficulties in the calculations that are done on the computer. Categorization of spatial analysis’ methods is not easy due to the huge number of research areas that are, the various basis methods that can be selected, and the several forms that can be taken by the data. According to Martin (1995), the strategy confronts a number of critical matters in the description of its study objects, in the formulation or creation of the analytic operations that are to be applied, in the computer use for examination, in the particularities and the limitations of the certain analyses, and also in the analytic result’s presentation. Most of these matters are active subjects of the present study. Wells Fargo Wells Farco & Company is a multinational diversified financial services company headquartered in the United States, and operates all over the world. It is the fourth largest bank in the entire United States in terms of assets and also the second largest in terms of market capitalization. The bank is also the second largest in terms of home mortgage servicing, debit card and deposits. During the year 2001, it was the twenty third largest company. In the year 2007 it was the only bank in the whole of America to be by the S&P as AAA, even though its rating is currently at AA due to the financial crisis that occurred between the year 2007 and 2010. The primary United States operating subsidiary of the company is the ‘Wells Farco Bank’ the national bank, which designates its major offices as Sioux Falls, in South Dakota for legal reasons. In its present form, the company is a result of the acquisition of the Wells Farco & Company that is based in California by the Northwest Corporation that is based in Minneapolis in the year 1998 and the later acquisition of Charlotte which is based in the city of New York. However, even though Northwest was in principle the only remaining entity in the merger of 1998, the new firm was renamed Wells Farco, making use of the one hundred and fifty-year history of the globally recognized name as well as its stagecoach trademark. As a result of the merger, the firm moved its head office to the headquarters of Wells Farco in San Francisco and joined its operating subsidiary with the operating subsidiary of Wells Farco in Sioux Falls (Svaldi, 2011). In the year 2010, the company had about six thousand, three hundred and thirty five retail branches referred to as stores, twelve thousand automated teller machines, two hundred and eighty thousand workers and more than seventy million clients. The company runs Automated teller machines and stores under the Wachovia and Wells Farco brands. Wells Farco is considered to be among the ‘big four banks’ in the United States of America with the Bank of America, JP Morgan Chase and Citigroup. The current business model of the company is summed up in the vision statement. The present business model of Wells Fargo is summed up in its vision statement: ‘We satisfy all the financial needs of our customers and assist them succeed financially’ (Svaldi, 2011). The goal of the company is to encourage clients to purchase all of their financial products via the company; the company wants to earn one hundred percent of the businesses of its customers. The more products clients have with the company the better deal they receive, the more devoted they are, and the longer they can stay with the organization, improving retention. 80 percent of the revenue growth of the company comes from the selling of more to the existing clients. The goal of the company is setting at least 8 products to each customer. This is a conception called the ‘cross-selling,’ or even ‘needs-based selling’ as referred to by the Wells Farco, which is common in the financial services industry. Some companies like the Prudential, introduced or invented the model or concept of the selling of a variety of products, whereby the companies act just as holding companies, with every product sold via its own distribution channel (Svaldi, 2011). Nevertheless, predecessor Norwest introduced the selling of all its products via all its channels, with the discounts granted to those who purchase a larger variety. The standard or normal ‘cross-sell ration’ for a typical financial institution is two (in accordance with the average United States customer owning 16 different financial products from 8 different institutions). The company asserted that it had a cross-sell ration of 6 (2007 data) products in every Community Banking household (nearly one in five have over eight), (6.2 (2007 data) for the Wholesale Banking clients, and the normal or average middle-market commercial banking client has over seven products, which is one of the highest in the state. In what unites all the stakeholders in the company, we find that it is all about what they are, where they are headed, and how every team member of the company can help in getting there are share the success of the team. This is a big company; that is one of the largest financial institutions in the United States. It has a substantial international presence. The company is one of the forty largest employers in the world and the twelfth largest private employer in America, with two hundred and seventy five thousand team members. The stock market value of the company exceeds one hundred and thirty billion dollars, making it one of the top thirty companies in the world in terms of market value. The company was ranked among the top fifty companies in the world based on a composite of sales, market values and profits by the Forbes. The company is in the top twenty among all the United States companies in market value and profits (Svaldi, 2011). Notwithstanding its size, reach and scope, everyone in the company shares one vision together with distinct values. They are the fabric that holds them together wherever they are, and in whatever they do. It does not matter what their responsibilities are, their age or titles and levels, the kind of businesses they are part of, or even where they work and live. Everyone in the company has a clear line of sight between their vision, work and success. Everyone is passionate about and lives their values as well as share them with the others. They have all helped the company to be recognized as one of the greatest companies in the world. The company’s vision of financially or economically satisfied, successful clients is on the basis of a simple and time-tested premise. The company believes that its clients can save more money and time if after charily shopping around and making a comparison of choices, they all bring their financial services to a sincere and trusted provider. Some individuals believe that it is good to spread risk by dividing all their assets among more or half a dozen providers. This is a good idea, but it is not easy as they have to follow the performance, reputation and morals of the more of half a dozen providers. They waste a lot of time trying to find out where their assets are. They are not in a position of taking advantage of the volume discounts, as they are drawn in the monthly account statements (Bailey & Gattrel, 1995). This is not easy as it might sound or appear. If it were, then it would not be a competitive advantage for the company. There is always a premium, but on things that cannot be replicated. The company’s journey towards its vision had required determination and persistence and has led to a steady process for a period of over two decades. However, there is still much to be taught, learned, shared and, as usual, more of the financial needs of the clients to be satisfied. For instance, the company’s own clients still give nearly a half of their financial business to its competitors; and the company’s job- central to its vision- it making it easy for its clients to being more of their business so that all their financial needs can be satisfied. The company’s vision has nothing to do with pushing products, transactions, or even getting bigger just for the purpose of bigness. It is all about establishing long-lasting relationships with one client at a time. Each of the clients of the company defines ‘financial success’ very personally and in a different manner. This involves the desire for self-sufficiency and financial security; the desire to be economically literate; the desire to be disciplined and also focused on saving, spending and investing in order to own a home, grow or start a business, prepare for retirement or save for education, and since no one lives in the space, the desire for their community and neighborhood’s economic success. Just like any other company, Wells Fargo would also want to maintain its position within the market place and would do anything possible to achieve that. The use of spatial analysis has proved effective for the company in its research activities. The actual pattern of location of the branches of banking in the urban hierarchy is as a result operation of one major process; the banking companies clearly have location strategies for their different branches. This is one major area where Wells Fargo uses the spatial analysis (Tufte, 1983). These strategies might be wide, like searching for the most appropriate sites; for instance a central site within the central business district or even a particular town in the urban hierarchy. The company uses this method of study in trying to find the best place that it can set its branches so as to avoid making mistakes. On the other hand, it also enables the company to maintain the relative strategies of location, such as taking into consideration the competitor’s location. The company achieves the strategy by both the clustering of rivals or even with their spatial avoidance. For the company, the strategies have both appeared defensive and also offensive respectively. Conclusion From the discussions above, we can conclude that business is just as dirty game as politics and being smarter is the only key to success. It is true that different companies try to outdo each other and the best thing is always to adopt the most appropriate strategies so as to come out on top of the others. The path that Wells Fargo took of doing research using the spatial strategy is a good one and has appeared fruitful. The company has been able to identify the most appropriate places of setting up its branches as well as finding out the location of its major competitors. Recommendations Since this method has proved to be a success for the company, it is important that it continues using it as companies usually change tactics that can make or enable then remain relevant and survive in the market. This is a strategy that can help in identifying the competitors even if they change tactics by changing names and locations so as to bring confusion. It should be the sole responsibility of the top management of the company to ensure that the researches using this model are continued or maintained by investing heavily in it so as to give it the necessary support, as its results or benefits are clear. References Bailey, T. and A. Gattrel (1995). Spatial Data Analysis by Example. London, Longman. Burrough, P.A.; McDonell, R.; Principles of Geographical Information Systems. Oxford, Oxford University Press, 1998. Fotheringham, A, (2000), Quantitative Geography, London: Sage. Fotheringham, A. S. and Rogerson, A. (1993) "GIS and spatial analytical problems". International Journal of Geographical Information Systems, 7, 3–19. Goodchild, M. F. (1987) "A spatial analytical perspective on geographical information systems". International Journal of Geographical Information Systems, 1, 327–44. Issaks, M. (2009). An Introduction to Applied Geostatistics. New York, Oxford University Press. Martin, D. (1995). Geographic Information Systems: Socioeconomic Applications. London, Routledge. Miller, H. J. (2004) "Tobler's First Law and spatial analysis". Annals of the Association of American Geographers, 94, 284–289. Parker, D. C., Manson, M. Janssen, A. Hoffmann, J and Deadman, P. (2003). "Multi-agent systems for the simulation of land-use and land-cover change: A review". Annals of the Association of American Geographers, 93, 314–337. Tufte, E. (1983). The Visual Display of Quantitative Information. Cheshire, CT, Graphics Press. White, R. and G. Engelen (1997). "Cellular automata as the basis of integrated dynamic regional modelling". Environment and Planning B: Planning and Design, 24, 235–246. Read More