Research Part 2

Business Research Methods Part II

November 15, 2010

Business Research Methods Part II

The recent buy out of Wachovia is an intriguing and challenging prospect for future earnings. The resulting business question is how will the recent mergers between Wells Fargo and Wachovia effect profit margins for the new company? Wells Fargo bought out Wachovia and acquired a struggling mortgage division. With the acquisition Wells Fargo has become the largest residential mortgage lender in the United States (Glink, 2010). With the power and prestige come obstacles with the state of the housing market.  

During experiments the variables will change as the experimenter changes the independent variables. Dependent variables change when the independent variable changes (Cooper; Schindler, 2006). In the research design, there should be one independent variable, and as many dependent variables as desired. Looking at an outcome and event, the independent variables are the first items a business alters. To determine how many dependent variables have changed the business reviews the results of the independent variables being altered. As Wells Fargo develops new products the merger will affect the production and possible profits of the other products on the market. The more altercations are completed on the independent variable, the more dependent variables will be altered as well. Wells Fargo is slowly replacing Wachovia products which are affecting the company entirely. When one account is altered, each debit card, savings account, and online access is altered.

“Wells Fargo will acquire Wachovia’s credit-impaired assets. The acquisition is expected to exceed Wells Fargo’s internal rate of return goal and add to Wells Fargo’s earnings per share in the first year of operations, excluding integration costs, write-downs, transaction charges, and credit reserve build. Wells Fargo expects to incur merger and integration charges of approximately $10...