Wachovia - Wachovia Corporation and First Union Corporation

Table of Contents

1. Background

1.1 Company History......................................................... 1

1.2 Driving Force................................................................ 1

1.3 Location...................................................................... 1

1.4 Quick Summary of:

1.4.1 Employees..................................................... 1

1.4.2 Revenues Growth............................................. 2

1.4.3 Income Growth................................................ 2

1.5 Website......................................................................2

2. Products/Services

2.1 Major Categories of Products/Services................................ 2

2.2 Target Marker............................................................. 3

2.3 Important Characteristics of Wachovia................................ 4

2.4 Differentiation from Competitors....................................... 4

2.5 Market Share............................................................... 5

2.6 New & Upcoming Features.............................................. 5

3. Market Analysis

3.1 Industry Characteristics...................................................6

3.2 Current State of Technology............................................. 6

3.3 Competitive Analysis...................................................... 7

3.4 Social/Legal/Ethical Issues............................................... 9

4. Financial Information

4.1 Ownership Structure...................................................... 12

4.2 Income Statement & Balance Sheet Analysis......................... 12

4.3 Trend for:

4.3.1 Share Price......................................................13

4.3.2 Investment Performance...................................... 14

5. Recommendations

5.1 Current Technology & Improvements

5.1.1 Strategic Management........................................ 14

5.1.2 Products & Service Offerings............................... 15

5.1.3 Customer Relations........................................... 16

5.1.4 Human Resources............................................. 17

5.1.5 Marketing & Sales............................................ 18

5.1.6 Accounting and Finance..................................... 19

5.1.7 Distribution of Money....................................... 19

5.1.8 Alliances & Partnerships.................................... 20

1.1 Company History

Wachovia was formed in 2001 by the merger of Wachovia Corporation and First Union Corporation. Wachovia National Bank was formed in Winston, North Carolina in 1879. The name Wachovia came from the Latin name for the German word Wachau. In the mid eighteenth century Moravian settlers gave the name Wachau to a tract of land in North Carolina because it resembled a piece of land along the Danube River called Der Wachau.

First Union Corporation was formed in the early Twentieth century funded by a $100,000 stock issue. The company's first headquarters were in a hotel in Charlotte, North Carolina. The company later merged with First National Bank of Ashville to form First Union National Bank of North Carolina.

1.2 Driving Force

The current Chief Executive Officer of Wachovia is Ken Thompson. Thompson has been with the company since 1976 and previously held the CEO position at First Union Corporation. Wachovia is the fourth largest holding company in the U.S. and is the third largest full-service brokerage based on assets.

1.3 Location

Wachovia headquarters is located in Charlotte, North Carolina, but the company has operations internationally. The company operates 3,900 financial centers and retail brokerage offices in forty-nine states and around the globe.

1.4.1 Employees

Wachovia has 95,000 employees world wide. Of those ninety-five thousand, there are ten thousand-five hundred registered financial service representatives.

1.4.2 Revenues Growth

In 2003 Wachovia had revenues of 24.4 billion dollars compare to 23.51 billion dollars in 2002. The increase in 2003 was the third consecutive year that Wachovia has seen year-end revenue growth. Currently, Wachovia has experienced fifteen percent revenue growth in the first two quarters of 2004 and an eleven percent decrease in revenues in the third quarter.

1.4.3 Income Growth

Wachovia has seen income growth for nine consecutive quarters dating back to the second quarter of 2002 when compared to prior year income. Net Income in 2003 was 4.2 billion dollars compared with 3.6 and 1.6 billion dollars in 2002 and 2001.

1.5 Website

The Wachovia corporate website is www.wachovia.com

2.1 Major Categories of Products/Services

Wachovia Corporation is one of the nation's largest providers of financial services to retail, brokerage, and corporate customers. Wachovia's earnings are primarily generated through its four core businesses: General Banking, Capital Management, Wealth Management, and the Corporate and Investment Bank. Through this balanced and diversified mix of businesses, Wachovia is able to provide a broad range of financial products and services,