Citigroup Case Study
Abstract
This summary provides a debate of the Citigroup Corporation. The main arguments, debated by Team E, discuss whether Citigroup has displayed adaptability on expanding its operations into China. The conclusion summarizes Team E agreement that Citigroup has displayed environmental adaptability in its attempt to expand operations in China.
Citigroup Case Study
China has made it difficult for foreign banks to go into their country and offer their services by controlling their growth and only providing licenses for limited commercial activities. Citigroup, a premier foreign bank operating in China, has become one of the most successful financial services company in the world. This bank has outperformed and leads in the most profitable and attractive growth areas. With operations in more than 100 countries and over 268,000 employees, Citigroup's 2001 annual report provided an extremely optimistic view on the company's strengths in investment banking activities.
The privatization of state-owned enterprises (SOE) in China has provided an investment opportunity for Citigroup. Citibank, a branch of Citigroup, has developed a strategy for targeting strong SOEs by identifying 10 industries that will develop the fastest in a country and targeting profitable companies within those industries. Companies are chosen not only by their financial statement numbers, but also by the industrial sectors they are in and the qualities of the management team.
Adaptability to Expand Operations in China
Several factors illustrate Citigroup's attempts to display its adaptability into expanding its operations into China. The company's primary strategy is based on the achievements accomplished by Citibank. Citibank was one of the first foreign firms to obtain licenses to conduct a limited range of commercial activities in China. Citibank's current global network is large enough to conduct business with several of the most powerful corporate businesses in the offshore market. In relation to technology and financial innovation, Citibank is known to be ahead of the curve' and perceived as a top market bank in the United States and internationally. Through the years, Citibank has won numerous awards for providing better corporate banking services than other local banks.
Citibank's attempt to expand into China can be based on the previous accounting practices experience it had with this country. Citibank previously worked with the Public Bank of China (PBOC) "to improve the internal auditing requirements within the Chinese banking system" (p. 19). As a result, the PBOC recommended these practices to other banks throughout China. Citibank has established a human resource structure for training local people into becoming successful managers.
On August 12, 1998, Citibank took full ownership and control of the medium-sized Mexican banking group, Confía, dropping the latter's name and logo from the 280 branches throughout Mexico, and from that point on operating it as part of Citibank Mexico. The road that led to this outcome was rocky to say the least, and the fit of the Mexican bank into Citicorp's global organization and strategy was quite different from what would have been expected only months earlier. This discussion describes the sequence of events involved and the ways in which the process was linked to the organizations and people involved. Before starting into the banks' situations and characteristics, an orientation to the time and place is useful.
Canadian Imperial Bank of Commerce, also known as CIBC, is Canada’s fifth largest bank. Established in 1961, the bank that we know today was formed through the merging of the Canadian Bank of Commerce and the Imperial Bank of Canada. At the time, these two banks were the largest banks in Canada. CIBC’s head office is located at 199 Bay Street, Toronto, Ontario. This international company operates in Canada, Europe, the United States and the Asia Pacific region. CIBC`s vision is To be the leader in client relationships. They value Trust, Teamwork and Accountability. Their corporate objectives include building on their financial strength, unlocking value for reinvestment and to culture focus on client relationships. CIBC currently
Wells Fargo & Company is an American public company which deals with banking and financial services headquarters in San Francisco, California. It is the word second largest bank in the market capitalization and ranked as the third largest in the U.S in terms of its assets.
On December 14, 2006, Cisco invested $50 million in China communications services, one of the biggest overseas strategic investors of China communications services. After becoming a shareholder of China communications services, Cisco and China communications services managed telecommunications services and new network solutions for China enterprises including IP infrastructure, digital video, 3G platform and its application. In November 2006, Cisco (China) Financing Lease Co. Ltd was established in Beijing and became the first network equipment company of China to provide long-term financing lease finance solutions for customers (Liang, R. 2013).
Citigroup is one of the most well known financial companies in the world. The company has been one of the pioneers of the business financial world. They have contributed in many contemporary ways in the use of banks, and many other financial systems. Citigroup was a representation of the financial market success of the United States, Wall Street, and the financial world. The company has more than 200 years of history, and had been receiving high credibility from worldwide customers. However, after the company’s merger of Citicorp and Travelers Insurance the company was put under new management. Following their boss’ lead, the corporation began to make decisions that were only made with the best interest of the maximization of Citigroup’s profits in mind. This eventually led to the Recession of 2008 and a very rocky road for Citigroup. The company’s actions were similar to that of Netbank, but the end results of the companies differed due to Citigroup’s size. The financial crisis of Citigroup could have been avoided had the necessary precautions been taken, had these provisions been taken it could have possibly helped to avoid the economic recession of the United States as well.
...here. In doing so, they can take benefit of the country's vast business opportunities by entirely exploiting their competitive advantages and thus further augment their capabilities. This is particularly significant given that China is and will most likely linger a major goal for direct investment in the world. However, the entry of China in world’s main international trade business is contributing a lot to the opening of overseas capital, highly developed experience, in addition to organization proficiency addicted to the enterprises of Chinese, in totaling up altogether, it would give forward motion to technological novelty and structural modification in the enterprises of the Chinese. References http://english.peopledaily.com.cn/special/WTO/2000031400W103.html http://www.8thnetwork.com/translation.html http://www.wto.org/english/news_e/pres01_e/pr243_e.htm
By learning from its defeat in Germany, Walmart has been able to make progress in its strategy to expand into the Chinese market, which also has a substantially foreign political and cultural environment. Along with its financial capability, advanced supply chain management capability, and information technology capability, Walmart adapted its business strategy to align itself with the local taste. For example, Walmart sources about 95% products locally and hires Chinese citizens to manage its stores. Due to the heavy pollution and poor safety management, Chinese customers are concerned about the quality of products made in China. Walmart developed private label brands priced 10%-40% cheaper than national brands which positively impacts Chinese customers by providing them with high quality products and low prices. (2015, Wal-Mart And China: A Story Of Missing Customer Trust) Currently, Walmart is the third largest retail chain in China, and plans to open 115 brick-and-mortar stores between 2015 and 2017. (2016, Wal-Mart talks Up China Commitment) Walmart also plans to push up its e-commerce business to leverage its huge global product network. But even then, to ensure its future growth in China, Walmart needs to continually monitor its multicultural
China has come to the forefront of the international finance scene following the East Asian financial crisis for two reasons. First, the post reform Chinese economy closely resembles the other East Asian countries. China experienced significant levels of growth led by exports, with a rapid expansion in labor-intensive exports in its early stage of development. Rapid growth was accompanied by a rapid increase in domestic savings and massive inflows of foreign capital (Perkins, 1986). The banking sector dominated financial intermediation and the ratio of non-performing loans was high. Estimates put non-performing loans at China's four leading banks at 25 per cent -- far higher than in South Korea or Thailand before they fell prey to the Asian contagion. Would China be the next victim of the crisis? (Dornbusch, 1997).
Morgan Stanley has earned a worldwide reputation for excellence in financial advice and market execution. Today, Morgan Stanley is employing over 51,000 members in about 27 countries connect people, ideas and capital to help their clients reach their financial needs and future goals. (http://www.morganstanley.com). Ever since the year 1997, Morgan Stanley has joined forces with two respected organizations. Morgan Stanley, which was established in New York in 1935 combined with Dean Witter, which was as big and well-known as Morgan Stanley. Dean Witter was established in 1924 in San Francisco. Due to the fact that they have become more powerful by combining each other’s advantages in the financial world, they have made many historic records. Some of these include in “national and international expansion, in the use of technology, and in the development of new financial tools and techniques that have redefined the meaning of financial services for individual, institutional and investment banking clients” (http://www.morganstanley.com/about/inside/history.html?page=about).
As stated by JP Morgan Chase, “We see a huge opportunity in this fragmented marker- there is no dominant bank for the 28 million small businesses in the United States.” Their aim is to become the easiest bank to do business with. Now serving 3. Million American small businesses, JP Morgan Chase has successfully grown all of these businesses, adding more value to the market as well. Another direction in which they are planning on changing their plan is to do a better job of covering family and private offices in both the Private Bank and Investment Bank. Their approach is simple yet effective, they have notice a growth in family offices, and due to them becoming so large they feel a need tackle the needs that they have more efficiently. These offices have become more sophisticated and global, while actively buying whole stakes businesses or minority businesses. JP Morgan already works with these families but feels they can do a better job of providing a higher grade of services and products offered by their Private Bank and Investment Bank. These examples of JP Morgan Chase & Co.’s strategic plans are only the tip of the iceberg. With a total of 8 plans set into action, they hope to grow beyond any boundary and continue to overcome any obstacle set in front of
The early decades of the nineteenth century saw the establishment of banks in the Caribbean largely as a convenience for the local governments. Throughout much of the nineteenth century, most Caribbean banks operated as an oligopoly with limited government influence – this directly translated into higher profits. However, over time, the banking environment could best be described as complex and dynamic. Competition increased, resulting into greater need for improved customer service, product innovation and cost reduction strategies. In order to achieve this, the banking sector was undergoing major structural reforms characterized by mergers and acquisitions. On July 23, 2001 Barclays and CIBC announced that they were in advanced discussions which were intended to lead to the combination of their retail, corporate and offshore banking operations in the Caribbean.
HSBC bank which is called Hong Kong and Shanghai Banking Corporation, was founded in 1865 and opened in 1877. It is also the largest bank in the world pertinent to assets and ranks sixth in the world’s largest public company in 2012. As one of the leading banks in the world, with around 89 million customers served with various products and loans such as personal loans, house loans, corporations loans, wealth management, investments, insurance and deposits. Some of the interesting facts are that HSBC bank has won several awards during 2011 which includes the best corporate internet banking in Singapore, rank second place in the Forbes Global 2k world’s biggest companies. It is ranks first in the Brand Finance Banking 500 in year 2012.
This paper will analyze the mission and vision statements of JPMorgan Chase & Co against the performance of the organization. An evaluation of how well the company lives out its mission and vision statement will be provided. The organization’s strategic goals link to the company’s mission and vision will be assessed. An analysis of the company’s financial performance to determine the link between the company’s strategic goals, strategy, and its financial performance. A competitive and marketing analysis of JPMorgan Chase & Co will be conducted to determine its strengths and opportunities.
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)