I am looking for assistance in discussing Citibank's external environment. The external environment has three components: the remote environment, the industry environment, and the operating environment.
In your opinion, discuss the most important issue, or "driver" in each of the three parts of the Environment. Then assess and discuss 2-3 major changes that you expect to have a significant impact on the external environment over the next 10 years.
The foundation of a successful banking business such as Citibank lies with a strong understanding of the environment in which the institution is located. The most important environmental variables are those operating outside the bank, known as the external environment and those within the organization, known as the internal environment.(McMahon, 1986).
It is very critical for Citibank to understand the importance of its external environment, which includes remote, operating and industrial environments before developing its future objectives. Each environment is based on different factors; therefore the analysis of external environment will help the company seek new opportunities in many areas as well as discovering challenges that might have direct impact to the organization in the future.
The immediate factors, also referred to as the operating environment, include aspects such as suppliers, financial institutions, customers and the labor markets. The operating environment also provides important information that will assist the company's development plan in the future. The operating environment concentrates on the new and existing competitors. Understanding the level of competitiveness in the market will help the company develop its future tactics to compete with others in the industry. Besides studying the competitor, the operating environment also concentrates on the customer profile. The study of buyer behavior will assist the bank in developing new products. The most important drivers of this external component for Citibank are customers, the labor market and competitors. Customers are important because listening to them determines whether Citibank will be able to fulfill their needs and ...
This is an analysis of Citibank's External Environment including remote environment, industry environment, and operating environment.