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Case Study - Citigroup

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- Has Citigroup displayed adaptability in its attempt to expand operations in China
- Citigroup has displayed adaptability in its attempt to expand operations in China
- Citigroup has not displayed adaptability in its attempt to expand operations in China.

Please elaborate your thoughts on each of these above listed issues after reading the attached case study. Consider it like speaking for the motion and against the motion in a debate.

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Citigroup is an excellent example of an organization that has displayed environmental adaptability. However, the environment in China is unique.

Overview of Citigroup

Company Background
Citigroup Inc. is today's pre-eminent financial services company, with some 200 million customer accounts in more than 100 countries. Major brand names under Citigroup's trademark red umbrella include Citi Cards, CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners Club, The Citigroup Private Bank, and CitiCapital.
According to Forbes Global 2000, it is the world's biggest company and the most profitable financial services firm. Its formation was announced on April 7, 1998 through a merger of Citicorp and Travelers Group. It was the first US Company to combine banking with insurance underwriting since the Great Depression.

Business Divisions
Citigroup is organized into three major business groups - Global Consumer, Corporate and Investment Banking, and Global Wealth Management. In addition to two stand-alone businesses, Citigroup Asset Management* and Citigroup Alternative Investments.

The Global Consumer Group is comprised of three sub-divisions, Cards (credit cards), Consumer Finance, and Retail Banking. The credit card business on average delivers about 40% of the profits of this group. Citigroup is the largest provider of credit cards in the world, a position long held by Citicorp, and increased by many acquisitions of card portfolios. The Consumer Finance Division (called Citifinancial) accounts for about 20% of the consumer group's profits. Citibank is about the fifth largest retail bank in the United States, and it has branches in countries throughout the world. The biggest part of retail banking however is Banamex, the largest bank in Mexico, which Citigroup owns. Overall the Global Consumer group contributes more than half of all the profits for Citigroup.

The Global Corporate and Investment bank consists of two subdivisions, capital markets & banking, and global transaction services. This division essentially handles large corporate cash management, lending, and Investment Banking. Citigroup's investment bank is one of the largest, frequently topping many League Tables.
The final division is called Private Client Services, a euphemism for a stock brokerage. This division is branded Smith Barney, and is the second largest stock broker in the world. It usually contributes however, only around 6% of Citigroup's profits.
Through its subsidiaries, Citigroup offers banking, lending, insurance, investment, mortgage, asset management. Citigroup sets itself apart from its top three competitors: JP Morgan Chase & Co., Bank of America Corp. and Deutsche Bank AG by the extent of its global breadth.


A vision statement should be realistic and credible, well articulated and easily understood, appropriate, ambitious, and responsive to change. It should orient the group's energies and serve as a guide to action. It should be consistent with the organization's values. In short, a vision should challenge and inspire the group to achieve its mission.

Citigroup's Vision statement:
Citigroup is envisioned as the most respected global financial Services Company.

A mission statement answers the questions: Why does our organization exist? What business are we in? What values will guide us?

Citigroup's Mission statement:
"To be the most comprehensive financial services provider"

With the most diverse array of products and the greatest distribution capacity of any financial firm in the world, our 300,000 employees manage 200 million customer accounts across six continents in more than 100 countries


Our Values

? Integrity: We do the right thing.

? Excellence: We deliver superior products and services to our clients and take pride in the quality of our work.

? Respect: We treat people with respect.

? Teamwork: We work together to get the job done.

? Ownership: We act like owners and take responsibility for our actions.

? Leadership: We believe in ...

Solution Summary

The solution considers a number of issues pertinent to the Citigroup case study.

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Also, additional info about Citigroup financials


I know the fudamental problem of Citigroup is they are not profitable.

I need help coming up with a recomendation.

7. Recommendations
Recommendations should respond to the key problem of the case, and must be specific and actionable. They must not be obvious "so what" platitudes and they must be consistent with the analysis. Your recommendations should be in line with your analysis; that is, they should follow logically from the previous discussion.
This section is the most important section of the case write-up and should clearly identify and develop two independent alternative solutions to the problem in the case. You need to fully develop each alternative, including details about the alternative, implementation of each alternative, potential outcomes of implementing each alternative, as well as discussing advantages and disadvantages of each alternative.
This section shows your creativity, your ingenuity, and your strategic management expertise, which is why this section is the most important section of the case write-up. Be as thorough as possible in your development of each alternative. Each alternative should be fully developed and analyzed in a total of no more than one page for each.
This section should state which of the two alternatives you developed in the previous section should be implemented by the company. The key is to match the internal resources (strengths) of the firm to the opportunities and threats in the external environment in a way that addresses (and resolves) the key marketing problem(s) you've identified.
Be certain to describe the decision-making process that led to your recommended solution.

Do not forget to consider the firm's financial standing when making recommendations.

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