Citigroup Case Study
Running head: CITIGROUP CASE STUDY
Citigroup Case Study
Citigroup in Post-WTO China
Lorenzo E. Pina
November 6, 2006
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
Citigroup Case Study
Citigroup in Post-WTO China
Lorenzo E. Pina
November 6, 2006
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
References: Li L., Young, A. and Conklin, D. (1997). Citibank N.A. in China. Richard Ivey School of Business, Case # 9A97G016. Pearce, J. and Robinson, R. (2004). Strategic Management: Formulation, Implementation, and Control [University of Phoenix Custom Edition]. McGraw-Hill Companies. Retrieved October 30, 2006, from University of Phoenix, Resource, MGT/578-Strategy Formulation and Implementation Web site: https://ecampus.phoenix.edu/secure/resource/resource.asp