Citigroup: Global and Domestic Environmental Factors
Running head: CITIGROUP: GLOBAL AND DOMESTIC ENVIRONMENTAL FACTORS
CitiGroup: Global and Domestic Environmental Factors
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University of Phoenix
MKT 421 Marketing
Professor Smith
March 1, 2009
Global and Domestic Environmental Factors Like any global organization doing business today; CitiGroup is feeling the pressure of an increasingly difficult business climate. Economic environmental factors caused by the mortgage crisis have taken their toll on Citi, both domestically and abroad. A January 2008 Fortune Magazine article interviewing Robert Rubin, CitiGroup’s director and executive chair committee member offered some insight into the views of Citi’s Sr. management team.
Rubin’s Forecast of Environmental Factors Had an investor listened to Rubin in January of 2008 he or she may have thought the then current financial crisis was nothing more than a cyclical pattern with markets correcting themselves. Little did the former U.S. Secretary of Treasury know; the declining market conditions of January 2008 were just the tip of the iceberg. Based on Rubin’s views; at the time, Citi executives were not particularly alarmed and were still viewing the recent economic meltdown as business as usual. The organization’s management team was not concerned with the “cyclical” market and made decisions to continue marketing the company in the same fashion they had in the decades prior. The organization pressed on with an order for a 50 million dollar private jet and applauded the 2006 agreement to purchase the naming rights of the New York Mets Stadium, Citi Field, at a cost of 400 million dollars. Rubin’s main concern was how the organization could resolve the wealth gap between countries; in his opinion the most serious deterrent to growth. "It 's a paramount task for policy makers to understand why market economy and globalization are associated with severe income distribution issues in almost every country; and then they must create
CitiGroup: Global and Domestic Environmental Factors
-
University of Phoenix
MKT 421 Marketing
Professor Smith
March 1, 2009
Global and Domestic Environmental Factors Like any global organization doing business today; CitiGroup is feeling the pressure of an increasingly difficult business climate. Economic environmental factors caused by the mortgage crisis have taken their toll on Citi, both domestically and abroad. A January 2008 Fortune Magazine article interviewing Robert Rubin, CitiGroup’s director and executive chair committee member offered some insight into the views of Citi’s Sr. management team.
Rubin’s Forecast of Environmental Factors Had an investor listened to Rubin in January of 2008 he or she may have thought the then current financial crisis was nothing more than a cyclical pattern with markets correcting themselves. Little did the former U.S. Secretary of Treasury know; the declining market conditions of January 2008 were just the tip of the iceberg. Based on Rubin’s views; at the time, Citi executives were not particularly alarmed and were still viewing the recent economic meltdown as business as usual. The organization’s management team was not concerned with the “cyclical” market and made decisions to continue marketing the company in the same fashion they had in the decades prior. The organization pressed on with an order for a 50 million dollar private jet and applauded the 2006 agreement to purchase the naming rights of the New York Mets Stadium, Citi Field, at a cost of 400 million dollars. Rubin’s main concern was how the organization could resolve the wealth gap between countries; in his opinion the most serious deterrent to growth. "It 's a paramount task for policy makers to understand why market economy and globalization are associated with severe income distribution issues in almost every country; and then they must create
References: Benner, K. (2008). Robert Rubin: What Meltdown? Fortune. January 31, 2008. Retrieved May 31, 2009 from http://money.cnn.com/2008/01/31/news/economy/rubin_benner.fortune/ Perreault & McCarthy, (2004). Basic Marketing: A Global-Managerial Approach. Marketing Strategy Planning. [University of Phoenix e-text]. The McGraw-Hill Companies. Available from the University of Phoenix eBook Collection database. Wallace, E. (2008). Things Explained: The Meltdown. Star-Telegram. February 2, 2008. Retrieved May 30, 2009 from http://www.star-telegram.com/ed_wallace/story/1216334.html