Citibank A Case Analysis Cheryl Bluthardt Brandy Church
Citibank A Case Analysis Cheryl Bluthardt, Brandy Church, Dawn Townley, and Amanda Van. Koevering
Profile Gaining familiarity with the Citibank organization
Critical Facts of the Case � Global, multidimensional financial institution � Leaders include: ◦ Sanford Weill, Citigroup’s chief executive ◦ Jorge Bermudez, Citigroup’s executive vice president � Employed > 325, 000 staff � Serviced > 200 million customers � Operated in > 100 countries Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning.
Company’s Mission and Vision � � Become the world’s leader in e-business. Strategy – Connect, Transform, Extend First priority – meeting customer needs. “We are here to serve our clients: whatever our clients want us to do we’ll do it for them. ” - Caroline Wong, Head of E-Business Group (Cash & Trade), Citibank Hong Kong (p. 105) Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning.
Symptoms Indicators that something is not as expected or desired
Symptoms � Citibank experienced difficulty: ◦ meeting diverse customer needs ◦ earning profit ◦ maintaining supremacy amongst intense business competition Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning.
Goals for the future
Goals � Provide customers with technology to conduct secure business anywhere � Align with partner companies � New technology to streamline A/R, A/P, and liquidity management � Reach new markets � Improve customer service � Cut costs Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning.
Analysis Models used to conduct the analysis
General Environmental Analysis � Industry Trends include: ◦ Use of technology to increase banking efficiency (Hitt, et al, 2011) ◦ Use of electronic payments (Hitt, et al, 2011) ◦ Increased number of consumers with credit cards (Citibank, 2006) ◦ Preference of brand recognition and proven history of financial security (Hitt, et al, 2011).
SWOT Analysis Strengths: • Strong Brand Recognition Weaknesses: • Declining Capital Opportunities: • Expand Good Reputation Threats: • Continuous Investments in Technology • Global Presence • Diversification of Products and Services • Improve Existing Web Features & Expand Global Banking • Increase Customer Service • Offer Fresh Approach to Banking • Debt Obligations Due to Subprime Market • High Customer Demands • Complicated Products • Lack of ability to keep up with advancing technology • • Competition Heavy Investments in Technology Regulatory Scrutiny Weakening Financial Markets Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning.
Financial Analysis � Profitability Ratios = acceptable � Liquidity Ratios = acceptable � Leverage Ratios = acceptable � Activity Ratios = acceptable � Shareholders’ Return Ratios = acceptable Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning.
A look at Citibank’s Consumer Citigroup. (2006). 2005 Financial Information. Retrieved April 13, 2011 from http: //www. citigroup. com/citi/fin/data/k 05 c. pd f? ie. Nocache=353.
Diagnosis Discrepancies between Citibank’s goals and actual performance
Root Problem � Rapidly changing customer needs with limited resources to provide technologically advanced products.
Goal Matrix Goal Options Improves Quality Cost to Implement Time Required Ease of Staffing Financial Return TOTAL Points Technology enabling customers to conduct business anywhere 3 2 2 3 3 13 Partner alignment 3 3 13 Technologybased A/R, A/P, and liquidity mgmt 3 2 2 11 Reach new markets 1 1 1 2 3 8 Customer Service 3 1 1 1 2 8 Cut costs 1 1 3 7
Selected Goal � Align with Square to make their credit card processing software/hardware available to current Citibank customers, allowing customers to conduct secure credit card processing anywhere anytime at low cost.
Action Plan How to improve Citibank’s situation
Action Plan • Collaborating with Square to accommodate back-end accounts receivable and accounts payable software • Negotiating terms with Square Leadership IT Operations Processes (Sales) Marketing • Creating processes for Sales Department once marketing plan has been implemented • Developing and implementing marketing campaign
Questions?
References (2006). 2005 Financial Information. Retrieved April 13, 2011 from http: //www. citigroup. com/citi/fin/data/k 0 5 c. pdf? ie. Nocache=353. � Citigroup. � Hitt, M. A. , Ireland, R. D. , & Hoskisson, R. E. (2011). Strategic Management: Competitiveness and Globalization (9 th ed. ). Mason, OH: South-Western Cengage Learning.
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