Scribd Logo
Upload

Welcome to Scribd!

  • 40 views

    Strategic Management

    Uploaded by

    Phio Josh Jarlego
    Citigroup is a global financial services company that traces its roots back to 1812. It operates in over 160 countries and has over 200 million customer accounts. The presentation analyzes Citigroup's history, business segments, strategic issues like legal problems and declining profits, and its operating environment. A SWOT analysis identifies strengths like its large global customer base, but also weaknesses such as ongoing legal issues and threats from new competitors. The problem is how Citigroup can devise effective strategies to adapt to changes and become a global industry leader.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Strategic Management

    Uploaded by

    Phio Josh Jarlego
    40 views23 pages
    Citigroup is a global financial services company that traces its roots back to 1812. It operates in over 160 countries and has over 200 million customer accounts. The presentation analyzes Citigroup's history, business segments, strategic issues like legal problems and declining profits, and its operating environment. A SWOT analysis identifies strengths like its large global customer base, but also weaknesses such as ongoing legal issues and threats from new competitors. The problem is how Citigroup can devise effective strategies to adapt to changes and become a global industry leader.

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Citigroup is a global financial services company that traces its roots back to 1812. It operates in over 160 countries and has over 200 million customer accounts. The presentation analyzes Citigroup's history, business segments, strategic issues like legal problems and declining profits, and its operating environment. A SWOT analysis identifies strengths like its large global customer base, but also weaknesses such as ongoing legal issues and threats from new competitors. The problem is how Citigroup can devise effective strategies to adapt to changes and become a global industry leader.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    40 views23 pages

    Strategic Management

    Uploaded by

    Phio Josh Jarlego
    Citigroup is a global financial services company that traces its roots back to 1812. It operates in over 160 countries and has over 200 million customer accounts. The presentation analyzes Citigroup's history, business segments, strategic issues like legal problems and declining profits, and its operating environment. A SWOT analysis identifies strengths like its large global customer base, but also weaknesses such as ongoing legal issues and threats from new competitors. The problem is how Citigroup can devise effective strategies to adapt to changes and become a global industry leader.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 23

    STRATEGIC MANAGEMENT 1

    PREPARED BY:
    MR. SALVADOR RAMOS
    MR. JEAR PINCA
    MS. RANELLE ANNE ABALOS
    MS. JANNORA DIPATUAN
    MS. JEMA BELZA
    THE CASE STUDY
    OF CITI GROUP
    2015
    .
    THE PRESENTERS

    MR. SALVADOR A. RAMOS, CLSSYB MR. JEAR C. PINCA, LPT,CPP, PCI MS. JEMA D. BELZA, CPA

    MS. JANNORA D. DIPATUAN MS. RANELLE ANNE R. ABALOS


    CITI BANK OF NEW CITIGROUP
    YORK FOUNDER CEO

    SAMUEL OSGOOD MICHAEL CORBAT

    1812 2012-2021
    HISTORY
    • In 1812-Citigroup traces its roots when the CITI Bank of New York was formed and
    was founded by Samuel Osgood- the first postmaster general as well as a soldier,
    legislator and is associated with founding fathers of United States.
    (p.443, par. 4)

    • In 1866-was instrumental in financing the transatlantic cable. (p.443, par. 4)

    • In 1895- was the largest bank in the United States. (p.443, par. 4)

    • In 1929-become the largest bank in the world. (p.443, par. 4)

    • In 1976-bank was officially named CITIBANK. (p.443, par. 4)

    • In 1998-it merged with Travelers Group and changing it’s name to CITIGROUP.
    (p.443, par. 4)

    • CITIGROUP is a diversified financial services holding company formally divided into


    CITICORP AND CITI HOLDINGS. (p.443, par. 1)
    CASE BACKGROUND
    • CITIGROUP is a diversified financial services holding company formally divided into:

    >CITICORP provides global banking, advisory services and derivative services,


    brokerage, auto loan and mortgages.
     CITI HOLDINGS contains non-core businesses and comprises about 6% of
    the company. (p.443, par. 1)

    • Vision/Mission
    Citigroup does not have a vision statement. However, at the corporate website, Citigroup
    provides a mission statement, as follows: “Citi works tirelessly to serve individuals,
    communities, institutions and nations. With 200 years of experience meeting the world’s
    toughest challenges and seizing its greatest opportunities, we strive to create the best
    outcomes for our clients and customers with financial solutions that are simple, creative,
    and responsible. An institution connecting over 1,000 cities, 160 countries, and millions of
    people, we are your global bank;
    we are Citi.”z (p. 445, par. 1)
    CASE BACKGROUND
    • Shifted strategy from selling assets to cutting costs-(p.445, par.2)

    • Divesting the business (p.443 par.5, p.445, par.3)

    • Segmentation (p. 445, par. 2)


    >Ethical Issues

    • Manipulation of key interest rates, anti-money laundering,


    currency trading and fraud. (p.445, par.4)

    • Failing stress test (p.443, par 4 & p.445, par.4)

    • Declining net income 2014 (p.446,par. 2)


    ENVIRONMENT SCANNING

    The process of collecting, analyzing and distributing


    information for tactical and strategic purposes.
    GENERAL AND OPERATING
    ENVIRONMENT
    >Sample conditions
    SOCIO-CULTURAL
    DEMOGRAPHIC FORCES

    • Class structure, hierarchy and power structure in the society.


    (p. 443, par 2)

    • Culture (p. 443, par 2)

    • Attitudes (p. 451, par 2)


    TECHNOLOGICAL FORCES

    • Recent technological developments by Citigroup Inc.


    competitors- p.449, par.3

    • Technology’s impact on product offering- p.449, par.3

    • Impact on cost structure in Money Centre Banks


    Industry -p.449, par.3
    ECONOMIC FORCES
    • Type of economic system in countries of operation. (p. 450, par. 4)

    • Government intervention in the free market and related financial (p. 443, par. 9)

    • Exchange rates & stability of host country currency. (p. 451, par. 5)

    • Efficiency of financial markets (p. 449, par. 5)

    • Comparative advantages of host country and Financial sector in the particular country.
    (p.443, par. 1)

    • Business cycle stage (e.g. prosperity, recession, recovery) (p. 449, par. 4)

    • Economic growth rate (p. 449, par. 4)

    • Interest rate (p. 449, par. 4 & p.451, par. 5)


    ENVIRONMENTAL FORCES

    • Double-digit inflation in some parts of Latin America (p. 451 par. 3)


    POLITICO LEGAL FORCES

    • Bureaucracy and interference of government- (p.443, par. 2)

    • Pricing regulations (p.451, par. 5)


    OPERATING ENVIRONMENT
    • OPPORTUNITIES

    Rivalry among competing firms

    >Citigroup trails both J. P. Morgan and Bank of America on every statistic


    presented, except total number of employees, with all three banks roughly equal on employment
    numbers.(p.446, par. 3

    Industry Growth

    > In United States, there is a $426 billion industry that is just now starting to grow gain, after
    annualized growth rates less than 2 percent from 2009 to 2014 (p.450, par. 4

    • THREATS

    >New competitors—for example, Bitcoin and PayPal—also may increasingly


    take market share away from the larger banks, along with possibly Apple and Google, if
    they can enter into direct agreements with MasterCard and Visa, and totally bypass the banks all
    together. (p. 451, par. 1)
    >Latin America is expected to have its slowest growth in 2014 at 1.2 percent having grown only
    2.5 and 3 percent, respectively, in 2012 and 2013. (p. 451, par. 3)
    ASSUMPTIONS

    . The market is gearing towards to digitization.

    • Increasing market demand in usage of credit


    cards.

    • Market will continuously patronize banks


    services.
    STATEMENT OF THE
    PROBLEM

    “Devising effective business


    strategies in adapting to
    changes, to become global
    leader in financial industry”.
    EVIDENCES
    SWOT ANALYSIS
    STRENGTHS
    • Global Market-is their MAIN TARGET-p. 443,
    par.1 & p. 445 par. 5.

    • Customer centric- p. 445, par. 1

    • World’s largest credit card issuer over 900


    million retail accounts with various well-known
    brands. p.443, par. 1.

    • Government connection-p. 443, par.2


    WEAKNESSES

    • Legal Issues-cause of investigation (p. 445, par. 4)

    • Involvement in manipulation of key interest rates, anti-


    money laundering, currency trading and fraud.
    (p.445, par.4)

    • Many emerging markets, with a heavy focus on Latin


    America. (p.445, par.5)

    • Numerous business ethics issues associated with


    Citigroup (p.443, par.2)
    THREATS

    • Online banks are growing rapidly in number and taking


    market share from large banks. p.449, par.3

    • Increased competition from other credit card players, there


    is expected to be downward pressure on card fees in the
    future p.450 par. 6

    • Growing trend in the use of mobile payments p. 450, par. 7

    • Security issues and the perceived dangers of a digital


    currency. p. 450, par. 7
    OPPORTUNITIES

    • Industry is improving from sub-prime


    loan crisis. (p. 449, par. 4)

    • Increasing of industry growth rates over


    4%. (p.449, par. 4)

    • Higher interest and long term loan-


    HIGHER YIELD. (p. 451, par. 4)

    You might also like