A Case Analysis Cheryl Bluthardt, Brandy Church, Dawn Townley, and Amanda VanKoevering.
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Transcript of A Case Analysis Cheryl Bluthardt, Brandy Church, Dawn Townley, and Amanda VanKoevering.
CitibankA Case Analysis
Cheryl Bluthardt, Brandy Church, Dawn Townley, and Amanda VanKoevering
ProfileGaining familiarity with the
Citibank organization
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
Critical Facts of the Case
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management: Competitiveness and Globalization (9th ed.). Mason, OH: South-Western Cengage Learning.
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)
Company’s Mission and Vision
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management: Competitiveness and Globalization (9th ed.). Mason, OH: South-Western Cengage Learning.
SymptomsIndicators that something is not as expected or desired
Citibank experienced difficulty:◦ meeting diverse customer needs ◦ earning profit◦ maintaining supremacy amongst intense business
competition
Symptoms
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management: Competitiveness and Globalization (9th ed.). Mason, OH: South-Western Cengage Learning.
GoalsGoals for the future
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
Goals
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management: Competitiveness and Globalization (9th ed.). Mason, OH: South-Western Cengage Learning.
AnalysisModels used to conduct the
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).
General Environmental Analysis
SWOT Analysis
Strengths:• Strong Brand Recognition• Continuous Investments in
Technology• Global Presence• Diversification of Products and
Services
Weaknesses:• Declining Capital• Debt Obligations Due to
Subprime Market• High Customer Demands• Complicated Products• Lack of ability to keep up with
advancing technology
Opportunities:• Expand Good Reputation• Improve Existing Web
Features & Expand Global Banking
• Increase Customer Service• Offer Fresh Approach to
Banking
Threats:• 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 (9th ed.). Mason, OH: South-Western Cengage Learning.
Profitability Ratios = acceptable Liquidity Ratios = acceptable Leverage Ratios = acceptable Activity Ratios = acceptable Shareholders’ Return Ratios = acceptable
Financial Analysis
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management: Competitiveness and Globalization (9th 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/k05c.pdf?ieNocache=353.
DiagnosisDiscrepancies between
Citibank’s goals and actual performance
Rapidly changing customer needs with limited resources to provide technologically advanced products.
Root Problem
Goal Options
Improves Quality
Cost to Implemen
t
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 1 3 3 13
Technology-based A/R, A/P, and liquidity mgmt
3 2 2 2 2 11
Reach new markets
1 1 1 2 3 8
Customer Service
3 1 1 1 2 8
Cut costs 1 1 1 1 3 7
Goal Matrix
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.
Selected Goal
Action PlanHow to improve Citibank’s
situation
• Developing and implementing marketing campaign
• Creating processes for Sales Department once marketing plan has been implemented
• Collaborating with Square to accommodate back-end accounts receivable and accounts payable software
• Negotiating terms with Square
Leadership
IT
MarketingOperations Processes
(Sales)
Action Plan
Questions?
Citigroup. (2006). 2005 Financial Information. Retrieved April 13, 2011 from
http://www.citigroup.com/citi/fin/data/k05c.pdf?ieNocache=353.
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management: Competitiveness and Globalization (9th ed.).
Mason, OH: South-Western Cengage Learning.
References