Citigroup Case Study Essay

894 Words Nov 28th, 2006 4 Pages

Citigroup Case Study

Citigroup in Post-WTO China
Lorenzo E. Pina
November 6, 2006

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
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In relation to technology and financial innovation, Citibank is known to be ‘ahead of the curve' and perceived as a top market bank in the United States and internationally. Through the years, Citibank has won numerous awards for providing better corporate banking services than other local banks. Citibank's attempt to expand into China can be based on the previous accounting practices experience it had with this country. Citibank previously worked with the Public Bank of China (PBOC) "to improve the internal auditing requirements within the Chinese banking system" (p. 19). As a result, the PBOC recommended these practices to other banks throughout China. Citibank has established a human resource structure for training local people into becoming successful managers. Unfortunately, competitors are readily willing to seize these employees for their services and skills.
No Adaptability to Expand Operations in China In 2002, Citibank obtained a license to be able to deal with foreign currency; however, it was only in one city. Citigroup has focused too much on banking services instead of focusing on the insurance market, which has been profitable to various U.S. companies in China. According to Li, Young and Conklin, "By 1995, AIG was a successful operation, generating annual premiums of U.S. $50 million, accounting for 88 percent of the market share for life insurance in

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