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.
![Page 1: A Case Analysis Cheryl Bluthardt, Brandy Church, Dawn Townley, and Amanda VanKoevering.](https://reader034.fdocuments.in/reader034/viewer/2022051401/56649dab5503460f94a9ac57/html5/thumbnails/1.jpg)
CitibankA Case Analysis
Cheryl Bluthardt, Brandy Church, Dawn Townley, and Amanda VanKoevering
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ProfileGaining familiarity with the
Citibank organization
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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.
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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.
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SymptomsIndicators that something is not as expected or desired
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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.
![Page 7: A Case Analysis Cheryl Bluthardt, Brandy Church, Dawn Townley, and Amanda VanKoevering.](https://reader034.fdocuments.in/reader034/viewer/2022051401/56649dab5503460f94a9ac57/html5/thumbnails/7.jpg)
GoalsGoals for the future
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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.
![Page 9: A Case Analysis Cheryl Bluthardt, Brandy Church, Dawn Townley, and Amanda VanKoevering.](https://reader034.fdocuments.in/reader034/viewer/2022051401/56649dab5503460f94a9ac57/html5/thumbnails/9.jpg)
AnalysisModels used to conduct the
analysis
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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
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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.
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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.
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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.
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DiagnosisDiscrepancies between
Citibank’s goals and actual performance
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Rapidly changing customer needs with limited resources to provide technologically advanced products.
Root Problem
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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
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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
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Action PlanHow to improve Citibank’s
situation
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• 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
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Questions?
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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