Human resources practices were broadly perceived as a powerful competitive advantage;? Citibank was already in the global market and so its strategy was to serve the global market globally. Citigroup held true to its belief in hiring local employees.
Chinese people were accustomed to what they had and fear was all they had left. After Citibank was allowed to open more branches as franchisees of the parent in china. Further inthey expanded their service offerings by making consumer banking business available in Beijing.
As a result, China incorporated new barriers to entry aimed at deterring other foreign companies from amassing the same type of market share in other cities.
Citigroup, although experienced, was not amenable to entering into new joint ventures. Slowly as word spread round that Citi bank was offering retail banking services many people stated looking at this bank for their banking needs. Liping He and Xiaohang Fan wrote: The strategy as defined by reed was to build on what the bank was good at and what was already profitable and strengthen this base to bring in more expansion and integration and build profitable working relationships.
So realizing the need to develop human resources, they were willing to invest in and partner with universities throughout China.
Citibank was averse to entering china through the medium of joint ventures unless they were forced to. It was licensed to provide only corporate banking services and only to foreign invested enterprises.
One thing was that, the banking scenario in china was a well guarded secret and all banking operations were controlled by the central bank of china. They had the necessary expertise and experience in dealing with very volatile and unknown markets, while other banks did not know how to match these concepts, Citibank by virtue of its operational excellence was able to match these conditions.
Citigroup senior executives established a good working relationship and rapport with the PBOC that lead to Citibank becoming the first foreign bank to deal with Chinese customers. Employees were seconded to central banks. Hence they were the first ones to enter the chine market. Citibank had an emerging markets and global advantage;?
Restriction from providing credit cards 3. Today, Citigroup has been around for almost years, conducts business in over countries, has more thanemployees that service over million customer accounts Citigroup, There are numerous reasons that would make it difficult for Citigroup to adapt to the Chinese environment.
Figure 1 lists several of the reasons mentioned in the case supporting the different team sides and respective discussions. China was also experiencing problems with state owned enterprises and large debts. The inefficiency of operations and the lackadaisical approach to expansion and efficiency were visibly lacking in all banking operations.
While Chinese banks and other foreign-based banks fight for the market share in the wealthier east coast, Citigroup could take advantage of this lack of attention and penetrate this market. Citibank technological was "ahead of the curve" with respect to technology and innovation;?
Citibank forced Chinese banks to conform to new standards 5. Citigroup could look at this avenue as an opportunity to be the first major foreign-bank to handle the needs of this area of China.
They fostered local ties and started hiring locally.Citigroup in Post WTO China China entered into the World Trade Organization with the promise that foreign financial institutions would be permitted to operate through China (killarney10mile.com).
Citigroup in post WTO Essays: OverCitigroup in post WTO Essays, Citigroup in post WTO Term Papers, Citigroup in post WTO Research Paper, Book Reports. ESSAYS, term and research papers available for UNLIMITED access Citibank was one of the first foreign firms that had obtained licenses to conduct business in China.
Citigroup in Post - Wto China Introduction China entered the World Trade Organization (WTO) in and immediately experienced rapid growth. China was also experiencing problems with state owned enterprises and large debts.
Apr 11, · Check out our top Free Essays on Citigroup I Post Wto China to help you write your own Essay degree of internationalization between Citibank and Bank of China (BOC) in banking industry.
In this essay I am going to write about the WTO. Citigroup in Post Wto This Essay Citigroup in Post Wto and other 64,+ term papers, college essay examples and free essays are available * Citibank was one of the first foreign firms that had obtained licenses to conduct business in China.
In earlyCitibank became the first foreign bank to be given approval for foreign currency. Citigroup in Post-WTO China Analysis Introduction Citibank, part of Citigroup, was one of the first foreign banks that entered China over a century ago () and hence has a long history of goodwill in the country.Download