...At Citibank David P. Baron David Besanko April 1998 RESEARCH PAPER SERIES GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY Research Paper No. 1488 STRATEGY, ORGANIZATION, AND INCENTIVES: GLOBAL CORPORATE BANKING AT CITIBANK David P. Baron and David Besanko Stanford University and Northwestern University April 1998 Abstract This paper addresses the interplay of strategy, organization, and incentives in a global company. The basic framework takes one step further Chandler’s perspective that structure follows strategy by incorporating incentives chosen in response to both strategy and organization. The analysis of these three components of corporate policy is guided by a model of organization developed in earlier papers (1996, 1997). The perspective is that strategy is based on matching opportunities and capabilities. Capabilities reside in an organization’s shared know-how, and organization structure serves to mobilize a firm’s capabilities in pursuit of opportunities. How organization structure mobilizes capabilities depends on the complementarities among its activities and the pattern of spillovers that underlie its capabilities. When the activities include both complements and substitutes, and when the pattern of spillovers is complex, a mUlti-dimensional organization is required to manage the interrelationships. In multi-dimensional organizations the incentive system is crucial in animating the organization by directing effort to those activities that...
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...Model By commercialprintin Citibank differentiate its e-business product 1. How does Citibank differentiate its e-business product offering from that of its competitors? How could Citibank create its own competitive advantages in the market place? Citibank differentiated itself from competitors by using their customer service effectively. They offered several services to their clients. Citibank offered telephone hotlines, customer relations managers to give individual attention to their customers, and service experts. Citibank also continued their investment in technology for the front and back end of the banking systems. Citibank committed to an “e-business strategy-Connect, Transform and Extend-was to web enable its core services, develop integrated solutions and reach new markets.” (McCauley & Khan, 2002, p.1). Citibank was also committed to its customers. According to the case study, ‘Citibank’s vision was to become the world’s leading e-business enabler". Citibank had over 268,000 employees located in over 100 countries and their focus was to embed their services into the everyday lives of the local population. “A bank that had roots in the country as deep as any local indigenous bank, building a broad customer base, offering diverse products, actively participating in the community and recruiting staff and senior management from the local population”. In addition to being committed to employees and customers around the world, Citibank has strong brand recognition and...
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...HKU197 06/07/02 Citibank’s e-Business Strategy for Global Corporate Banking Citibank’s Global Cash and Trade division was in the business of managing the flow of money for its corporate customers. It provided the tools and channels for its customers to receive money efficiently and to make payment in a timely fashion. In 2000, intense competition and the dot com boom put pressure on Citibank and its competitors to transform their business in the new economy. In response to these challenges, Citibank made a serious push to deliver integrated solutions that would enable its corporate customers to conduct transactions on-line. Citibank’s e-business strategy – Connect, Transform and Extend – was to Web-enable its core services, develop integrated solutions, and reach new markets. The ultimate goal was to build a single Web-enabled platform for all customers with similar needs. To transform its Global Cash and Trade Division into an e-business, Citibank faced challenges in serving its corporate customers who had discrepant needs. Sophisticated clients, such as multinational companies (MNCs), required custom-built host-to-host product interface. Other customers, such as the small-and-medium-sized enterprises (SMEs), were more conservative and were not ready for web-based solutions. How could Citibank build a flexible and agile e-business product that could capture their total cash management & trade service needs? Given Citibank’s enormous global reach, how could it integrate the...
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...Report Organization Capacity Management, Citibank Analyzing branch banking services and operations for improving process turnaround time and operational efficiency resulting in customer delight. Saryu Kamra & Anubha Mathur 7/14/2011 ABSTRACT This project on Branch Banking Operations attempts to trace and map the branch banking processes end to end and identify all non value added activities and wastages in terms of time so that the Turn Around Time for Customers as well as time required for completion of any transaction or instruction can be reduced considerably. The data collection was divided into two parts, first at individual level and then at the process level. For the former, a chart was prepared for different individuals to map their daily activities and the time taken for these so as to make a comparative analysis vis-à-vis their efficiency in terms of the time spent with the customer and processing further. For the latter, a time and motion study was carried out to map the various Branch activities which were broken down to the micro level to analyze the wastages and superfluous activities involved in the processing of different instructions with the help of Value Stream Maps. The wasteful activities were then identified using the Lean Model introduced by Toyota Production System and classified into seven different categories. These were then individually analyzed and the extent of their effects on various activities and processes were analyzed and recommendations...
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...QUESTION 1: Conduct General Environment Analysis. How will Citibank affected by external factors? SOCIALCULTURE * Target corporate Client Base * Include MNCs, Financial Institutions, Government Sectors, Local Corporations and SMEs. * Offered an integrated solution enabling corporate customers to offer Web and telephone payment capabilities to their clients. ( enable client to be confident ) * World Link Payment Services * Payment can be made in more than 135 currencies through a range of payment options including cash, cross-border Automated Clearing House (ACH), Checks, or electronic fund transfers. * Touch – tone telephone payment application for one – time payment initiation as well as a customer service console to enable payment initiation by an operator. * Offered wide array of Web-based program management tools designed to streamline payment, reporting, spend analysis, global data consolidation, and other critical day – to – day processes. * Enabled corporate customers to receive consolidated spend data for all countries within Asia which could be easily leveraged during supplier negotiations. * Offered an array of integrated investment options through multiple channels, including automatic orders, branch services, and online services. * Promote the E – Workplace DEMOGRAPHIC * More than 90% of all B2B payments made by check 7% automated clearing house (ACH) network Non- Internet system designed to handle large payments The...
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...| | | | | | | | | | ------------------------------------------------- Top of FormBottom of Form | Banglapedia in Bengali | | | Citibank N A a foreign private bank in Bangladesh. The Bangladesh branch commenced its banking operations on 24 June 1995 after obtaining license from bangladesh bank in January 1995. Before starting full-fledged banking activity through the branch at dhaka, it established a foreign representative office here in 1987. The present branch of the bank is the upgraded and transformed shape of the representative office. Citi Group Inc., a merger of Citicorp Inc. and Travelers Group Inc. formed on 8 October 1998, is a bank holding company under the laws of United States of America. It is the sole shareholder of Citibank N A and its head office in New York governs the businesses of its Bangladesh branch. The bank commenced business in Bangladesh with a paid up capital of Tk 204 million and total assets of Tk 809 million. The principal activities of the Dhaka branch of Citibank N A are to provide all kinds of commercial and merchant banking services to its customers. Deposit mobilisation of the bank during the initial six months of its operations in Bangladesh amounted to Tk 541.89 million, which rose to Tk 1,577 million in 2000. The deposits were in traditional savings, current, fixed and other accounts. The interest rates offered by the bank on various deposit accounts since August 2000 have fluctuated between 5.50% and 8.50%...
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...One of the top priority areas of Citibank corporate reform is Human Resource Development. The Bank has undertaken several initiatives to ensure induction and training of professionals with the objective of ensuring high level of professionalism and productivity at all levels of its employees. Through computer training, various in-house courses, sponsorship of staff for studies at professional institutions and seminars, the Bank is providing its employees the opportunities for continuous development and learning. Effective implementation of corporate reform and business development strategies in line with best international practices has enabled Citibank to maintain its position in a highly competitive business environment. Citibank also stresses on workforce diversity and encourage specially women to join the organization. Codes of conduct and ethical issues are also regularly reinforced to the employees. INTRODUCTION Citibank Pakistan's Milestones of the 90's The nineties were a decade of domination and leadership for Citibank in the Pakistani marketplace and the trend continues into the new millennium. 1990-1996 Consumer Bank was established • Consumer Asset Business is launched. • Car Financing is introduced. • CitiGold Priority Banking is established. CitiPhone Banking launched. • Citibank Visa Card (Gold and Silver) is launched • Self-Service Banking launched • Citibank, N.A. launches its Intranet System...
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...CITIBANK INDIA Industry: Banking Financial services Owner Citigroup Founded 1902 Headquarters Mumbai, Maharashtra, India Profit After Tax INR 3422 crores (fiscal year ended March 31, 2015) Total Income INR 13490 crores (fiscal year ended March 31, 2015) Number of employees 7,500 Citibank financials: https://www.online.citibank.co.in/portal/newgen/home/Website-Citibank-Financials-2015.pdf Citibank India is an Indian private sector bank headquartered in Mumbai, Maharashtra. It is a subsidiary of Citigroup, a multinationl financial services corporation headquartered in New York City, United States. The Indian Headquarters are at Bandra Kurla Complex, a hub for multinational corporations in Mumbai. Currently, Citigroup, the owner of Citibank India, is the largest foreign direct investor in financial services in India with a total capital commitment of approximately US$4 Billion in its onshore banking and financial services business and its principal and alternate investment programmes.It operates 44 full-service Citibank branches in 31 cities and over 700 ATMs across the country. Citibank is an employer of about 7,500 people. Citi offers consumers and institutions a broad range of financial products and services,including consumerbanking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's franchise in...
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...Wardhawala, UID# 702101630 a) What is Relationship Banking? Those financial services in which a bank attempts to meet a customer's needs with a complete package of facilities. The package may include most or all of services such as cash management, credit cards, deposits, loans, money market investments, etc., that may be summarized on a single bank statement. What is the new Performance Scorecard? While financial measures typically were the way Citibank measured success in the past, they recognized a need to measure customer service as well, and thus developed a Performance Scorecard. The six different types of measures the Performance Scorecard evaluated were: financial strategy implementation customer satisfaction control people standards Citibank felt it was necessary to update the previous evaluations to include non-financial measures because they recognized that these measures may in fact be more critical to the long term success of the franchise. As a result, by adding the non-financial measures to the current measures, Citibank was able to reflect competitive dimensions in the bank's strategy. Why is the Customer Satisfaction Score metric an important component? Customer satisfaction indicator was important not only for meeting ever-increasing expectations of highly-sophisticated clients, but also for achieving strategic goals of the division, and staying competitive. Citibank’s current strategy focused on customer service as a key differentiator. Hence, Customer...
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...BANKING AND FINANCE ETHICS IN THE FIELD OF CORPORATE POLICIES Corporate Ethics The broad area dealing with the way in which a company behaves towards, and conducts business with, its internal and external stakeholders, including employees, investors, creditors, customers, and regulators. In certain national systems minimum standards are required or recommended in order to eliminate potential conflicts of interest or client/employee mistreatment. Corporate Policy A formal declaration of the guiding principles and procedures by which a company will operate typically established by its board of directors or a senior management policy committee. Imbedded in corporate policy are the company's mission statement, objectives and the principles by which strategic decisions are to be made. It also forms the basis for measuring performance and ensuring accountability at all levels of the company. Financial Institution (PBCom) Company Policies: 1. PBCom First The PBCom First Policy applies to all situations where an actual or potential conflict of interest exists. Being employees of the Bank, it is every employee’s duty to ensure that their personal interests do not conflict with the duties, which they must perform for the Bank, or with the duties which the Bank performs for its clients. When such situation occurs, employees must put the Bank’s interest over and above other interests. 2. Disclosure of Information The disclosure...
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...Performance management A Citibank case study Made by: Bryan Rinders, Marten Moolhuizen, Alrawahi Hemi, Yihai Wang and Yikun Du Prefatory note The report is based on the analysis of a classic management case that about the Citibank and the strategy performance management tool it performed, the balance scorecard. After analyzed the Citibank case, our research group came up the question: What are the main reasons Citibank fails to measure customer satisfaction and what can be done to change this, and the other steps we have to take in order to answer the question. We would like to thank all those who have given us their generous help, commitment and enthusiasm, which have been the major driving force to complete the current paper. However, we should thank every member in the team at first. Everyone in the group tried their best to find sources and materials, finish their own part in time. And thanks to our university and all the teachers who give us academic knowledge and skills. This proposal is mainly finished by ourselves. There must be some mistakes, because of our carelessness and limitation of knowledge. We are sincerely looking for your feedback. Yihai Wang, Marten Moolhuizen, Bryan Rinders, Alrawahi Hemi and Yikun Du 2015.10.20 Enschede Executive Summary The reason why this proposal is made is because of a change in strategies in 1995, the California division of Citibank decided to implement a new performance scorecard to measure a more efficiently performance...
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...that Citi's U.S. banking unit showed deficiencies in its compliance with the bank-secrecy act, which requires banks to report on suspicious activities and maintain other protections against money laundering. Citi neither admitted nor denied the regulator's allegations and entered into a consent order with the regulator to fix the problems. Though the regulator didn't issue a fine, it still has the right to do so. The regulator said the bank had numerous weaknesses, including problems identifying and monitoring high-risk customers. In response, Citi said that the bank has "taken significant steps" in developing plans to manage the risk of money-laundering risks. "Because of these actions, many of the issues highlighted in the OCC's order have already been remediated or are in the process of being remediated," the bank said. "Furthermore, we are developing a plan to address the remaining OCC requirements. " -By Alan Zibel, Dow Jones Newswires; 202-862-9263; alan.zibel@dowjones.com 2 http://www.fool.com/investing/general/2010/07/22/citigroup-strengths-weaknesses-opportunities-threa.aspx Citigroup: Strengths, Weaknesses, Opportunities, Threats By Russ Krull | More Articles July 22, 2010 | Comments (5) A SWOT analysis -- a look at strengths, weaknesses, opportunities, and threats -- is a good way to evaluate a company's business operations. Citigroup (NYSE: C ) , the baron of the big bank bailout brigade, was one of the firms at the center of the...
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...Business Policy Assignment: “Creating Shared Value” CITIBANK & HSBC 9/26/2013 D Siddhartha Reddy-014 PGDM-Finance Executive Summary How to reinvent capitalism and unleash a wave of innovation and growth by Michael Porter and Mark Kramer Shared Value is a new form of capitalism. The idea of shared value was initially explored by the authors in December 2006 HBR. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. In the article Porter & Kramer criticize neoclassical thinking on the trade-off between societal needs and economic success, and the way the concept of ‘externalities’ have shaped corporate and policy strategy. Article says that corporations should aim at creating shared value rather than only profits; this would lead to innovation and redefining of the capitalism, which as it stands is at logger heads with the society and looks at CSR as a philanthropic act done to please others. Article also questions the current perspective of viewing maximization of economic value of firm and achieving social obligations as a tradeoff. Article says that companies do face several internal cost caused due to social harms created by the company’s activities which comes back to bite the economic value created by the companies. Shared value then has not to be looked at as ‘sharing’ value which is already created by companies with society; rather it is increasing the pie of value created by respecting...
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...to highlight the role of today’s banking style. Various parameters were analyzed to know the current status of the Indian Banking Industry and the various products of the Citibank ACKNOWLEDGEMENT Nobody is born perfect in himself; it is some timely guidance, proper teaching and blessings by well wishers and seniors around us who give me perfection and skills to make myself prepared to walk on the path of success. My project work, which is the first step of mine in the fields of professionalism, has been successfully accomplished, due to co-operative efforts of friends and colleagues together. I would like to pay my sincere gratitude and thanks to those people, who directed me at every step in the project work. I would like to thank our respected director Mr.D D Chaturvedi, who allowed me to undertake this project and provided his valuable guidance in doing. I extend my sincere thank and gratitude to Dr. AMIT GUPTA, internal faculty, MAIMS, for her help and valuable support throughout the term of the project. It was a learning experience to work under his guidance. I would also like to thank the faculty member and staff member of MAIMS for their kind support and help during the project. Citibank A major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York. As of March 2010, Citigroup is the third largest bank holding company in the United...
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...additional channel choices for their customers * Banks in Europe, North America and the Far East are good examples of delivering and promoting their mobile services * Over 80% of banks currently offer some form of mobile banking * Far East and China will be the region with the highest number of users in 2015 2nd source: * Bank of America vs. Citibank (Citibank mobile is much more advanced) * Bank America: Set up on PC for online banking and can do the following: * Access their checking, savings, credit card, mortgage, line of credit, loan and other Bank of America accounts * Pay bills anywhere, anytime * Transfer funds from one Bank of America account to another * Locate branches or ATMs * Get maps and directions * Citibank: Application based approach; use cell numbers, model and carrier of phone online. (Banking is connected directly to your phone), download app directly to phone, enter codes every time they sign on. Can do the following: * Account info/activity * Payments * Transfers * Locations * Customer service * Citibank looking to make NFC (near field communications) which can make payments on a user’s credit/debit card, called an m-payment 3rd source: * More than 3 million people used mobile banking last year, up a remarkable tenfold from a year earlier * security, or the lack thereof, is the No. 1 fear among potential mobile banking customers * “All information...
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