...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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...RESEARCH PAPER NO. 1488 Strategy, Organization, And Incentives: Global Corporate Banking 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...
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...reference to one of the basic services provided by the Banks. Various theory and practical aspects were studied in regard to this project. The Project tries 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...
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...Capabilities………………………………………………………...…9 3.3 Core Competence, Competitive Advantages and Sustainable Competitive Advantages……………………...…………………….10 4.0 Citibank’s strategies in place………………………………………………11 4.1 Corporate-Level…………………………………………………….11 4.2 Business-Level………………………………………………………12 4.3 Functional-Level…………………………………………………….13 5.0 Recommendation……………………………………………………………13 References…………………………………………………………………………...14 1.0 Background of the Company’s case On June 16, 1812 City Bank of New York (now called Citibank) opened for business in New York City—with only $2 million of capital. Through many different leaders and economic environments over the course of its rich history, Citibank continues to grow and prosper. On October 8, 1998, all Citicorp and Travelers Group divisions merged to become Citigroup Inc. Citigroup is today’s pre-eminent financial services company, with some 200 million customers accounts in more than 100 countries. Citigroup is the first US bank with more than $1 trillion in assets, offering a variety of deposits and loans, credit cards, investment banking, brokerage, and a host of other retail and corporate financial services. 2.0 SWOT Analysis STRENGHTGlobal networkThrough its operation in around 100 countries, Citibank has created a global network that has proved robust in the face of economic slumps affecting many Western economies. Although hindered by loan defaults particularly in Argentina and Brazil, and the subsequent rises...
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... Credit risk management 5. Corporate banking 6. 1. A WORKING REPORT ON FOREIGN EXCHANGE BANKING SERVICES: An Analysis of The BASIC Bank Limited(Autumn 2011). 2. Advance & foreign Remittance Service” National Credit & Commerce Bank View (Autumn 2011). 3. Working Report on “credit policy and credit Risk Management of International Finance Investment and Commerce Bank Limited”.(autumn 2011). 4. A WORKING REPORT ON FOREIGN EXCHANGE OPERATION OF COMMERCIAL BANK OF CEYLON PLC AND COMPARATIVE STATISTICAL ANALYSIS BETWEEN COMMERCIAL BANK OF CEYLON PLC AND EASTERN BANK LTD.(spring 2012). 5. ADVANCE WORKING REPORT ON FOREIGN EXCHANGE OPERATION AND PERFORMANCE EVALUATION ON MUTUAL TRUST BANK LIMITED. FIROZA BEGUM (ID #0920623) (Autumn 2012) 6. Investigating the levels of satisfaction of Local Corporate clients in Standard Chartered Bank regarding the various services offered by Local Corporate.(Autumn 2012) 7. CREDIT RISK MANAGEMENT ANALYSIS OF UNITED COMMERCIAL BANK LTD. Autumn 2012 8. A WORKING REPORT ON FOREIGN EXCHANGE PROCEDURE OF NATIONAL CREDIT AND COMMERCE BANK LIMITED 9. FOREIGN EXCHANGE PROCEDURES OF SOUTHEAST BANK LIMITED: A WORKING REPORT ON GULSHAN BRANCH, DHAKA spring 2010 10. A WORKING REPORT ON FOREIGN EXCHANGE PROCEDURE OF NATIONAL CREDIT AND COMMERCE BANK LIMITED spring 2010 11. A WORKING REPORT ON the import department: citibank n.a. dhaka, bangladesh spring 2010 ...
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...INVESTMENT BANK Definition:- Investment bank is a financial institution that assists individuals, corporations, and governments in raising capital by underwriting and or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services (fixed income instruments, currencies and commodities). Investment banks do not take deposits. There are two main lines of business in investment banking. Trading securities for cash or for other securities (e.g. facilitating transactions, market-making), or the promotion of securities (e.g. underwriting, research, etc.) is the "sell side", while buy side is a term used to refer to advising institutions concerned with buying investment services. Private equity funds, mutual funds, life insurance companies, unit trusts, and hedge funds are the most common types of buy side entities. An investment bank can also be split into private and public functions with an information barrier which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas such as stock analysis deal with public information. List of the bank: 1) CIMB Investment Bank Berhad 2) RHB Investment Bank Berhad 3) Alliance Investment...
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...1 http://online.wsj.com/article/BT-CO-20120405-708286.html * April 5, 2012, 10:23 a.m. ET By Alan Zibel Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--A U.S. bank regulator on Thursday cited Citigroup Inc. (C) for failing to comply with a federal law that requires banks to establish protections against money-laundering but didn't impose a fine. The Office of the Comptroller of the Currency said 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...
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...9-595-026 REV: OCTOBER 2, 2002 V. KASTURI RANGAN Citibank: Launching the Credit Card in Asia Pacific (A) On a rainy afternoon in 1989, Rana Talwar, head of Citibank's Asia Pacific Consumer Bank, reflected upon the 11 years that had gone by since the Consumer Bank had established its consumer business in Asia. The branch banking business operations in 15 countries throughout Asia Pacific and the Middle East projected Citibank as a prestigious, consumer-oriented international bank and as the undisputed leader in most marketplaces. With earnings of $69.7 million in 1988, and a goal of $100 million in 1990, Talwar considered the launch of a new product (credit cards) as a way of growing future revenues. (See Exhibit 1 for 1988 performance.) Cards could prove to be an excellent way to overcome distribution limitations imposed on foreign banks in the Asia-Pacific region: first, by acquiring card members, by targeting customers outside its branch business and, then, by actively cross-selling other Citibank products and services to these customers. In the past, the credit card idea had met with skepticism from Citibank's New York headquarters as well as its country managers. Many in New York considered it a risky investment. Senior credit managers questioned the wisdom of issuing cards in markets with annual per capita income of $350 and also in markets with little credit experience and hardly any infrastructure. The Citibank management recognized that the economies of most Asia-Pacific...
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...SOFTWARE AS A TOOL OF COMPETITIVE ADVANTAGE: INTERNATIONAL RETAIL BANKING 1 2 3 4 5 Introduction: Objectives of this Benchmarking Study……………………………………2 Approach: Methodology and Questions…………………………………………………..9 Introduction to Case………………………………………………………………………10 The Industry Context: Global Financial Services and the Retail Consumer……………...12 Organization, E-Citi and Citi’s Global Consumer Strategy Product Market Segmentation, Cross-selling and International Leverage…………....24 Mobile Phone Basis Citi’s Future Global Retail Banking Strategy…………………..30 Products, Service Support and IT Selection Strategies……………………………….34 6 7 8 Japan, A Microcosm – Synergies, Affiliations and Reach ……………………………….36 Trust Bank, Complementary Services, and Interactive Strategic Benefits……………….55 Summary - Owning the Future of International Retail Banking……………………….…57 Appendix I - Summary Answers to Questions for Citigroup - IRB Strategy & Operations….65 Appendix II - Some Firm and Market Data Tables 1-6…………………………………………………………………………......73 Highlights from Citi’s Assessment of Global Consumer Business 1999 and 1998…..83 Bibliography and References………………………………………………………………….89 Introduction: Objectives of this Benchmarking Study This international retail banking study for Citigroup (CG)1 was completed under a three-year research grant from the Sloan Foundation. The project’s overall purpose has been to examine in a series of case studies how U.S. and Japanese firms who are recognized leaders in using...
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...Ghemawat’s “AAA” Global Strategy Framework Ghemawat so-called AAA framework offers three generic approaches to global value creation. Adaptation strategies strategies that seek to increase revenues and market share by tailoring one or more components of a firm’s business model to suit local requirements or preferences. Aggregation strategies focus on achieving economies of scale or scope by creating regional or global efficiencies; they typically involve standardizing a significant portion of the value proposition and grouping together development and production processes. Arbitrage is about exploiting economic or other differences between national or regional markets, usually by locating separate parts of the supply chain in different places. Adaptation Adaptation—creating global value by changing one or more elements of a company’s offer to meet local requirements or preferences—is probably the most widely used global strategy. The reason for this will be readily apparent: some degree of adaptation is essential or unavoidable for virtually all products in all parts of the world. The taste of Coca-Cola in Europe is different from that in the United States, reflecting differences in water quality and the kind and amount of sugar added. The packaging of construction adhesive in the United States informs customers how many square feet it will cover; the same package in Europe must do so in square meters. Even commodities such as cement are not immune: its pricing in different...
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...SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS WORKING CAPITAL MANAGEMENT On Kotak Mahindra Group INDUSTRY GUIDE FACULTY GUIDE AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY – UTTAR PRADESH TABLE OF CONTENTS Chapter No. Subject Page No. Ch No.1 Executive Summary…………………. 6 Ch No.2 Research Methodology……………… 7 2.1 Primary Objective(s)…………. 2.2 Hypothesis…………………… 2.3 Research Design……………… 2.4 Sample Design……………….. 2.5 Scope of the Study……………. 2.6 Limitations……………………. Ch No.3 Critical Review of Literature……….. 9 Ch No.4 Company Profile ……………………. 18 Ch No.5 Industry Profile……………….. 21 Ch No.6 SWOT Analysis…………………. 45 Ch No.7 Data………………………………….. 46 7.1 Collection……………………… 7.2 Primary Data…………………… 7.3 Secondary Data….…………….. Ch No.8 Working Capital- Overall View……… 53 Ch No.9 Findings & Analysis…………………. 100 Ch No.10 Recommendations…………………… 112 Ch No.11 Bibliography…………………………. 114 Ch No.12 Annexure…………………………….. 115 12.1 Tables…………………………. 12.2 Graphs………………………… Ch No.13 Case Study...…..................................... 117 Ch...
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...Comperative Study of Corporate Social Activities of Bank And Non Bank Financial Institute Executive Summery This paper deals with some banks & non-banking financial institutions which are performing CSR. It is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. It would be give strategic, longer run competitive advantage for banks and non-banking financial institutions in Bangladesh to embrace CSR in their management approaches and operations, with initiatives chosen in broad-based, extensive stakeholder engagement. Corporate social responsibility may help to establish clear boundaries among the different interests of the groups like shareholders, citizens, providers, and customers. In this paper, we will describe, analyze, and formalize the critical responsibility parameters, as well as the variables that shape them. Introduction The title of our term paper is “Comparative Study on the Corporate Social Responsibility Performing by Banking, Non-Banking Financial Institutions” . Globally, the notion of Corporate Social Responsibility (CSR) is fast gaining acceptance as the contribution that businesses can and should make voluntarily...
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...commodities firm Enron collapsed under the weight of a massive fraud, much has changed about how corporate America does business and much, unfortunately, has remained the same, with new frauds and excessive risk-taking exposed all too frequently. "We did learn some lessons and people were more careful, but greed creeps back in again," said Lawrence Weiss, professor of international accounting at Tufts University's Fletcher School of Law and Diplomacy. Before the bankruptcy of WorldCom in 2002, Enron's bankruptcy was the largest in U.S. history. Names like AIG and WorldCom may have replaced Enron in the vernacular when referring to corporate meltdowns and greed. Enron executives Kenneth Lay, Jeff Skilling and Andrew Fastow -- all convicted of white collar crimes -- emblemized the bad side of the one percent before the term existed. Once the darling of Wall Street, Enron was the country's seventh-largest company with a soaring stock price that grew more than 100 percent in 2000. The company collapsed in a matter of months as the media and the public became aware of its faulty accounting and business practices. Conflicts of interest continue to occur Sen. Carl Levin, D-Mich., chairman of the permanent subcommittee on investigations which reported on the role of Enron's board and investment banks' response to lessons learned from Enron, said the Enron scandal did not put an end to corporate malfeasance.. "One lesson we haven't learned from Enron is that corporations will engage in conflicts...
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...Definition of 'Commercial Bank' A financial institution that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit. The traditional commercial bank is a brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs. However, some commercial banks do not have any physical branches and require consumers to complete all transactions by phone or Internet. In exchange, they generally pay higher interest rates on investments and deposits, and charge lower fees. Investopedia Says Investopedia explains 'Commercial Bank' Commercial banking activities are different than those of investment banking, which include underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients. Some commercial banks, such as Citibank and JPMorgan Chase, also have investment banking divisions, while others, such as Ally, operate strictly on the commercial side of the business. State Bank of India (SBI) is a multinational banking and financial services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services...
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...| | |Executive pay should be regulated to prevent executives paying themselves too much. | | | Table of Contents 1. Introduction 3 2. Case of Bank of America CEO Compensation 3 3. Arguments on Steep Executive Compensation 4 4. Conclusion 6 References 6 1. Introduction In this period of severe economic recession in Europe and America, executive pay should be regulated to prevent executives paying themselves too much. This topic has been rising presently as due to recession and critical competition , the performance of multinational and large organization become Important to the stakeholders and also the heavy remuneration packages of top executives become objectionable. In view of the importance of this debate, following pages present the arguments on the validity and relevance of heavy remuneration of executives and their counter arguments. According to my analysis, the executive pay should be highly regulated by board of governors and other competent authorities to prevent the transfer of large sums to few executives’ accounts and to interconnect the pay and performance of these executives...
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