Citigroup Displays Adaptability in China
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Citigroup displays adaptability in China:
OPPORTUNITIES:
Opportunity in foreign direct investment (FDI). China is #3 in the world in foreign investment. Citigroup could focus on foreign owned corporation with service that they are experts in. Such as Investment banking and underwriting.
2001 Citigroup was optimistic about its investment banking services, specifically in the Initial Public Offering Service (IPO). Citigroup was #1 in both global underwriting and global investment in terms of revenue. Citigroup could assist State Owned Enterprises (SOE) in China with such services as the sale of shares on either foreign or Chinese stock exchanges.
Citigroup, through its Travelers Life and Annuity division (TL&A), achieved record operating earnings in 2001, placing it in the top three U.S. companies that provided individual life and annuity products. With Chinas shift away from the government and SOE “safety net” to individual responsibility for personal financial planning, Citigroup faced perhaps unlimited growth potential for TL&As service.
The shift from communism to free enterprise would bring with it the practice of personal home ownership. This becomes a huge opportunity for Citigroup and its mortgaging division.
Citigroup was significantly more international in scope than its international competitors: it operated in more than 100 countries, had 268,000 employees, and in 2001. They are up to the task of personalizing services based on culture. In addition, Citigroup’s CEO John Reed believed that Citibanks strategic advantage