1. Perform a STEEP analysis to understand the general environment facing Citibank. How will Citibank be affected by external factors? In particular what is the affect of the internet on the banking industry and Citibank?
a. Social & Demographic:
- Commercial cards enabled customers to receive consolidated spend data for all countries within Asia. - Clients can benefit from in consistency in products, delivery, and services. - Only balanced card issuers are able to deliver local-currency and local-language programs to clients worldwide by using its own proprietary systems and customer service operations.
- New technology required major investments in people, risk, and technological services that some banks were not ready to make or had the assets to make happen. -Citibank invested millions of dollars in the infrastructure required to move and monitor cash balances online. - Main focus or goal is to provide corporate customers the most cost effective, cutting- edge, reliable, and secure solutions in technology innovations. - Technology was used as a means to achieve strategic objective for Citibank, with intentions to lower costs and improve efficiency in its investments in IT provided better client services.
- Citibank offers outsourcing services to corporate customers, secures all business transactions from customer, and attempt to gain a loyal relationship. - A large consumer base will provide Citibank with economies of scale (low unit costs). d. Environmental & Geographic:
- Citibank is uniquely positioned to service its customer’s global needs and secure in its expertise, resulting in setting Citibank’s separation from competitors. - Citibank implements the “embedded bank” strategy in emerging markets (build broad customer base, diverse products, community involvement, and recruitments from local population). - In geographic regions outside of the US, Citibank recruits staff and senior... [continues]
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