Citigroup In Post-WTO China
Word Count 745 with title page & references, 685 with out them.
China entered the World Trade Organization (WTO) in 2001 and immediately experienced rapid growth. China was also experiencing problems with state owned enterprises and large debts. State banks needed radical reforms. Chinese banks did not manage Pension funds properly and subsequently were unable to collect a major portion of loans that made up state owned enterprises. Citigroup took advantage of China's financial shortcomings and seized the opportunity to expand Citigroup's services in China by offering investment banking and personal financial planning. Citigroup Displays Environmental Adaptability in China
Citigroup has displayed environmental adaptability in China. Citigroup's goal is to "grow our market share over the next five years through or embedded bank strategy" (Pearce and Robinson, 2004, p.18). Through "strong brand equity", which is Citibank's strategic marketing approach has also led to the expansion in China. The following reasons display Citigroup's environmental adaptability and expansion in China:
Citibank had an emerging markets and global advantage;
Citibank had been in the foreign market for 100 years;
Due to Citibank's experience in volatile markets created a level of operational expertise;
Citibank had the reputation unlike other banks to move in early with the intent to stay. Employees were seconded to central banks. Technology was transferred. Locals were trained.
Citibank groomed the politicians which lead to the expansion of Citigroup in China;
Citibank technological was "ahead of the curve" with respect to technology and innovation;
Human resources practices were broadly perceived as a powerful competitive advantage;
PBOC chose Citibank to improve internal auditing with the domestic banking system that lead to Citibank's accounting practice in China.
Citibank served global companies...
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