Tows Matrix of Citigroup

TOWS Matrix

Strengths- S
1. Financial resources
2. Recognized as the world’s largest bank in terms of market capitalization
3. Broad product portfolio
4. Formulation of the Japan Desk
5. Strong market position and brand before the 2004 FSA crisis Weaknesses- W
1. Weak internal control
2. Unclear lines of authority
3. Lack of customer care
4. Unethical governance
5. Lack of reputation with regulatory agency

Opportunities- O
1. Banks in Japan play an important role in financing and monitoring public firms OS Strategies

(O1,S3, S5) focus on retail and commercial banks in Japan OW Strategies

(O1,W1,W5) establish sound internal control
(O1,W2) organizational restructuring/establish fixed line of authority
(O1,W3,W4) reconsider focus in corporate governance

Threats – T
1. Difficulty in earning the trust in banking and finance industry
2. Regulatory body’s concern for public interest TS Strategies

(T1, S4) establish customer service
(T1,S1) increased perceived benefit to clients
(T1,T2, S1) corporate Social Responsibility TW Strategies

(T1,T2,W3) establish customer service in the company
(T1,W3) increased perceived benefit to clients
(T1,T2,W4) modify emphasis in corporate governance
(T2,W1,W5) establish sound internal control

1. Focus on retail and commercial banks in Japan

Advantages Disadvantages

** reengineer their retail and commercial banks
2. Establish sound internal control

Advantages Disadvantages

Costly to implement
** improve and substantiate their internal control mechanisms (control environment, etc)
3. Organizational restructuring/establish fixed line of authority

Advantages Disadvantages

Costly to implement
**establish a centralized system (clear out the responsibility of one personnel from the other)
4. Reconsider focus in corporate governance

Advantages Disadvantages
Realization of company’s current priority Possibility that an imbalance will still occur
**