Case Analysis of Citigroup Essay
Citibank has operated in China for more than a century and has a long history of goodwill in the country. The company began operating in China in 1902, and by 1930 was one of the country's largest and most important banks. Citibank had branches in nine cities, but the …show more content…
Citibank, along with many other banks jumped into the financial race when China joined the WTO. One of the big differences is that Citibank had been there for quite some time. Many experts expected large international retail banks like Citibank to move quickly and increase branch networking in China, but it has not happened (He & Fan, 2004, p. 5). Once again these facts prove that Citibank has fallen well short of adaptation to environmental factors in China's financial market.
Joint Venturing A specific instance where Citibank was unwilling to adapt to the Chinese environment was through joint ventures. China had stated that all foreign insurance ventures must be 50% owned by Chinese government. Citibank felt that such ventures would lack long-term success and therefore decided to forego joint ventures and attempt to penetrate the insurance market through mergers and acquisitions. The