Citibank Case

Citibank is an international bank which was founded in 1812. It was established in New York and is the consumer division of the multinational Citigroup. Today it is a large bank which operates globally in 35 countries and has more than 3700 branches. They are well-positioned and well-diversified and one of the leading banks in the world. In 2013 they were awarded the “global bank of the year” in The Banker’s annual awards. The United States is the single largest market they have today which generates 51& of the revenues in addition Latin America makes up 25% of the revenues, Asia 20%, Europe/Middle East/Africa 4%. The bank was hit by the recession in 2008-2009 and was aided by the government to survive, however today they have paid the loan back in full. Our case takes us back to 1983 where the bank had started to operate outside US. It had expanded to growing markets and countries where it wanted to generate profits and grow with these newly independent countries, like Indonesia.

Citibank was divided in three major business units; institutional banking, individual banking and capital markets group. Within these units institutional banking was the one generating highest revenues and profits. Citibank entered Indonesia in 1968(achieved independence in 1949) with seven other foreign banks and the aim of the country was to build up this relatively young economy with these banks helping out by transferring capital into the country, modernizing the banking infrastructure and make the country attractive for further investments and to develop well trained people. Indonesia has a lot of natural resources like oil and tin and had been developing and increasing its gross domestic product for years. At that time Citibanks’ country corporate officer was Mehli Mistri, he was the spokesman for Citibank Indonesia and his primary responsibility was the institutional banking. He had to make a decision about the branch’s strategy and budgets in 1983 because of the situation they were in.

Some more background info? Mention long term and short term goals of country and citibank

How they run their shit – the budget controls, analyze good and bad with what’s written in the book

How targets are being set, re-read targets part and analyze what work in Citibank with what is good and bad and any improvements?

Mention the issue with the turnovers and how budgets and other controls can make employees stay and maybe change the budgets to become more challenging? Motivation? Basically stop turnovers

Conlusion?! Still no idea what he should pinche do

Use the articles found online to prove points/get ideas!

• What is city bank, how does it work(intro)
• Which kind of planning budgets
• How target are being set
• Target issues
• Reduce turnover, set higher targets since they exceed them
•  

USED TWO MANAGEMENT PROCCESS TO DIRECT AND CONTROL THE INTERNATIONAL BRANCHES:

Review of sovereign limits
review of operation budgets and accomplishments

Case Questions

(for advance preparation):

1. Analyze the budgeting process at Citibank and how the budget is used for performance

evaluation of managers.

1. Are managers at Citibank committed to achieving budget targets? If so, are the budget targets too challenging? Is there any evidence of budget gaming?

Essay Question (for written work): What should Mr. Mehli Mistri do about the budget issue described on the first page of the case study?

1.How does the Citibank budgeting process work?