Citibank Case

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 Bankers 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 branchs 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 whats
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?
According to the current pessimistic economic situation in Indonesia
and current highturnover problem inside the corporation, I have set selfimposed sovereign risk limitlower than that which had been approved by
management in New York. Base on thisreason the appropriate increased
goal could be 500,000. We may take severalaggressive steps to achieve this
goal in current situation. First of all, we intend to reducethe loans to
government based on the lower returns compared with the rest of
theportfolios. Secondly we will increase the commercial loans although
there will be certainrisk because of the current slipping oil price in the
domestic market. Thirdly we will tryto help Indonesia government to
handle its balance of payments and service accounts.Lastly we may need
extra money to deal the relationship with the government based onthe
reason that we plan to cut government loans and meanwhile increase loans
tocommercial enterprise.The steps above may appear to be aggressive but
we are aggressive organization. Welike to try it because it is part of our
culture and the talent and diligent of our people canwin this battle.

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Citibank Case

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Citibank Case

Citibank is an international bank which was founded in 1812. It was established in

What is city bank, how does it work(intro)

Which kind of planning budgets

How target are being set

Reduce turnover, set higher targets since they exceed them

USED TWO MANAGEMENT PROCCESS TO DIRECT AND CONTROL THE

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