Major american corporation


Citibank is a major American corporation. As a top company in the Banking and Financial Services industry Citigroup specialize in highly diversified financial services.

The general business activity and principal products or commercial enterprise of Citigroup are categorized as being part of the Banking and Financial Services Industry.

Its motto is to put the client's interest at first priority and play important role in the global economy. Citibank provides innovative, high-quality products and services to its clients.

Mission Statement:

"Citigroup Inc. ("Citi") recognizes that foreclosures affect the individual, the family and the community. We also understand that early intervention and a full understanding of the available options are important for mitigating or minimizing the impact of foreclosures.

Citi's Office of Homeownership Preservation (OHP) is dedicated to finding solutions that preserve homeownership and help mitigate the challenges faced by borrowers. We work directly with borrowers at risk of losing their homes. We also work with any and all stakeholders who advocate on behalf of borrowers, including non-profit organizations, elected officials, government agencies, regulators and others. Our strong partnerships with these stakeholders help us to develop and implement homeownership preservation solutions and enable us to magnify our outreach and assistance to borrowers. For example, OHP's hotline for housing counselors greatly enhances their ability to work with us on behalf of our borrowers. And our borrower and counselor outreach programs, which we conduct in collaboration with partners in numerous locations around the U.S., bring help directly to at-risk communities."

General Objectives:

The ultimate goal of Citibank is to be recognized as the most respected global financial services institution. It was the first bank to introduce credit cards in various countries and introduced the concept of 24 x 7 call center. Citibank intends to design innovative financial products to facilitate its customers to make better investments and earn more profit.

It intends to play a vital role in economic growth of the country. It delivers export agency and multilateral financing services and has played influential role in expansion of country's market for derivatives and other treasury products.

Specific objectives:

Citibank intends to satisfy its customers more than its competitors. It intends to design innovative financial products to facilitate its customers to make better investments and earn more profit.

Powerful distribution networks, electronic channels, myriad of financial products which cater to customer mix, broad product capabilities - this is what is needed to succeed in the volatile markets of today. This is what allows Citibank to offer institutes worldwide the right financial solutions - every time, all the time.

Corporate and investment banking clients include corporations at every stage of development. Catering to the changing needs of corporations and leveraging on long term relationships, Citibank execute transactions of almost any size, of every level of complexity, and back them with a wide distribution network.

Along with that Citibank plans to get full advantage of micro and macro environmental factors i.e. to get full advantage of opportunities and plan well to avoid harmful impacts of treats.

Citibank heads the financial sector reform process and has been at the forefront to take government to the international capital markets.

Environmental factors:

Theenvironment around is always changing, the first and the foremost challenge to banking industry is to cope with change in economic conditions. There are several micro or industrial environmental factors and macro or external environmental factors that pose challenges to banking industry.

Micro environment:

The internal challenges include technical expertise, infra structure development, development of liability products, anti money laundering, operational aspects, human resource development.

  • Banks should put their main focus on acquisition of technical expertise in changing paradigm of banking sector regulations. Human resources must be able to learn and adapt to changes in the environment and make well informed decisions. Financial institutions around the world are using a technique called “stress testing”. This technique helps to estimate the changes in portfolio, if the institution is exposed to different risk factors.
  • Private sector participation is increasing tremendously in infra structure development, around the globe. In 1990s, private sector investment rose gradually in infrastructure projects and the most successful projects among these were executed in 136 low and middle income countries. Banks have to confront with certain challenges of learning from experience of other emerging market economies and introducing innovative modes of infrastructure financing and device methodologies of risk management.
  • Increased attention has been paid on the asset side of banking over recent few years. But lesser emphasis has been put on developing innovative liability products. This has lead to stagnant financial savings in the economy. The need of time is to device profitable savings products in order to take care of small savers' interest.
  • Misuse of banking industry has resulted from increased integration in global financial industry. This has resulted in using bank money for terrorist financing, drug trafficking and money laundering. Except for a few well-developed countries, other countries lack a comprehensive legislative system to deal with such problems.
  • Banks put a lot of emphasis on treasury and corporate business and often fail to realize the importance of operational aspects of the business which should not be underestimated. Banks should provide the operational staff with incentives in order to encourage them.
  • Human Resource Development is a new term being used in business these days. Human resources are as important as financial resources, and banks should develop their human resources in such a way that they prove to be productive in all time changing environment and face the business challenges effectively.

Macro environment:

  • Over the past few years interest rates have reached historically low levels to encourage a favorable environment for economic growth. This has enabled smaller business entities to get bank financing, which helped these businesses to flourish well. However, the interest rate structure is changing gradually over the past few years.
  • The question at this point of time is that whether banks would be able to expand their businesses on the base of low financial charges which was the major factor behind increased credit demands. Along with that repayment capacity of borrowers is questionable who borrowed money at floating rates.
  • Consumer-Durable Demand is also an important aspect to be considered. Inflationary pressures have been created on the economy because of vigorous growth of auto and mortgage financing. Prices of assets acquired through bank financing have been increased significantly in recent times which are the main cause of pressure.
  • The probability of default on these loans has a direct relation with the value and the nature of the underlying collateral as most of the consumer lending is secured. This said, asset prices play a crucial role in determining the size of the losses incurred by banks in case of default.
  • Given the volatile nature of the equity markets, banks' investment in equity stocks needs a cautious approach.
  • Another area where still a lot of progress should be made is the E-banking. Although small and medium banks are now offering on-line services to their customers, the large banks, with more expanded branch network and number of customers, are required to move more expeditiously so as to optimally utilize the E-banking network. This will not only lower the transaction costs but will also help in improving the customer services. The ATM penetration ratio is still quite low and the efforts are needed to not only further expand the ATM network more aggressively but also to improve upon the security standards.

SWOT Analysis


  • Citibank is a Multinational organization which provides it a competitive edge on other local banks.
  • Well established brand name of Citibank makes it more reliable for clients.
  • Citibank stand on 7th rate according to world wide bank ranking
  • Being a multinational organization Citibank is globally accessible to its clients.
  • Citibank also provide SMS banking facility which makes it easier for its clients to receive alerts about any kind of transaction made from their account. They can also get any kind of information about their account.
  • Being a very strong Financial Institute, Citibank is a good option to invest money in.
  • Highly professional Human Resources of Citibank ensure complete customer satisfaction. Highly trained and skilled Human Resources make it easier for its client to resolve any kind of issues or problems related to their account.
  • Extended banking (9:00am - 8:00pm) is an extra effort to provide customer with better service and convenience.
  • Strong relationship with customers ensures long term commitment from customers.


  • Inadequate hiring puts a lot of work pressure on the employees which may lead to lower employee satisfaction.
  • Discrimination between contractual and permanent staff (differences on salaries, workload, and fringe benefits) may also cause employees to switch their jobs with better paying organizations.


  • International local bank (Cheque of any branch of the bank can be presented to any branch of the same bank, located anywhere in the world for encashment)
  • Developing innovative liability products can attract more customers


  • Instable economic conditions pose a lot of risk to investments of bank
  • Variable interest rates

Types of decisions

There are some of the critical decisions that top managers face every day. To capture maximum value, executives not only must make the right decisions, but also must negotiate skillfully. Since most business decisions involve other parties, it is essential for managers to understand their individual role as it relates to other decision makers, as well as how to use this knowledge to create the strongest possible negotiating position.

Hence, keeping in mind the importance of decision making for managers, information systems are also designed in a way to help them out to control operations and perform their managerial responsibilities more effectively.

Types of decisions made at various level of organization depend on the sort of problem faced. There are three broad categories of decisions:

Structured decisions:

Structured decisions are made where problem is recurring and repetitive, the common factors can be identified in order to identify a particular course of action. Due to which defined set of procedure can be devised for their solution. Such decisions are made for routine problems like cutting on the written cheques, corrections needed in the personal data of clients etc.

Procedures for obtaining the best solution for such ordinary problems are standardized. There exist certain rules and regulations for determining the solutions of problems, by the organization. Objectives to be achieved are clearly defined.

Unstructured decisions:

Unstructured decisions are made where problems possess multiple solutions, solution paths, fewer parameters which are less manipulate able, and contain uncertainty about which concepts, rules, and principles are necessary for the solution or how they are organized and which solution is best.

When problems are non routine, critical and novel in nature, they require individual judgment, evaluation and insight varying on case-to-case basis. There is no well understood or agreed upon procedure for handling these problems. For such situations, predefined policy cannot be devised. Personal bankers are not allowed to make such decisions; they must report such issues to line manager. Line managers also have limited authority to make such decisions. If the problem can be solved within their limitations they make individual judgments to handle the problem otherwise they report to their department head or branch manager.

Once the problem has been figured out, a policy may be devised to handle the problem in future. This can make the problem look like as structured one giving regard to the role of individual judgment.

Semi-structured Decisions

The term is used to refer to the grey area of decisions which lie between the two extremes. Some (but not all) structured phases and often solved using standardized solution procedures and human judgment.

Such decisions are usually taken based on meeting of all departmental heads. The fact is that whether decisions are taken by single person or all in a formal meeting is not the sole determinant of a decision being structured or unstructured. Rather it simply shows the complexity of the problem.

Information requirements

Information requirements for different types of decisions vary a lot. All of the employee, customer and account information are recorded in the Management Information System of the organization.

Citibank ensures that any of their clients or employees does not belong to any terrorist activity; they are not defaulters or are wanted criminals of any country. Information about wanted criminals, terrorists and defaulters are easily available on the internet, and employees of Citibank make sure before making someone a part of Citi Family.

Other information regarded to decision making is usually provided to respective departments in written form, by the organization.

Information Systems

Citibank utilizes Management information system, Transaction processing system and work group information systems which are all computer based to enhance the working efficiency of the organization.

  1. Strategic level: At strategic level Management information system facilitates decision making. It helps to produce reports for managers. These reports are usually generated on predetermined schedule and appear in pre arranged format. Budget forecasting and analysis reports, financial reports, salary analysis reports, sales reporting/forecasting etc. can be obtained using MIS. Such information system is usually used by the tope managers like country heads, regional heads, president, vice president and CEO of the organization. These systems are extremely helpful as they summarize large amount financial data into report format to help the strategic managers in planning and forecasting. They set long term goals for organization by the help of MIS.
  2. Tactical level: Middle levels managers are involved in tactical decision making and they use Workgroup information system for this purpose. They set short term goals for the operations level management in order to achieve the long term goals set by strategic managers.
  3. Work group information system enables employees of one department to record all the information in one information system which is visible to all the people working in the same department worldwide. This information system enables managers to inform their department employees about what goals are to be achieved and how. Such information system has been very helpful in boosting the productivity of different departments.
  4. Operational level: Operational decisions are usually made by the first-line managers which have the least authority and are lowest in the hierarchy of the organization. Transaction processing system is used by the cash and operations department for recording the bank deposits and with drawls. All the operational activities are recorded in this system and report presented to middle level managers.

Recommended information systems

Although Citibank uses a very well defined and state of art information system, further improvements can be made to enhance its affectivity and efficiency.

  1. A Decision support system which provides its users with decision oriented information whenever a decision making situation arises. Decision support systems are also called executive information systems. Such an information system can facilitate executives for making better decisions. A decision support system can help in:
  2. Identification of problems or decision making opportunities (similar to exception reporting)
  3. Identification of possible solutions or decisions
  4. Access to information needed to solve a problem or make a decision
  5. Analysis of possible decisions or of variables that will effect the decision (what-if analysis)

A Decision support system will prove to be extremely helpful at strategic level of decision making.

  1. In order to avail the opportunity of being international local bank Citibank needs an Expert system. Such an information system captures and reproduces the knowledge and expertise of an expert problem solver or decision maker and than simulates the thinking or actions of that expert. An expert system uses Artificial intelligence technology.
  2. A major credit card broker can an expert system to accelerate credit screening that requires data from multiple sites and databases.
  3. Client may get cash for his cheque anywhere around the world, a by the help of an expert system.

An expert system may facilitate middle managers in tactical decision making.

Apart from having a very good information system, the employees have to make use of telephone lines to communicate with their sub ordinates and managers located far off. There is a need of office automation system which supports wide range of business activities that provide for improved workflow and communications between workers regardless of whether or not those workers are located in the same office.

An office automation system is necessary for operations decisions.

Ethical issues related to IS/IT

Computers have become a vital part of our lives as they are getting more powerful and autonomous day by day. We need computers for our work in order to perform effectively and efficiently. Fail-safe and self-healing technologies have made it more suitable for organizations to work globally by the use of world-wide web. E-commerce has enables business entities to coordinate, control, and monitor their business activities very quickly and spread information globally.

But there exist certain ethical issues which must be addressed:

  • Acknowledgment of data sources is very necessary in banking industry any fake information may lead to the loss of millions of dollars.
  • Privacy principles provided by organization must be followed. Privacy of information must be ensured under any circumstances.
  • Access to data, ownership and control of data must be provided only to the relevant department.
  • Credit card fraud can occur if a thief somehow breaks into an e-Commerce server and gets hold of credit numbers and related info
  • Industrial espionage is another problem that may arise from use of IT. Spies of one business monitor the network traffic of their competitors and generally look for information on future products, marketing strategies, and financial records which may prove fatal for that business.

Source: Essay UK -

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