Term Paper: SWOT Analysis of Citib-ank

Sample Term Paper

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This is a term paper based on SWOT analysis of Citib-ank. The first step in determining any companies worth is an in-depth assessment of its internal and external position. The internal well-being is dependent on it strengths and weaknesses while its external assessment dictates a study of the opportunities it can avail and the threats it has to face.

SWOT Analysis

The first step in determining any companies worth is an in-depth assessment of its internal and external position. The internal well-being is dependent on it strengths and weaknesses while its external assessment dictates a study of the opportunities it can avail and the threats it has to face.

Strengths

Its widening global presence and the fact that citibnk is increasing its investments in third world countries where there is a lot of potential to get new customers. For example, Citibnk acquired 20% stakes in Akbnk, which is the third largest bnk in Turkey, and in Guangdong Development Bnk in China. Also, corporate and investment bnking offices opened in Kuwait and Dubai.

Citibnk is rated Aa1 for deposits by Moody’s currently – a credit rating earned by only a few financial institutions.

Citibnk Direct, an e-bnking business launched in 2006 received deposits with $12 billion in its initial year.

Citibnk launched the world’s biometric credit card service (in Singapore) and its first biometric ATMs (in India) which is expected to revolutionize bnking services over the world. The biometric credit card includes the use of fingerprints to identify customers.

Weaknesses

Citibnk widening its global reach could be strength in terms of tapping previously untapped markets, but it can also weaken Citibnk’s position through increasing running expenses and additional employee training costs needed to operate the new branch.  Setting up its first branch in a new country implies incurring further costs in feasibility studies, training, infrastructure development and coordination between the headquarters and the new branch.

According to a CNBC report dated January 14 2008, ‘Citigroup plans to announce a write down of as much as $24 billion and layoffs that could total as much as 24,000 due to subprime and credit-related losses’ (Charlie Gasparino, CNBC, 14 January 2008)

The layoffs will increase insecurity among employees remaining with the company because they might feel that the axe might fall on them in the next round of downsizing. This will hurt the company’s performance as employee morale will be low.

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