[CITIGROUP CASE STUDY] BY: AMMARA ABRAR 11749 DATE: 12-12-12

ACKNOWLEDGEMENT
First of all I would like to thank Allah Almighty for providing me with wisdom and intellectual capacity to complete this report. Then, I would we like to thank my parents for providing me with opportunity of learning. Lastly and most importantly, I would like to thank my supervisors Dr. Siraj Jamal for guiding me to complete this report.

ii

ABSTRACT
This research report intends to identify an over view about the company and the reasons due to which the company is suffering bigger losses constantly and having no success in financial fields at all. The research attempts to provide the company with suggestions and new ideas that it can use to succeed. The company can use these ideas for success in the strategy and can implement them for good results and to achieve its goals.

iii

TABLE OF CONTENT
S. NO. 1. 2. 3. 4. INTRODUCTION. PROBLEM IDENTIFICATION........................... 1 DESCRIPTION ACKNOWLEDGEMENTS ABSTRACT. LIST OF TABLES PAGE NO. ii iii Vi

5.

SCANNING.. 6.

IMPLEMENTATION. 7.

CONCLUSIONS & LEARNING . 8.

9.

Appendix

iv

CITIGROUP

INTRODUCTION
Citigroup is an American multinational company whose corporate headquarters are located at Manhattan in New York city. Citigroup is working as one of the worlds most prestigious financial networks and with the span of 14 countries around the world. It is well known that Citigroup used to be the well and largest company of the world and in todays world now it is ranked as 20th in the listings. It was indeed very clear that Citigroup has face huge financial losses during the financial crisis of 2008. But on the other way round it has also maintained cash reserve to get back the position of the company where it used to be back then but now the fact that today even in Pakistan it is still suffering losses and here we are going to recommend few suggestion for it to get back to its state.

CITIGROUP

IDENTIFICATION OF PROBLEM
As Citigroup was formed on 9th October 1998, it used to be one of the largest financial services of the world and was acting to be as a finest organization. But as global crunch started company started to have financial downturns and resulted into losses the main reasons of occurrence of losses were Subprime mortgage crisis which explained because of the exposures of the heavy troubled mortgages flow in the form of CDO which is collateralized debt obligations which gave the very poor risk management services and hence it led Citigroup into huge troubles. The aggregation had acclimated busy algebraic accident models which looked at mortgages in accurate bounded areas, but never included the achievability of a civic apartment downturn, or the anticipation that millions of mortgage holders would absence on their mortgages The other reason was because of the European debt crisis which clearly stated that the company stated and announced to cut the jobs of 4500 employees which was basically aiming to reduce costs and the unpredictable market situations prevailing during the periods and because of which it was made impossible for the company to get back to the position and recover its losses and so it planned to take such actions in this turn.

CITIGROUP SWOT ANALYSIS Strengths: They are located in 140 countries in the world. Wide arrangement of product and services offering Operations in many sections

Weakness: Loan losses No backup plan for financial crunch or recession

Opportunities: Lowering rates for borrowings etc Globalized footprint maintained

Threats: U.S treasury bill can shake the business Recent crisis or financial instability can threat its banking business

CITIGROUP

Policies:
They go for proper policies like their huge focus is over the environment policy framework their much focus depends upon the risk management which includes the social concepts as well. And on those policies where the use of procedures are very well known.

Cause:
As nowadays their cause is of having no finance so their more focus is towards the cutting of jobs of their employees as they recently decided to cut off and eliminate 11000 jobs to they can maintain their criteria and overcome their financial crisis.

Reasons:
They are a financial institution. They have somehow the high potential in growth of the consumer banking sector. They are moving towards job elimination because of their movement towards the lowering their costs locations.

Procedures and Rules:

They have different procedures of running into the business so that they could work effectively. Because of what they could evaluate the effectiveness of the company. They are very effective in recording, processing, summarizing and reporting.

Plant:
The company is running its business at a very vast scale such that it is in the countries as New York, Australia, Pakistan etc

People:

CITIGROUP This company provides a great help in order to be as a financial institution and provide the basic financial facilities to their consumers.

Effect:
The effect this company shows is that it provides a help to the people who wants to avail the facilities from here and give them their required needs

CITIGROUP

SCANNING
GAP ANALYSIS
As it is highly noticed that banks play an important role for every economy and it is well said that they are working as the most sensitive cases in all over the world wherever we go they play a very significant role in both the economic world and the contemporary world so they should strategize something out of it and should make sure whatever they do they do for the betterment and for the countries growth and for the well nourishment of the societys growth as well. They should make such polices as a backup with which they could stay organized even in the financial crisis or inflation. Their strategies should be so strong enough which should prevent them from being attached by any barrier or other problems.

CITIGROUP

IMPLEMENTATION
RESEARCH AND DEVELOPMENT DEPARTMENT
They should make sure that whatever strategies they make for their business should work in accordance as well. They should decide at the first priority that weather they should get serious or should not. What task should be distributed among the teams and their performances as well. They should plan too much that if one plan fails in the time of need the other would work for and should give the right opportunity for them. They should have a top level meeting for the motivation of the employees working in the organization so that they could work accordingly at their best. They should have hard and fast rule strategy plus good procedure follow systems.

CITIGROUP

CONCLUSIONS & LEARNING

By following proper strategies and rule Citigroup can attain its position back and could reach the heights because there is still some hope left for the company to grow again