This document provides a PESTLE analysis for Citibank. It begins with an executive summary of Citibank's history and operations, including that it has over 200 million customer accounts in 140+ countries. The document then covers the political, economic, social, technological, legal, and environmental factors affecting Citibank. It analyzes opportunities such as Citibank's large customer base in growing Asian markets and threats such as economic uncertainties and government regulations. The document concludes with references.

1. IBS COMPONENT 1 –
GROUP PRESENTATION
PESTLE REPORT
CITI BANK
IBS – UEL MBA
INTERNATIONAL
BUSINESS
ADMINISTRATION
PRESENTED BY:
DAMAI YANTHI MARTADISASTRA
NAGARAYAN BALUSAMY
NGUYEN QUANG MINH
SHI YUAN LONG
PHAM THI NGOC TUYEN
DATE : NOVEMBER 1 , 2012

2. 1
INDEX
S.No Title Page Number
1 EXECUTIVE SUMMARY 2
2 INTRODUCTION 3
3 COMPANY BACKGROUND 4
PESTLE
4 POLITICAL ISSUE 5
5 ECONOMICAL INFLUENCE 5
6 SOCIAL INFLUENCE 5
7 TECHNOLOGYCALLY INFLUENCE 6
8 LEGAL FACTORS 6
9 ENVIRONMENTAL FACTORS 6
10 STRATEGIES OPPORTUNITIES 6
11 THREATS 7
12 REFERENCES: 7

3. 2
EXECUTIVE SUMMARY
Citigroup Inc. (branded Citi) is a major American financial services company based in
New York City. Citigroup was formed from one of the world's largest mergers in
history by combining the banking giant Citicorp and financial conglomerate Travelers
Group on April 7, 1998.[2]
Citigroup Inc. has the world's largest financial services network, spanning 140
countries with approximately 16,000 offices worldwide. The company employs
approximately 260,000 staff around the world, and holds over 200 million customer
accounts in more than 140 countries. It is a primary dealer in US Treasury
securities[3].
Citigroup suffered huge losses during the global financial crisis of 2008 and was
rescued in November 2008 in a massive bailout by the U.S. government.[4] Its largest
shareholders include funds from the Middle East and Singapore.[5] On February 27,
2009, Citigroup announced that the United States government would take a 36%
equity stake in the company by converting $25 billion in emergency aid into common
shares; the stake was reduced to 27% after Citigroup sold $21 billion of common
shares and equity in the largest single share sale in US history, surpassing Bank of
America's $19 billion share sale one month prior.
Citigroup is one of the Big Four banks in the United States, along with Bank of
America, JP Morgan Chase and Wells Fargo.
Citigroup was formed on October 9, 1998, following the $140 billion merger of
Citicorp and Travelers Group to create the world's largest financial services
organization.[2] The history of the company is, thus, divided into the workings of
several firms that over time amalgamated into Citicorp, a multinational banking
corporation operating in more than 100 countries; or Travelers Group, whose
businesses covered credit services, consumer finance, brokerage, and insurance. As
such, the company history dates back to the founding of: the City Bank of New York
(later Citibank) in 1812; Bank Handlowy in 1870; Smith Barney in 1873, Banamex in
1884; Salomon Brothers in 1910.
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4. 3
INTRODUCTION
CITI NA is one of the most prominent names in international banking sector what is
an arm of financial service giant CITI group. This bank started its journey in 1812 as
the Citi Bank of New York. Currently this bank has its operation in more than 100
countries and territories of the world and half of its offices among 1400 offices are in
the United States mostly in, Chicago, Los Angeles, the San Francisco Bay Area,
Miami and New York City. Along with the standard banking transaction, this bank
also offers – insurance, credit cards and investment products. About 15 million users
are successfully using the online transaction system.
After the establishment of CITI NA in 19th century, Moses Taylor took over the
ownership and management of the bank, a protégé of John Jacob Astor and one of the
giants of the business world. After joining the new national banking system that bank
became- The National City bank of New York in 1863. That bank was considered as
the largest bank in The United States in 1868 then became the first major U.S. bank to
establish a foreign department in 1897. In 1926 Charles E. Mitchell was made the
chairman of Citi bank then that bank expanded rapidly and by 1930 had 100 branches
in 23 countries outside the United States. Then under the leadership of CEO Walter B.
Wriston, First National City Bank (and its holding company First National City
Corporation) was renamed Citibank, N.A. (and Citicorp, respectively) in 1976.
PESTLE is among the best ways in which businesses can calculate and manage risk in
constantly changing local and international economies and markets.
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5. 4
COMPANY BACKGROUND
1812 - Founded as City Bank of New York
1894 - Became the larges bank in the United States
1902 - Began expanding Internationally and became the first major U.S bank to
establish a foreign department
1930 – Become the largest bank in the world with 100 branches in 23 countries out
side the United States.
1976 – Changed its name to Citibank
1981 – Purchased Dinners Club
1994 – Opening of the first fully foreign owned commercial bank in Rusia
1995 – Opening of the first full service branch in China
1998 – Citibank was merged into Citigroup.
Citigroup is the first financial services company in the U.S to bring together banking,
insurance, and investment under one umbrella .
It provides a broad range of financial products and services to consumers and
corporate customers globally.
Citigroup has the world largest financial services network, its business covers 107
countries with approximately 2,000 offices in the world.
Fundamental of Citi strategy : Client Focus, Global Strength, Constant Innovation.
CITI’S DIVERSIFICATION STRATEGY
Diversity into related business under some coherent strategic theme.
POTENCIAL BENEFIT OF RELATED DIVERSIFICATION :
* Cross business sharing of expertise, capabilities and technology.
* Exploit economics of scope and capture synergy benefits from combining similar
operations of different businesses.
*Enable collaboration to develop new strength and create new competititve
capabilities.
*Leverage use of company’s brand name
*Increase market power.

6. 5
POLITICAL ISSUE
• Citigroup - major corporate political spender
• Citigroup operates in more than 100 countries worldwide. They obey
legislation specific to country.
• Election Cycle Trends – significant donation to 527 groups
• Trade Association Activity – contributed approximately $8.5 million in
corporate funds to political activities since 2002.
Political Factors- the political environment of the country or a region has a great
impact in the companies and businesses, the confidence level of the business owners
in a country which has an unstable political system will be lower compare to countries
that have stable political environment.
ECONOMICAL INFLUENCE
• As a multinational, Citi is subject to fiscal policies employed by government
in various countries.
• Incurred loss of $22 billion during global downturn 2008.
• Citi’s financial results are closely tied to the global and local economic
conditions.
• - Liquidity of the global financial markets
• - Prevailing interest rate
• -The rate of unemployment
• The level of consumer confidence
• -Changes in consumer spending
• - The number of personal bankruptcies
SOCIAL INFLUENCE
• Target is individual consumers as well as small medium business.
The Citi foundation is committed to maintaining economically vibrant and
environmentally sustainable communities
Social Factors- the primary social factor that have a huge impact in the analysis of the
macro-environment of the business is the demography, in the demographics there are
two areas in the demography in which most businesses are concerned, the working
population on which it identifies the number of possible employees of the company
and the population, the number of people residing in a community or a country which
will have a great influence in the demand of products and services of the company

7. 6
TECHNOLOGYCALLY INFLUENCE
• Citigroup works with Cisco systems to capitalize on digital media :
- To help Citigroup identify appropriate intellectual capital to distribute
to clients and employees.
- To help the bank develop the right advance content delivery,
multicasting, and the core networking technology to disseminate it.
Use Technology for e – business model
Early adopter of emerging technology
Technological Factors- technology is continuously changing and in order for
businesses to cope up with the competition and survive in the competitive market new
technologies must be integrated in the businesses. However, acquiring new
technologies requires a huge amount of time, money and effort.
LEGAL FACTORS
- An organization that is planning to establish in a specific country or community, or a
current organization. It must follow the laws, rules and regulations in which the
business is located. There are two types of laws that businesses are very particular and
these are criminal law and civil law.
ENVIRONMENTAL FACTORS
- business often times tackle the benefits that the organization gets as well as the costs
of their operations. The pressure groups are concerned the negative external effects of
the business such as air and water pollution. Aside from the pressure groups
government also aids in protecting the environment through passing legislations.
STRATEGIES OPPORTUNITIES
• Position itself as US leading International bank
• A premier local financial institution
• Focus on technology
• Full fledge platform of highest qualities services
• Innovative products
• Focus on corporate and multinationals
• Banking upon an old and trusted name
• Corporate social responsibility

8. 7
• There are very large population potencial customers in some countries.
• The growth rate in Asia Pacific countries is increasing higher and higher
recently.
THREATS
• Economic in Asia Pacific countries are not as developed as United stated and
Europe
• Government regulations of some countries make barrier for Citibank
• SYBER ATTACH
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• www.business.com
• Tugher Bansode (P904 ), Sumeet Gupta ( P920), Ashray Surekar ; Urati
Mehta : Vineet Shahade at el 2011 )
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http://findarticles.com/p/articles/mi_m0ISJ/is_n1_v32/ai_13667571/pg_2
Carlson, M., & Mitchener, K. J. (March 2005). Branch Banking, Bank Competition,
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