Citigroup Case StudySummaryThis summary presents a discussion on Citigroup Corporation. The main arguments, debated by Team E, center on whether Citigroup has demonstrated adaptability in expanding its operations in China. The conclusion summarizes Team E's agreement that Citigroup has demonstrated environmental adaptability in its attempt to expand its operations in China. commercial activities. Citigroup, a leading foreign bank operating in China, has become one of the most successful financial services companies in the world. This bank has outperformed and is a leader in the most profitable and attractive growth areas. With operations in more than 100 countries and more than 268,000 employees, Citigroup's 2001 annual report provided an extremely optimistic view of the company's strengths in investment banking. The privatization of state-owned enterprises in China has provided an investment opportunity for Citigroup. Citibank, a branch of Citigroup, has developed a strategy to target strong public companies by identifying 10 sectors that will grow the fastest in a country and targeting profitable companies within these sectors. Companies are chosen not only based on the figures in their financial statements, but also based on the industrial sectors in which they operate and the qualities of the management team. Adaptability to Expand Operations in China Several factors illustrate Citigroup's attempts to display its adaptability in expanding its operations in China. The company's main strategy is based on the achievements made by Citibank. Citibank was one of the first foreign companies to obtain licenses to conduct a limited range of business activities in China. Citibank's current global network is large enough to conduct business with many of the most powerful companies in the offshore market. When it comes to technological and financial innovation, Citibank is known for being "ahead of the curve" and perceived as one of the market-leading banks in the United States and internationally. Over the years, Citibank has won numerous awards for providing better business banking services than other local banks. Citibank's attempt to expand into China may be based on previous experience with accounting practices in that country. Citibank has previously worked with the State-owned Bank of China (PBOC) “to improve internal audit requirements within the Chinese banking system” (p. 19). As a result, the PBOC recommended these practices to other banks across China. Citibank has set up a human resources structure to train the local population to become successful managers..