China's entry into the World Trade Organization (WTO) in late 2001 brought the promise that foreign financial institutions will be allowed to operate throughout China. In 1998, Citicorp and Travelers Group Inc. were merged to create a new corporation Citigroup Inc tourists brought a wide range of financial services that are added to the existing portfolio of Citibank's consumer lending and commercial. Travelers were developed extensive business in investment banking, asset management, life insurance and property / casualty insurance and consumer credit. Citigroup now was to determine the prospects of business for each of its activities in the growing China market. Concerns about the social and economic dislocation may lead China to impose legal restrictions limit the pace of foreign expansion. Economic growth may be hampered by the existing political structure, and reform can not happen in the near future. Many other problems are the human resources challenges, e-commerce restrictions, and regional differences. The pace of privatization of public enterprises and social preferences for alternative insurance and investment products added to uncertainty. Citibank had success in the less developed countries, and developed a definite competitive advantage, which could be the basis for success in China, but whether and how it could be extended to other Citigroup financial performance remains an important issue. "Hide
by David W. Conklin Source: Richard Ivey School of Business Foundation 23 pages. Publication Date: June 3, 2002. Prod. #: 902M12-PDF-ENG
Related Case Solutions & Analyses:
Wal-Mart in China 2012
Natural Gas
The New Normal: An Agenda for Responsible Living
Change at Pfizer: Jeff Kindler (B) The Wyeth Acquisition
Envy Rides Incorporated
Diversity Goals: Reframing the Debate and Enabling a Fair Evaluation
Competition in Japanese Financial Markets–2002
Identifying Value Creators
Perspectives on Terrorism
Convergence and Divergence in Asian Human Resource Management
