STATEGY FORMULATION AND IMPLEMENTATION
SEPTEMBER 11, 2006
Citigroup Entering China Argument
Summary
There are different indicators of adaptability, a company is deemed adaptable if it is able and continues to be innovative in a challenging and foreign environment. Citigroup represents an excellent example of an entity that has displayed adaptability to its environment. In 2001, Citigroup decided to increase its offering in China despite the change in the Chinese Environment, China was entering in World Trade Organization (WTO). Such a venture implied uncertainty in the country's economy and laws. As a learning team, we have analyzed the case "Citigroup in Post-WTO China". Sides were taken on whether Citigroup has shown adaptability in its attempt to expand its operations in China. The team found the case very challenging to analyze and was at ?odds' about how to proceed. However, it was an overwhelming consensus that Citigroup, in fact, displayed tremendous level of adaptability. To this end, the arguments and the evidence for adaptability far outweighed those of whether Citigroup did not displayed adaptability in its attempt to expand operations in China. The salient arguments for each side of the debate are outlined below with an agreement as to whether or not Citigroup displayed adaptability.
Arguments supporting Citigroup's Adaptability
China is one of many Asian countries that have a higher competitive economic growth potential. In 2001, when China entered into the World Trade Organization, there was tremendous hope that the Chinese market would open up for foreign financial institutions. Citigroup's entrance into post-WTO China; has raised questions about the company's ability to use adaptability while trying to grow its ...