Read T. Valdmanis’s article, “Citigroup Banks on Reform Plan,” USA Today, October 31, 2002. Provide a written critique of the article and how it applies to grouping jobs into subunits.
Citigroup’s company perspective states:
“We are an economic enterprise with ... a relentless focus on growth, aiming to increase earnings by double digits on average; a global orientation, but with deep local roots in every market where we operate; a highly diversified base of earnings that enables us to prosper under difficult market conditions; capital employed in higher-margin businesses, each one of which is capable of profitable growth on a stand-alone basis; financial strength protected by financial discipline, enabling us to take risks commensurate with rewards to capture attractive opportunities; a close watch on our overhead costs, but with a willingness to invest prudently in our infrastructure--we spend money like it's our own; a focus on technological innovation, seamlessly delivering value to our customers across multiple platforms.” (Morcorft, 2008 ) Unfortunately because of these multiple platforms Citigroup has become to large to manage itself. The company which originally was created as a bank has become a vast global financial empire with a broad reach and various businesses. The article states that Citigroup is separating itself into two separate divisions: a financial investment banking division and stock research division. In an effort to circumvent negative publicity and regain stockholder respect this is the first step in revamping the financial giant. Among allegations of Wallstreet wrongdoing, Citigroup is separating its stock research from its investment banking operation in an attempt aimed at eliminating potential conflicts of interest. The two departme ...