Swot Analysis

INTRODUCTION

In 2002, Citigroup, headquartered in New York, was the seventh largest company in the world according to the Fortune Global 500.

The group generated net revenues of $71.3 billion and net income of $15.3 billion (8% growth over the previous year). Citigroup, formed by the merger of Travelers Group and Citicorp in 1998 had emerged as the largest financial services company in the world offering services to its clients through four global business groups across 100 countries.Citigroup was organized into various business segments.

Global Consumer Group (GCG) offered services like banking, lending and investment services; Credit cards and Charge cards such as MasterCard and VISA; truck financing, construction, material handling, healthcare and office equipment finance; and consumer finance and community-based lending services.

Global Corporate and Investment Bank (GCIB) provided various services to corporate, institutional and retail investors - fixed income underwriting, syndicated loans , foreign exchange and futures; strategic and financial advisory services like acquisitions, mergers, financial restructurings and cash management; and trade and treasury services like integrated cash management, treasury, trade finance and e-commerce solutions.

Citigroup Global Markets (CGM), a division of GCIB, oversaw global private wealth management and equity research, providing comprehensive financial planning and advisory services to high networth investors.

Global Investment Management (GIM) took care of Personalized wealth management services for affluent clients, asset management, retirement services, and Insurance. Citigroup International (CI) looked after providing personal finance services throughout the world.

Citigroup had triggered off major reforms in the financial industry. The Citicorp-Travelers merger in 1998 gave a major boost for the Financial Modernization Bill . The approval of the bill in November 1999 allowed a single company to run insurance and banking businesses together .

Citigroup emphasized the need to adhere to the highest standards of ethical conduct; to report results with accuracy and transparency; and to maintain full compliance with the laws, rules and regulations that governed its businesses, thereby setting industry standards for others to follow.

Global Corporate and Investment Bank (GCIB) provided various services to corporate, institutional and retail investors - fixed income underwriting, syndicated loans , foreign exchange and futures; strategic and financial advisory services