Case Analysis: Citibank Essay

Decent Essays
Kristin Howell
Bus 400 Sec A
Dr. Li
30 October 2007

"Citibank Case Analysis"

Introduction: Through reading the article titled "Citibank: Performance Evaluation" and performing my own in-depth case analysis, I was able to analyze the issues Citibank California was confronted with and determine possible solutions to help run their business more successfully. Although Citibank is a well-run corporation that made necessary improvements in an effort to gain a competitive advantage over their main competitors, Bank of America and Wells Fargo, a main area that needs improvement is clear: customer satisfaction. As Frits Seegers, President of Citibank California, identified, without improving customer satisfaction, the extreme success
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In other words, "Citibank's strategy in California was to build a profitable franchise by providing relationship banking combined with a high level of service to its customers" (p. 76). Like most businesses, customers' expectations rose with their net worth, in addition to providing a greater profit margin for the company itself. While financial measures typically were the way Citibank measured success in the past, they recognized a need to measure customer service as well and thus developed a Performance Scorecard. The six different types of measures the Performance Scorecard evaluated were: financial measures, strategy implementation, customer satisfaction, control, people, and standards. By developing this Performance Scorecard, Citibank believed they could better analyze where each branch needed specific improvements and where each branch was excelling. Citibank felt it was necessary to update the previous evaluations to include non-financial measures because they recognized that these measures may in fact be more critical to the long term success of the franchise. As a result, by adding the non-financial measures to the current measures, Citibank was able to reflect competitive dimensions in the bank's strategy.
Citibank Issues: After performing an evaluation using the Performance Scorecard, Seegers recognized the need for increased customer service at their most important branch. Through their measurements of customer satisfaction,
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