Citibanks E Business Strategy For Global Corporate Banking 2008 Case Study Analysis


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Citibanks E Business Strategy For Global Corporate Banking 2008 Case Study Solution

Background and Facts

Citibanks E Business Strategy For Global Corporate Banking 2008 an office supplies store for small and also moderate sized companies has actually recently been associated with preparing for a merging with its competitor House Deport, which has impacted efficiency levels in departmentswith the senior manager associated with lawful difficulties presented by the federal Trade Payment. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With challenges in the type of a prospective cultural modification as well as low staff member morale, the organization is in need of a total reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential social adjustment at the advertising and marketing department of Citibanks E Business Strategy For Global Corporate Banking 2008 is increasing uncertainty in the workplace resulting in numerous obstacles for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting calculated choices because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Commission's intervention while doing so. Provided the fact that the shop has a worldwide visibility with branches in UK, USA, Canada and also Germany, political consider each of these nations may be able to affect efficiency or tactical goals. Federal Trade Compensation's antitrust suit against the merger took up important time of the organization's senior monitoring suggesting that 'political' factors can have severe effects for an international company.

Economic Factors: Financial factors such as the introduction of local business in the global circumstance recommend that Citibanks E Business Strategy For Global Corporate Banking 2008 is prospering in an environment where there is possible development of services. In addition to this, truth that store clients are mainly trying to find workplace materials for office suggests that the market has a rising trend of entrepreneurs and also home organisations.

Social factors: Social fads in the economic climate show that clients are trying to find comfort as well as eye-catching costs. Market research demonstrates how the customer for Citibanks E Business Strategy For Global Corporate Banking 2008 does not have awareness concerning locating options which can provide a combination of benefit and affordable.

Technological factors: Modern technology plays an important role in Citibanks E Business Strategy For Global Corporate Banking 2008's company strategy particularly as the organization is piloting Innovation facilities which would supply innovation sales as well as assistance in the kind of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Habits concerns can be seen in Citibanks E Business Strategy For Global Corporate Banking 2008's case as highlighted in this section.

Apprehensions concerning social adjustment: There is apprehension regarding a cultural modification that would occur when Todd Krasnow leaves from his position as the Executive Vice President of Marketing with the majority of the team member already revealing discontent over this potential step. This anticipated change has created stress and anxiety in the workplace which has actually been combined with the previous tension of preparing the company for a prospective merger with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is lack of employees that can match the demanding atmosphere of a hectic organization. Not just does this result in problem in finding the right individuals, it places stress and anxiety on new hires as can not withstand the speed as well as pressure that the company expects them to bear.

Twin Coverage Lines: Beginners discover this business society cumbersome and also tough to deal with especially as dotted line relationships are meant to be weak as a whole and unbiased setting as well as performance examination is still done by the strong line manager. This implies that beginners can lose clearness concerning their respective duties and also purposes especially as dotted line reporting does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been guessed that the latter would take Krasnow's placement came as a strike to her morale. Lewis might have been capable and suitable for the work however the fact that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Concern & Work Insecurity: Anxiety as well as instability can be identified as 2 significant problems that Lewis would certainly be taking care of especially as the merging has actually now be cancelled and also 2 elderly execs of the advertising division would be leaving. The whole duty of the division would be dropping on Lewis's shoulders that would certainly not just supervise of brining regarding a cultural adjustment but would additionally need to show herself in her brand-new duty.

Inappropriate Monitoring Design of Leader: Lewis's administration design as well as its conflict with the marketing department's duty can additionally be seen as an OB challenge specifically as she has been made use of to managing concerns in the operations department where personnel are instructed to concentrate on processes and obtain them. The advertising division on the other hand can be viewed as a team of individuals who are used to being supported by Krasnow that focused a lot more on result than procedures.

Interdepartmental Arguments: Interdepartmental differences in between 3 divisions, marketing, merchandizing and also procedures respectively over the allocation of the marketing mix can be determined as one more OB issue. The advertising division does not share the exact same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix appropriation amongst one another either.

Fragmentation in Advertising Department: Fragmentation in between the marketing and advertising departments can be determined as an additional OB problem which might need additional focus. The reality that the advertising and marketing areas in the advertising division are disconnected is stopping both departments from acquiring from each various other's experience and also experience. Integration of marketing with merchandising as well as procedures would certainly come to be harder if the advertising division itself is degenerated which can be one more prospective OB worry.

Citibanks E Business Strategy For Global Corporate Banking 2008 Analysis

Various concepts have actually been used to discuss the situations to obtain more clearness concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that staffs are passive and also careless, have little ambition and also stand up to modification. The situation at Citibanks E Business Strategy For Global Corporate Banking 2008 is not completely complying with Theory X, it can be seen that brand-new hires are locating this atmosphere instead demanding which may eventually lead to a better inclination of the monitoring towards Concept X. Also while examining Lewis's management style, theory X might have been suitable in the operations division to some extent however the Advertising and marketing division would call for dependence on Theory Y in order to get the creativity as well as originality from the groups.

Tuckman's Synergy Concept: As for Lewis's issue regarding bringing harmony between the marketing and advertising division is concerned, this would originally cause conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, throughout the initial phase of team growth, people may not bond, as they are hectic discovering their place in the group. By incorporating the marketing and advertising division's job, there may coincide first detach which might bring about the 2nd stage of 'storming' where the teams challenge each other. However, it is only throughout the third phase or 'norming' when they would certainly come together to share concepts before the team can bring about synergy in the 4th phase 'executing'.

Bridges' Shift Design: As per William Bridge's concept (appendix 4), individuals are quite awkward with modification, which is obvious by the scenario at Citibanks E Business Strategy For Global Corporate Banking 2008 The scenario can be seen as a regular course of life if is studied according to Bridge's theory where he discusses that people go through three phases of transition when they experience modification. 'Closing, losing and Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter stage one therefore there might be emotions like sadness, uncertainty, disappointment, rage, worry, rejection and disorientation.The scenario at the marketing department of Citibanks E Business Strategy For Global Corporate Banking 2008 is comparable so Lewis can obtain comfortable with the concept that it is not amazing behavior. In the 2nd phase, there might be a need to link the space between the new and also old culture so Lewis might need to face this ordeal as soon as Krasnow leaves. There might be low morale and reduced productivity at this stage which must not be taken as an obstacle. It is throughout this stage that Lewis will certainly need to provide guidance to the department to ensure that they can find a sense of direction. It can be seen how Krasnow has already made this change much easier by making Lewis obtain involved in the department a year before his actual separation. According to Bridges' Version, phase 3 will certainly cause visibility to discovering, High energy and also dedication as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB issue related to insecurity at the office has actually been activated first of all by the adjustment in administration and second of all by the truth that the merging will no more be launched. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has reviews the significance of 'safety requires as being a lower level requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and unharmed' goes to the second level of requirements. Before a worker can be made to establish mentally, he requires to have his 'Physiological 'and 'Safety' requires fulfilled. This indicates that unless the personnel are made to feel secure regarding their current work condition in Citibanks E Business Strategy For Global Corporate Banking 2008 they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Citibanks E Business Strategy For Global Corporate Banking 2008 Case Study

Implication of Analysis.

The OB analysis has actually looked at different concepts to recognize how to handle the existing situation at hand. The adhering to 3 options have actually been recommended to help Lewis manage the organizational difficulties in the advertising division. Each of these options has been proposed for reducing the shift needed to bring the marketing department in accordance with the demands of the marketplace as well as for making the social adjustment that would certainly adhere to once the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Production features. Combination of Advertising And Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has experience in business-to-business marketing along with company and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both marketing and also advertising features.

The advantage of this approach is that it will incorporate the two functions while reducing the need for working with an added resource for advertising. Lewis would certainly be heading the marketing department as well as in any type of case her substitute would certainly be needed for the current duty that she is carrying out. The negative aspect of this choice is that exterior hiring might produce animosity from inner personnel who might be considering the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Manufacturing: Given the competitive stress and top quality work called for from the advertising agency, it is advised that Lewis should enable the production system to be a different feature from the advertising and marketing unit. Since the majority of ad agency had these two functions as different devices, it makes more feeling to comply with the norm. Along with this, both features might be able to focus on their core activates much more successfully. However, the drawback of this strategy would certainly be that extra prices would need to be birthed for establishing separate production functions. A production head may have to be employed which could raise overheads for the organization.

Integration of Marketing with Operations: Considering that Lewis is already taking care of the advertising and also operations departments concurrently; it makes feeling to integrate the two features since she has been effectively taking treatment of both ends. The truth that Lewis has to adapt her management design for the marketing division suggests that these two departments would be culturally varied.


An assessment of the three options suggests that combination of advertising and also procedures would not be a possible action due to the large distinctions between the two divisions in spite of the truth that presently Lewis is handling both. While splitting up of the production function may have been a positive step for the marketing division, the truth that it would certainly indicate positioning a 3rd feature under Lewis's wing indicates this should be stayed clear of.

Action Plan.
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

Judith Shapiro will certainly be employed to take Lewis's area as SVP of advertising and marketing.

Production feature will stay part of marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic management design with staff member empowerment will be used in advertising division.

Open door policy and emphasis on cross department interaction will certainly be aimed at getting rid of disharmony.

Backup plan.

If the combination does not exercise as intended, a backup strategy would adhere to which would certainly divide the production function from the advertising and marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing function will absolutely be separated by putting it under an SVP production.