However, after conversion of preferred stock held by the US government into a common stock, US government is the largest stakeholder of the company to the tune of over $25 billion (Stempel, 2009). Q.2 Identify the five (5) forces of competition and how it impacts the company. Porter's five forces of competition describe Citigroup’s relative standing in the financial market and the impact these forces may crate on the company can be elaborated under the following heads (Porter, 2008). Threat of Entry from Other organizations Banking business requires huge resources and credibility to begin with and that will surely create an entry barrier for a new entrant. The economies of scale go in favor of the Citi as that helps Citi to provide the services to the consumers at affordable cost. There is always a moderate threat from overseas players to enter in the niche area of Citi. Supplier Power Citi is in the business of financial services. Deposit holders provide huge chunk of capital to the Citi. In most of the cases, they do not have any bargaining power as they are in millions scattered all around and individually too small to dictate any terms. Currently, money flows globally and forward and backward integration of the companies in financial service business can create some turbulent times to the Citigroup but that applies to all firms within the financial market. Buyer Power Being in the financial services business, retail buyers do not have any bargaining power as such and they need to buy as per the market offerings. It is true that business moves in favor of the market-driven company but buyers bargaining power in the financial sector is not substantial to tilt the scale against the companies in this sector. Institutional buyers are the informed buyers and they do possess bargaining power to a certain extent because they buy in bulk; however, that bargaining power is not always one-sided. Financial products are inherently complex in nature and buyers have limited capacity to understand them though they do get substitutes in the market. This factor is not likely to affect much to the company like Citigroup. Rivalry Factor There are numerous competitors in the financial services business in retail and the institutional sectors; however, brand equity is superb in case of Citi. Mergers and acquisition is a common phenomenon in the financial sector. Size of the corporation does matter and Citigroup is one of the giant in the financial sector business so that is always a plus point for the company. Usually, companies change the hands but do no prefer to exit completely as sector offers lucrative business opportunities in the long run. Product differentiation is always possible to carve a suitable niche for the company and Citi has been doing the same for several decades. Substitution Threats Due to numerous players in the financial service sector business, substitute products are always available and the consumers weigh them with all pros and cons. Citi also faces the issue of
Financial Analysis of a Publicly-traded Company- Citigroup Corporation Q1. Identify the company’s mission, vision, and primary stakeholders. Citigroup's Mission Statement is elaborated in four heads as per the following. “Common Purpose: one team, with one goal: serving our clients and stakeholders” “Responsible Finance: conduct that is transparent, prudent and dependable” “Ingenuity: Enhancing our clients’ lives through innovation that harnesses the breadth and depth of our information, global network and world-class products” “Leadership: Talented people with the best training who thrive in a diverse meritocracy that demands excellence, initiative and courage” (Annual Re…
Name: Instructor’s Name: Course: Date: 4th March 2012 A Publicly Owned Large Company Viewpoint In this case, a discussion about a meeting between supplier and its customer is given. Supplier is mentioned as the company namely Supplier A Inc. while customer is a company namely Success Inc.
ASMAK is a fish farming company, headquartered at Abu Dhabi, UAE. Its shares are publicly traded in the Abu Dhabi Securities Exchange. It has been a pioneer in the field of producing, processing and marketing of aquaculture products in the Middle East. The company achieved various milestones during all these years of its operations.
Their main focus is on the innovation of electronics such as telephones, televisions and gaming counsels. The company was founded at the end of the Second World War. The founders Masaru Ibuka and Akio Morita started the company in the basement of an old department store as a radio repair shop.
Similarly, there has been a remarkable result in Earnings per Share and the operating income that directly influences the net revenue of budgeting and marketing policies (Rich et al 2009). This will eventually help in the long-term projects such as market expansion and customer satisfaction.
The firm operates over 17,651 stores across 60 countries. The CEO and chairman of Starbucks Cafe is Howard Schultz. The mission of the company is to inspire and nurture human spirit – one person, one cup, and one neighborhood at a time (Starbucks, 2012).
Some clients invest a part of their savings in different avenues such as banks, capital market instruments, money market instruments, mutual funds, derivatives etc. The most common objective however is to maximize their return on investment. As the financial manager researching investments for clients it is important that research is conducted in line with the expectations and investment goals of the client.
It is likely that the company is using more assets to generate lesser margin. This can also be observed from the lower interest coverage ratio. Ryan should strive to improve the profit margin by reducing the fixed costs. This area is to be considered as needing improvement.
the zone between Saudi Arabia and Kuwait, Singapore, South Africa, South Korea, Thailand, Trinidad and Tobago, United Kingdom, United States of America, Venezuela, and Vietnam (Chevron 2009 Annual Report, 10).
Chevron Corporation is one of the world’s largest corporations.
company, then the financial performance and financial statements of the company would reflect such appreciation from the consumers with high profits and high volume of sales. This report presents a financial analysis of two mobile manufacturing companies; Apple and Blackberry.
The best way to invest your money is by investing in the stock market. The two largest markets are the New York Stock Exchange (NYSE) and NASDAQ. Prior to investing money in the stock market it is imperative for investors to analyze the
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