Strategic responses by Citibank limited to external environmental challenges

Abstract

McGrath et. al., (1995) showed that firms in dynamic environments seek to continuously renew their competitive advantage through competence-generating strategic processes of comprehension and deftness. The study hence aimed at determining the critical external environmental challenges affecting the operations of Citibank Limited and the strategies employed by the bank to respond to the challenges in the external environment. The primary data was collected using an interview guide. The interview guides were administered through personal interviews with senior employees of Citibank Limited. Data collected was analyzed by content analysis. The researcher used the data with an aim of presenting the research findings in respect to the strategic responses to external environmental challenges by Citibank Limited. The study found out that the Citibank had faced challenges emanating from competition from firms within the banking and non banking industry, global economic crisis, political instability and low technological advancements. The bank responded by using strong financial strategies, innovation and invention strategies, technology strategies, research and development ventures, introduced a wide range of products so as to serve customers conveniently and investments in a talented workforce The study recommends that for Citibank to be able to overcome external environmental challenges, the institution needs to employ human resource strategies. The importance of human resource strategy is crucial to banks, as the performance and cost of those employed in the industry is fundamental to its future success. The study also recommends that for Citibank to overcome competition as an environmental challenge, measures taken need to have a flexible approach so that they can adapt and improvise to the changing conditions to put their best foot forward. These may include competitive products and technological advancements.