Introduction Citi group is a company offering financial services all over the world. In its range of services is a bouquet of a wide range of services. Having one of the best distribution network and capability among all financial institution Citi group offers quality services in 100 countries worldwide. As at now Citi has employed around 350,000 employees who are charged with the management of the companies clients totaling to 200 million.
Citi group offers a range of services under its subsidiary companies this include Citi bank a bank operating in more than 100 countries world wide it offers banking services to institutions and investors, Citi financial and Citi mortgage are both community based lending institutions where clients interact on a face to face with the customers this aids the company in achieving the competitive advantage over other financial institutions as there is ample knowledge on what the client needs are. Economic concepts During the spiraling global economic down turn most companies are closing or cutting down their operations so as to stay afloat.
Citigroup has absolute advantage in the business of recruiting and retaining new clients due to the company’s able and trained staff who are up to date with the demands of the clients. This quality has enabled the company be able to business in a continuing hostile environment for financials as they use fewer man power in a field which as at now requires more investments for maximizing on returns. Secondly the company has managed to make it in the business and outwit its competitors as they offer competitive rates which are more affordable to the consumers than its competitors, thus company has a competitive advantage.
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Having offices and operations in more than 100 countries the company has managed to reduce its cost of production as there are reduced travels across the world in order to service clients who are rather served by the employees located within close reach. This reduces input in the costs of tailor making products thus increasing the revenue margin of the company. Another economic concept that affects the companies operations are human resources and human capital which respectively mean the skillful labor, the health and experience brought by employees to work and the amount and quality of work which is employed in the completion of work.
These two factors if exploited well can bring a turn around in the earnings of the company in the economic down turn in the following ways. With bringing together a well educated and experienced work force the companies operating expenses will be reduced tremendously as there will be reduction in the number of employees needed to complete a specific task which will in turn cut down salary expenses.
Incentives have been known to influence the course of behavior thereby helping in the improvement of employee moral and in turn positively influencing production (Kelmana, 1999). Secondly incentives like price incentives can be used in stimulating the market acting as a fuel to boost sales and performance of a given company. Citi group is indirectly if not directly affected by this. With proper use of incentives the company can boost employee performance and also stimulate the market and clients hence improving the performance of the company.
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