Sunday, July 3, 2016

Citibank and Capital Resources

The resources include Citigroup an enormous market power in different markets, with a market share, economies of scale, high levels of income, partnerships, brand recognition and identity, and human capital. Through aggressive acquisitions, Citi has increased rapidly, creating an economy of scale and mobilized huge resources to reap significant revenue. Citigroup has the resources and physical assets such as facilities and additional intangible assets more developed, such as technology, reputation and organizational culture as it became more adept at expansion and acquisition. Human capital was increased during the phase of growth of Citi, with additional resources in the form of skills and communication skills and collaboration. Investment systems and enterprise IT represent valuable assets.

This includes platforms e-business serving key resources for the company to further penetrate corporate accounts and expand the competitive positions. Citi also internalized the web through its automated end to end, extend and developed the Citibank advantage. Other features include: a variety of offerings, client relationships and proven customer orientation, expertise and consulting to final return and the acquisition of experience. Despite financial success Citigroup macro level, however, there are underlying problems present.

Take for example 2007 PE ratio of 40.8 Citigroup; this tells us that the market was willing to pay 40.8 times earnings for Citigroup stock. This is one of the highest ratios of PE incurred by a comparable company for ten years on the list, and demonstrates the perceived strength Citi for the given time period. The PSR is is an effective analysis tool, with limited scope (analysis from past performance or the performance of the industry), which measures the market value of a company.

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