Citi Gets New Cards Chief
Action: Citigroup Inc. snagged top executive, Jud Linville, of American Express’s card-services business to run the credit card operations at Citi.
Strategy: This course of action by Citigroup would be considered strategic because hiring an executive with many years of experience has long term ambitions. Citi is hiring Linville to increase the penetration of Citigroup credit cards among affluent customers which was one of AmEx’s strengths. This decision could in fact change the entire organization because the credit card services could spring to knew highs. Last, the executive hiring has a long monetary commitment to Linville as there were probably signing agreements and contracts regarding his pay and compensations.
China’s ‘Finlandization’ Strategy in the Pacific
Action: China is trying to stop U.S. from its long standing interest in the region by drawing partners/ alliances with Japan, South Korea and Taiwan. China is attempting to build up their military strengths and alliances.
Strategy: This attempt to draw alliances with other Western Asian countries is definitely a part of their military’s strategic plan. Their strategy is compared to Finlandization, which is idea of subduing the enemy (U.S) with out fighting. This strategy would serve a long-term commitment for China to gain alliances. The alliances would affect the entire Chinese military because they would then have alliances to support their military efforts and would involve monetary support from both alliances.
Corporate News: BCE to Pay $1.26 Billion for CTV
Action: BCE, a Canadian broadcaster, bought CTV’s network which includes 27 stations, 30 specialty channels and 34 radio stations.
Strategy: BCE’s strategy to buy a large network, like CTV, hopes to give leverage in negotiating with rivals to license content. The article claims this strategy is risk but could be profitable. The action is considered strategic because buying a company yields a large monetary commitment (1.3 billion to be exact), will affect the entire organization because they will now gain several capital games with the buy-out. BCE intends for this move to be long term and hopes to seen as a fierce competitor.