I would argue that Citigroup has not displayed adaptability in its China operations. While the Merriam-Webster Dictionary defines adaptability as "the ability to adjust to environmental conditions", I would assert that in this situation, adaptability must also contain the element of a willingness or inclination to change. Citigroup has the ability to conform to the requirements of the Chinese market; it does not desire to affect the necessary change.
The two main reasons that point to the failure of Citigroup to adapt to the Chinese market are Citigroup's management decision to reject the joint venture option in China, and resistance to consider the acquisition of a local bank as a way to acquire market share.
Given the very insular Chinese market and heavy-handed control of the marketplace by the Chinese communist government bureaucracy, the only way Citigroup is going to expand their geographic reach and range of product offerings is through a joint venture. However, their refusal to consider a joint venture indicates a reluctance to adapt to the realities of the Chinese market. Citigroup may very well be correct in its stance, but the conclusion required for the paper does not ask whether their decision is a wise one, just whether it reflects an ability and willingness to adapt to the Chinese market conditions.
The environmental conditions in the Chinese banking sector are heavy loads of bad debt, government interference in business decisions, artificial manipulation of the exchange rate of the rembi (China's national currency) and use of bank assets to prop up failing State Owned Enterprises (SOE). Chinese authorities also use the Chinese banking system to implement economic policy. Due to these factors, it is unrealistic to expect the Chinese ...