Assessing The Capacity Of A Person With Dementia Social Work Essay

Assessing The Capacity Of A Person With Dementia Social Work Essay The aim of this assignment is to discuss how a social worker would assess the mental capacity of a service user who has been diagnosed with dementia. This essay will discuss the various meanings of the different types of dementia and how their mental health diagnosis affects an individuals ability to make important decisions in their lives. This essay will discuss how the Person-Centred Dementia Care (VIPS) framework written by Tom Kitwood (1997) is able to guide the social worker in applying theoretical frameworks and also by applying Law and assessing the specific capacity of a person diagnosed with dementia. This assignment will also discuss how the citizenship, social and medical models differentiate in their understandings and meanings of dementia. When assessing capacity it is important to distinguish what type of capacity you are assessing. This could involve assessing decisions based on financial issues, housing situation, personal or domestic care needs, the ability to asses s risk and safety, and also regarding their physical health care needs. The social worker is able to apply the Mental Capacity Act 2005 to provide justification and guidance when assessing the service users mental capacity. The social worker will implement their professional judgement and accountability as well as work in a multidisciplinary manner and liaise with the GP, psychiatrist, neurologist, community psychiatric nurse or community mental health team. This would enable the social worker to obtain more evidence and reports in determining the mental capacity of the service user. The social worker will assess the mental capacity of a service user diagnosed with dementia through any form of assessment of need i.e. safeguarding needs, support needs, housing needs etc. It is also important to work in anti-discriminatory and anti-oppressive manner when working alongside service users. The Alzheimers society (2010) found that diagnosable dementia occurs in 5% of those aged 65 years and over and in about a quarter of those aged 85 years. Of those with dementia, 50-60% will have Alzheimers disease and a further 10-15% a vascular or multi-infarct dementia. There are many forms of dementias, which include potentially reversible illnesses, such as alcohol-related dementia and those due to structural intracranial lesions. Dementia progresses as a very variable illness; in the early stages patients with dementia can continue to live at home with the support of family and friends. As the illness progresses, this support needs to be supplemented with targeted assistance to address aspects of daily living such as maintaining nutrition, self-care and compliance with medication. Tom Kitwood (1997) was the first writer to use the term personhood in relation to people with dementia. Kitwood (1997) defined personhood as a standing status that is bestowed upon human beings, by others, in the context of relationship and social being, it implies recognition, respect and trust (Kitwood, 1997:16). The person-centred dementia care framework brings together ideas and ways of working with the lived experience of people with dementia that emphasised communication and relationships. (Kitwood 1997 cited Brooker 2007:14). The person-centred care involves four major elements, the first being valuing people with dementia and those who care for them, promoting their citizenship rights and entitlements regardless of age or cognitive impairment Drake (1999:19) asserts; Citizenship is more than consumerism, which is where the expression of power is limited to making choices or expressing preferences it is about equality of opportunity and process although the outcome may be limited by the abilities of any individual. There are many ways of understanding dementia which consist of the medical model, the social approach and the citizenship approach to dementia The citizenship approach to dementia is a new approach which concentrates on how people with dementia can help society in terms of political, and social rights, talking part in work, leisure, political debates and religious celebration. This approach is based on reciprocity, which is why this is a new development as nobody was thinking about the people diagnosed with dementia as being able to give as well as receive. ..dementia describes a group of symptoms which result from the destruction of brain cells. Although dementia is a physical illness, most of the symptoms and problems caused by the illness require psychiatric expertise and care. (Brotchie 2003 p. 2) Dementia affects peoples ability to remember things for more than a few seconds, make sense of the world around them, cope with daily living tasks and express their feelings. Other factors which affect people with dementia are being able to think clearly and solve problems, make plans, unable cope with an over-stimulating environment and find it difficult to behave in a normal way. Dementia is one of the main conditions which are a result of mental confusion, memory loss, disorientation, intellectual impairment, or similar problems. (Mace et al 2006). Brotchie (2003) found that different people may suffer from different symptoms of dementia, depending on their personality and their illness which lead to dementia. Brotchie (2003) outlines four most common symptoms of dementia which are memory loss, changes in personality, difficulty in communicating and loss of practical skills. Memory loss is often a sign which occurs earlier and highlights something is not right, however could be mistaken for forgetfulness brought on my stress or feeling low in mood. A person with dementia may gradually forget where they are and how to get home; therefore emphasising there is a cognitive problem. People who may have dementia show changes in their personality as people struggle to function with a limited thinking capacity and over-react with everyday situations and daily tasks. People who are know to be calm may become aggressive or abusive, alternatively a person know to be reserved before they became ill may lose all social inhibitions. Changes in peoples behaviour are caused by damage to the brain and are not something the person can control or prevent. (Brotchie 2003 p.3) This view of damage to the brain as a cause of dementia is supported by the medical model. The medical model concentrates on brain damage and state there evidence by its nature of becoming worse as time goes on. Jacques Jackson (2000 p.4) emphasise the amount of; tibbs 2006 p16 ..damage dementia does to the lives of sufferers and those around them. It poses an enormous challenge to health and social services and to the community as a whole. People diagnosed with dementia may struggle in making themselves understood e.g. forgetting the name of simple objects or familiar people. They may also find it difficult to make sense of what is being said to them as a result being unable to carry out instructions. People with dementia may forget things a few minutes after they have been told which is done by mistake and not intentional. Another symptom which may occur with a person who has dementia is having serious problems with carrying out simple tasks such as tying a shoe lace or doing up a zip, other tasks such as eating, dressing and washing become more difficult as the illness becomes worse. The majority forms of dementia are irreversible, there are limited treatments but the most help a person can get is from their family to plan for the best form of care in the future. It is vital for a doctor at this stage to be involved in the persons care and treatment (Brotchie 2003). Cantley and Bowe (2004) found that there can be oth er causes for these symptoms which may not be linked to dementia such as a general medical illness, drug toxicity or a life changing event. In the more advanced stages of the illness dependence increases and there is often the need for residential or nursing care. Issues of capacity and consent are important at many stages of dementia and particularly affect financial issues, ability to assess risk and safety, and also decisions over physical healthcare (British Medical Association (2009). Marshall Tibbs (2006) found that the Mental Capacity Act 2005, which followed the Adult with Incapacity Act 2000, means that we are more able to offer protection in law to adults who lack mental capacity, including people diagnosed with dementia. A major change to this law emphasised that presumption against lack of capacity, which means a person is now presumed to be capable of making their own decisions until proved otherwise. The second element from the person-centred framework consists of treating people as individuals taking into consideration their unique personality, physical and mental health, social and economic resources and that these will affect their response to neurological impairment (Brooker 2007:12). Marshall Tibbs (2006), have argued that this involves the presence or absence of Mental Capacity, which can be determined by two questions in order for the service user to have the capacity to make the decision they should be able to comprehend and retain the information which is material to the decision, especially as to the consequences of making or not making the decision in question. It is important for the social worker to take this into consideration when assessing a person capacity and making a professional judgment. The service user should also be able to use the information and weigh it up as part of the process of arriving at a decision (Marshall Tibbs 2006:34). The social worker sho uld take into consideration that an individual may retain capacity to make certain decisions such as, the choice of what to eat but, lack the capacity to make serious decisions such as managing their finances i.e. paying bills. According to the British medical association (2009) all adults are assumed to have mental capacity unless there is evidence to prove this is not the case. There are many factors which can affect a persons capacity temporarily, such as dehydration, infection, medication or fatigue however assumptions about impairment cannot be based on age alone or frailty. It is important for the assessor to talk with the person when they are at their best taking in to consideration any physical problems which could affect their cognitive ability. A wide spectrum of ability is found in people deemed to have impaired competence, including those living with dementia or with learning disabilities. It is important, therefore, to see each person as an individual. Disease or other factors can result in temporary, fluctuating or enduring incapacity. British Medical Association (2009:34). There are issues which need to be addressed before a person is assessed to have capacity or not such as, behavioural or cultural differences which are not indicators of impaired cognition. On the other hand, decisions which come across as being rash or unconventional are not indictors of impaired cognition either but can lead to the process of a formal assessment. It can become clear by talking to a person with dementia if they have sufficient mental capacity to make particular decisions; however, if this is not clear a GP or psychiatrist are often the best professionals to give a view, especially if the person has had previous contact with them. It is vital to understand in these circumstances an assessment cannot be rushed and time should be taken in looking at the person medical history and the decision for which the person is being assessed. An individuals appearance and behaviour needs to be taken into account e.g. if they suffer from a mood disorder or a mental illness. If a person has suffered from damage to the brain, such as a stroke, this can make verbal communication near impossible however it is not necessarily an indicator of reduced mental capacity. Similarly, long term memory loss is not an indicator of reduced mental capacity however being unable to retain information long enough to make a decision would invalidate it. British Medical Association (2009). If a person has to make a serious decision and there is still doubt about their mental capacity it would be advised for a formal assessment to be completed. If a person lacks capacity it is usually possible to assess their ability through conversation, but if they refuse assessment, it cannot proceed unless required by court. If it is clear a person lacks mental capacity and they havent given their consent decisions on their behalf are governed by the Mental Capacity Act 2005. According to Brown Barber (2008), the Mental Capacity Act 2005 begins, in Section 1, by emphasising five key principles to be followed whenever working within this framework of the Act. These are to work with the person with dementia with the assumption that they have capacity unless it is proved otherwise, not to treat the person as unable to make decision unless all the steps to help them to do so have been unsuccessful. The third principle of the Mental Capacity Act 2005 emphasises not to treat a person as unable to make decisions for themselves just because the person may make an unwise decision and a decision made, under this Act, on the behalf of a person who lacks capacity must be done, or made, their best interest. The final key principle of the Act is: Before the act is done, or the decision is made, regard must be had to whether the purpose for which it is needed can be as effectively achieved in a way that is less restrictive of the persons rights and freedom of action Brown Barber (2008:5-6). The third element of the person-centred approach is looking at the world from the perspective of the person with dementia, recognising that each persons experience has its own psychological validity, that people with dementia act from this perspective and that empathy with this perspective has its own therapeutic potential (Brooker 2007:63). The assessment process will consist of many areas that should consider their environment, such as their home and finances many individuals with early dementia retain the capacity to complete an enduring power of attorney which at a later date can be registered (Brooker 2007:67). The Mental Capacity Act 2005 includes the Lasting Powers of Attorney (section 9-12 and 22-23). A Lasting Power of Attorney in section 9 (1) as: a power of attorney under which the donor (P) confers on the done (or donees) authority to make decisions about all or any of the following- Ps personal welfare or specified matters concerning Ps personal welfare, and Ps property and affairs or specified matters concerning Ps property and affairs, and which includes authority to make such decisions in circumstances where P no longer has capacity. (Brown Barber 2008:41). The social worker will also assess safety and risk. Marshall Tibbs (2008:44) argue as dementia progresses the risk of self neglect, exploitation and wandering may determine a persons ability to live alone, while risks posed to other from driving and misuse of gas appliances may cause great concern still. In this situation the level of this would be too high for that person to continue to live within their home environment due to health and safety reasons. This may result in the use of the Mental Health Act 1983 for the purpose of permanent residential accommodation or 24 hour care by family members or carers. The Mental Capacity Act 2005, Section 2 refers to the diagnostic test which is narrowed down to the functional test in order to identify the smallest area of decision-making to apply for the incapacity test. Further in the Act, Section 3 provides the test which should be used to determine a persons mental capacity on a particular decision e.g. refusal of medication. The Section 3 test is to establish whether a person is able to understand information relevant to the decision and if they are able to retain to information. The person is also tested of their abilities to use or weight that information as part of the process of making the decision or if they can communicate effectively regarding the decision (by talking, using sign language, or any other way) Brown Barber (2008). According to the Mental Capacity Act 2005, anyone involved in the care or support of a person could have a say in the capacity assessment, which would usually include, family members, health and social care workers, but most importantly doctors, psychiatrist and psychologists assessments would be crucial. Typically the people who are responsible to carry out capacity assessments are nurse practitioners, social workers, doctors and neuropsychologists (Halton Council 2008). There five key principles of the mental capacity act 2005 have to be considered if a professional is to do an assessment with a person diagnosed with dementia. It is important that the social worker begins with the assumption that the person has capacity. It is also important for the social worker to understand a persons appearance or diagnosis is not a sign of a lack of capacity, therefore highlighting the need to document accurate information for considering that a person may not have capacity in relation to a specific decision. The social worker has to consider mental capacity issues throughout the assessment as they would risk and safeguarding issues, noting the specific areas which raise concern. The Mental Capacity Act 2005, Code of Practice states: Where assessments of capacity relate to day-to-day decisions and caring actions, no formal assessment procedures or recorded documentation will be required. (Davies 2008:8) The Mental Capacity Act 2005, Code of Practice, gives guidance on when there is a need for a clearly documented assessment. This is where a decision which needs to be made has major consequences, such as a decision to change accommodation or a decision to accept or decline support at home. Another reason for a clearly documented assessment may be if there is a dispute with the person, their family or the care team, as to the capacity of the individual. The person who may need the assessment may be subject to challenge therefore requiring an assessment for capacity or there may be legal consequences of finding capacity. (Davies 2008:9) One main reason for a person to have an assessment for capacity is to reduce the risk the person poses to themselves in terms of preventable suffering or damage (Davies 2008). Not all of these circumstances are exact and require professional judgement and ongoing supervision. Davies (2008) explains in some circumstances the capacity for an individual ma y be related to a specific decision at a specific point in time therefore, the need for an on-going assessment for capacity may be required. Brown and Barber (2008) discuss the concept best interests in regards to the Mental Capacity Act 2005. The Act 2005 states that one crucial principle is that if a decision is made for or, on the behalf of someone else who lacks capacity must be done, or made in that persons best interest. This principle applies to anyone who is carrying out the responsibility for making the decision such as a family member, paid worker or carer, an attorney, a court-appointed deputy or health professionals. Brown and Barber (2008) assert the need for people who have the responsibility for making other peoples decisions, being familiar with the Acts new requirements for the checklist approach. The Mental Capacity Act 2005 new checklist approach is set out to contain common factors which should be measured on every occasion a decision is to be made. The Law Commission (1995, para 3.28) First, a checklist must not unduly burden any decision-maker or encourage unnecessary intervention; secondly it must not be applied too rigidly and should leave room for all considerations relevant to the particular case; thirdly, it should be confined to major points, so that it can adapt to changing views and attitudes. A person who has the responsibility to make decisions on the behalf of someone who lacks capacity should consider the following steps to ensure the best interest of that person. These steps are to firstly encourage participation, which is for the person making the decision to do their utmost to encourage and support the person with dementia to take part in making the decision, secondly identify all relevant circumstances, this is to try include all the things the person who lacks capacity would usually take into consideration if they were making the decision themselves. Thirdly, find out the persons views who lacks capacity such as their past, present wishes and feelings, any beliefs and values, and any other factors which the person would usually consider. An important factor is to avoid discrimination and not make statements about a person best interest because of their age, appearance or diagnosis. It is necessary to consider whether the person might regain capacity, if so can the decision wait until then? Finally, the person making the decision should consider if the decision concerns life-sustaining treatment, and should not make assumptions about how the person should or shouldnt live (Falconer 2007). The Mental Capacity Act 2005 also include consulting others an a key aspect of considering how a person best interest could be meet effectively. If it is appropriate to do so, discuss with other people for their opinions about the persons best interest, as they may have information about the person wishes and feelings. The Mental Capacity Act 2005 state the people that should be consulted are: anyone previously named by the person as someone to be consulted on either the decision in question or no similar issues, anyone engaged in caring for the person, close relative, friends or others who take an interest in the persons welfare, any attorney, and any deputy appointed by the Court of Protection to make decisions for the person. (Brown and Barber 2008:34) If the decision is for an important medical treatment and there is no one to confer with then an Independent Mental Capacity Advocate (IMCA) must be consulted. In safeguarding concerns if a person is deemed to have no capacity involving a specific type of risk and decisions, and family members are deemed inappropriate, it is essential that a IMCA is involved in important safeguarding investigations in providing best interest decisions for the individual. The Independent Mental Capacity (IMCA) Service was a late initiative to the Mental Capacity Act 2005, and has been available since October 2007. Section 35 of the Mental Capacity Act 2005 highlights the main purpose of IMCA , which is to support and stand for the person concerned, to establish their wishes and feelings and to monitor that the Acts principles and the checklist are being met. The Mental Capacity Act 2005, highlights that a decision-maker does more than making a decision on someone behalf who lacks capacity, but also ensures the persons human rights are met. The Mental Health Act 1983 has a process whereby they are able to detain people who are mentally disordered which in specific circumstances would be an appropriate response, however the Mental Capacity Act 2005 have a different approach seeing restraint as deprivation of liberty. When a person is said to lack capacity it is difficult for them to decide about being in a particular place and is in effect deprived of their liberty, and there are several options which could be taken: scale down the level of restrictions to what would be seen as a restriction of movement rather than a deprivation of liberty arrange an assessment under the Mental Health Act with a view to using its powers make an application to the Court of Protection to make a personal welfare decisions follow the new Bournewood procedure consider short-term or emergency use of common law powers. (Brown Barber 2008 p.39) The Bournewood Judgement involved an NHS trust to remove an autistic man unable to speak and limited understanding from a day centre to an in-patient unit without his consent. In 2004, the European Court of Human Rights upheld the families view that detention under the Common Law of an incapable patient using the best interest argument was unlawful because it was too arbitrary (Marshall Tibbs 2006:43). If people are to be deprived of their liberty, there must be some lawful justification and some safeguards. For patients with mental illness, use of mental health legislation should be considered if the patients meet the statutory requirements. The Bournwood Judgment marked a significant step forwards in the recognition of the rights of incompetent individuals (British Medical Association 2009:87). It also enforced to the empowerment and rights of older people with impaired capacity. The fourth element of person-centred care is proving a supportive social environment, recognising that all human life is grounded in relationships and that people with dementia need an enriched social environment which both compensates for their impairment and fosters opportunities for personal growth (Brooker 2007:83). This is view of considering the social environment of a person with dementia is supported by the social model as it is based upon a person environment and social circumstance, considering dementia as an impairment which results in a person becoming unable to function as a normal person. This is a positive outlook on dementia as it can adopt a rehabilitation approach allowing chance for change and making the experience of dementia a better one, whereas, on the other hand the medical model which argues otherwise which is often a pessimistic view. Marshall Tibbs (2006) book expands the concepts of rehabilitation to include teamwork, working with families, prostheses, re moving causes of excess disability, learning motivation and focusing on what the main problem is which needs to be addressed. Whilst working with older people social workers must remember to work in an anti-discriminatory and anti-oppressive manner at all stages, such as, an assessment, planning and intervention. The person-centred framework enables a social worker who works alongside people diagnosed with dementia to understand there medical conditions and to provide a package of care at a deeper level and to provide them with many opportunities in leading a valued and fulfilling life. These standards are underpinned by values and ethics that must support the development and delivery of practice. These include a social worker demonstrating respect for an individual, maintaining trust and maintaining confidentiality. Other values consist of understanding and making use of strategies to challenge discrimination, disadvantage and other forms of inequality and injustice (Crawford Walker 2009). Butler Lewis (1973 p.30) argue: Ageism can be seen as a process of systematic stereotyping of and discrimination against people because they are old, just as racism and sexism accomplish this for skin colour and gender. Crawford Walker (2009) argue that working with in older people may include people who are vulnerable, who may be oppressed and disadvantaged however, each person is individual and have their process of getting older (Crawford Walker, 2009:34) therefore it is important to treat each person individually. Whilst working with older people it is essential to consider a whole range of issues such as demonstrating awareness of the legal, policy, and political context of the work being completed, combined with an in-depth understanding of the experiences of that older person in their specific situation. The social worker must be attentive to potentially abusive situations, whilst at the same time working in a multidisciplinary manner with other relevant professionals and organisations. Social workers must work towards developing a holistic approach to assist their practice in working with older people as it allows them to take into account the persons situation in society and the values an d ethics of social work. Overall the main principle to assess a person diagnosed with dementia is to remember to assume the person has capacity if proved otherwise. Once an assessment is completed and the appropriate professionals are consulted and it is deemed that the person is deemed to lack capacity then it is vital to work towards the person best interest ensuring them of their human rights. This is done by using the checklist approach ensuring all the factors are covered before a decision is made. The person who has the responsibility for make the decision on someone behalf could be a professional, family relative, Power of Attorney or an Independent Mental Capacity Advocate. All these issues must be considered whilst working with someone who lacks capacity. It is crucial when assessing and determining a persons mental capacity to take into consideration all aspects of the persons life, health and important decisions that require to be made. It is also essential that the social worker has to take into consideration that a mental capacity is based on a specific aspect of a persons capacity for example managing finances, housing etc. Word Count: 4,740

Love through life and death Essay -- Article Analysis, Stephen Lowe

For Time Magazine, by Stephen Lowe You’ve probably heard of the Indian vs. emigrants shootings, the drowning of the Applegate family, and starvation on the Oregon Trail, but do you honestly know to what extent how hard the journey was for the emigrants to make this 2,000 mile journey (McGill; Wagner, 10-15, 109-110; Life and Death on the Oregon Trail). The emigrants had to go through endless hardship, varying from walking the entire journey to deadly unknown diseases (Boettcher and Trinklein; Life and Death on the Oregon Trail). According to the Oregon-California Trails Association, expected mothers were common emigrants to travel on the trail, meaning that majority of the wagons on the trail had at least one expectant mother (Life and Death on the Oregon Trail). Thousands of babies were on the Oregon Trail. When the food was limited, babies would cry, not understanding why they weren’t getting fed (Life and Death on the Oregon Trail). They would become malnourished and desperately thin (McGill; Boettcher and Trinklein). When the need for food became urgent, babies were passed from mother to mother in order to be fed milk that they desperately needed to keep them alive (Life and Death on the Oregon Trail). Those babies, thin and helpless, often had their lives taken by the trail. The Oregon Trail was a hostile and deadly route, though many don’t know the severity of the conditions on the trail. There are many stories gone unknown that show a family’s amazing perseverance through the trail. This article covers the eventful but unknown journey of the True family’s trek over the Oregon Trail, providing parts of Charley True’s journal to show what the Oregon Trail was like through the eyes of an emigrant. Having to deal... ...r disasters, and a bout of cholera within their wagon party. The last few stretches of the trail were the most difficult, though (Wagner, 109-110). A supposed shortcut turned out to be a dangerous and deadly trail that could have killed us all. After crossing a river, going through mountains, and pushing through desert, we faced all the fears of nature. We saw other families go down in the raging rivers and drown (Life and Death on the Oregon Trail). Frostbite and cold were associated with the mountains. Rattlesnake bites and dehydration were apparent in the desert (Life and Death on the Oregon Trail). In these last days, each day became harder and harder. More people were getting buried under the ground in shallow graves, and even more things had to be thrown out. The feet of the oxen split, and their shoes fell off (Life and Death on the Oregon Trail).

The Telephone :: Free Essay Writer

The Telephone A number of inventors believed that voice and sounds might be carried over wires and all worked toward it but there was only one that ended up figuring it out. The first to achieve this everlasting success was a Scottish-born American inventor , Alexander Graham Bell, a teacher for the deaf in Boston, Massachusetts. Bell was born on March 3, 1847, in Edinburgh, Scotland, and was taught at the universities of Edinburgh and London. He moved to Canada in 1870 and to the United States in 1871. In the United States he began teaching deaf-mutes, publicizing the system called visible speech . His father, who was a Scottish teacher, developed visible speech, Alexander Melville Bell. Visible speech shows how the lips, tongue, and throat are used in the making of sound out of the mouth. In 1872 Bell opened a school to train teachers of the deaf in Boston. The school soon became part of Boston University, where Bell was assigned the professor of vocal physiology. He became a U.S. citizen in 1882. Since Bell was 18 years old, he was trying to come up with the idea of transmitting speech. In 1874, he figured out the basic parts of the telephone. The experiments with his assistant Thomas Watson finally was successful on March 10, 1876, when the first complete sentence was transmitted: â€Å"Watson, come here; I want you.† There were lots of different demonstrations showing the invention, but the most popular one was the one at the 1876 Centennial Exposition in Philadelphia, Pennsylvania. This was when the telephone was introduced to the world and led to the organization of the Bell Telephone Company in 1877. When the Bell Telephone Company finally got going the company strongly dheld its patents so it will exclude others from the telephone business. After these patents expired in 1893 and 1894, independent telephone companies started up in many cities and most small towns.

Misinterpretation of Reality in Othello by William Shakespeare Essay

Misinterpretation of Reality in Othello      Ã‚   Othello, by William Shakespeare, is a mix of love, sexual passion and the deadly power of jealousy. Shakespeare has created an erotic thriller based on a human emotion that people are all familiar with.   There is an extraordinary fusion of characters' with different passions in Othello. Every character is motivated by a different desire.   Shakespeare mesmerizes the reader by manipulating his characters abilities to perceive and discern what is happening in reality.   It is this misinterpretation of reality that leads to the erroneous perceptions that each character holds.      Ã‚  Ã‚  Ã‚  Ã‚   After reading this tragedy, the depth of Shakespeare's characters continue to raise many questions in the minds of the reader.   The way I percieve the character of Othello and what concerns me, is that Othello is able to make such a quick transition from love to hate of Desdemona. In Act 3, Scene 3, Othello states, "If she be false, O, then heaven mocks itself! I'll not believe 't." (lines 294-295) Yet only a couple hundred lines later he says, "I'll tear her to pieces" (line 447) and says that his mind will never change from the "tyrannous hate" (line 464) he now harbors. Does Othello make the transition just because he is so successfully manipulated by Iago? Or is there something particular about his character which makes him make this quick change?   I believe that "jealousy" is too simple of a term to describe Othello. I think that Othello's rapid change from love to hate for Desdemona is fostered partly by an inferiority complex. He appears to be insecure in his love for Desdemona (as well as i... ...mply be percieved as extraordinary.       Works Cited and Consulted Alexander, Peter. Shakespeare. Oxford: Oxford University Press, 1964. Greene, Gayle. "'This That You Call Love': Sexual and Social Tragedy in Othello." in Shakespeare and Gender: A History. Deborah E. Baker and Ivo Kamps. New York: Verso, 1995. 47-62. Mason, H.A. Shakespeare's Tragedies of Love. New York: Barnes and Noble. 1970. Neely, Carol Thomas. "Women and Men in Othello: "What should such a fool/Do with so good a woman?" In Broken Nuptials in Shakespeare's Plays. Carol Thomas Neely. New Haven: Yale University Press, 1985. "Othello's Occupation." The Norton Shakespeare Workshop. Mark Rose, ed. CD-ROM. W.W. Norton, 1998. Shakespeare, William. "Othello". The Norton Shakespeare. Ed. Stephen Greenblatt. New York: W.W. Norton & Company, 1997. 2100-2172.

The American Express Card

9-509-027 REV: APRIL 22, 2011 JOHN A. QUELCH JACQUIE LABATT The American Express Card Marketing is fully integrated into our overall strategy. Our largest investor, Warren Buffett, is very focused on brand health and customer metrics. — Kenneth I. Chenault In April 2008, Jud Linville, president and chief executive officer of U. S. Consumer Services at American Express Company, was preparing for a meeting with Ken Chenault, American Express’s chairman and chief executive officer since 2001, and Al Kelly, president of American Express Company.The purpose of the meeting was to discuss further growth prospects in the United States for the American Express consumer card business while maintaining the brand’s premium positioning. The performance of the American Express card, launched 50 years earlier in 1958, had been remarkable. By 2008, there were 52 million American Express cards in circulation in the U. S. , held by 41 million â€Å"cardmembers† (see Exhibit 1). American Express commanded nearly a 24% share of U. S. credit card payments. 1As Linville prepared for the meeting, he wondered whether he could continue to rely on the same business growth drivers that had served American Express well in the past. With the U. S. economy slipping into recession, the proliferation of cards in the market required American Express to deepen its consumer understanding to provide innovative, value-added products that would attract and retain cardmembers. Company Background The American Express Company was a leading global payments and travel company with revenue net of interest expense of $27. 7 billion in 2007, up 10% from 2006. American Express’s principal products and services included charge and credit card payment products and travel-related services offered to consumers and businesses around the world. American Express was the world’s largest issuer of charge and credit cards as measured by the annual value of purchases charged o n these cards. 3 Yet American Express maintained a â€Å"best-in-class† credit quality, reflecting in part the company’s traditional focus on the affluent segment, its expertise in evaluating the credit risk of individual consumers, and its ongoing commitment to investing in risk capabilities. In 2007, around 70% of American Express’s revenue net of interest expense and 85% of its pretax income from continuing operations5 was generated in the United States. The global diversity of the business included 86 million cards in force worldwide, more than 115 card-issuing or merchant-acquiring ________________________________________________________________________________________________________________ Professor John A. Quelch and Research Associate Jacquie Labatt prepared this case. HBS cases are developed solely as the basis for class discussion.Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective ma nagement. Copyright  © 2008, 2011 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go to www. hbsp. harvard. edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School..This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card arrangements with banks and other institutions, and over 650 American Express network branded products. 6 Fortune magazine ranked American Express the â€Å"Most Admired† megabank/credit card company in its 2008 annual survey. 7 American Express’s roots date back to 1850, when Henry Wells, William Fargo, and John Butterfield founded an express deli very company.The very nature of handling and transporting customers’ assets depended on security and trust, core attributes that had remained at the heart of the company and brand. In the late 1800s, American Express introduced financial products such as money orders and Travelers Cheques. The company later expanded into the travel business to further support its Travelers Cheques customers who were increasingly going abroad. The First Card The first American Express card targeting the business traveler was launched in 1958. The decision to enter this new business â€Å"faced strong opposition within the company with senior leaders evenly divided on the issue. 8 The debate began when the Diners Club card was introduced in 1950. American Express recognized the card as a potential threat to the company as consumers began using this card as a substitute for Travelers Cheques. 9 Some argued that a charge card would cannibalize the Travelers Cheque business, while others believed competing cards would hurt those sales regardless. There was further concern that launching a card would upset the American Automobile Association (AAA), one of American Express’s largest distributors of Travelers Cheques. At the same time, AAA was known to be considering launching a card of its own.Finally, with the economy in recession, many executives argued that it was a risky time to be launching a charge card. Nevertheless, in December 1957, American Express president Ralph Reed decided to launch such a card without further delay, stating at the time: â€Å"All we have to sell is service. † When word of the card’s imminent launch leaked, the company was inundated with calls from potential applicants. Further, the American Hotel Association approached American Express regarding forming an alliance, which gave the company an immediate customer base of 150,000 cardmembers and 4,500 participating merchants. 0 By the official launch date of October 1, 1958, Am erican Express had already issued 250,000 cards at an annual fee of $6 each, $1 higher than the fee for a Diners Club card. The first American Express card11 was targeted at businessmen on expense accounts, offering them a convenient method of payment rather than a means of financing purchases. This American Express card was a charge card that required the user to pay off the balance monthly. It was not a credit card that offered the user the option of paying interest on the balance as if it were a cash loan.The Gold (1966), Corporate (1966), and Platinum (1984) cards followed despite concerns over cannibalizing the original American Express card. This hierarchy of cards with progressively higher annual fees and services offered business travelers the aspirational prospect of being invited to move up from Green to Gold to Platinum. (In 1999, American Express added an unadvertised, byinvitation-only product, the black Centurion card. Equipped with VIP benefits such as a personal conc ierge, the Centurion card was offered by invitation only to a small, elite group of Platinum card customers.Celebrities and the very rich clamored for the right to carry this new card. ) American Express launched its first credit card, Optima, in 1987. The Optima card was the first American Express card to allow customers to carry a balance and pay interest. It was marketed only as a â€Å"companion† card to existing American Express cardmembers. A downturn in the economy in 1991 resulted in unexpected losses as some Optima customers failed to make their payments.As a result, American Express deferred plans to expand its credit card business and tightened its existing 2 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card 509-027 credit modeling programs and controls. In addition, American Express â€Å"card suppression,à ¢â‚¬  whereby merchants tried to dissuade consumers from using their American Express card, began with the 1991 â€Å"Boston Fee Party. † Boston estaurateurs were upset with what they viewed as American Express’s excessive discount rate, the percentage fee American Express charged merchants on consumer purchases made with American Express cards. This practice of not honoring the American Express card gained momentum and discouraged some consumers from using their American Express cards. Scale was viewed as a key competitive success factor in the payments industry; American Express considered its 16%—and falling—market share of the U. S. payments market in the early 1990s too low.With too few cards in circulation and too few merchants accepting the American Express card, American Express management faced a â€Å"chicken and egg† dilemma in trying to determine which aspect of the problem to address first. Turnaround Harvey Golub’s appointment as chairman and chief executive officer in 1993 set the stage for restoring health to the American Express business and brand. Golub became the â€Å"vocal guardian† of the American Express brand as he outlined his vision for the company: â€Å"To become the world’s most respected service brand. 12 American Express’s purpose was to manage, market, and promote the core attributes of the American Express brand, â€Å"trust, security, integrity, quality and customer service,† through educating employees, incorporating these attributes into card products and services, and reflecting them in all marketing communications. Future chief executive officer Ken Chenault, who was then running the card business, laid down three guiding principles: to provide superior value to customers, to achieve best-in-class economics, and to direct all activities to support the American Express brand.In addition, Golub established long-term goals as the guiding metrics for the b usiness: earnings per share growth of 12%–15% per year, revenue growth of at least 8% per year, and return on equity of 18%–20% on average over time. With a business strategy built on the company’s brand, Golub refocused American Express on the card business. Starting in 1981, American Express had purchased brokerage and financial advisory firms in an effort to become a â€Å"financial supermarket. † This strategy proved to be a distraction.By 1993, Golub had divested American Express of most of its non-core businesses. Concurrently, the U. S. card business underwent a significant review under the leadership of Chenault. He identified three issues: Costs were too high compared to American Express’s most efficient competitors; the division was too slow to change and adapt, particularly in introducing new products; and the organization was not sufficiently flexible to meet the needs of specific, more targeted consumer segments. 13 By 1995, signs of a turnaround were evident in the American Express card business.New card products began to appear with increased frequency, including proprietary and co-branded cards. A co-branding strategy was initially opposed by branding purists who argued that the American Express brand was too precious to be shared with a partner. This had led American Express to turn down an opportunity to co-brand air-miles-earning AAdvantage credit cards with American Airlines in the mid-1980s. The company came to regret this decision as American Airlines and, later, United Airlines both launched co-branded cards with Visa and MasterCard.The launches of the co-branded Hilton Optima card (1995) and the Delta SkyMiles American Express card (1996) marked the company’s new willingness to partner with other strong brands. In future years, agreements were also struck with Costco, Starwood, and JetBlue. In 1996, Golub decided to open the American Express network and invited other banks and institutions to is sue cards on its network. Doing business with other card issuers that were often competitors was a significant shift for the company. But, by carefully choosing the right partners who 3This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card would tailor American Express products for their high-spending customers, the company could efficiently supplement its own efforts to grow the number of cards-in-force, cardmember spending, and merchant acceptance. The Global Network Services (GNS) division was formed in 1997 to build these relationships.By 2007, there were more than 750 different American Express cards (including cards co-branded with merchants and banks) available around the world. Exhibit 2 lists the principal American Express card offerings and features in the United States as of 2008. In evaluating prospective produc t offerings, Linville asked whether the company was, first, â€Å"removing friction† from the system— making everyday life easier in some way for consumers such as with a â€Å"contactless† card—and, second, â€Å"providing special recognition,† or badge value, to cardmembers.Linville sought to make the American Express brand available more broadly while ensuring that it retained its premium status. Organization As of 2007, the company was organized into two major customer groups: Global Consumer Services and Global Business-to-Business Services. The Global Consumer group contributed 67% of the company’s revenues net of interest expense and 52% of its income from continuing operations. 14 Its range of products and services included charge and credit card products for consumers and small businesses worldwide, consumer travel services, and prepaid, stored value products such as Travelers Cheques and Gift Cards.Business-to-Business Services con tributed 29% and 38%, respectively, to the company’s revenue and income, and offered business travel, corporate cards, expense management products and services, network services, and merchant acquisition and processing for the company’s network partners and proprietary payments businesses. (See Exhibit 3 for a breakdown of company revenues by operating group and division, and see Exhibit 4 for income statement data on the company’s U. S. card business. ) U. S. Payments Industry Payment SystemsAmerican Express competed against all forms of payments for consumer purchases, a market that exceeded $7 trillion in the U. S. in 2008. 15 Payments could be divided into three broad categories: paper-based payments (checks, cash, money orders, official checks, Travelers Cheques); card-based payments (credit, debit, prepaid, electronic benefits transfer); and electronic-based payments (preauthorized and remote). Consumers were shifting from paper-based payments toward cards and electronic methods (see Table A).Converting even a small portion of the paper market to American Express payments represented a big opportunity. Many of these transactions were cash/check-based because either they were low-value transactions (at mom-and-pop stores) or high-value captive transactions where there was little incentive for the merchant (for example, a utility company or apartment landlord) to accept charge/credit cards and absorb the discount fees charged for the service. American Express estimated that around 25% of the cash/check segment represented high-value transactions such as car purchases, tuition fees, and rent/mortgage payments. This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card 509-027 Credit and Debit Credit cards held a leadership 26% share of the payments market and had grown 45% in dollar terms since the year 2001. Debit cards, which were issued by banks and allowed a purchase payment to be deducted immediately from the cardholder’s bank account, held a 14% share of the payments market and had grown 162% over this same period.Since American Express was not a bank, it did not offer debit cards. The average purchase per debit card in the U. S. was $39 compared to $87 per credit card purchase. 16 While debit card transactions were projected to exceed credit card transactions by 2011, the average purchase per credit card transaction was expected to remain higher. 17 Table A U. S. Consumer Purchases by Payment Type—2006 Method of Payment Paper Checks Cash Other $3,365 1807 1439 119 Cards Credit Cards Debit Cards Other Source: % Change Versus Previous Five Years Market Share -4 % -19 +23 -3 47% 25 20 2 3,048 1,871 ,010 167 +77 +45 +162 +209 43 26 14 3 751 443 307 +177 +136 +270 10 6 4 7,165 Electronic Preauthorized Remote Total Consumer Purchases (billions) +30 100 Adapted from The Nilson Report, Issue 890, October 2007. The average American adult carried 4. 4 payment cards in his/her wallet, be they debit, credit, and/or charge cards. 18 Competitors in the card payments business were either card networks that processed transactions (Visa, MasterCard), card issuers (primarily banks), or organizations that both issued cards and processed transactions (American Express, Discover Financial Services).Charge cards for specific retail chains were declining in importance. American Express aimed to increase its â€Å"share of wallet† by making American Express the payment card of choice for all transactions. This was especially important, as recent evidence showed the average number of cards per wallet falling rather than increasing; 20% of consumers shed payment products in 2007 versus 16% in 2004. 19 Further, only 31% of consumers were adding new payment products to their wallets, a drop from 56% three years earlier. 0 Many American consumer s â€Å"compartmentalized† their spending, using different cards for different types of payments. For example, some long-standing American Express members still used the American Express card just for travel and entertainment, and used a Visa or MasterCard credit card for other purchases. 5 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card Competitive Card NetworksPayment networks operated under two business models. â€Å"Open-loop† payment networks, as employed by Visa and MasterCard, were multiparty. Processing a payment typically involved connecting two financial institutions: one that issued the card (issuer) and one that serviced the merchant (acquirer). The open-loop network managed the information and transfer of value between the two banks. In a â€Å"closed-loop† network, as used by Americ an Express and Discover, the network â€Å"owned† the relationship with both the cardholder and the merchant.Leading payment networks are listed in Table B. Credit Card Networks—U. S. Market Share 2007 Table B Share of Credit Card Purchases Visa MasterCard American Express Discover Source: Share of Credit Card Transactions 42. 2% 28. 7 23. 8 5. 3 43. 8% 30. 5 18. 3 7. 4 Adapted from The Nilson Report, Issue 889, 2007. Visa, Inc. Visa operated the world’s largest retail electronics open-loop payment network. Visa provided financial institutions, their primary customers, with product platforms, including consumer credit, debit, prepaid, and commercial payments (see Table C).Visa operated a data-processing network that transferred transaction data and managed payment flow between issuers and acquirers. Visa generated revenue primarily from financial institutions based on fees calculated on the dollar volume of payment activity on Visa-branded cards (service fees) a nd from fees charged for providing transaction processing (data-processing fees). In 2007, Visa USA generated 82% of its gross operating revenue from service and processing fees combined. 21 U. S. Results for Visa, Inc. , Annual Product Performance (June 30, 2007) Table C Payment TypeConsumer Credit Consumer Debit Commercial and Other Total Payments Volume Cash Volumea Total Volume Total Transactions (in millions) Source: Payment Volume (billions) Share of Payment Volume by Payment Type $ 624 637 188 34% 35 10 1,449 79 382 1,831 21 100% 25,942 Adapted from Visa, Inc. , Form 10-K, December 2007. a Cash volume includes cash access transactions, balance transfers, and convenience check transactions associated with Visa. 6 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012.For the exclusive use of Y. SUN The American Express Card 509-027 Visa went public on March 18, 2008, raising $19 bill ion in the world’s second-largest initial public offering (IPO). 22 The IPO created a cultural and business challenge: Visa had to shift its focus from delivering benefits to its partner banks toward maximizing profits for long-term shareholder value. 23 As stated in Visa’s 10-K report, â€Å"Many of our employees have limited experience operating in a profit-maximizing business environment. †24 Further, the proceeds of the IPO bought out the interests of the partner banks.As a result, the banks were no longer Visa’s partners and co-owners but were now Visa’s customers. MasterCard MasterCard (MC), which successfully went public in 2006, was a global payment solutions company that was similar to Visa’s open-loop network. MC’s primary sources of revenue were transaction service fees, data-processing fees, and assessments on gross dollar use (purchases, cash disbursements, balance transfers) of MC-based cards. In 2007, transaction fees a nd assessments represented approximately 74% and 26%, respectively, of the company’s net revenues. 5 Discover Financial Services Discover Financial Services (DFS) was the consumer credit and financial services division of Morgan Stanley until it was spun off to shareholders as an independent closed-loop payments network company in July 2007. Founded in 1986, DFS was the only issuer whose wholly-owned network operations included both debit and credit card capability. 26 DFS also offered a range of banking products, such as personal and student loans, certificates of deposit, and money market accounts. DFS’s primary source of revenue in its U. S. ard business was interest income earned on revolving cardmember balances. Other sources of revenue included late-payment, over-the-limit, and merchant discount fees. Like American Express, the company offered a rewards program to cardholders; under the Discover program, card users earned a cash-back discount on the value of thei r transactions. Competitive Card Issuers Competitive card issuers (largely banks) issued credit and debit cards, predominantly under the Visa and MasterCard brands, and were responsible for the pricing, positioning, and marketing of their co-branded cards.The top three banks accounted for more than 60% of outstanding bank-issued credit card purchases, as indicated in Table D. Card issuers competed on the basis of card features and quality of service, including rewards, number of cards issued and quality of users’ credit and spending, number of establishments accepting the card, success of target marketing and promotional campaigns, and the ability of the issuer to manage credit and interest rate risks through economic cycles. The primary revenue source for bank issuers was interest income earned on outstanding credit card balances.They acquired new cardholders by cross-selling cards to the customers of their retail branch networks and, increasingly, targeted high-spending con sumers, offering premium cards with enhanced services such as larger lines of credit, cash rebates, lower interest rates, and co-brand benefits with airline frequent-flyer programs. 7 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card Table D U. S. Credit Card Volumes by Card Issuer in 2007 Volume of Purchases billions) American Expressa JP Morgan Chase Bank of America Citigroup Capital One Discovera U. S. Bank HSBC Wells Fargo GE Money Other Sources: $459 317 263 222 106 90 65 41 37 27 87 Adapted from The Nilson Report, Issue 896, February 2008, except for American Express (American Express Annual Report 2007). a Do not include third-party business. Emerging Payment Networks New entrants offering nontraditional, convenient, technology-based payment methods were growing in number and importance. It was estimated that cr edit and debit cards generated approximately $200 billion in purchase volume from online bill payments in 2006. 7 New payment methods included online â€Å"aggregator† networks, such as PayPal and Google Checkout, and telecom providers that leveraged new technologies and customers’ existing charge and credit card relationships to create mobile payment solutions where the plastic card would not need to be presented to the merchant. PayPal used encryption software to allow consumers to make financial transfers between computers. 28 Similarly, Google Checkout, which accepted and processed existing payment methods such as American Express, Visa, and MasterCard, aimed to offer buyers a fast, safe, and convenient purchase experience.American Express Card Business Model The American Express â€Å"spend-centric† business model (see Exhibit 4) depended on increased cardmember spending. American Express’s primary source of income was â€Å"discount revenue,† revenue earned from fees charged to merchants for processing purchases made using an American Express card. The fee charged represented a percentage of the dollar value of these transactions. In 2007, discount revenue and card fees accounted for more than 70% of U. S. Card Services’ revenue net of interest expense (see Exhibit 5).The average American Express cardmember charged more each year than the average Visa or MasterCard credit card user. In 2007, the annual average purchase volume per American Express card of $8,360 in the U. S. was substantially higher than that for Visa ($2,470/card) or MasterCard ($1,960/card). 29 By accepting American Express cards, merchants benefited from attracting as patrons the higher-spending American Express consumer. As a result, American Express could justify a premium discount rate from merchants over its competitors.American Express invested this price premium in information systems that studied the purchase habits and inclinations of c ardmembers. These insights led to the development of targeted 8 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card 509-027 promotions, connecting merchants with interested American Express cardmembers who were in turn motivated to spend even more on their American Express cards.In this way, the spend-centric model became a virtuous cycle, benefiting cardmember, merchant, and company alike. From the outset, American Express targeted the affluent, high-spending consumer. â€Å"High-wallet† consumers were defined by American Express in 2007 as those who spent more than $30,000 annually using cards. Affluent consumers represented roughly 10% of card users but accounted for half of U. S. charge/credit card consumer spending. 30 American Express’s target consumer typically liked to travel, liked to be different, and lik ed special access to exclusive experiences.For many years the American Express consumer skewed slightly toward affluent, older men, a reflection of the company’s early targeting of the male business traveler. The company had successfully increased American Express brand penetration of affluent younger and female consumers. Unlike its transaction-oriented competitors, Visa and MasterCard, the American Express card always emphasized an aspirational lifestyle. An early example was the 1985 launch of Departures magazine for Platinum cardmembers who were active, affluent consumers.The Departures editor defined luxury not as status and privilege but in terms of quality and authenticity. Membership in a Lifestyle From the outset, American Express executives emphasized that the company sold not just a card but a relationship. The relationship involved a â€Å"membership† in which the company committed to providing the member with the following: Access (premium and exclusive ac cess and enhanced experiences for cardmembers), Advocacy (in merchant disputes, for example), Accountability (privacy of information, fairness in billing), and Affiliation (a sense of belonging to a community).Every American Express charge card included the â€Å"Member Since† designation on the front followed by the year the consumer became an American Express cardmember. To underscore the membership status of American Express consumers, the company in 1991 launched the Membership Miles program to motivate customer sign-ups, customer retention, and more frequent card usage. At launch, the Membership Miles program gave cardmembers one point for every dollar charged on the card and the ability to redeem points with seven airlines. The program was renamed Membership Rewards (MR) in 1995.Spending on American Express cards linked to MR averaged four times higher than that on cards without rewards activity. 31 Seventy percent of cardmembers used the MR program. Cardmembers enrolle d in the program were found to be lower credit risks as well as more profitable. 32 The company’s â€Å"data-mining† capabilities helped shape the MR program into an industry-leading loyalty program. For these reasons, American Express’s marketing spending on MR had grown at a compound annual growth rate of 24% since 2001, compared to an average 12% increase in marketing and promotion spending. 33 The MR program in the U.S. had more than 160 redemption partners34 and featured 29 airlines among its 250 merchandise brands. Analytics not only helped to determine whom to reach and with what offer, but also how rewards influenced loyalty. In 2005, the MR analytics team analyzed which members were more likely to redeem, in which categories, how many points they would redeem, and at what cost to the company. This research enabled American Express to craft a more appealing mix of reward offers, to predict more accurately the volume of demand for particular offers, and t o negotiate better deals with suppliers.Innovations such as â€Å"First Collection,† a luxury tier exclusively for U. S. Platinum and Centurion cardmembers that included redemption partners such as Tiffany and Lamborghini, and â€Å"Bonus Points Mall,† an online gateway to more than 100 retailers, were 9 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card examples of how American Express increasingly tried to match the nature and the level of rewards to what its members sought and expected.Data-Based Marketing As a card issuer and network provider, American Express had direct relationships with both its cardmembers and its merchants. â€Å"Data-based marketing† became a competitive advantage at American Express. Analyses of cardmember purchases enabled American Express to develop offers that boosted spending with particular groups of merchants. Open-loop competitors Visa and MasterCard could not match American Express’s data-driven capabilities because they controlled access to either the cardholder or the merchant data, not both.The purpose of data-based marketing was to develop insights and offers that would match members’ interests, drive charge volume, and increase loyalty to American Express. 35 The company did not use individual consumer data for marketing purposes but rather clustered cardholders into segments based on personal, financial, and lifestyle characteristics evident in the patterns of their transactions. Cardmember clusters might have greater than average spending in, for example, entertainment, dining, home, fashion, electronics, or automobiles.Cardmembers whose spending showed them to be more â€Å"passionate† about their homes might then receive offers from local homeimprovement retailers. The company also researched correlations across spending categories to identify potential partnerships. For example, research indicated that affluent consumers who owned at least one luxury automobile brand had a strong affinity not only to other luxury brands but also to consumer electronics brands, an above-average tendency to engage in skiing and antiquing, and a strong likelihood of owning a second, more practical vehicle.Data mining also enabled American Express executives to predict how spending behavior evolved through various â€Å"life stages† and increasing levels of affluence. For example, the company’s predictive model indicated that non-affluent cardmembers who made a single luxury purchase, such as a first-class airline ticket, were three times as likely to become affluent. Card upgrade offers distributed following a cardmember’s first luxury charge purchase resulted in response rates over 50% above normal. 36 Emerging ChallengesBy 2005, competitors had begun to imitate American Express’ s lifestyle platform with premium product offerings (e. g. , Visa Signature, MasterCard World Elite), exclusive experiential rewards (e. g. , MasterCard’s Unique Experiences program), and lifestyle advertising. Visa’s â€Å"Life Takes Visa† advertising campaign emphasized the â€Å"brand’s promise to deliver innovative products and services that empower cardholders to experience life and business their way and on their terms. †37 The quality of a card’s rewards program was increasingly important to higher-spending consumers.No longer did they evaluate rewards programs just on ease of earning and redeeming points. The variety and frequency of unique rewards (such as backstage access at a concert) were more and more critical. American Express had an edge over Visa and MasterCard owing to its cumulative expertise in arranging special events, but bidding wars for such opportunities were increasingly common. While continuing to emphasize relation ship and lifestyle over transaction, American Express had to broaden its merchant network to maintain its share of consumer spending.In 1990, 64% of 10 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card 509-027 American Express U. S. billings came from the travel and entertainment (T&E) sectors and 36% came from retail and other sectors. 38 This reflected the company’s belief that spending could be segmented into â€Å"business† and â€Å"personal. † American Express’s focus on T&E concerned Chenault and Kelly.They believed that, in the interests of scale, American Express had to expand its presence in the â€Å"everyday† retail market. This change in strategy was opposed initially, partly because it would necessitate launching more new products and, in the eyes of some traditionalists, weaken the brand. However, by 2007 the sources of cardmember spending had more than reversed, with everyday retail spending representing more than 69% of U. S. American Express card billings. 39 Marketing Communications Advertising CampaignsAmerican Express had a long history of successful, distinctive advertising that consistently stressed prestige, inviting consumers to join an exclusive club of cardmembers. One of the first TV campaigns, â€Å"For People Who Travel† (1969–1974), demonstrated how the American Express card is â€Å"All You Need† for your travel and entertainment needs. This was replaced by the â€Å"Do You Know Me? † campaign, which that ran for more than a decade, produced 125 commercials, and marked the beginning of the company’s strategy of using famous American Express â€Å"members† to sell cards to consumers. Do You Know Me? † used a variety of celebrities to highlight the special treatment and recognition cardmembers enjoy, the premise being that people with famous names don’t always have equally famous faces; anyone who carried an American Express card would be immediately identified as someone of note. In 1987, American Express premiered the â€Å"Membership Has Its Privileges† campaign, which highlighted the company’s superior service and showed how the card â€Å"not only facilitated the variety and enjoyment of a cardmember’s lifestyle, but that membership is also invaluable when emergencies arise. 40 To complement this television campaign, the â€Å"Portraits† print campaign was launched. Portraits underscored the message that â€Å"superior customer service, security, and convenience† were important American Express qualities that cardmembers relied on. Shot by celebrity photographer Annie Leibovitz, â€Å"Portraits† focused on a unique group of high-profile cardmembers. The company’s first global advertising campaign, â€Å"Do Mo re,† was launched in 1996 and emphasized brand attributes such as trust, customer focus, travel relevance, and financial insight.A variety of â€Å"product† commercials highlighted individual card benefits such as no preset spending, purchase protection, and global assist, while talent-driven â€Å"stories,† such as Tiger Woods’s â€Å"Manhattan† commercial in which he plays the world’s toughest â€Å"island† course—Manhattan—were intended to drive emotional relevance. In an effort to encourage everyday usage of the card, the â€Å"Do More† campaign introduced a series of ads showing comedian Jerry Seinfeld using the American Express Card in supermarkets and drugstores. In 2004, a new global campaign with the tagline â€Å"My Life. My Card. featured snapshots of the lives of celebrities, including Robert DeNiro, Tiger Woods, and Ellen DeGeneres. The campaign portrayed American Express cardmembers as exceptional pe ople no matter where they lived or what they did. The campaign was also the first to support both American Express’s proprietary and network businesses. John Hayes, American Express’s chief marketing officer, believed that the company’s history of tastefully portraying the rich and famous had provided it with an edge in attracting A-list talent. DeGeneres purportedly pointed to Seinfeld’s ads before signing on to do her own. 1 11 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card American Express launched its most recent campaign, â€Å"Are You A Cardmember? ,† in 2007. Hayes explained: â€Å"The new campaign continues the tradition of defining the value of belonging to the American Express community by showcasing some of our most exceptional cardmembers and the ways in which membersh ip works for them.But our latest campaign not only reaffirms for existing members why they belong, it also calls on nonmembers to consider becoming a cardmember. †42 See Exhibit 6 for a summary of American Express’s U. S. card advertising campaigns. Expenditures The company’s mix of marketing spending had changed to reflect the growing importance of targeted communication over mass mailings and the emergence of the digital world. Over time, spending on direct mail, while still large, had decreased along with spending on television advertising.Event/experiential marketing and Internet spending had both grown. American Express used direct marketing both to acquire new customers and to motivate existing members to upgrade. Traditionally, American Express sought new customer applications from outbound telemarketing, â€Å"Take Ones† (applications placed in restaurants and other retail establishments), and direct-mail efforts. By 2008, only 40% of successful ne w applicants still came from direct-mail solicitations and response rates had slipped well below 1%.By contrast, a significant portion of applications came from new channels such as the Internet, co-branded partner channels, and consumer-initiated phone calls to American Express customer service. The American Express website had become one of the company’s largest sources of new member applications. It allowed the company to leverage its datamining expertise to provide real-time consumer rewards and offers. The Web simplified the card selection/application process by guiding the applicant through card choices.Based on the applicant’s stated card feature priorities (fees, rewards, payment terms), the American Express website provided card product comparisons and recommended the most appropriate card options from American Express’s portfolio. The growing importance of the digital world was reflected in the company’s shift in media spending, as shown in Tabl e E. American Express Company—U. S. Card Media Spending Table E Share of Media Spend 2003 Media Type Online Share of Media Spend 2007 7% Television 19% 48 57 14 10 Print 23 13 Radio 2 Non Traditional Source: Mediaa Company records. a Non Traditional Media includes billboards, transit, cinema, and other out-of-home media Investing in the website reduced American Express’s costs and built brand presence and prestige. By 2008, 38% of American Express applications, payments, and reward redemptions had migrated to the Web at cost rates 53%, 84%, and 86% lower, respectively, than offline. 43 The Internet allowed the company to attract new customers faster (one application every eight seconds) and more 12This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card 509-027 economically. The website, serving as a virtual service cen ter around the clock, increased the frequency with which the company was in contact with its customers, making it a powerful marketing channel. Claiming the americanexpress. com site â€Å"gets more traffic than the Wall Street Journal online,† the company noted that its members used the Web primarily for checking statements and cashing in rewards.With more than 50% of American Express payments left to migrate online, upside opportunity existed for further cost savings and deeper relationships with customers. Bank and Merchant Partners As of 2008, American Express obtained customers in two ways: through direct company solicitations and communications that resulted in consumers being issued proprietary American Express cards; and through third-party financial institutions that solicited their customers to sign up for American Express cards through them, a business managed by the company’s Global Network Services (GNS) division.Bank Partners American Express’s GNS business was set up in 1997 to build partnerships with banks and other institutions to issue American Express–branded products. GNS products were designed to help issuers develop products for their highest-spending, most affluent customers and to support the value of American Express card acceptance with merchants. GNS enabled American Express to broaden its cardmember base internationally at relatively low cost. By 2008, GNS had over 120 partners in more than 125 markets and accounted for nearly 25% of American Express’s overall cardsin-force.American Express particularly wanted to help each bank design card products for their highspending, affluent private banking clientele, and to benefit from new distribution channels that included each bank’s website, direct-mail capabilities, and retail branch network. For their part, the banks were interested in partnering with American Express because of its superior marketing expertise as a card issuer and the higher-s pending profile of American Express cardmembers. Merchants stood to benefit from more American Express cards in circulation.For American Express, expanding the GNS business required little capital; the banks owned the receivables and therefore absorbed the consumer credit risk. While consumers could choose between American Express proprietary cards and those issued under GNS partnerships, cannibalization of direct sales appeared to be minimal. While GNS began building a healthy international business, it was effectively barred from doing business in the U. S. by Visa and MasterCard’s policies preventing their U. S. member banks from issuing other card brands. In 1998, the U.S. Department of Justice filed suit against Visa, MasterCard, and eight of their member banks, charging anticompetitive practices. The suit charged that Visa and MasterCard prohibited their U. S. partner banks from issuing American Express–branded cards on the American Express network. Discover card s were affected similarly. The legal battle was resolved in 2004 when the U. S. Supreme Court let stand a court ruling that Visa and MasterCard had violated antitrust laws. Visa settled for $2. 25 billion. MasterCard later settled for $1. 5 billion.American Express soon signed Network Card License Arrangements (NCLs) to issue American Express–branded cards with seven leading U. S. banks. MBNA was the first, followed by Citibank, Barclaycard U. S. , USAA, GE Money, HSBC, and Bank of America. Though the banks were licensed to issue American Express–branded cards, American Express owned the relationships with merchants. 13 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y.SUN 509-027 The American Express Card This meant that GNS earned discount revenue from both the bank issuer and the merchant acquirer, a sum that represented roughly one-third o f total GNS revenues. This design feature underscored the importance of the continued focus on the high-spend segment. American Express developed strong account-management teams to manage the relationships with these major banks. Two major banks that had not yet signed on to issue American Express cards were JP Morgan Chase and Capital One. Merchant Partners In addition to U. S. anks, American Express depended on relationships with merchant partners, seeking always to expand its merchant coverage. These relationships were managed by the Merchant Services Group. Despite American Express’s premium discount rate, American Express believed that merchant coverage was not a function of price alone; if it were, Kmart and Walmart, for example, would not have chosen to accept American Express. Further, the Discover card discount rate was less than American Express’s yet Discover had a much lower merchant penetration. (See Table F for fees paid in 2005 by U. S. erchants to accep t card payments. ) American Express account managers and third-party sales organizations aimed to convince merchants of two benefits to offset American Express’s higher discount rate: that American Express cardmembers would spend more with them than with competitive cardholders and that American Express data mining could target promotional offers that would drive business their way. To persuade reluctant merchants to sign up, the Merchant Services Group might target members who were likely shoppers at a new merchant with double points promotions for an inaugural period.Since 2000, American Express increased merchant acceptance of its cards in many categories, especially quick-serve restaurants, mass transit, and health care. American Express card acceptance also increased in industries where cash, checks, or bank transfers were the predominant forms of payment, including apartment rentals, private jet travel, and destination clubs. By 2008, the American Express card was accep ted at millions of merchants in the U. S.. Management estimated that U. S. ocations where the American Express card was accepted covered more than 90% of American Express cardmembers’ general-purpose charge and credit card spending. 44 Table F Fees Paid by U. S. Merchants to Accept Card Payments—2005 Payment Card Brand Visa/MasterCard Credit Cards Visa/MasterCard Debit Cards American Express Discover Source: Fees Paid (billions) Weighted Averagea $25. 13 9. 76 8. 51 1. 46 2. 19% 1. 75 2. 41 1. 76 Adapted from The Nilson Report, Number 862, August 2006. a Fees vary according to merchant category, volume, and type of card. ConclusionBy the spring of 2008, American Express was strategically focused on the payments and travel businesses, having sold off the last of its banking interests. Michael O’Neill, senior vice president of corporate affairs and communications, explained this transformation: â€Å"We narrowed the business and broadened the brand. † Warre n Buffett, who was the company’s largest shareholder, described 14 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card 509-027American Express’s â€Å"powerful world-wide brand† as â€Å"an enduring moat that protects excellent returns on invested capital†45 and Chenault as one of the â€Å"giant-company managers whom I greatly admire. †46 In March 2008, Barron’s named Chenault as one of â€Å"The World’s Best CEOs† for having â€Å"positioned American Express well to withstand turbulence. He hasn’t compromised credit standards to gain new cardholders, nor has he cut back on marketing spending to prop up earnings. His loss rates on cards remain among the industry’s best. †47 In the second half of 2007, a U. S. housing downturn and credit crunch slowed U . S. economic growth.American Express issued a profit warning in early 2008. Chenault explained that the slowdown in cardmember spending that had come on suddenly in December 2007 was broad-based and was expected to continue into 2008. â€Å"Now we’ve been through slowing economies before, but none of us can recall such a dramatic drop over such a short time frame, except for the event-driven decline of 9/11. †48 Past-due loans and write-offs also rose, especially in parts of the U. S. that had experienced a housing price bubble. However, superior risk management and credit controls at American Express meant that it was less affected than competitors. 9 It was in this context that Jud Linville prepared for his meeting with Ken Chenault and Al Kelly. How could the American Express consumer card business continue its growth while maintaining the company’s premium positioning? Were there opportunities for his organization to serve U. S. consumers and merchants in n ew ways while continuing to turn in the profits that shareholders had come to expect? 15 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express CardExhibit 1 American Express Card Business Statistics: 2006–2007 Years Ended December 31 (billions, except percentages and where indicated) 2007 2006 Card billed businessa United States Outside the United States $459. 3 188. 0 $406. 8 154. 7 $647. 3 $561. 5 52. 3 34. 1 48. 1 29. 9 86. 4 78. 0 40. 9 29. 2 37. 1 25. 4 70. 1 62. 5 Total b Total cards-in-force (millions) United States Outside the United States Total Basic cards-in-force (millions) b United States Outside the United States Total Average discount ratec Average basic cardmember spending (dollars)d Average fee per card (dollars) d Source: 2. 56% $12,106 32 2. 57% $11,201 $32 Company documents. a Card billed business inc ludes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on proprietary cards. Card billed business is reflected in the United States or outside the United States based on where the cardmember is domiciled. b The number of cards that are issued and outstanding. Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner (â€Å"cardmember†) and does not include additional supplemental cards issued on that account.Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee cardmembers. Non-proprietary basic cards-inforce includes all cards that are issued and outstanding under network partnership agreements. c Designed to approximate merchant pricing, the percentage of billed business (both proprietary and Global Network Services) retained by the Company from merchants it acquires, prior to payments to third parties unrelated to merchant acceptance. d Average basic cardmember spending and average fee per card are computed from proprietary card ctivities only. 16 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card Exhibit 2 509-027 Selected American Express U. S. Charge and Credit Card Products: 2008 CARD TYPE SELECTED FEATURES AND BENEFITS CHARGE CARDS Green (1958) Gold(1966) —Preferred Rewards Gold (2002) —Rewards Plus Gold (1994) Platinum (1984) Centurion (1999) One from American Express (2005) 1% of purchases deposited to high yield savings account CREDIT CARDSBlue (1999) —Blue (1999) —Blue Cash (2003) —Blue Sky (2005) —Blue for Students (2001) Optima (1987) —Optima Platinum (1997) City Rewards —In New York City (2004) —In Los Angeles (2005) —In Chicago (2005) Clear (2005) No annual fee, flexibility to pay over time, free additional cards No annual fee, earn up to 5% cash back, unlimited cash rewards No annual fee, earn points redeemable on airline, hotel or cruise services. No annual fee, flexibility to pay over time, Membership Rewards No annual fee, transfer balances for free, Membership Rewards No annual fee, earn Inside points to at, drink and play in New York No annual fee, earn Inside points to eat, drink and play in L. A. No annual fee, earn Inside points to eat, drink and play in Chicago. No fees of any kind, automatic rewards, flexibility to pay over time PARTNER CARDS Airlines —Gold Delta Sky Miles (1996) —Platinum Delta Sky Miles (2002) —JetBlue Card (2005) Hotels —Starwood Preferred (2001) —Hilton HHonors (1995) Costco—True Earnings Card (2004) Lifestyle Cards —The Knot (2005) —The Nest (2005) Earn Sky Miles on every dollar spent, earn double m iles on some purchases Earn Sky Miles, earn 1 companion ticket each yearEarn points towards JetBlue flights Earn points towards free hotel stays, upgrades, even flights Earn HHonors points on every purchase Earn cash back on purchases Membership Rewards, no annual fee, get special offers from The Knot Membership Rewards, no annual fee, get special offers from The Nest FOR CORPORATE CLIENTS American Express Corporate Cards (1966) Business ExtrAA Corporate Card (2003) Comprehensive reporting to track spending and increase compliance Savings through airfare rebates, free travel awards FOR SMALL BUSINESS Business Gold Rewards (2005) Business Platinum Card (1995) Plum (2006)Starwood Preferred Guest Business Credit Card (2001) Business Cash Rebate Credit Card (2003) Source: Membership Rewards, no limit, year-end summary Membership Rewards, access to special events Membership Rewards, access to special events, 5 free additional cards Airport Club access, 24 hour concierge service, by Invit ation Only events Save 3-25% on business expenses at selected partners (e. g. : FedEx, Delta) Access to airport lounges, professional office space, personal concierge Trade terms, pay within 10 days, get 2% off or defer payment Free awards nights at Starwood Hotels, awards flights on over 30 airlines Earn 2. % on all purchases and up to 5% for certain business purchases. Company documents. 17 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card Exhibit 3 Source: American Express Company Overview: 2007 Company records. 18 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card Exhibit 4 509-027American Express: Spend-Centric Model The American Express spend-centric busines s model focused primarily on generating revenues by driving spending on its cards, and secondarily finance charges and fees, allowing the company to grow market share in the payments industry. Source: Company documents. 19 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card Exhibit 5 American Express U. S. Card Services—Selected Income Statement Data Year Ended December 31 (millions)Revenues Discount revenue, net card fees and othera Cardmember lending revenueb Securitization income Excess spread, net Servicing fees Gains on sales from securitizations Securitization income, net:c 2007 2006 $10,435 4,762 $9,421 3,434 1,025 425 57 1,055 407 27 $ 1,507 $ 1,489 Total revenues Interest expense Cardmember lending Charge card and other $16,704 $14,344 1,518 964 957 767 Revenue, Net of Interest Expense $14,222 $12,620 Exp enses Marketing, promotion, rewards and cardmember services Human resources and other operating expenses Total Provisions for lossesd Pretax segment income Income provision 5,140 3,354 $ 8,494 $ 2,998 $ 2,730 $ 907 $ 4,445 3,227 $ 7,672 $ 1,625 3,323 $ 1,171 Segment Income $ 1,823 $ 2,152 Source: American Express Company Annual Report 2007, p. 53. a Discount Revenue represents revenue earned from fees charged to merchants with whom the company has entered into a card acceptance agreement for processing cardmember transactions. b Cardmember Lending Revenue represents the outstanding amount due from cardmembers for charges made on their American Express credit cards, any interest charges and card-related fees and balances with extended payment terms on certain charge products. Securitization Income, Net includes non-credit provision components of the net gains from securitization activities; excess spread related to securitized cardmember loans; and servicing income net of related dis counts or fees. d Provisions for Losses include credit-related expenses. 20 This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN The American Express Card Exhibit 6 509-027 Major American Express Advertising Campaigns in the United States 1958–early 1960s Good As Gold.The World Around! Establish prestige image for AmEx card and provide application instructions. 1969–1974 For People Who Travel Show how the American Express card is â€Å"all you need† for your travel and entertainment needs. 1975–1987 Do You Know Me? Show celebrities receiving the special treatment and recognition cardmembers enjoy around the world. Tagline, which continued through 1995, is â€Å"Don’t Leave Home Without It. † 1987–1992 Membership Has Its Privileges Introduce notion of â€Å"membership† and showcase the benefits of res pect, recognition, unsurpassed service as well as Global Assist, Buyers Assurance. 996–2000 Do More/Seinfeld Highlight individual card product benefits such as no pre-set spending, purchase protection, global assist. Talent-driven â€Å"stories† drive emotional relevance and recognition benefit. Use Jerry Seinfeld in a larger than life manner to increase awareness and use of the American Express card at everyday spend locations. Sub-campaign uses everyday moments to highlight individual product benefits such as retail protection and roadside assistance. Make Life Rewarding 2002 Relaunch American Express brand post 9/11 using charge card as the face of propriety.Sub-campaign introduced â€Å"revitalized† charge card with membership reward programs built in. 2004–2007 My Life. My Card. Demonstrate the company’s belief that American Express cardmembers are exceptional people no matter where they live or what they do. Featured extraordinary individuals including Robert DeNiro, Tiger Woods, Ellen DeGeneres, and Laird Hamilton, revealing snapshots of their lives. Acclaimed director Martin Scorsese and celebrated photographer Annie Leibovitz were commissioned to lend their vision to elements of the campaign creative.While the creative direction varied from ad to ad, the campaign theme was consistent: achievers of all types choose American Express. 2007–2008 Are You A Cardmember? Entice prospective cardmembers to apply and join the American Express community and reinforce the membership benefits to current cardmembers via showcasing the advantages American Express offers versus competition. Celebrities such as Beyonce Knowles, Ellen DeGeneres, Tina Fey, and Diane Von Furstenberg are featured within a lifestyle and access theme. Source: Company documents. 21This document is authorized for use only by YUJIE SUN in Intensive in American Business taught by Robert Calamai from September 2012 to December 2012. For the exclusive use of Y. SUN 509-027 The American Express Card Endnotes 1 Adapted from The Nilson Report, Issue 902, 2008. 2 American Express Annual Report, 2007, inside front cover. 3American Express Fixed Income Presentation, March 12, 2008, http://media. corporate-ir. net/media_files/ irol/64/64467/DebtInvestorPres. pdf, accessed June 12, 2008. 4 American Express Financial Community Meeting 2/16/2008 K.Chenault speech, texthttp://media. corporateir. net/media_files/irol/64/64467/KCSTalkingPoints020608. pdf, accessed June 12, 2008. 5 American Express Annual Report, p. 110. 6 American Express Fixed Income Presentation, March 12, 2008, ir. net/media_files/irol/64/64467/DebtInvestorPres. pdf, accessed June 12, 2008. 7 American Express Fixed Income Presentation, March 12, 2008, ir. net/media_files/irol/64/64467/DebtInvestorPres. pdf, accessed June 12, 2008. http://media. corporatehttp://media. corporate- 8 Americ

Meet Sage Inventory Advisor in the Cloud Essay

Implementing a fixed asset inventory solution and performing proper accounting of assets can save time and money, reduce theft, improve planning and budgeting, eliminate â€Å"ghost assets,† and help an organization recover after a natural disaster. However, the importance of tracking and managing fixed assets such as land, buildings, transportation, and manufacturing equipment is often overlooked. This white paper discusses best practices for fixed asset inventory management and suggests tips for implementing a successful inventory process, including how to create an asset inventory process, implement a label and scanning solution for tracking of assets, establish an accurate baseline of fixed assets, and design a â€Å"go-forward† strategy for maintaining an asset inventory. LOCAL STUDIES IN INVENTORY SYSTEM: fixed asset inventory solution, fixed assets, asset accounting, asset inventory, asset tracking. 4/19/2013 2:31:00 PM 9 Important Business Phone System Buyer Questions In 9 Important Business Phone System Buyer Questions, you’ll find the key questions to help you get the right business phone system at the best possible price. LOCAL STUDIES IN INVENTORY SYSTEM: important business phone system buyer questions, important, business, phone, system, buyer, questions, business phone system buyer questions, important phone system buyer questions, important business system buyer questions, important business phone buyer questions.. 10/3/2011 4:02:00 PM LOCAL STUDIES IN INVENTORY SYSTEM: phone system buying checklist, phone, system, buying, checklist, system buying checklist, phone buying checklist, phone system checklist, phone system buying.. 4/5/2012 10:00:00 AM Five Inventory Areas that Every Process Manufacturer Must Master While many ERP systems claim to cater to the process manufacturing industry, a closer look reveals that in reality, little distinction is made within ERP applications to readily address the fundamental needs of a process versus a discrete manufacturer. This paper elaborates on one of the most fundamental requirements of process manufacturers—multidimensional inventory—which is noticeably absent from most ERP applications. LOCAL STUDIES IN INVENTORY SYSTEM: process manufacturing, process ERP software, multi-dimensional inventory requirements, process manufacturing inventory requirements, multi-dimensional inventory for process manufacturers, process manufacturing inventory management, process inventory management, process inventory, Fullscope. 11/14/2012 12:06:00 PM Passive RFID Solutions for Asset Tracking and Inventory Management In the present context of business, it is becoming essential for the business world to provide electronic commerce in addition to their good old business model. An electronic commerce application adds lot of value to business models and helps overall growth in the different areas of business, business management, tracking, and customer support. Customers find it’s much easier to access the products and services of a corporation through an e-commerce application and corporations find it easier to reach their customers. LOCAL STUDIES IN INVENTORY SYSTEM: module, RFID, Ficus, e-commerce, errors, architecture. 5/25/2005 10:37:00 AM What Do Companies Want from an ERP System? In the new TEC 2011 Market Survey Report: What Organizations Want in ERP for Discrete Manufacturing, you’ll learn the top priorities of manufacturi†¦ LOCAL STUDIES IN INVENTORY SYSTEM: companies want erp system, companies, want, erp, system, want erp system, companies erp system, companies want system, companies want erp.. 8/26/2011 10:02:00 AM Can You Add New Life To an Old ERP System? Getting ERP transaction data into a summarized form that is useful to knowledge workers is one way to extend the value of your ERP system. This article discusses the advantages that can be gained by moving ERP and other transaction data to a data warehouse. LOCAL STUDIES IN INVENTORY SYSTEM: 10/31/2003 Decision Support Systems — Overview and Case Studies Decison support systems range from simple electronic filing cabinets to complex data intensive and analytically sophisticated executive information systems. This primer provides an overview with real case studies. LOCAL STUDIES IN INVENTORY SYSTEM: Decision Support Systems — Overview and Case Studies Decision Support Systems — Overview and Case Studies Source: Cerulean Infotech Document Type: White Paper Description: Decison support systems range from simple electronic filing cabinets to complex data intensive and analytically sophisticated executive information systems. This primer provides an overview with real case studies. Decision Support Systems — Overview and Case Studies style= border-width:0px; /> comments powered by Disqus Related 7/31/2005 12:20:00 PM LOCAL STUDIES IN INVENTORY SYSTEM: Accounting, Cloud, ERP, forecast pro, forecasting and planning, industry watch, Inventory, Sage, Sage ERP X3, sage inventory advisor, sage north america, SCM, smb, What if, TEC, Technology Evaluation, Technology Evaluation Centers, Technology Evaluation Centers Inc., blog, analyst, enterprise software, decision support. 25-06-2013 LoginPasswordSign In Remember me Forgot password? inSign in with LinkedIn | Newsletter Subscription | Register for a TEC Account | Language [change] | Home Logo Evaluation CentersVendor ServicesTEC ReportsSoftware Selection ServicesProductsMedia PartnersAbout TEC Featured Documents related to  » local studies in inventory system in philippines ad Get Free ERP Systems Comparisons Find the best ERP software solution for your business! Use the software selection tool employed by IT professionals in thousands of selection projects per year. FREE software comparisons based on your organization’s unique needs—quickly and easily! Register to access your free content from TEC and more! select select Send me the TEC Newsletter Generate New Image Type the code above Documents related to  » local studies in inventory system in philippines Meet Sage Inventory Advisor in the Cloud  » The TEC Blog LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: Accounting, Cloud, ERP, forecast pro, forecasting and planning, industry watch, Inventory, Sage, Sage ERP X3, sage inventory advisor, sage north america, SCM, smb, What if, TEC, Technology Evaluation, Technology Evaluation Centers, Technology Evaluation Centers Inc., blog, analyst, enterprise software, decision support. 25-06-2013 Effective Inventory Analysis: the 5 Key Measurements The white paper effective inventory analysis isolates and walks you through five simple measurements that will help you ensure you are maximizing t†¦ LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: effective inventory analysis key measurements, effective, inventory, analysis, key, measurements, inventory analysis key measurements, effective analysis key measurements, effective inventory key measurements, effective inventory analysis measurements, effective inventory analysis key.. 12/10/2008 SAP to Acquire Inventory Optimization Vendor SmartOps  » The TEC Blog LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: cloud based analytics, enterprise demand sensing, industry watch, inventory optimization, SAP, smartops, TEC, Technology Evaluation, Technology Evaluation Centers, Technology Evaluation Centers Inc., blog, analyst, enterprise software, decision support. 25-02-2013 How to Optimize Your Inventory and Free Your Capital Inventory optimization enables companies to improve the performance of both the supply and maintenance functions. Your inventory optimization solution should not only identify optimal holdings of each item, but do so automatically—and analyze usage, as well as adjust stock holdings and reordering points on an ongoing basis. Find out how inventory optimization can help you reduce downtime and increase productivity. LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: 5/28/2008 4:01:00 PM Business Phone System Buyer’s Guide As the mechanism through which you communicate with customers, fellow employees, and prospective partners, phones are integral to any business. You need them and they need to work. This guide offers information to equip small business owners with the tools to make the right business phone decisions for their businesses. It covers basic selection considerations and describes the four most common business phone systems. LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: CompareBusinessProducts.com, telephone, voice, voip, call center, session initiation protocol, sip, asterix, phone numbers, phone service, google voice, voice mail, phone call, voicemail, bluetooth headset, internet business, plantronics, telephone directory, video conference, internet phone, telecommunication, pbx, sony ericsson phones, samsung phones, home phone, voice over, polycom, voice recorder, phone line, video conferencing, business phone, pc to phone, ip phone, data cable, cheap calls, lg phones, internet service providers, online phone, voip phone, phone to phone voip. 9/30/2010 3:57:00 PM Case Study: How Novelis Slashed Inventory by Eight Million Pounds Novelis is the world leader in aluminum rolling and beverage can recycling. Novelis produces advanced aluminum sheet and foil products for customers in high-value markets, including automotive, transportation, packaging, construction, and printing. Find out how scheduling technology improved some of its most important key performance indicators (KPIs). LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: Development of an Internet Payment Processing System This article describes the author’s experience with the development of the first Yugoslav Internet payment processing system. The system’s architecture is very similar to the Three Domain (3D) model that started to emerge later. This success story is worthwhile sharing with a wider audience. LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: We also captured that local celebrity hackers poked around the system. Prevention is a set of legal/marketing/media actions aimed at detracting people from even trying to break in the system. As we expected, break in attempts started virtually from day one. Logs contain enough information to locate would-be intruders. Legal actions against them are still not possible, or at least not easy, in Yugoslavia. Laws against crime in information technology are still under development. The legal validity of 6/17/2002 Infor Healthcare To Be Implemented at Iowa Health System  » The TEC Blog LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: enterprise resource planning, ERP, healthcare, industry watch, infor, Infor Healthcare, iowa health system, TEC, Technology Evaluation, Technology Evaluation Centers, Technology Evaluation Centers Inc., blog, analyst, enterprise software, decision support. 07-03-2013 Content Management System Pocket Guide As with any project, implementing a new content management system (CMS) for your web site must start with a set of ideas outlining the types of services, capabilities, and desired outcomes you wish to have. Choosing the right Web CMS will undoubtedly take some time, but with the proper guidance—and this handy system pocket guide—you’ll be on your way to a successful implementation and a number of new opportunities. LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: 2/29/2008 11:26:00 AM International ERP System LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: 8/27/2010 2:08:00 PM Most Overlooked Features when Buying a Business Phone System When buying a new business phone system you are faced with a wide variety of phone features to choose from. Before you buy, make sure you don’t overlook these commonly forgotten features. This guide details such features as conferencing, auto attendant, mobile extensions, and many other valuable features. LOCAL STUDIES FOR INVENTORY SYSTEM IN PHILIPPINES: business phone system, small business phone system, voip business phone system, business phone system voip, voip small business phone system, small business phone system voip, business phone system pbx, pbx business phone system, ip business phone system, business phone system reviews, business phone system review, best business phone system, digital business phone system, panasonic business phone system, wireless business phone system, business phone system wireless, used business phone system, best small business phone system, small business phone system reviews, cordless business phone . 3/3/2011 3:20:00 PM