UNIVERSITY OF THE EAST

CALOOCAN
College of Business Administration

Ann Margarette I.
Sambilay
BMG 114
BSAcT3H / MWF /
11:30-12:30
Dr. Rosalinda B.
Lacerona
 I. TITLE OF THE CASE:

II. TIME CONTEXT: June 2011 (The company is prosperously operating at the present time)
III. SUMMARY/ABSTRACT:

In 1850, American Express was started as an express mail business in Buffalo, New
York. It was founded as a joint stock corporation by the merger of the express companies
owned by Henry Wells (Wells & Company), William G. Fargo (Livingston, Fargo &
Company), and John Warren Butterfield (Wells, Butterfield & Company, the successor
earlier in 1850 of Butterfield, Wasson & Company). Wells and Fargo also started Wells
Fargo & Co. in 1852 when Butterfield and other directors objected to the proposal that
American Express extend its operations to California.
American Express initially established its headquarters in a building at the
intersection of Jay Street and Hudson Street in what was later called the Tribeca section of
Manhattan. For years it enjoyed a virtual monopoly on the movement of express shipments
(goods, securities, currency, etc.) throughout New York State. In 1874, American Express
moved its headquarters to 65 Broadway in what was becoming the Financial District of
Manhattan, a location it was to retain through two buildings.
In June 2011, Kenneth Chenault, CEO of American Express (AXP), announced the
formation of a new group within the company, Enterprise Growth (EG), to drive expansion
into digital and mobile payments. “New technologies are redefining the payments business
and creating opportunities that go beyond our existing businesses,” said Chenault in a press
release. “The Enterprise Growth group is designed to extend our leadership into the world
of alternative payments and create new fee-based revenue streams for the post-recession
environment.” To lead the group, AXP hired Dan Schulman from Sprint Corporation (where
he had headed the Prepaid Group after previously serving as founding CEO of Virgin Mobile
USA, as president and CEO of Priceline.com Incorporated, and in other leadership
positions). “Technology [is] fundamentally going to change the way you might think about
financial services,” Schulman said during one of his first meetings with EG, “just as the
Internet has redefined one industry after another.” EG, he continued, was designed “to
challenge existing business models” and “to think about the intersection between software,
software platforms, mobile apps, and mobile technology in general, and financial services.”
 With this, the author wanted to come up with an effective strategy on how can the
consumer and the market will easily adopt and respond to this new feature of the American
Express and their sub group in the company, the Enterprise Growth (EG)

A. VISION:
We work hard every day to make American Express the world’s most respected service
brand.

B. MISSION:
We provide outstanding products and unsurpassed service that, together, deliver
premium value to our customers.

C. VALUES:

OUR VALUES
Our Blue Box Values reflect who we are and
what we stand for as a company.

Customer Commitment
We develop relationships that make a positive
difference in our customers' lives.
Quality
We provide outstanding products and
unsurpassed service that, together, deliver
premium value to our customers.
Integrity
We uphold the highest standards of integrity in
all of our actions.
Teamwork
We work together, across boundaries, to meet
the needs of our customers and to help the
company win.
Respect for People
We value our people, encourage their
development and reward their performance.
Good Citizenship
We are good citizens in the communities in
which we live and work.
A Will to Win
We exhibit a strong will to win in the
marketplace and in every aspect of our
business.
Personal Accountability
We are personally accountable for delivering on
our commitments.
D. CORPORATE SOCIAL RESPONSIBILITY:

Will Corporations Inherit the Earth?

In a recent New York Times op-ed piece entitled, “Corporations Will Inherit the
Earth,” Frank Bruni muses about the role of corporations in society at a time that the federal
government is -- to use his phrase -- “a bumbling klutz.” Bruni asserts, “It can’t manage
health care. It can’t master infrastructure. It can’t fund itself for more than tiny increments
of time. It can barely stay open.” In contrast, he says, America’s corporations are operating
“with an innovation and can-do ambition solely absent in Washington.”
While Bruni goes on to cite some pretty impressive recent corporate activities (Elon
Musk successfully sending his own rocket into space; Amazon joining with Berkshire
Hathaway and JPMorganChase to create their own health care provider; Airbnb promoting
countries the government considers undesirable as tourist destinations), he also correctly
notes that Americans are both deeply suspicious of big companies and ever more reliant on
them.
On the one hand, many companies are “more high minded, forward-thinking and
solutions-oriented than the federal government” and on the other hand their actions “will
never deviate too far from their proprietary interests...what’s best for Amazon and what’s
best for humanity aren’t one and the same.”
Putting aside the fact that many companies are engaged in major philanthropic
initiatives and carbon-reduction efforts that don’t necessarily add to their bottom line,
Bruni’s major omission is the critical role played by the third sector – the millions of not-
for-profit and non-governmental organizations that are working with both government and
business to solve short-term and long-term problems in countries all over the world.

IBM’s innovations with elementary and secondary education would simply not be possible
without the partnership of not-for-profit educational organizations. Likewise, Merck and
other pharmaceutical companies that are fighting disease in developing countries would not
be successful without partnerships with both government and nonprofits. And, American
Express’s drive to develop the next generation of nonprofit leaders would not be nearly as
impactful without the help of nonprofit partners like the Center for Creative Leadership,
Ashoka and Common Purpose.
 It’s the civil society -- the third sector, the not-for-profit organizations, the non-
governmental agencies -- who are working side by side with companies and governments to
bring them together to solve these complex global issues.
It is they who will inherit the Earth.

E. AWARDS AND RECOGNITION RECEIVED:

IV. STATEMENT OF THE OBJECTIVE

To be able to create a banking system with high security.
To be able to have the Bank 2.0 widely used by the people in America.
To be able the Bank 2.0 stand up against the competitors.
To be able to partner in different malls and business.
To be able to help the people in paying their bills without spending too much in
interest rates whenever they use the Bank 2.0.
 V. CENTRAL PROBLEM
How would the traditional retail banking system respond to the Enterprise Growth’s
(EG) new entry, the Bank 2.0?

VI. AREAS OF CONSIDERATION (SWOT ANALYSIS)

a. They have a strong f a. There

b. b.

a. Product a. They
b. b.

VII. ALTERNATIVE COURSES OF ACTION (SWOT ANALYSIS)

a. The a. It
1.
b.
a. It a. This
2.
b.
a. They a. It will
b. b.

3.

VIII. STRATEGY FORMULATION OR RECOMMENDATION

I therefore conclude that the best solution to the problem is alternative course of
action number 1 which is to

IX. PLAN OF ACTION

1. Tim

X. POTENTIAL PROBLEM

1. What
XI. CONTINGENCY PLAN

1. Tim