THE AMERICAN EXPRESS

INTRODUCTION
In January 2006, the American Express Company
(AmEx) was featured on Fortune's list of the '100 Best
Companies to Work for' in America.
AmEx was ranked ninth among large companies, and
37
th
in the overall ranking of the list of the best employers
in the US.
company stood ninth in the overall ranking
WHAT IT DOES?
Each day, American Express makes it easier, safer
and more rewarding for consumers and businesses to
purchase the things they need and for merchants to
sell their goods and services.
American Express provides innovative payment,
travel and expense management solutions for
individuals and businesses of all sizes.
BACKGROUND
American Express Company, sometimes known
as AmEx, is a diversified global financial
services company headquartered in New York City.
Founded in 1850, it is one of the 30 components of
the Dow Jones Industrial Average(stock market
index).
The company is best known for its credit card, charge
card, traveller's cheque businesses and travel.
It was founded as a joint stock corporation by the
merger of the express companies owned by
Henry Wells (Wells & Company),
William Fargo (Livingston, Fargo & Company), and
John Warren Butterfield (Wells,Butterfield &
Company).
Henry Wells
(Wells & Company)
William Fargo
(Livingston, Fargo &
Company),
John Warren
Butterfield (Wells,
Butterfield &
Company
Kenneth Irvine Chenault
has been
the CEO and Chairman
of American
Express since 2001.He
is the third African-
American CEO of
a Fortune 500 company
AMERICAN EXPRESS
Type Public (NYSE: AXP)
Industry Banking , Financial services
Founded 1850
Founded by Henry Wells, William Fargo,John Warren Butterfield
Headquarters New York City, New York, United States
Area served Worldwide
Key people Kenneth Chenault(Chairman & CEO)
Products Financial ,Travel services, Insurance
Revenue US$26.7 Billion (FY 2009)
Net income US$2.13Billion (FY 2009)
Total assets US$124 Billion (FY 2009)
Total equity US$14.4 Billion (FY 2009)
Employees 67,701 (2008)
MISSION
To be the most respected brand in the world.
VISION
We work hard every day to make American Express
the worlds most respected service brand.
VALUES
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
SOME OTHER FACTS
As of December 31, 2009
BUSINESS MODEL
Typical credit card business model
When a consumer makes a purchase using a credit or charge card, a small
portion of the price is paid as a fee (known as the merchant discount), with the merchant
keeping the remainder. There are typically three parties who split this fee amongst
themselves:
Acquiring bank: The bank which processes credit card transactions for a merchant, including
crediting the merchant's account for the net value charged to a credit card.
Issuing bank: the bank which issues the consumer's credit card. This is the bank a consumer is
responsible for repaying after making a credit card purchase. The issuer's share of the
merchant discount is known as the interchange fee.
Network: the link between acquiring banks and issuing banks. These banks have relationships
with a network, rather than with each other, for fulfilling card purchases. For e.g. card issued
by a community bank in Peru to be used at a shop in Sri Lanka, for instance, without requiring
the banks to have a direct relationship with each other. The two largest networks in the world
are Visa and MasterCard.
PRODUCTS
Card products
Consumer cards
Small business services (also known as American Express OPEN)
Commercial cards and services
Non-proprietary cards
Non-card products
Traveler's Cheques
Shearson/American Express
Financial Advisors
Travel
Publishing
CORPORATE RESPONSIBILITY
American Express supports hundreds of non-profit organizations each year through its
foundation and corporate giving activities. Like,
American Red Cross Disaster Relief Fund for disaster relief, service to the armed forces,
blood and tissue services, and health and safety services.:
Employee-Driven Philanthropy for feeding the hungry, mentoring students, building
homes, cleaning up the environment or making personal financial contributions,
Partners in Preservation contribution for preservation of historic sites and monuments.
Travel With Your Mind : which aims to reestablish schools as the focal part of the
community.
Developing New Leaders for Tomorrow: dedicate significant resources to attract, develop
and retain talented employees.
Encouraging Community Service and Engagement Where Our Employees and
Customers Live and Work