American Express Case Study - Amex

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American express case study
American Express Case Study Research Papers, Essays, and Term Papers 1-800-351-0222 or 310-313-1265 Or Order On-Line! American Express Case Study  Term Paper ID:27345 Get This Paper Free!or Buy This Paper Essay Subject: Analyzes the successful management changes instituted at American Express in the 1980s by CEO Lou Gerstner.... Pages / 1800 Words 1 sources, 3 Citations, APA Format rating 32.00 More Papers on This Topic Paper Abstract: Analyzes the successful management changes instituted at American Express in the 1980s by CEO Lou Gerstner. Paper Introduction: American Express Case Study Description Much of the success of American Express during the mid1980s was attributed to the entrepreneurial management philosophy of Lou Gerstner, chairman of American Express TRS. He himself indicated that it was not his original intent to come in to American Express and institute corporate entrepreneurship. Nonetheless, his background and management style seemed to challenge the people who were already there and developed into something that was considered entrepreneurial, or intrapreneurial. American Express Company was an appropriate venue for this kind of management. During the late 1970s, as an organization, it set aggressive goals for itself. Rather than accept static growth, or attempt a defensive posture in the face of growing competition, The result was to be a balanced operation inwhich each group was valued for its contribution to the whole, andhopefully learned to value the other group. References Kao, J. He sought to inculcate acounterculture - not to replace the traditional corporate culture, but tocoexist with it, operating in tension with the more traditional culture. The intent was to ensure the maintenance of stability, order, predictability, and control, while adding the potential for individualinitiative and diversity. Eventually, his career will end after a series offailures, or lack of success, in any event, and that is also likely to bethe case with his group. During the late 197 s, as an organization, it set aggressivegoals for itself. There are things that can be built in, however, focusing on environment and organizational context, as well as people. Creating a corporate culture that institutionalizes theseis really not possible. He himself indicated that it was not hisoriginal intent to come in to American Express and institute corporateentrepreneurship. The organization rewards success, but it alsopunishes failure. Thereare structures that can encourage it, but there is also the weight of thelarger organization, of the low-risk institution that seeks to maintainitself, which tends to flatten out creative structure and process. According to the people who are quoted here, hesucceeded in creating a culture in which performance was rewarded and whichencouraged entrepreneurial and creative behavior. The financial services industry was quite volatile and competingcard services were also being aggressively marketed. Rather than accept static growth, or attempt a defensiveposture in the face of growing competition, American Express TRS decided toemphasize growth in earnings and high ROE, while at the same time notdamaging the larger organization. It is possibleto identify creative people and Gerstner needs to focus on this, perhapseven creating a search process that is specifically designed to identifythis kind of person. In looking at the case of American Express, it seems as though themost fruitful approach for that organization, and one that could becontinued, was to hire bright, creative people and let them find theirniche in the slack that Gerstner had created in the organization. Nonetheless, his background and management style seemedto challenge the people who were already there and developed into somethingthat was considered entrepreneurial, or intrapreneurial. American Express Company was an appropriate venue for this kind ofmanagement. It is important torecognize that he...
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