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American Express Strategic Planning

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Submitted By mousemotors1
Words 643
Pages 3
American Express Strategic Planning
FIN/370
April 23, 2015

American Express Strategic Planning A large part for any success of a company is planning. Effective strategic planning is necessary for any company to acquire financial growth and American Express shows to investors and the public they are able to achieve such success. Their “closed-loop” and “spend-centric” business models show they remain competitive with bankcard networks because they acquire and handle all aspects of credit card transactions from the cardholders end and the administrative end. “Closed-loop” allows for this company to monitor spending habits and to build algorithms and analytical tools which allows American Express to offer special deals to prospective clients and existing cardholders. “Spend-centric” deals with ways to generate revenue by using attractive finance rates and fees which in turn encourages cardholders to spend more than bankcard holders (American Express Company, Form10-K).
Financial planning affects American Express uses Global Network & Merchant Services (GNMS) to incorporate merchants using the Closed-loop network and be able to offer multi-channel marketing programs to merchants worldwide. By doing this, American Express broadens their capabilities to acquire new merchants accepting the American Express card and acquiring new cardholders allowing for more purchases, loans, and fees. Their presence is seen in places that otherwise would be unattainable solely in the United States; some of these foreign merchants are mostly responsible for operating costs in their particular customer segments and this allows for further financial gains in American Express’ financial reports.
Costs and Revenues of Supply Chain There is always some type of budget to keep costs to a minimum and this is necessary so as not to “dip” into revenues that investors depend

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