...American Express Chairman/CEO Influence and Outcomes 7/30/2011 TABLE OF CONTENTS American Express Overview 3 James D. Robinson 3 Success and Failures of Robinson 3 Board Of Directors 4 Decisions Required 4 Candidates for CEO Position 5 Robinson’s Strategy 5 Decisions Of The Board 5 Problems Faced By American Express 6 Solution 7 Lessons Learnt 7 References 7 AMERICAN EXPRESS OVERVIEW American Express Company (American Express), incorporated in 1965, is a global service company The Company’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. American Express Company and its principal operating subsidiary, American Express Travel Related Services Company, Inc. (TRS), are bank holding companies. It is principally engaged in businesses comprising four reportable operating segments: U.S. Card Services, International Card Services, Global Commercial Services, and Global Network & Merchant Services. Its range of products and services includes charge and credit card products, expense management products and services, consumer and business travel services, stored value products, such as Travelers Cheques and other prepaid products, network services, merchant acquisition and processing, point-of-sale, servicing and settlement, and marketing and information products and services for merchants, and fee services, including market...
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...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...
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...VANITA YADAV C.V. BAXI CORPORATE GOVERNANCE FAILURE AT SATYAM “Why do you want to quit Satyam,”1 the panel member asked the 30-year-old employee being interviewed. Satyam Computer Services Ltd (“Satyam”) was India’s fourth-largest computer services company; however, many employees had left and applied for new jobs after news of a US$1.4 billion corporate fraud at Satyam became public in December 2008. 2 Satyam’s governance failure had severely shaken its stakeholders and the global business community, and the business press worldwide referred to Satyam as “India’s Enron”.3 Satyam was listed on the New York Stock Exchange (“NYSE”) in 2001 and on Euronext Amsterdam in 2008. 4 It boasted a large number of clients, including many Fortune 500 companies.5 The founder of Satyam Computer Services, B. Ramalinga Raju (“Raju”), was a highly regarded entrepreneur and an eminent fixture at prestigious corporate events in India.6 In 2007, he was honoured with the Ernst & Young Entrepreneur of the Year award, yet a mere two years later, on 7 January 2009, Raju made the calamitous confession that he had falsified accounts on a grand scale over a long period of time. His shocking announcement sparked a big debate over whether India possessed adequate guidelines for corporate governance. 7 How did Raju commit a fraud of such magnitude? How could a successful company, twice awarded the Golden Peacock award for corporate governance excellence collapse in such a manner? 8 Where did the internal...
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...Economics of Water Abstract Government regulation is needed in today’s industry. While this paper will look at the governance of the economics of water it will start with a brief introduction of the reasons why government regulation is something that the shareholders’ of a corporation should embrace and should ignore the hype from management, media, and academia about why governance is wrong. They tend to mistakenly call all decisions as opportunistic behavior whether it is ethical or not. Regulation should be regarded as a tool to address basic public ends (Dent, 2008). Management should see regulation as a benefit to society. It should engrave a sense of duty to their decision making. There are two types of governance that this paper is going to consider. The first is necessity of internal governance of public corporations. The second is specific industry governance specific to the economics of water. In addressing the internal governance of public corporations, this paper will address a short history of why internal control is regulated by government, some objections to government regulation of internal control, and why these criticisms are unwarranted. By July of 2002 Americans had been plagued by a flood of corporate scandal. The names: Enron, World Com, Adelphia and Arthur Anderson will forever be burned into our history books as those infamous corporations that ruined the lives of millions of people. Their jobs were lost, their pensions disappeared...
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...Corporate governance heavily refers to the whole structure of rights, processes and controls established internally and externally over the management of a business entity with the objective of protecting the interests of its stakeholders from any type of loses incurring. To begin with, firstly there are three types of auditors in the corporate governances, internal, external and government auditors. The role of the internal auditors in the corporate governance is to evaluates corporate activities, controls or procedures and ensures that they are adequate and in compliance with senior management's recommendations and human resources guidelines. An internal audit also helps a firm adhere with regulatory standards and industry practices.An internal auditor evaluates a firm's processes, "controls" and mechanisms to ensure that they are "adequate" and "functional". A control is a group of instructions that top management puts into place to avoid losses due to human error, technology breakdowns or fraud. A "functional" control provides corrections to internal problems. A control is "adequate" when it clarifies instructions for job performance and problem reporting. An auditor also ensures that a firm's activities and controls abide by government mandates or industry regulations. (Codjia, 2013) Moreover the role and responsibility of an external auditor is to provide assurance to the general public regarding the truth and fairness of the information presented in the audited reports...
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...$10 trillion in market capitalization from global equity markets in October 2008, the biggest monthly decline on record at the time. The History of Lehman Brothers Lehman Brothers had humble origins, tracing its roots back to a small general store that was founded by German immigrant Henry Lehman in Montgomery, Alabama, in 1844. In 1850, Henry Lehman and his brothers, Emanuel and Mayer, founded Lehman Brothers. While the firm prospered over the following decades as the U.S. economy grew into an international powerhouse, Lehman had to contend with plenty of challenges over the years. Lehman survived them all – the railroad bankruptcies of the 1800s, the Great Depression of the 1930s, two world wars, a capital shortage when American Express spun it off in 1994, and the Long Term Capital Management collapse and Russian debt default of 1998. However, despite its ability to survive past disasters, the collapse of the U.S. housing market ultimately brought Lehman Brothers to its knees, as its headlong rush into the subprime mortgage market proved to be a disastrous step. The Prime Culprit In 2003 and 2004, with the U.S. housing boom well under way, Lehman acquired five...
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...The Japanese corporate governance system differs vastly from the US system. Discuss corporate governance issues that may arise under the Japanese Keiretsu system from the perspective of a).financiers, b). Owners, c). Suppliers, d). Employees. Corporate Governance System in Japan (1) Definition of Corporate Governance Corporate governance deals with the agency problem: the separation of management and finance. This basic agency problem suggests a possible definition of corporate governance as addressing both an adverse selection and a moral hazard problem. The traditional definition of corporate governance was such a narrow view as Shleifer and Vishny (1997) mentioned that the ways in which the suppliers of finance to corporations assure themselves of getting a return on their investment. Recent trend, however, express doubts on the definition that solely focuses on shareholder value. EPA (1998) shows the constituents of corporate governance as follows: Table 1: Constituents of corporate governance Stakeholders | Interest | Desired Management | Shareholders | Maximize profitsAsset protection | Profitable managementSound management | Investors | Efficient investment | Exploitation of profitable investment | Creditors | Protection of receivables | Sound management | Main bank | Corporate growth | Sound managementPursuit of productivity growth | Employees | Pay raiseSecure employment RelationshipPromotion | Profitable managementSound managementSustainable...
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...Accounting Information System Tutorial 7 – Audit and Corporate Governance Instruction: Answer the following questions 1. What are the differences between COSO and COBIT internal control framework? At a high level COSO is focused on processes and controls for financial reporting, while COBIT is focused on IT When we think of most organizations, these often go hand and hand (financial information is often supported by IT in that the information relies on systems and applications (i.e. storage, recording, transforming, etc...). COSO - supported by five organizations: Institute of Management Accountants (IMA), the American Accounting Association (AAA), and the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA) and Financial Executives International (FEI). COBIT - supported by ISACA, an international professional organization focused on IT governance. 2. Why do the companies need to do the audit? The shareholders are apart from an organisations management although they partly own a company; therefore they need to get a fair understanding of the company’s performance. Also the stakeholders such as the creditors, suppliers, customers and etc. need to have a fair understanding a company to make a decision. 3. Discuss the responsibilities of internal audit, external audit and audit committees. Internal audit is a management tool, and forms part of the company’s internal control structure. In general, the main focus of an internal audit...
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...Overview B ritish American Tobacco is a British multinational tobacco company headquartered in London, United Kingdom. It is the world’s second-largest quoted tobacco company by market share (after Philip Morris International), and has a leading position in over 50 countries and operations in more than 180 countries. Its brands include Dunhill, Kent, Lucky Strike and Pall Mall. BAT has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of 26 December 2011 it had a market capitalization of £59.2 billion, the sixth-largest of any company listed on the London Stock Exchange. It has a secondary listing on the Johannesburg Stock Exchange. They are leading more than 50 countries and have their presence in more than 180 countries with approximately 50,000 employees. BAT is committed to providing consumers with pleasure through excellent products, and to demonstrating that they are meeting their commercial goals in ways that are consistent with reasonable societal expectations of a responsible tobacco group in the 21st century. BAT is designed to deliver their vision and build shareholder value. It is based on growth, funded by productivity and delivered by a winning organization that acts responsibly at all times. History Born international O n 29 September 1902 the UK’s Imperial Tobacco Company and the American Tobacco Company of the United States form a joint venture, the British American Tobacco Company, in a bid to...
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...UNIVERSITY OF DHAKA CORPORATE GOVERNANCE PRACTICE OF BRITISH AMERICAN TOBACCO, BANGLADESH LTD. JULY’ 2012 NAHID RIJWAN ID# 3-09-17-033 University of Dhaka Department of Management Studies MBA (Evening Program) Summer, 2012 Term Paper Course Title Course code Corporate Governance & Diplomacy EM 557 Course Teacher Md. Mesbah Uddin Topic Term Paper: Corporate Governance Practice of British American Tobacco, Bangladesh Ltd. 29- 07- 2012 Date Submitted by Name Nahid Rijwan Roll 3-09-17-033 CONTENTS Topic CHAPTER – 1 About British American Tobacco Bangladesh Business Principles of BAT, Bangladesh Standards of Business Conduct of BAT, Bangladesh: CHAPTER – 2 Corporate Governance Statement Board of Directors of BAT Bangladesh and Their Roles Relationship with Shareholders Accountability and Audit Compliance with Legal Requirements Employees Standards of Business Conduct CHAPTER -3 Corporate Social Responsibility Statement Probaho Socially Responsible Tobacco Production (SRTP) Deepto Afforestation CHAPTER - 4 Auditor’s Report to The Shareholders 16 12 12 13 14 15 6 7 9 10 10 10 11 1 2 3 Page CHAPTER - 5 Comparative Analysis of Bat Bangladesh’s Corporate Governance Compliance Status of compliance with the Provisions Denoted in the Code of Corporate Governance for Bangladesh, March 2004 Status of compliance with the Conditions Imposed by the Securities & Exchange Commission's Notification 21 19 18 REFERENCES 23 ANNEXURE - I 24 ...
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...FedEx Corporation Strategic Audit May 14, 2004 MGMT 449 Prepared by: Clement Chen Lisa Duong Hideo Yang Marny Susanty Mario Vellandi Andrea Betro Forward: This company for this case analysis was chosen by me, Mario Vellandi. I found FedEx interesting because they are one of the top four logistics companies in the world with 2002 group revenues of $24.2 billion. Since I was studying the transport industry, I found them to be an excellent company to analyze while in Strategic Management. Research Process To prepare for this case, I had performed primarily all the research for this case. This process involved first going to the firm’s SEC filings on its website, then downloading the .rtf version of its 2003 10-K, and the following 10-Qs and pre-announcements. After having read and highlighted some 65 pages and notating applicable data for each section of the strategic audit, I copied the data into individual Word documents titled after each respective category. I also utilized company info from the investors section of its site. Next I used the standard and news search functions of Google, among other sites, by combing the term fedex with a combination of various business terms such as competition, weaknesses, swot analysis, and commercials. I had also used combinations with competitors’ names and specific business functions. Next, I had used the advanced features to limit my searches in two ways: by data type, and by domain extension. I found relevant existing secondary...
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...Employment-At-Will Doctrine Doctrine of Employment At-Will Employment at-will is a guideline that is described by American law. This law defines the relationship between employees and employers and also states that the employer have a right to an terminate its relationship with related employees. For the termination of employees, the employer of the organization is free for giving a legal notice to employees or not, if his or her act breaches the contract between the organization and employees (National Conference of State Legislatures., 2013). At the same time, this law does not include any term related to warning that is given by the organization to employees before taking the termination decision. Employment at-will does not describe the subsequent liability of the employers towards the employees and it does not express any term of a contract that could be able to give the right to the employees against their termination. This doctrine states that an employer is free for terminating any employees, whether their work is good or bad (Workplace Fairness. 2013). Before the year of 2000, this doctrine only gives a right to the employees that under this act, the employees are also free for making striking, quit, or ceasing the working process completely to protect their termination, if the decision of employer goes beyond the employment contract work book. In the year of 2000, the Supreme Court of California explained this law and also stated that it is the right of employers...
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...34 must first improve the effectiveness of corporate boards of directors. And now my dreams. My first dream is that one day some investment analyst will conclude his or her report on Dayton Hudson with something like this: "In addition to its excellent strategic thrust and management strength, Dayton Hudson Corporation Kenneth N. Dayton has a premier concept of governance and a premier board of directors, which together offer the best hope for ensuring the corporation's future. So, if you want to buy a share of stock for your new grandchild, this would be a company to select." When some analyst says that about us-or about any other corporation for that matter-it will, at last, be an indication that the market is beginning to look beyond this year's (or even next quarter's) estimate of earnings. If that day ever does come, it will bring recognition that corporate governance is every bit as important as corporate management to ensuring the future of corporate America. My second dream is that as well as of a number of Minneapolis The Dayton Hudson Corposomeday the capital gains tax will be civic and cultural organizations. He ration is known for its profitable wrote this article before his retirement revised along tbese lines: if you hold a growth as a diversified retailing comstock less than a year, the gain (if any) from the Dayton Hudson board. pany, for its merchandising strategy, will be taxed at ordinary income tax for its objective to...
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...................................................................................................... 1 2. Summary of facts of the scandals at Enron ................................................................................. 1 3. Summary of facts of the scandals at WorldCom ........................................................................ 2 4. Enron and WorldCom executives prosecution ........................................................................... 5 5. Effects of the scandal, legislative perspective ............................................................................ 5 6. Comment and lesson to Rwandan business sector ...................................................................... 7 6.1. Corporate governance .......................................................................................................... 7 6.2. Committed crimes during the scandals .............................................................................. 10 6.2.1. Insider trading .............................................................................................................. 10 6.2.2. Wire fraud .................................................................................................................... 11 7. Conclusion ................................................................................................................................ 12 8. Authorities.....................................................................
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...Executive Summary This report pretends to do a review of the Corporate Governance about Amazon.com. The methodology adopted for this work is based in information available from the company in its websites and annual reports. In the brief report the review of the structure, process and effectiveness of the governance of the amazon.com is made and the recommendations for appropriate improvements are given it the end of the report. I concluded that company shows the corporate governance components according to their core business and their environmental business. Table of the Contents 1. Introduction.................................................................................................04 2. Nominating and Corporate Governance Committee Charter.................... 04 3. Code of Business Conduct and Ethics........................................................05 4. Officers and Directors.................................................................................08 5. Conclusion & Recommendation.................................................................09 6. References...................................................................................................11 1. INTRODUCTION: Amazon.com, Inc. (NASDAQ: AMZN) is an American multinational electronic commerce company with headquarters in Seattle, Washington, United States. It is the world's largest online retailer. The company also produces consumer electronics...
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