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 37th 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 William Fargo John Warren (Wells & Company) (Livingston, Fargo & Butterfield (Wells, Company), 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