Economics of Business Strategy

Case Study
Pages 10 (2510 words)
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American Express has adopted substantially a comprehensive model of motivation and has applied it within all administrative levels. The efforts applied by the management and the employees depends upon the magnitude of the reward, with addition of the perceived energy that an employee believes is fundamental for making the chances of receiving the incentive brighter.


The managerial practices of the company are more products oriented so as to facilitate the customers, and provide them with different opportunities for making most out of their purchasing power. The company has also restricted itself from applying such policies where chances of bankruptcy are dominant, and have shifted towards consumer service. The management in particular operational management related to the decision making is widely practiced and encouraged by the company, the employees at the mediocre level, are involved with decision making, however such employees work within certain monetary limit. All this has made the company achieve laurels, 'We continued to strike what we believe is an appropriate balance between achieving our net income growth targets and investing in our future. In 2004, we delivered record earnings while increasing spending on marketing, promotion, rewards and card member services by 30 percent from a year ago. This increase came on top of a stepped-up level of investment spending in 2003' (Audit Repot 2004).
American Express has incorporated different management strategies for optimization of their performance, and economic gain. ...
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