Spare the Rod and Spoil the Child

I was really enjoying service last Sunday, because my pastor I must admit is good at what he was called to do- crack jokes and preach the word of God. He shared a story about his childhood during service and that gave me the inspiration for this write up.A young pastor Tunde (not real name) apparently set out to grind pepper for his mum, so that dinner could be made without hassle. And so Tunde went to the grind-man’s house and got the pepper well grounded, but instead of going back home decided to play â€Å"one-set† of football. â€Å"One set† led to â€Å"two sets† and more and Tunde was running late for dinner preparations, but at least he had grounded the pepper.Done with football practice and catching up with friends Tunde was on his way out of the sandy football pitch when a more excited friend on the football pitch decided to smash one last shot at goal, but missed by a long mile and caught Tunde’s hand and the grounded pepper spilled on the sand. Afraid and panicking, Tunde managed to get a hold of himself and packed whatever spilled on the sand, alongside the sand and put it all back in the bag and ran straight home with the ‘perfect excuse’.Tunde’s mum asked in earnest what kept him so long, and Tunde said he had to wait in line for his turn. Tunde’s mother refused to dwell on that and collected the (sandy) pepper from his hand and went back into the kitchen. It was there she saw a rather new mixture of grounded pepper and sand (delicious) and required from Tunde as to what came about this combination. Already a successful liar once, Tunde brought out another great line when he said the grinds-man, on putting the pepper inside the machine brought out this mixture and he had no choice but to take what the machine had given to him.Cutting the story short, now born-again Pastor Tunde revealed that he still vividly remembers the slap that was dished out to him when he was done with his ridicul ous response. It was in line of that story that Pastor Tunde revealed a bible passage (Proverbs 22 vs. 15) to back his claim that a child must be disciplined, to set his ways straight.While the church burst out in laughter, I was taking notes. I took notes because I was never beaten as a child by my parents, but at school I got my share and for emphasis sake I am not against it. I just find the topic fascinating anytime it comes up that you must be disciplined by the rod, else you grow up wayward. That assertion does not sit very well with me and so I decided to express myself in my own words. I believe it is the call of a parent to discipline their child however they feel is right, as long as it is done with a high level of tolerance.I definitely agree that a parent reserves the right to spank their child to reality should he default as truth be told, growing kids are the most manipulative people you can ever come across. From the trickery in their moves when they’ve just st olen a bar of chocolate, to the animated tears that form up immediately they have been caught, parents must face the facts that children are indeed manipulative.What then leads the best way to discipline? I grew up knowing that charity began from our home but even then it took a few strokes on my behind in school to correct some of my errors that could not be detected at home. My understanding of that phrase is that whatever basic values you might need as a child, including discipline, you must first get that experience at home. Not being a parent puts me at a slight disadvantage to this debate, but I have watched my little cousins and nieces and nephews grow and I do understand why this needs to be addressed by public opinion. Therein lies the argument, to beat or not to beat.

Martin King and Henry Thoreau Essay

Martin King and Henry Thoreau both write persuasive expositions that oppose majority ideals and justify their own causes. While this similarity is clear, the two essays, â€Å"Letters from Birmingham Jail† by King and â€Å"Civil Disobedience† by Thoreau, do have their fair share of differences. Primarily in the causes themselves, as King persuades white, southern clergy men that segregation is an evil, unjust law that should be defeated through the agitation of direct protesting, and Thoreau, writing to a more broad, non addressed audience, and focusing more on the government itself, contends that at its present state, with the war with Mexico and the institution of slavery, that one should do as he does and refuse to pay government taxes that support such evil practices or â€Å"traditions.† While both Thoreau and King prevail in establishing a firm impression for what they strongly believe in, they each succeed in their persuasive efforts through different means. Chiefly, in the way that King draws emotional appeal with the usage of a burning passion and devotion, and Thoreau, while still making it evident that he is devoted in what he believes in, draws more emotional appeal through being more distressed and concerned than naively hopeful and optimistic. However, similarities remain to be as numerous as differences as both Thoreau and King bring credibility or ethical appeal to their assays essentially with allusions to Christ and the Bible. First, King’s emotional appeal is what above all contrasts his essay with Thoreau’s. As virtually everything else; the theme of disobeying â€Å"unjust laws†, their admiration for the â€Å"minority’s viewpoint, and even, coincidently, where they wrote their essays – prison, is all the same. King makes two references to conversations shared with his children. Once with his little girl who wants to go to the public amusement park and is quickly developing â€Å"tears in her eyes† as her father has to sadly explain the reality that black children aren’t allowed in â€Å"Funtown.† Promptly once again, King refers to being forced to somehow â€Å"concoct† an acceptable answer to his five year old son’s question – â€Å"why do white people treat colored people so mean?†. King does not stop there with his ability to throw his readers into the harsh emotional realities that he had to face. While answering the same question of â€Å"why we can’t wait† in regards to protesting, King refers to the tragic sadness of how his wife and mother are almost  never granted with the respectable title of â€Å"Mrs† and how his own name has virtually been transformed from â€Å"Martin Luther King† to â€Å"Nigger Boy John† in the heartland of discrimination in the South. The rhetorical use of detail is King’s second element that he takes advantage of to draw such tremendous, but necessary emotional appeal. With his despairing response to the clergy men’s appraisal of the policemen’s ability to maintain â€Å"peace† and â€Å"order† when he asserts with great detail that maybe they wouldn’t be so â€Å"warmly† supportive if they would have been in the streets to witness the police slapping Negro men and boys with â€Å"sticks† and pushing and cursing old Negro women and girls in such a cold-hearted and cruel fashion. Furthermore, King’s account of what the South would be like if blacks sided more with the Black Nationalists than himself brings emotion to all that contemplate his perception of streets â€Å"flowing with blood† during the central time of the otherwise inevitable â€Å"racial nightmare.† Thoreau, on the other hand, never consents to revealing such frightful nightmares and makes only one brief reference to his children. Instead, Thoreau draws emotional appeal through many different techniques in the art of persuasive writing. Most predominantly, with despaired and concerning rhetorical questions such as when he asks about established government’s viewpoint on great men, â€Å"why does it always crucify Christ and excommunicate Copernicus and Luther, and pronounce Washington and Franklin rebels?†. And again when he provokes the question of how men assert their grievances when he asks â€Å"How can a man be satisfied to entertain and opinion merely and enjoy it?†. As stated above, Thoreau and King’s great persuasive similarity is in the way they give their essays ethical appeal. They both repetitiously make use to references of the Bible. King first asserts that he is in Birmingham for the same reason that â€Å"the Apostle Paul left his village of Tarsus and carried the Gospel of Jesus.† Once again, in comparing his â€Å"civil disobedience† to that of Shadrack, Meshack, and Abednego when they refused to obey the worship laws of Nebucadnesser. Finally King affirms to not being offended by the criticism of being called an â€Å"extremist† by the thought of how many great extremists there where in the past, such as â€Å"Abe Lincoln†, â€Å"Martin  Luther†, and â€Å"Jesus Christ.† Thoreau in the very same manner and with many of the same figures, continues with his own set of biblical allusions. He subscribes to the verse of Christ and the Herodians when they ask him about his stance on taxes and Christ replies to give Caesar â€Å"what is Caesars†, and to give God â€Å"what is God’s.† And then, more broadly, Thoreau poses the question of why after eighteen hundred years of being written, no legislator in America or anywhere else has taken advantage of the â€Å"science of legislation† revealed in the New Testament. In conclusion, both Thoreau and King succeed in establishing their points on the benefits of civil disobedience. I feel that King does succeed farther with his inclusion of more passionate emotion and easier to understand, heartfelt metaphors. Though it is debatable that the scientific and matter of fact tone Thoreau uses ultimately make his case more credible by establishing his work as not only a great personal exposition, but also a considerable scientific exposition that could be considered among the ranks of Thomas Paine’s â€Å"Common Sense† or even Machiavelli’s â€Å"The Prince.†

Caribbean Studies Essay

â€Å"The history of the Caribbean is the history of exploitation of labour.† Discuss with reference to Encomienda, Slavery and Indentureship. According to the Oxford Dictionary, exploitation is defined as being the action or condition of treating someone or a group of people unfairly in order to benefit from their work, also, labour refers to work that is done using bodily strength and effort. In a historical sense, the Caribbean can be defined as being a group of countries sharing the same background of forced labour through the institutions of colonization, indentureship and slavery in some form or another (Robottom and Clayton, 2001). Understanding this, the historical Caribbean would be inclusive of the Bahamas and Guyana as well as some Central American countries. As it speaks to colonization, there were three main Old World colonizers that set out for land to conquer and riches to claim; Spaniards, the British, and the French, each of whom utilized systems of exploitation in order to obtain what they had sought from the so called â€Å"New World†, which were mainly new lands for the Feudal Lords or Kings and/or Queens of their respective mother countries. In contemporary Caribbean society, the population is one of the most demographically diverse regions in the world, this is a result of the heavy colonization of the region that was initiated by Christopher Columbus’ first voyage to the Caribbean in search of a shorter route to India, thus the reason for calling the region the West Indies, which resulted in more European colonists coming to the Caribbean in search of the riches and produce of the region. The exploitation of labour has long been the very backbone or foundation on which the diasporic and historical Caribbean has been formed through the Old  World colonists importing slaves and indentured labourers from various parts of the world like West Africa, India and China. Firstly speaking with reference to the Spaniard Encomienda system which started formally in 1503; the term â€Å"Encomienda† was coined from the Spanish verb encomendar, which means to entrust. This therefore means that both parties had entrusted their resources to each other, as the main objectives of the Encomienda system that was seemingly to be to the benefit of the indigenous people was to spread the doctrines of the Christian faith, provide adequate housing facilities and food provision for the native people of the colonized islands (Yeager, 843). In exchange for these amenities, the natives would have to work for the Spaniards as slaves. The Encomienda system was considered to be the most damaging institutions that the Spanish colonist implemented in the New World. The Encomienda system was also developed as a means of obtaining adequate and cheap labour. However it may be said that in being able to obtain this labour, the Spaniard Encomenderos were rewarded with land as well as the natives that accommodated that same land due to their endeavours on successful conquests. This was as early as 1499, and this took four years to become a formal rewarding system for the Spaniard Conquistadores. The Queen of Spain, Queen Isabella, did not support the notion of enslaving humans to do work. Knowing this, the Spaniard Encomenderos did not let Queen Isabella know that they were forcing others to labour on their plantations, so they sent her tributes from the indians such as goods and metals. However, the abolition of the encomienda system was becoming imminent as of 1510 when King Ferdinand and Queen Isabella had begun to regret allotting such power to Columbus, therefore they sent an agent to oversee the running of the system. Word had gotten to the King and Queen by means of this agent about the mistreatment of the natives of the region, thus leading to its abolition in 1542 and in effect its replacement by the crown governed Repartimiento system. This Encomienda system had impacted the Spanish speaking Caribbean countries  in both good and bad ways, whereas the demography of these islands are quite diverse due to the reception of the African slaves that mixed with the Amerindians, and later on the Spaniards that interbred with both African and Amerindian slaves which had slowly become deemed as the â€Å"Grey Area†; where whites and coloured people had copulated. Slavery had first begun in the British-colonized Caribbean during the period of the arrival of the first African that came to the Caribbean in 1517 by the Spaniards. This was in response to the decline of the tobacco industry in the Caribbean due to the the new focus on the crop in Virginia. Therefore, without a main crop that provided subsistence and export income, the British had turned to sugar cane, a plantation crop that required a stronger, more efficient work force that was overall more in numbers. The native Amerindians were dying out rapidly due to the unfamiliar notion of being overworked by their slave masters. They obtained their work force by means of stealing/tricking the African head tribesmen into trading his people for so called â€Å"riches†, which in fact were of no value to the Europeans, thus meaning that they robbed the tribesmen in what was seemingly a â€Å"fair trade†. These West-African slaves were brought to the Caribbean via ship across the Atlantic along a path known as the Middle Passage; a treacherous stretch of water where numerous West Africans lost their lives due to below standard living conditions, being killed by the Europeans and suicide by jumping overboard. Slavery’s impact on the Caribbean correlates with George Beckford’s analysis of the region as being a Plantation Society, a social system encompassing an entire lifestyle of the population inhabiting the region, inclusive of social, socio-economic and demographic factors. In the context of contemporary Caribbean society, as it relates to the Plantation System, social mobility in both contexts somewhat differ but yet share a common trait that coincides with the factor of the demography of the population. Social mobility is the ability of a person or a group of people to be able to advance within a social system of open stratification, meaning that it is a process by which one is able to advance in social class within their  population. In the era of slavery, the social system was one of closed stratification, therefore, a slave was not able to advance within the social strata or framework due to what Amartya Sen sees as an â€Å"unfreedom†; these unfreedoms are prejudices, inclusive of race and class, that cannot be changed and in effect, the slaves social standing could not either. However in the contemporary Caribbean society, a member of the society is able to move up in social class based on the wealth or property he acquires. Although this is dependent on the governmental framework, whether it be communist, in which case it would be closed stratification, or capitalist, social mobility is a key factor of the link between the era of slavery and the contemporary Caribbean, as it has evolved through the abolition of slavery in 1834 as well as the mixing of the demographic to create a third social strata apart from the black and whites, the mulattoes. The British and French slavery system has impacted the Caribbean society both in good and bad ways, as previously discussed, the evolution of social mobility may be deemed as good, while one of the shortcomings of the slavery system is that the slaves were being abused by their slave masters and were being treated as animals. This can be somewhat translated into contemporary Caribbean society as being a form of not only capital punishment in educational institutions, mostly primary, but also of abuse within the home. Although the numbers for these cases are not in the majority, the cases are still present in the Caribbean. The slavery system was abolished in 1834 finally fully abolished in 1838, by which time Indentureship had begun. Indentureship had begun from 1838 and was designed as a means of obtaining a work force to work on the plantations for low pay, especially since slavery was abolished. A strong and dependable workforce was in high demand at the point of it’s institution, as although some emancipated African slaves had stayed back, the number wasn’t enough to sustain the plantation. The first set of indentured labourers to have arrived to the Caribbean were the Chinese labourers. They had arrived in two main waves, where the first waves was intended to be the replacement work force to work on the sugar  cane plantations during the post Emancipation period. They mostly went to British Guiana, Trinidad and Cuba. The second wave, however, consisted of mostly relatives of the members of the first wave that went to British Guiana, Jamaica and Trinidad. The former slave owners had decided to use Chinese labourers due to them being â€Å"free civilized people†, thus that would set an example for the newly freed Africans in order to alleviate the chances of a rebellion against them. However, this venture was did not reap any substantial dividends as the mortality rate on the plantations were increasing as well as abandonment. The first wave of Chinese were not used to that level of physical labour and slowly died out, while the second wave of Chinese were free voluntary migrants that came due to the discontent of the labourers who had wanted to carry their families to the Caribbean with them. This therefore means that the most modern Caribbean Chinese are descendants of the second wave of Chinese immigrants. After the British had seen that the Chinese labourers were not as dependable and not as cheap, the sought a new workforce from India, so the British had sent agents to Calcutta to convince the Indians to come to the Caribbean and work on the sugar plantations. when the first Indian arrived in the Caribbean in 1838, they were forced to live under harsh conditions as the Europeans had the same mentality of slavery, so when the Indians tried to flee the plantation, they were chased, caught, brought back to the plantation and punished.By 1841, India had banned immigration to Guyana due to the news of the labourers being treated like slaves. However by 1845 the immigration of Indians would continue through Portugal, where the Portuguese workers who were coming to the Caribbean, knowing that they would be branded as slaves, had carried approximately 5000 Indians along with them. The Indentureship system had impacted the contemporary Caribbean lifestyle in the sense of the demographic factor, as well as business wise. Demographically speaking, both Indians and Chinese that came to the Caribbean have influenced the racial diversity of the region, where during the era of Indentureship, more Indians had gone to Guyana and Trinidad, in  contemporary Caribbean society, this same racial ratio is still present as approximately over 50% of Guyana’s population are of Indian descent. Along with the demographic factor comes cultural diversity, which encompasses a lifestyle unique to their homeland. In terms of style of business, this trait or practice was adopted from the Chinese indentured labourers who had left the plantation in order to establish shops and other income oriented businesses. In contemporary Caribbean society, Chinese citizens are usually thought to be in some sort of business management. The Caribbean does indeed have the history of the exploitation of labour as its own, and due to the Old World’s conquests of the New World’s land and riches, this provided a reason to find interest in the West Indies. The abundance of unclaimed land, availability of resources and an available workforce in the Amerindians was motivation enough to exploit not only the resources of the region, but also to exploit the labour of not only the Native people, but also the African slaves and East Indian indentured labourers. However, this history of exploitation is the very basis on which the contemporary Caribbean has been formed as with the slaves and indentured labourers that came, so did their cultures and practices. This therefore contributes to the diverse nature of the Caribbean society.

Business Plan A Assignment Example | Topics and Well Written Essays - 1750 words

Business Plan A - Assignment Example The teachers and universities have to play the role of greatest inspirers in the lives of their students (Gilley, Gilley and McMillan 2009). The education is having an ultimate purpose of making students human more than anything. The students have been known to remain dissatisfied after having everything one can imagine in life to have and in spite of having all that they remain empty from the inside. The feelings of emptiness can only be removed if one makes the much needed effort to improve the lives of others (Peck 2005) and that is what, educational world is not teaching in all parts of the world. People are getting educated but humanity is dying out because business institutions are creating professionals with capitalistic mindset who plan in order to eat away the world so that they can become capable of maximizing their monetary gains. The education’s sole meaning of creating good humans is getting compromised. Business planning is an integral part of an effort of starting a new venture. The new businesses have to pinpoint customers’ unfulfilled demands which they have the ability to meet in the near future (Auger, et al. 2003). Everything in this universe is created with a purpose and with long-term and short-term objectives. The newly started businesses have to find out their reason of existence before plunging to the hot zone of the industry. The companies in every field of life have to create a blue sea environment for themselves as MTV did in the summers of 2007 when they entered into Arabian market. However, it was a risk of a significant magnitude but they managed it with the help of being vigilant and exercising cultural and societal sensitivity, they have emerged as an entertainment giant in the current times. A similar strategy is required when it comes to managing businesses throughout the world. The businesses are also required to establish in front of the people of cert ain geographical locations that they are operating in

Race and ethnicity in the fishing industry in south america Research Paper

Race and ethnicity in the fishing industry in south america - Research Paper Example As much as the globe has been hit by the globalization wave, the Uros people have kept to themselves and only speak the Quechua language making them unable to interact with tourists (Hilburn 193). One of the reasons why the Uros people do not interact with other ethnicities is because they are self sufficient as they have everything that they need on their islands meaning that they do not have to use money for them to obtain the things they need (Hilburn 193). In essence, these people often weave their own clothing and they exchange fish for other products that they need while the other basic needs they draw from the environment. With this, this essay will delve into race and ethnicity in Latin America with a focus on the Uros people in Lake Titicaca, how they interact with people from other ethnicities and races and the different tribes and hierarchies of race and ethnicity on the lake. Fish is the main staple food for the Uros people and the other inhabitants on Lake Titicaca, which means that they only eat white meat alongside potatoes and Quinoa making their diet to be balanced. The hierarchies of the Uros people are not so defined but they tend to help in solving of social problems where this creates respect and authority especially when there is conflict. The Uros do not usually intermarry as they tend to marry among themselves as they only intermarried with the Aymaras in the past, where they lost their identity, customs and language in the process. Surprisingly, the Uros people have no desire of seeking employment outside the islets floating on the lake because they consider to have everything that they need on the islands making labor recruitment in the area to be a scarce venture. In some instances, these people consider tourists to be arrogant because when they visit the islets they fail to understand how to walk on the reeds that make up the ground for them making

Workplace Stress Essay Example | Topics and Well Written Essays - 500 words

Workplace Stress - Essay Example Organizations also make atmosphere employee friendly and suitable for work by meeting up certain standards, which helps in reducing work place stress. Any organization can measure the level of work place stress on their employees by simply conducting surveys and polls on this topic plus interviews can also be conducted. In order to evaluate the success of their work place stress management programs the organization can simply conduct an online poll or survey with interviews about how effective an employee feels the programs has been. Power and Politics are two different concepts but they can be put together. Power in general means an authority a person holds and politics is basically a process through which groups of people make decisions. Usually decision-making comes with power, people have the authority to make decisions that is politics when they have power. Power and Politics have similarities and differences both but similarities overlap the differences. As in politics, democracy, power all these go together. In democracy its politics that leads to the transfer of power between different leaders that run the country. Power and Politics are always related to each other as explained earlier power leads to politics as only people having authority can make decisions. Organizations also have a hierarchy structure that is being followed to make decisions. When it comes to the use of power and politics ethical issues arise as not all people think the decisions being taken are correct, there is always a conflict o f opinion when a group of people sits down. Ethical issues like equal rights and discrimination often arise due to the abuse of power and politics in an organization and it’s advisable to minimize these as they can also lead to work place

Building International Relationships Case Study

Building International Relationships - Case Study Example There are several companies it has acquired since its establishment; one of the most prominent companies that this discourse will focus on is the critical acquisition of J.A Jones. Holzmann has been involved in not less than fifty expansionary steps, from partial share purchases and absolute acquisition. J.A Jones Inc. is of the leading U.S construction companies. The company has offices throughout the world it has been engaged in multiplicity of industrial, commercial, government and military constructions projects throughout its over 100 years of business. One of the high profiles the company enjoys is the construction of the tallest building in the world. In the year 1979 J.A Jones merged with Philip Holzmann AG. Since the signing of the joint venture agreement, the two companies have been doing well especially in the construction industry which has seen the two partners excel in most of the construction projects. Since marriage, the joint venture has been rocked by several challenges with major one being bankruptcy. This made Jones construction approach a decision to detach from the parent company. Although J.A Jones has been the main business player, the construction company feels that its woes are as a result of the parent company: Philip Holzmann AG that filed for bankruptcy protection in the year 2002. J.A Jones interim chief executive officer J.P Bolduc says that revenue earned is diverted to Holzmann: this crimps Jones’ ability to obtain bond for its projects. In as much as their marriage has been long, they are currently at war on dissolving the marriage. This is evident after Jones filed petition in a German court to end ties. Jones was ranked 7th among contractors in the building and construction industry in 2002 listing of the largest United States Non-residential design and construction firms, owning a volume of $1.9 billion. There are other five units belonging to Jones that are up for sale. Whatever J.A jones has never dreamt of could now be

DBMS I - The Role of Database Administrators Research Paper

DBMS I - The Role of Database Administrators - Research Paper Example Additionally, a database administrator (DBA) is an information technology (IT) expert whose particular task is to design and manage database systems and put into practice efficient ways to organize and store data. In a lot of circumstances, database administrators have to shift data from out-dated systems into new systems (DegreeFinders.com, 2011; TechTarget, 1999). In addition, the database administrator is frequently available and required to work when required. This situation carries a huge accountability. Additionally, a DBA is responsible for protecting the database for example he implements the business internet access inside the corporate. In this scenario, he needs to implement policies and security measures that no one could be able to access an illegal website at the workplace such as Facebook. Moreover, every database has one or more administrators who are accountable for upholding the entire characteristics of the security strategy. However, if the business database system is not large in size, the database administrator can also perform the tasks of the security manager. Though, if the database system is huge, a particular person or group of people can have tasks partial to those of a security administrator (Vennapoosa, 2005; Alapati, 2005; Newcombe,

The effect of nitric oxide and cGMP on follecogenises Essay

The effect of nitric oxide and cGMP on follecogenises - Essay Example to female disorders, 20% of male origin, 27% resulting from abnormalities in both man and woman, while 15% of the cases could not be attributed to either partner (de Kretser, 1997). According to Evers (2002), five types of disorders leading to infertility have been recognised. They are summarised in Table 1. Ovulation disturbances are a common cause of subfertility in women (Snick et al., 1997). Ovulation problems due to disturbances in reproductive hormones present themselves as irregular or absent menstrual periods viz., oligomenorrhoea or amenorrhoea (Hamilton-Fairley and Taylor, 2003). Hormonal balance governing the ovarian cycle is a critical factor in female fertility. Several factors including stressful lifestyles, extremes in body weight, diet, certain hormonal diseases (e.g., pituitary gland tumours) and endocrine disrupting chemicals, such as PCBs and some pesticides can impact a womans hormonal balance and, thereby, the ovulatory pattern (Farr et al., 2004). Age is another important factor that influences female fertility (Maheshwari et al., 2008) which starts to decline around the mean age of 37.5 years (Hourvitz, 2009). Fecundity of a woman declines with age because of the loss of follicles from the ovary. Advancing age could lead to infertility in a woman on account of poo r oocyte quality related to a higher number of chromosomal aberrations and cytoplasmic malformations in the oocytes (Laufer et al., 2004). Furthermore, advancing maternal age could adversely influence the capacity of the oocyte to sustain early embryo development vis-a-vis biochemical and molecular processes promoting fertilisation, embryo formation and successful development to term (Gilchrist et al., 2008); Male infertility resulting in the reduced ability of the female partner to become pregnant is usually on account of low sperm counts, obstructive azoospermia or primary spermatogenic failure including reduced motility and/or abnormal morphology of sperm (Snick et al., 1997);

Pharmacy as a Career Essay Example for Free

Pharmacy as a Career Essay One of the most dynamic industries in health care is pharmacy. I chose this career because it provides various outlets for professional growth, excellent financial gains, and the opportunity to take care of people all the time. As the â€Å"medication expert on the health care team,† my task is to manage the medication therapy of patients and clients by providing information and advice as well as improving the quality of their lives. In addition, I picked this line of work since it is one of the most accessible health care professionals. New challenges come each day as pharmacists assist patients with their health care needs in terms of medications. Coincidentally, I live in a city where health care demands are high and the standard of living is extreme and active. In this set-up, a career in Pharmacy offers enough resources, opportunities, and flexibility needed to maintain balanced health care career and fulfilling personal life. The fact that you have to deal with different types of people and personalities is interesting and stimulating. What is great about this profession is the lifetime learning as well taken from institutions and everyday actual experiences. Continuous education allows for professional and personal development in all aspects. A degree in Doctor of Pharmacy allows for better positions and job offerings in health care facilities in both immediate and long-term basis. It will also give me the break of exploring other fields such as teaching or publishing written works in educational institutions. Practice in Pharmacy can also be privatized. This further study in Pharmacy will offer me more options for other careers which are all equally motivating and inspiring.

Separation of Histone Protein

Separation of Histone Protein For estimating protein mixture qualitatively most widely used method is SDS-Polyacrylamide gel electrophoresis (SDS-PAGE). According to size of the protein, this SDS-PAGE is separate the protein and purification of protein is to be monitored by this method, and relative molecular mass of protein can also be determined. In this SDS-PAGE anionic detergent is SDS. Before loading the sample, the samples are boiled for 5minutes, that contain s SDS and à ¯Ã‚ Ã‚ ¢Ãƒ ¯Ã¢â€š ¬Ã‚ ­mercaptoethanol in the buffer. While boiling the sample the SDS act to denature the protein and where à ¯Ã‚ Ã‚ ¢Ãƒ ¯Ã¢â€š ¬Ã‚ ­mercaptoethanol decrease the disulphide bridges of the protein that are holding tertiary structure of protein .by this denature process the protein get fully denatured and form a rod shape structure with negatively charged molecules of SDS throughout polypeptide chain. Every couple of amino acids binds with one SDS molecule on average. Due to the negatively charge SDS the structure remain s as rod like. So repulsion take place between the negatively charge on proteins and no folding occurs and remains rod shape. In the sample loading buffer, contains bromophenol blue and sucrose or glycerol. The bromophenol blue is helpful in monitoring the sample, when electrophoresis running and glycerol give density to the sample that can settle at the bottom of the well on stacking gel. The samples are loaded on the electrophoresis gel, which is made up of two gels .the lower gel is main separating gel and upper gel is stacking gel. This stacking gel helps in loading the sample into wells and had large pore size. Where protein sample moves freely and makes the protein sample concentrate and forms sharp band and enters into main separating gel with effect of electric field. Here isotachophoresis take place. The glycinate ion which is negatively charge has lower mobility than SDS-proteins molecule in running buffer than cl- ion in stacking and loading buffer. At the higher field strength both cl- and glycinate travel at same speed. So these ions and protein adjust those concentrations. The separating gel has higher PH environment, once glycine receives it become highly ionised state and mobility increases. By this the cl- and glycinate leaves the SDS-protein molecule. Now the SDS-Protein molecule moves towards the anode in separating gel by the effect of electric field. Here the protein having smaller size moves faster and reaches to the bottom of the gel than protein having larger size, with the help of bromophenol blue dye we can indicate the electrophoresis front because smaller particle unretarded the dye colour. When dye comes bottom of the gel then turned off the current, remove the gel from the sandwich properly and stained with coomassie brilliant blue and then by using destainin g solution, gel is washed. Depending on the protein size the preparation of polyacrylamide gel is used like 15%, 10% and 7.5%. By the help of the standard protein the mobility of unknown can be calculated by using calibration curve. In SDS-PAGE the protein should give single band, then that protein is said to be pure. So for purification protein process SDS -PAGE is most widely used. To the cluster of eight histone protein (H1-H8) DNA is wounded around. By the help of histone and DNA chromatin is made. The regulation of expression of genes and organisation of DNA is done by the help of histone proteins. Due to histone protein modification we can keep the genes active or silent and modifications are like methylation and acetylation. The transcription factors take place by the modulate accessibility of DNA by histone modification. DNA access might blocked by histone methylation to transcription factors. Electrostatic interaction might change due to histone acetylation in chromatin and allows transcription after opening up DNA. In blood cells development in chicken the principle of the histone modification is clearly demonstrated. In the transition the structural and functional role is played by histone protein between the states of active and inactive chromatin.high degree of conservation consists in histone . This is due to structural maintained constraining the e ntire nucleosomal octameric core. In the gene regulation and epigenetic silencing the diverse role play by a histone proteins.DNA replication, repair, transcription and recombination are influenced by the post translational modification, interactions with chromatin remodelling complexes and histone variants. DNA is packed in the nucleus and forms a complex called chromatin. The first level of chromatin organization is represented by the nucleosome core particles. The octameric core is composed of 146-147 bp of DNA that are tightly wrapped around two copies of histone H2A, H 2B,H3 and H4. Nucleosome cores are associated with linker histone H1 and separated by variable length of linker DNA. Core histone internucleosomal interactions are mediates by composing packed nucleosome arrays to start helical model. Due to the presence of histone fold domain the core histone are characterised and variable lengths of N-TerminaL tails are extensive subjects for post translational modifications. T he epigenome are the component of post translational modifications hence that includes protein connected to its gene and changes in DNA occur. For regulation of gene expression the epigenetic mmodifications are act as switches. DNA and histones are its chemical modifications .which does not disturb the sequence changes to DNA. The organisms reveal a variety of striking similarities despite histone tail and core variation due to characterization of structural nucleosome core particles. Using structural information they reanalysed histone fold domain variably sequence in a novel fashion. The variable pair of histone protein are H2A and H 2B and the conserved one are H4 and H3. In eukaryotes histone proteins are associated with DNA and are positively charged, this is due to presence of positively charged amino acids like lysine and arginine . H 1, H2A, H 2B histone are rich in lysine and H3 , H4 are rich in arginine. Each nucleosome consists of 8 histone proteins. Around one nucleosome to another nucleosome 200bp is present in DNA. In a circle of 1 nucleosome 146 bp are present. Where 54 BP are present in connection link of DNA between 1 nucleosome to another nucleosome. In nucleosome H1 histone is absent.here linker DNA connects two nucleosomes and H1 protein present in linker DNA. H1 protein takes an active role in formation of eukaryotes and heterochromatin. Genetic and epigenetic changes both involved in breast carcinogenesis and it is a multi step process. Epigenetic is a change that observed in gene expression in both reversible and heritable by the gene sequence without alteration. In cancer that influence the two major epigenetic changes are DNA methylation and histone modification interactions is well orchestrated. Malignant and premalignant breast neoplasm is methylated by involvement of several genes in metastasis, proliferation and antiapoptosis. In breast cancer treatment with other systemic therapies, histone deacetylase inhibitors become synergistically an important class of drugs. Potentially reversible processes are epigenetic changes and for finding novel therapies and refined diagnostic of breast cancer many efforts has been done for understanding the mechanism. MATERIALS AND METHOD: 30% W/V Acryl amide /Bis acrylamide Tris Hcl 3.0M, PH = 8.8 (lower gel) Tris Hcl 0.5M, PH =6.8 (upper gel) Bio-rad mini protean tank TEMED Ammonium persulphate (APS 25%W/V) Running buffer Bromophenol blue Sample buffer Coomassie blue stain Human recombinant proteins H4,H3.3, H2B, H2A EXPERIMENTAL PROCEDURE: SDS -PAGE GEL PREPARATION: PREPARATION OF GEL CASSETTE SANDWICH: The casting frame is taken and place on the flat surface. Select the glass plates to make a sandwich and place the short plate on the spacer plate and fix the casting frame to make sandwich. Fix the casting frame to the stand and the sandwich glass plates on the gray rubber gasket. Then checked the sandwich plates with distilled water to ensure any leakage occur. Prepare the resolving gel into a beaker without adding TEMED and APS. Add TEMED and APS into the prepared resolving gel and mix the solution homogenously and immediately pour the mixed solution into the sandwich plates, more than half of the glass plates. Allow the resolving gel for 35-40 minutes to get gel polymerised. Wash the resolving gel with distilled water and discard the water from sandwich, dry the inner surface by using filter paper. Prepare the stacking gel into another beaker without adding the TEMED and APS. Added TEMED and APS and mix equally and pour it on the top of the resolving gel and gently place the comb on the top of the stacking gel. Then leave the stacking gel overnight for its polymerization. RESOLVING GEL AND STACKING GEL PREPARATION: Resolving gel: acrylamide/bis-acrylamide 10.0ml,3.0M Tris /Hcl (PH=8.8) 3.75ml,dH20 15.8,10% SDS 0.3ml,TEMED 0.015, Ammonium Per sulphate 0.15. Stacking Gel: Acrylamide/bis acrylamide 2.5ml,0.5M Tris /Hcl (PH 6.8) 5.0ml,dH20 12.26ml,10% SDS 0.2ml,TEMED 0.015ml,Ammonium persulphate 0.04ml. Separation of H2A/H2B/H3.3/H4 Human Recombinant Protein using 1D SDS-PAGE Gel . After overnight polymerisation taken out the comb carefully and well are washed with running buffer. Remove the gel sandwich from the casting stand and allow to place them in the electrophoresis tank placing short plate facing inwards. Fill the gel electrophoresis tank with running buffer up to halfway between inner chamber i.e. 125ml and in the mini tank add 200ml of running buffer. SAMPLE PREPARATION AND LOADING: Taken the sample of histone protein of à ¯Ã¢â€š ¬Ã‚ ±Ãƒ ¯Ã¢â€š ¬Ã‚  Ãƒ ¯Ã‚ Ã‚ ­l and added into the sample buffer of 20à ¯Ã‚ Ã‚ ­l eppendorf tube. The protein samples are labelled to each tube. The histone protein samples are heated to 100o c for 2 minutes in hot block and at room temperature allow cooling down. Now samples of histone proteins are allowed to load into the well of 20à ¯Ã¢â€š ¬Ã‚  Ãƒ ¯Ã‚ Ã‚ ­l of each sample with the help of loading gel tips and while loading, load the sample carefully and slowly without air bubbles and allow the sample to settle down at the bottom of the wells. Taken molecular marker of 2à ¯Ã¢â€š ¬Ã‚  Ãƒ ¯Ã‚ Ã‚ ­l and loaded in another well for the identification of the proteins migration. GEL ELECTROPHORESIS : Cover the mini tank with lid properly by using colour code present on the banana plugs. Connect the gel electrophoresis tank to power supply by using 200volts of constant current for about 35-40 minutes until samples runs more than 3/4th of the gel. Stain and de-stain gels: After reaching the sample nearly bottom of the gel turn of the power supply to the gel electrophoresis tank and disconnect the electric leads. Discard the running buffer to avoid splitting and carefully remove the gel sandwich, gently separate the gel from plate by using sharp wedge, separated gel is placed in coomassie blue stain solution of 20-30 ml for 30 minutes on shaker for constant shaking. After the 30 minutes discard the stain solution and wash the gel with distilled water for 4- 5 times for constant time intervals and incubate at room temperature for overnight by placing on shaker. Finally rinse the detained gel with distilled water till the protein bands can clearly visible. Taken the pictures by using camera. RESULTS: By observing the obtained result after running the histone samples H4,H3.3,H2B,H2A in 1D SDS-PAGE . The separation of samples has been seen on the gel by using a dye coomassie blue stain solution. While observing the samples are run on gel according to their molecular mass and get separated from each other. The sample histone protein H4 shows little bit difference in observation which is present near to bottom of the gel ,that shows it run little bit faster than other histone samples due to its smaller size. While observing the other histone samples like H3.3,H2B,H2A they has no lot of difference in separation to differentiate from each other. DISCUSSION: The present experiment explains the isolation of human recombinant protein H4, H3.3, H2B and H2A by using the 1D SDS-PAGE. By observing the obtained result that found the histone protein H4 migrated little bit faster than the other samples .where as other histone samples H3.3, H2B, and H2A are observed ,there is no lot of difference in the migration to differentiate from each other. According to Kornberg, R.D when they performed the experiment on histone protein of human recombinant, found the histone protein H4 migrate faster than other protein and appears to be at 11 kDl . Where H3.3 appears near 15kDl,H2B appears near 14 kDl ,H2A appears near 12 kDl with these result we expect to be the same result but according to the above result that H3.3 ,H2B,H2A does not show much separation in migration of protein sample. So for getting such result may have many reasons that might have not loaded the samples with equal volume or properly loaded in the wells or power supply to the electrophor esis tank is not adjust properly or one sample over float into other wells while loading. The separation of the histone proteins that observed by different authors are histone proteins which undergoes non-acetylase that migrates faster than the protein that undergoes monoacetylation and acetylated derivatives. In this sequence the histone proteins are clearly separated in the core histone protein by using 1D SDS-PAGE. The retarded mobility are shown when the histone protein is highly acetylated compared with non acetylated parent compared. The variants are observed in histone protein due to differing of amino acids in the sequence. Histone proteins undergoes different biological conditions and form to be post synthetically modified like ADP-ribosylated, phosphorylated and acetylated .by using SDS-PAGE the purity of isolated proteins are identified. In the present experiment if the mixture of four histone proteins would need to be separated by the same technique. I would preferably take the three consequent results of same and expected as follows molecular size of H4 has l ess kDl than H2A, H2B and H3.3 in kDl. Few journals and reviews found to be support my hypothesis like Kornberg, R.D(1977) and Herbert and Linder(1992).

The Lives of Dickens Characters :: GCSE English Literature Coursework

The Lives of Dickens' Characters Charles Dickens' literary works are comparable to one another in many ways; plot, setting, and even experiences. His novels remain captivating to his audiences and he draws them in to teach the readers lessons of life. Although each work exists separate from all of the rest, many similarities remain. Throughout the novels, Oliver Twist and Great Expectations, the process of growing up, described by the author, includes the themes of the character's ability to alienate themselves, charity given to the characters and what the money does to their lives, and the differences of good and evil individuals and the effects of their influences. Collectively, these major novels overflow with orphans, adoptive parents, guardians, and failed parent-child relationships. Oliver, the main character in Oliver Twist, must forget about his "infantile past" (Marcus 182) in order to seek "the idyllic future" (Marcus 182). He gets hurled from orphanages to foster parents and so on until he finds himself a portion of the "wrong crowd." The pickpockets take him under their authority and attempt to show him the ropes of the embezzling operation. The orphan adapts well to the swindling lifestyle of Fagin and the boys, and through a series of mischievous choices, authorities apprehend him for stealing (although Dodger was the true felon), and Oliver must live with the consequences. Great Expectations also emphasizes the process of growing up through Pip, the main character. Pip's mother and father passed away while he was young, and he was forced to reside in the house of his older sister and her husband. The boy obtains many idealistic fat hers, including Joe, Magwitch, Jaggers and Pumblechook, but none of these men can give him what he needs from a predecessor. Dickens demonstrates to the reader the consequences that bad parenting has on children. Some children are warped by the "knottiest roots" (Lucas 141). Pip, Estella, and Magwitch are all examples of hurt children. The bitter children dwell on their past, or "what has been forgotten" (Marcus 182), and blame the parents for their sufferings. Other children such as Joe and Herbert survive bad parents and go on with their lives, not letting the history affect the outlook. Personalities in the novels became cut off physically or spiritually from human companionship. Oliver suffers from a sense of estrangement. He fears being abandoned by foster parents and friends, even though the relationships are not healthy for him.

The Employment Policy in the UAE: Emiratization or a Quota System Essay

Emiratization is the prevalent topic currently in the UAE’s economic forums and even the everyday life of the Emiratis. The UAE symbolizes an example of how the rapid economic expansion is affecting the natives alongside the economic structure and evidently the fiscal policies. These changes are noticeably manifested in the UAE’s dramatic increase of expatriates inflowing to work in its lucrative market. Conversely, the rapid growth of the UAE’s expatriates ended up reducing the Emiratis to being a minority ethnic group in their own land – a Middle Eastern version of the Red Indians, as some might argue. Subsequently, this has resulted in a radical approach to solve this rising problem through a policy of localization to empower the Emiratis in the emerging combative market and especially the expatriates dominated private sector. This essay will reveal the origins of the current economic situation of the UAE and attempt to validate that Emiratization polic y is becoming solely a quota system not an effective solution. In 1968, Britain announced that it was withdrawing from the region. The seven emirates then had a total population of 180,000, scattered over 90, 6000 square kilometers of desert and mountain (Fairservice, 2001). Historically, the seven emirates were autonomous sheikhdoms until they were united as the UAE in 1971 (Gallant, 2008). UAE is one of the dynamic trading hubs in the Persian Gulf. However, the economic development since the discovery of oil in 1966 has been remarkable. Before the oil boom, people in UAE survived through fishing, pearling and limited trading. The growth that this transformation brought has enabled the swift progress, which assisted a large non-oil economy. Industrialization and tourism are gr... ...ng This article is about the UAE’s policy of Emiratization and wither it is a mere quota system or the effective solution for the unemployment growing rate. I will present some the article arguments and I will discuss them further in the essay. Terterov, M. (2006). Doing business with the United Arab Emirates. GMB Publishing Ltd. This book represents an official guide for businessmen on how to do business in the UAE. I will use this book to present the official views on localization policy. Wright, S. M., & Anoushiravan, E. (2008). Reform in the Middle East oil monarchies. Ithaca Press. This book address many important questions such as should the West be seeking to encourage national indigenous evolution rather than working to impose Western systems? I will represent this book view on the Emiratization policy and its impact on the economic growth of the UAE.

Education and Health are Dependent Upon Economic Growth Essay -- Socia

Since accumulation of human capital is an important contributor to economic growth, it is important to recognize factors which facilitate this accumulation, and how does human resource transform to the more viable human capital? Central to this transformation are two elements; education and health care, where the attainment and improvement of these, is seen directly influencing labour productivity. From this cause effect relationship we can make a ‘logical assumption’ that improvement in human resources leads to economic growth (Dreze and Sen 2002; Rivera and Currais 1998). In light of this assumption, the aim of this essay is to determine the policies which could be used to successfully shift to a virtuous mutual cycle between economic growth, improved health, and education by articulating the impact of education and health as independent, and co-dependent variables on economic growth and vice-versa Educated individuals have higher employment rates since the labour skill of an educated person is more significant than that of an illiterate person, so he/she is able to generate a higher income than the latter, and his/her contribution to economic growth is thus consequently, more(Pritchett 1996). Education not only benefits the individual by making him more marketable, it can also be credited with improving the quality of an economy since the availability of educated labour gives entrepreneurs and firms the impetus to explore new markets, set up new industries, and adopt new technologies (Fasih 2008). While the monetary benefit of education is the primary reason for its acquisition, the positive externalities attached to its attainment i.e. the self-confidence and feeling of empowerment that comes with the ability to make info... ...ucational Tourism: Understanding the Concept, Recognising the Value. [online] Available at: http://www.insights.org.uk/articleitem.aspx?title=Educational%20Tourism:%20Understanding%20the%20Concept,%20Recognising%20the%20Value [Accessed: 16 Mar 2012]. Pritchett, L. (2012) Where Has All the Education Gone?. [online] Available at: http://wber.oxfordjournals.org/content/15/3/367.full.pdf [Accessed: 12 Mar 2012]. Ravallion, M. (2004) Pro-Poor growth:A primer. [online] Available at: http://web.usal.es/~bustillo/RavallionPPGPrimer.pdf [Accessed: 13 March 2012]. Taylor and Francis Online (1998) Economic growth and health: direct impact or reverse causation?. [online] Available at: http://www.tandfonline.com/doi/pdf/10.1080/135048599352367 [Accessed: 13 March 2012]. Tilak, J. (2006) On Allocating 6 per Cent of GDP to Education. [online] [Accessed: 12 Mar 2012].

American Express: Branding Financial Services – Essay

American Express: Branding Financial Services Introduction American Express is known worldwide for its charge cards, travelers’ services, and financial services. It is one of the best-known and most-respected global brands. As it grew from a 19th Centurynineteenth- express company into a travel services expert by the mid-1900s, American Express (AMEXAMEX) became associated in the minds of consumers with prestige, security, service, international acceptability, and leisure.Advertising for the company, which began in earnest in the 1960s, reinforced these associations. For example, the now-famous taglinetag line â€Å"Don’t leave home without it† was created to convey the essentiality of owning an American Express cardAmerican Express Card. As the company grew, it expanded into a variety of financial categories, including brokerages, banking, and insurance, and by the late 1980s, American Express was the largest diversified financial services firm in the world.The difficulty the company encountered integrating these broad financial services, combined with increased competition from Visa and MasterCard, compelled AMEXAMEX to divest many of its financial holdings in the early 1990s and focus on its core competencies of travel and cards. The company weathered a decrease in cardholdercardholders at this time by greatly increasing the number of merchants that accepted American Express cardAmerican Express Cards and developing new card offerings, including co-branded cards and a genuine credit card that allowed customers to carry over the monthly balance.By the end of the 1990s, American Express was again seeking to broaden its brand to include select financial services in order to achieve growth. Beyond the challenge of integrating these services, AMEXAmerican Express faced a number of issues in the 2000s, including a highly- competitive credit card industry, a slowing economy, and a subdued travel industry. American Express Builds a Financial Emp ire Early History of American Express The American Express Company was formed in 1850 when two competing express companies merged.The express business, which was less than two decades old, specialized in shipping packages that were smaller than the bulk freight that railroads handled but were over the U. S. Postal Service size limits. Before express companies began operating, stagecoach drivers and even civilian travelers were recruited to deliver packages. Express companies also carried packages that required special handling or were particularly valuable. Bank transactions involving cash, securities, and goldGold gave express companies much of their business. In response to losing business to express companies, the U. S.Postal Service created the money order, which allowed people to send a cash equivalent through the mail that could only be cashed only by a specified recipient. The cash delivery service was traditionally the domain of express companies, since because postal worker s would often steal cash sent through regular mail. To counter the Postal Service’s move into financial services, American Express created its own money order in 1881. The American Express money orders were easier to use than the Post Office money orders, and AMEXAMEX extended the line to include orders in foreign currency that could be cashed internationally.The money order was a great success, selling 250,000 in its first year and more than half a million the next. In the late 1880’s, AMEXAMEX president J. C. Fargo returned from a trip complaining about how difficult it was to use his letter of credit, used to obtain cash abroad, at foreign banks. To solve the problem of obtaining credit abroad, in 1890 American Express employee Marcellus F. Berry designed the â€Å"Travelers Cheque,† intentionally using the British spelling of check to give it an international flair.The Travelers Cheque used the same signature security system still in use today and had exchan ge rates guaranteed by AMEXAMEX printed on the front. AMEXAMEX also gave foreign merchants commissions to encourage them to accept the check. Aided by the network of international financial relationships established for support of the AMEXAMEX money order, sales of the Travelers Cheque quickly took off. From 1882 to 1896, Travelers Cheque sales quadrupled as travelers all over the world were using AMEXAMEX products more and more to make their journeys easier. In the meantime, AMEXAMEX’s express business was growing overseas.Federal antitrust regulation led to the separation American Express’s express business from its financial services and tourism businesses. By that time, however, AMEXAMEX was already booking tours, hotel stays, and steamship and railway tickets. Money orders were still popular and tTravelers check Cheque sales were constantly increasing. AMEXAMEX had also been investing the float – —the money that remains in the company’s accoun t during the interval between when Travelers Cheques are bought and when they are cashed – —and earning millions of dollars in interest.The Travelers Cheque was AMEXAMEX’s flagship product. The travelers Travelers check Cheque fees and its float investments were responsible for most of AMEXAMEX’s earnings and almost all of their profits. History of the Charge Card In 1914, Western Union, another express company, issued the first â€Å"charge card† in the form of a metal plate given to preferred customers that enabled them to defer payment for services. Charge cards required that the balance be paid in full at regular intervals, but did not charge interest on the balance.Soon, many different companies from department stores to oil companies issued charge cards that customers could use to purchase goods and services from the issuing company. In the 1940s, several U. S. banks began issuing a paper document – —similar to a letter of credi t – —that customers could use like cash in local stores. Diner’s Club introduced the first modern charge card in 1950, when it issued a â€Å"travel Travel and entertainmentEntertainment† card designed for use by business travelers. The card was accepted by a large variety of merchants, who paid a fee to Diner’s Club in compensation for the added business.The first bank card was issued by Franklin National Bank in Long Island, New York. The bank-issued card was accepted by local merchants only, unlike the Diner’s Club card. Shortly after Franklin National Bank debuted its credit card, several other banks across the United States. S. issued credit cards to their customers. â€Å"The Card† AMEXAMEX actually had considered issuing a charge card on several occasions before Diner’s Club unveiled its card in 1950. AMEXAMEX management discussed issuing a charge card as early as 1947, but then-president Ralph T.Reed refused because of security problems given the possibility of fraud. In 1956, when DinersDiner’s Clubs’ card charges began to cut into AMEXAMEX travelers Travelers check Cheque sales, AMEXAMEX initiated negotiations to buy Diner’s Club. Talks lasted for two years, but Reed ultimately declined, citing concern about the dilution of AMEXAMEX’s prestige. In late 1957, AMEXAMEX leadership decided that the company would issue its own card. The public clamored to possess an AMEXAMEX charge card. Even before the card was officially available, thousands of customers had written in or visited AMEXAMEX offices to apply early.By the launch date of October 1, 1958, AMEXAMEX had issued over more than 250,000 cards and signed on 17,500 merchants that would accept the cards. The American Express cardAmerican Express Card required the cardholdercardholder to pay off his or her entire balance monthly. The company also charged a six dollar annual fee, which was one dollar greater than the Din er’s Club fee, â€Å"for prestige. †Ã¢â‚¬ [1] AMEXAMEX’s worldwide network of offices, travel agents, and associated banks helped it build the card’s membership rapidly.Since Because the American Express CardAmerican Express Card was initially designed for the travel and entertainment expenses of businessmen and the upper class, it was known as a Travel and Entertainment (T&E) card. This classification puts it in a category with such cards as Diner’s Club and Carte Blanche. In 1958, Bank of America issued the first modern credit card, called the BankAmericard. The key feature of the BankAmericard and other credit cards was a â€Å"revolving† credit line, which allowed cardholdercardholders to pay their account balance in installments, with interest assessed on the remaining balance.The BankAmericard originally served the state State of California, but within a decade Bank of America was licensing its card services to banks throughout the co untry. While American Express earned most of its card revenue from annual fees and merchant discounts (the percentage of a dollar transaction the merchant was required to pay to American Express in compensation for the business brought in by the card), credit cards earned revenues from interest charges and a lower merchant discount. Another mportant difference was that AMEXAMEX issued its own cards while individual banks issued cards under license agreements from credit card companies. Neither AMEXAMEX management nor the accounting department had any experience with charge card operations. Rather than creating a separate accounting function for the card division, Reed had assigned AMEXAMEX’s existing comptroller’s office to handle all of the card transactions. This proved an overwhelming amount of paperwork, and within a few months of the introduction, the comptroller’s office was flooded with unprocessed transactions.Compounding the internal problems was the fa ct that customers were not paying on time, while AMEXAMEX was required to pay merchants within 10 ten days after a transaction. The card division had lost over more than $4 million dollars in its first two years and an additional $14 million by 1962. One of the Howard L. Clark’s first moves after becoming AMEXAMEX president in 1960 was to try to sell the card division, ironically enough, to DinersDiner’s Club. The negotiations failed because of antitrust issues and so AMEXAMEX kept its card. In spite of the card problems, though, AMEXAMEX as a whole was financially stable, with 1959 profits of $8. million from $69. 6 million in revenue and Travelers Cheque sales of over more than $1 billion. Clark instituted measures to help the ailing card division, such as requiring cardholdercardholders to pay their balance within thirty days, raising the annual fee to ten dollars, raising the discount fee (the percentage merchants had to pay AMEXAMEX every time the card was used at their business), and imposing stricter credit requirements for cards issuance. The card division finally achieved profitability in 1962. By 1967, the card business yielded a net income of $6. 5 million, or one-third of the company’s total profit.The American Express CardAmerican Express Card had surpassed the Travelers Cheque to become the most visible symbol of American Express. Marketing Strategy and Advertising The first AMEXAMEX President president to place a high priority on advertising was Howard L. Clark. Before he took office in 1960, AMEXAMEX’s annual advertising budget was only $1 million. Clark increased it every year thereafter and in 1962 replaced their ad agency, Benton & Bowles, with Ogilvy, Benson, and & Mather. The new agency designed AMEXAMEX’s first modern ad campaign with the slogan â€Å"The Company for people who travel. This tag line promoted AMEXAMEX’s travel and card products in a single campaign that conveyed AMEXAMEX’s one-stop travel shopping expertise. Campaigns The now-famous tag line, â€Å"Don’t leave home without it,† was developed by Ogilvy & Mather in the early 1970s. AMEXAMEX wanted a â€Å"synergy tag line† like the other Ogilvy-produced line: â€Å"The company for people who travel. † Ogilvy came up with â€Å"Don’t leave home without them† for the AMEXAMEX Travelers Cheque, â€Å"Don’t leave home without us† for AMEXAMEX travel services, and the â€Å"Don’t leave home without it† tag line for the American Express CardCard.Ads for the Travelers Cheques featuring screen actor Karl Malden speaking the taglinetag line ran for 21 years. In 1974, AMEXAMEX debuted its now-familiar â€Å"blue-box logo,† on which the words â€Å"American Express† are printed in white outline over a square blue background. Ogilvy & Mather tried several conceptual approaches to use with this tag line for the card, and eventually h it upon the idea of replacing everyday and unknown actors in the ads with endorsers whose names were famous, but whose faces were not as familiar. This was referred to as the â€Å"Do You Know Me? campaign. The ads typically began by showing the face of a moderately well-known celebrity, as with Neil Simon, and then showing a close-up of his or her American Express CardAmerican Express Card to reveal their his or her identity. The ads implied that using an American Express card Card would get the cardholdercardholder â€Å"recognized. † This was an obvious example of marketing the card as a status symbol. Acquisitions In the 1970s, American Express executives looked for ways to grow the business beyond Travelers Cheques and credit cards.The fact that Master Charge and the BankAamericard (later to become Visa) were already issuing cards themselves suggested that AMEXAMEX would soon lose market share of its Travelers Cheques and that the growth of its cardholdercardholder base would slow. AMEXAMEX also had been worried for some time that the company’s small size and high profits made it an attractive takeover target. A large acquisition would make a takeover less likely and give AMEXAMEX a new source of income. Clark chose a company three times the size of AMEXAMEX with the 1968 acquisition of Fund America Group, based in Novato, CACA.It included Fireman’s Fund Insurance Company and four mutual funds that were later sold off. Other relatively small changes by Clark included the acquisition of the magazine which was later of US Camera magazine (later renamed Travel & Leisure) and the creation of the Travel Related Services (TRS) division in 1971, which pooled the travelers Travelers checkCheque, the card, and other travel and tourism businesses. AMEXAMEX also organized its banking operations under the renamed American Express International Bank Corporation (AEIBC).The year 1977, in which Clark left as president, saw AMEXAMEX with $250 millio n in profits and 8 million cards generating $10 billion in charge volume. The American Express Company. had three divisions when James D. Robinson took over for Clark as CEO in 1977: Travel Related Services (TRS), American Express International Bank Corporation (AEIBC), and Fireman’s Fund (FF). Robinson pursued an aggressive acquisition strategy. In 1979, he purchased fifty 50 percent of a cable TV equipment and programming partnership with Warner Communications for $175 million with the idea of selling financial products through cable television.A few months later in 1980, American Express bought First Data Resources for $50 million. First Data was a computerized billing operation that processed Visa and MasterCard transactions for banks. This was only a warm-up for Robinson, and in 1981 AMEXAMEX merged with Shearson Loeb Rhoades Inc. , the second largest public brokerage firm in the country behind Merrill Lynch. AMEXAMEX continued its expansion into a financial conglomerate by purchasing two additional brokerage houses and a real estate company. The international investment bank Trade Development Bank Holdings S.A. (TDB) was acquired in 1983 for $520 million to shore up AEIBC and focus its operations on trade finance and international private banking. That same year, AMEXAMEX purchased Investors Diversified Services (IDS) for $773 million, a Minneapolis- based company that offered mutual funds, life insurance, annuities, and financial planning to middle- income consumers. The investment bank Lehman Brothers Kuhn Loeb Inc. was acquired in 1984 for $360 million, and AMEXAMEX again added to its brokerage cache by acquiring E. F. Hutton & Co. n 1987 for almost $1 billion. Marketing Strategy and Advertising American Express advertising conveyed the prestige associated with tthe he cards. CardholderCardholders are called â€Å"card members,† and the year they became members is on their card – —signaling membership to a club. American Ex press cards Cards were perceived by many as status symbols, signifying success and achievement. AMEXAMEX sought to maintain this elusive image through advertising, impeccable service, promotions, bonuses, special events, and so on.The introduction of goldGold and platinumPlatinum cards to the credit card industry further enhanced their special cachet. By 1985, AMEXAMEX was spending $500 million a year in marketing. â€Å"Marketing is our number one priority,† said Robinson. [2] Service Customer service was a key element of American Express’s marketing program. One of James D. Robinson’s favorite sayings was â€Å"Quality is our only form of patent protection. †[3] Before he became CEO, he Robinson developed a comprehensive system for measuring AMEXAMEX’s service quality.His goal was to have customer service employees handling more than 99 percent of the requests without any mistakes. AMEXAMEX measured the time it took a customer service representat ive to answer the phone and the time it took for a replacement card to arrive. The company established a Quality University in Phoenix, AZ, where customer service representatives and their managers were trained to deliver excellent service. In addition, AMEXAMEX set up a committee of managers from throughout the corporation that who met to discuss new ways of measuring and improving quality. â€Å"Quality Conferences† were even held to disseminate and implement quality initiatives throughout the organization. Besides the internal monitoring, AMEXAMEX constantly surveys surveyed its customers and merchants by mail and by phone to ensure that the level of service remains remained consistent. AMEXAMEX developed a database system, which was was updated weekly, of customer information that tracks tracked spending patterns, age, and 450 other characteristics. This database enabled enabled the company to target specific marketing efforts to the customer segments most likely to respo nd.AMEXAMEX also useds this system to recruit new merchants by demonstrating what AMEXAMEX can could do for their businesses using real customer data, not projections. For example, a customer that who shopped at a certain store might receive a discount for shopping there again based on an agreement between the merchant and AMEXAMEX. Throughout its lengthy history, American Express has earned a reputation for the highest level of customer service. One representative personally delivered a card in the middle of the night to a stranded cardholdercardholder at Boston’s Logan airport.Another case involved an AMEXAMEX representative in New Delhi who arranged for another representative’s brother (a military helicopter pilot stationed close to the caller) to deliver cash to an AMEXAMEX Gold Gold cardholder cardholder who was stranded in a remote village in the Himalayas. One Enterprise Robinson and his top executives envisioned a transformed company structure called â€Å"One Enterprise. † The One Enterprise vision would make AMEXAmerican Express a one-stop financial and travel services powerhouse with each division cross-marketing its products to the others.The cardholdercardholders could obtain travel services from TRS; property & and casualty, flight and travel, and life insurance from Fireman’s Fund; financial advice and other products from IDS; and brokerage and investment banking services from Shearson Lehman Hutton; while the wealthier international clientele would be pampered by AEIBC (renamed American Express Bank Ltd. or AEB in 1986). Each division would in turn push American Express CardAmerican Express Cards to any of their customers who weren’t already cardholdercardholders or higher- end goldGold or platinumPlatinum cards to those who were.Advertising in the 1980s The â€Å"Do you know me? † campaign was targeted at older successful, affluent businessmen that who traveled a lot. The campaign’s nine years h ad seen these cardholdercardholders quadruple to 12 million, a full 40 percent of that market segment. Fearing that growth in this segment would soon level off, AMEXAMEX looked to stimulate growth in other segments. In the 1980s, women were attaining more powerful business positions in large numbers. AMEXAMEX wished to target this segment of the population with ads tailored towards young urban professional women. In 1983, women comprised only 2. million of current AMEXAmerican Express card holders, only 20 percent of the women the company thought were eligible for the card. Testing had shown that women did not respond positively to the older ad campaign. Marketing data from the early 1980s showed that consumers thought that status and prestige came not necessarily from huge wealth or success, but from a varied and exciting life. Ogilvy & Mather came up with the â€Å"Interesting Lives† campaign. It aimed to position AMEXAmerican Express cards Cards as symbols of people with i nteresting and multifaceted lives, people with unusual hobbies or who have had unconventional careers.The AMEXAmerican Express cardCard, the ads indicated, gave these holders the opportunity to indulge in their varied interests, to be spontaneous by going to the Australian Outback or climb a mountain, for example. Rather than featuring celebrities, the ads showed confident independent women using the American Express cardAmerican Express Card to take their husband to dinner or their kids to lunch, bantering with a flirtatious man in a bookstore, or leaving a sporting goods store with a briefcase and a lacrosse stick. â€Å"The American Express cardAmerican Express Card,† the tag line says, â€Å"It’s part of a lot of interesting lives. The ad campaign included and featured women in ads, and soon the volume of female applicants doubled the number of men who applied for the card. By 1984, 27 percent of AMEX cardAmerican Express holdercardholders were women compared to t en 10 percent in the late 1970s. The â€Å"Interesting Lives† campaign also had an unanticipated, but positive, side effect: young men also started applying for the card in large numbers. This convinced AMEXAMEX to tailor some of the ads specifically towards them. One such ad was titled â€Å"Young Lawyer. It showed a father talking to his son over lunch about his decision not to join the family firm. The father was disappointed until the son got a job at the District district Attorney’s attorney’s office. The sons pays with the American Express cardAmerican Express Card and the father says, â€Å"The pay must be getting better over at City city Hallhall. † Even though these campaigns did very well, AMEXAMEX’s marketing strategy for their core potential cardholdercardholders had become stale. They dropped the â€Å"Do you know me? † TV ads in 1987 and Ogilvy & Mather devised a new series of print ads called â€Å"Portraits. Renowned photog rapher Annie Liebovitz was recruited to photograph celebrities rarely shown in advertisements. The ads showed these celebrities in a more intimate, playful light, without the pomp and circumstance that celebrity ads usually employed. America’s Cup yachtsman Dennis Connor played with a sailboat in his bathtub in one shot, while in another basketball center Wilt Chamberlain and jockey Willie Shoemaker were shown standing back to back wearing identical white suits. Another shot showed Christian rock singer Amy Grant walking on water while in yet another Tip O’Neill was shown at the beach under an umbrella.The only text was their names, the date they became â€Å"members,† and the taglinetag line that was to become one of AMEXAMEX’s most enduring: â€Å"Membership Has Its Privileges. † The ads received much praise for their ingenuity and quirkiness. That same year, AMEXAMEX unveiled its first major TV campaign for its goldGold card. The goldGold card a dvertising was handled by McCann-Erickson, and their ads for this campaign focused on showing successful businessmen in lavish surroundings. One businessman lounged in a jacuzzi complaining about an award acceptance speech he had to give.His wife told him to just enjoy the honor. Another ad featured a successful businessman taking time from his busy schedule to learn the piano. These ads were the subject of criticism for their celebration of the opulence and free-spending attitudes of the decade. A year and a half later they gave the goldGold card account to Chiat/Day. This agency’s approach was over the top compared to McCann’s more subtle ads. Chiat targeted a younger, more affluent clientele by touting excessive spending. One ad in particular showed a man in a Jjaguar, sprawled with his legs dangling over the side.A voice says, â€Å"For when you finally run into that 1953 XK120. † The phrase â€Å"Worth its wait† flashed on the screen while a sax play ed sensually in the background. The ads were supposed to increase the goldGold card base by targeting younger wealthy men. By 1989, AMEXAMEX was spending $250 million annually on advertising, more than twice as much as Visa’s and MasterCard’s budgets combined. This expenditure reflected the numerous marketing initiatives underway to expand the company’s cardholdercardholder base, including efforts to attract more women, students, senior citizens, and small companies.Additionally, the company developed a major ad campaign to get cardholdercardholders to use their cards at retail shops, not just fine restaurants and boutiques. Research showed that the majority of card purchases were made with other credits cards while only high-ticket items were charged to AMEX cardAmerican Express Cards. This campaign was developed by Chiat/Day, which in 1991 won the green Green card and Optima accounts from Ogilvy & Mather, AMEXAMEX’s agency of record for 30 thirty years. Chiat/Day immediately developed a new taglinetag line for the company: â€Å"The Card.The American Express CardAmerican Express Card. † The initial ads developed by Chiat/Day sought to convey the iconic status of the card, by superimposing oversized flagship green Green cards into images of a restaurant, a golf course, the tail of a Concorde jet, and the Easter Island monoliths. Cause Marketing Since 1981, AMEXAMEX has also embarked on many cause-related advertising campaigns where a percentage of the proceeds were donated to a specific charity. In fact, the company is credited with coining the phrase â€Å"cause-related marketing. Between 1981 and 1984, Amercian Express donated to more than 45 different charitable organizations. Most of these donation drives occurred at the local level, such as when American Express donated two cents to the San Francisco Arts Festival each time Bay Area card members used their cards. By encouraging card members to spend more to support the cause, AMEXAMEX profited from increased card usage. Similar campaigns around the country generated total donations in the tens of millions of dollars and increased card usage in locations where a cause-related marketing campaign was active by an average of 25 percent.The company’s first national cause-related marketing campaign was organized in 1983 to raise money for the Statue of Liberty Restoration Fund. To build awareness for the program, American Express developed an $4 million advertising campaign that included print, radio, and television advertising. Each time a card member used his or her card, a one cent donation was made to the fund. For every new account opened, AMEXAMEX donated one dollar to the fund. Donations were also made for Travelers Cheques and travel purchases. Between September and December 1983, American Express gave $1. 7 million to the Statue of Liberty Restoration Fund.Card usage rose 28 percent nationally in the first month compared with the previo us year, while new card applications increased 45 percent. [i] . 1 Following its early success with cause-related marketing campaigns, AMEXAMEX developed more than 90 ninety programs in 17 seventeen countries. One of AMEXAMEX’s best-known campaigns was the â€Å"Charge Against Hunger. † The Charge Against Hunger, begun in 1993, was a charity effort in which the company donated a certain amount of money to hunger relief agency Share our Our Strength every time a cardholdercardholder used an AMEX cardAmerican Express Card to make a purchase during the holiday season.The 1993 Charge Against Hunger raised $5. 3 million. To raise awareness for the campaign, AMEXAMEX produced a series of advertisements featuring information about the charity and detailing the specifics of the program. Between 1993 and the last year of the program in 1996, the Charge Against Hunger campaign raised more than $21 million. AMEXAMEX Success Due to the acquisition-based growth and cross-marketing concepts, which were fashionable corporate strategies in the 1980s, Robinson was hailed as a savvy CEO in building up AMEXAMEX in this fashion.By the end of 1984, AMEXAMEX had developed $61 billion in assets and posted annual revenues of $13 million. The TRS division, which supplied AMEXAMEX with almost three-quarters of its earnings, was selling $13 billion worth of travelers checksTravelers Cheques, while 20 million cards were generating $45 billion in charges. AMEXAMEX had name recognition of 75 percent and its services were used by 14 percent of the population, more than any other financial company. Credit Card Competition Heats Up By 1985, AMEXAMEX had issued over more than 20 million cards that were producing more than $47 billion in billings.That compared with Visa’s 115 million cards with $82 billion in billings and MasterCard’s 103 million with $62 billion in billings. About 3. 3 million of AMEXAMEX’s cards were GoldGold cards (first offered in 1966) an d about 60,000 were PlatinumPlatinum (introduced in 1984). Visa had 3 million higher- end â€Å"Premier Visa† cards and MasterCard had 2. 5 million â€Å"Preferred Customer† cards (both began issuing them in 1982) with annual fees of $55. In spite of their similar numbers, AMEXAMEX still had a clear advantage in the high-end market with GoldGold card charges totaling $13 billion while Visa and MasterCard only had only $7. billion combined. While Although most credit cards had features similar to AMEXAMEX’s charge cards, prestige still seemed to win people over in wanting AMEXAMEX’s cards and in using them for their more expensive items. One analyst said, â€Å"If you want to buy an expensive car, you tend to buy a Mercedes or a Cadillac, not a souped-up Honda. † For AMEXAMEX customers, the fact that MasterCard and Visa were accepted at over more than 4 million sites while AMEXAMEX was only accepted at only 1 million sites was mitigated by the fact that only AMEXAMEX had offices in many remote locations capable of handling almost any travel emergency.Indeed, prestige seemed to be so important to consumers that they signed up at twice the expected rate for AMEXAMEX’s $250 annual fee PlatinumPlatinum card Card and eventually numbered six times what AMEXAMEX expected. In the 1980s, the standard American Express Green card had an annual fee of $35 and offered $1,000 check cashing at representative banks and AMEXAMEX travel offices, the ability to withdraw $500 from ATM’s, and $100,000 travel accident insurance. For a $65 annual fee, GoldGold cCard members upgraded to $2,000 in checks cashed and a credit line of $2,000.The PlatinumPlatinum card Card allows members to cash up to $10,000 in checks, get $1,000 from ATM’s, $500,000 in travel insurance, and nonresident privileges in over more than 25 private clubs around the world. AMEXAMEX offered these cards to only about 5 percent of its American cardholdercardho lders who charged more than $10,000 a year and hadve good payment histories. Higher-end credit cards (e. g. , goldGold, platinumPlatinum) proliferated in the mid-1980s as the market for standard cards became relatively saturated.Credit card delinquency rates were increasing due to banks’ efforts to shore up profits by signing up more cardholdercardholders. The average cardholdercardholder possessed seven cards, so banks had to find other ways to compete. Many consumers were frustrated with banks because they maintained high interest rates on their cards (around 19 percent) in spite of the fact that the prime lending rate had dropped 14 points since 1982. The banks defended their card rates, citing the cost of processing millions of card transactions every week.In order to appease their customers, banks offered special perks like such as bonus points and cash back offers. They also began issuing goldGold and platinumPlatinum cards to attract more customers. These â€Å"eliteà ¢â‚¬  cards were used 50 percent more often than regular cards, and the average purchase with them was 150 percent greater than with a normal card. Visa and MasterCard gained enough GoldGold cCard members, 12 and 11 million, to beat AMEXAMEX’s 6 million. Optima Unveiled AMEXAMEX responded to the increasing popularity of credit cards by issuing its own credit card, called Optima, late in 1987.Not only would it compete head-to-head with the revolving credit bank-issued cards, but also it would do so with a much lower interest rate of 13. 5 percent. Even the annual fee was lower, priced about half what other credit cards charged at $15. Optima also allowed AMEXAMEX to greatly expand its card base without damaging its upscale image since because it was a separate card. AMEXAMEX only offered Optima initially to its 8 – to 9 million current AMEX cardAmerican Express holdercardholders. Since Because these customers were accustomed to paying their balance monthly, they were c onsidered the lowest-risk segment.Banks were worried that Optima cardholdercardholders would use the new credit card for regular purchases and the AMEXAMEX charge cards for their T&E expenses, dropping regular and high- end bank cards in the process. Citicorp, the nation’s largest issuer of bank cards with close to 15 million, countered AMEXAMEX’s new card by lowering its rates to â€Å"preferred customers† to 16. 8 percent from 19. 8 percent. Visa USA Inc. even urged its issuing banks to stop selling American Express Travelers Cheques in protest.AMEXAMEX replied with a Travelers Cheque ad that told consumers, â€Å"If your bank doesn’t sell them, go to one that does! † In order to compete, most of the charge and credit cards furiously began cutting prices and offering special incentives. Co-branded cards also became very popular. Visa had 768 affinity programs approved by the end of 1987. Most MasterCard and Visa silver Silver and goldGold cardhol dercardholders also got rebates on hotels and plane fare in addition to rental car discounts. WhileAlthough AMEXAMEX did not offer any affinity cards, it did continue to offer benefits and special offers.In addition to its Buyer’s Assurance program, which doubled the manufacturer’s warranty up to a year on items purchased with its cards, AMEXAMEX also began its Purchase Protection program, which insured these items for 90 ninety days against theft, loss, fire, or accidental damage up to $50,000. AMEXAMEX also offered its GoldGold and PlatinumPlatinum members free rental car insurance. By the end of 1988, after being out for only 18 months, Optima ranked as one of the top ten credit cards in terms of cardholdercardholder volume.Optima had 2 million cardholdercardholders with over more than $3 billion in outstanding balances. The interest and fees for Optima was were nearly pure profit sincebecause AMEXAMEX spent so little, only $100 million, in starting it. American Exp ress had the advantage of an established cardholdercardholder base to offer it to and merchants already willing to accept it. Thanks to Optima and improved marketing to young men, women, and students, AMEXAMEX’s domestic share of the card market increased to ten 10 percent by 1989, totaling 22 million cards (30 million worldwide).AMEXAMEX’s charge volume also increased to 27 percent or $69 billion, which lead all card issuers. Visa meanwhile had 52 percent cards hare with 115 million cards, and MasterCard had 38 percent with 84 million. The remainder was primarily Sears’ Discover card, which had about 28 million cards outstanding. Sears issued Discover in 1985 using its existing customer credit base of 40 million accounts, low interest, no fee, and a cash- back program as advantages. AMEXAMEX had signed up over more than 2. 5 million merchants to accept its card, compared to Visa’s almost 7 million merchants.Nevertheless, AMEXAMEX maintained that because consumers only charged only 15 percent of the possibley number of items that could be charged, its main competition was not the other card companies, but rather, cash. AMEXAMEX Applauded Success continued through the late 1980’s. Revenue and profits grew in every division and earnings topped the $1 billion mark in 1986. In 1989 AMEXAMEX grossed over more than $26 billion and netted $1. 2 billion with a travelers checkTravelers Cheque float of over more than $4 billion to invest.Compounded earnings and sales over the last decade had risen nine 9 percent and 13 percent every year, and AMEXAMEX had a return on shareholder equity of more than 15 percent a year. Their direct marketing department was the fifth largest in the nation selling electronics, furniture, jewelry, luggage, mutual funds, and insurance. AMEXAMEX’s publishing arm included â€Å"Travel & Leisure† and â€Å"Food & Wine† magazines, with having a combined circulation of over more than 2 millio n, and they planned on acquiring or creating more than ten more magazine titlespublications.Overall, analysts were recommending AMEXAMEX stock, saying it was undervalued based on its future earnings potential with AMEXAMEX being called â€Å"one of the great success stories of the last twenty years. †[4] AMEXAMEX STUMBLES Problems in Iits Subsidiaries James Robinson III had spent a total of $3. 5 billion in acquiring Shearson, IDS, TDB, Lehman, and E. F. Hutton, and in the process had built American Express into what was one of the most respected and well-known companies in the USUnited States. AMEXAMEX was rated by one poll as among the top three brands in America behind only Coca-Cola and McDonald’s.In the late 1980s, AMEXAMEX was the largest diversified financial services company in the world. But Ddespite the apparent success, however, signs of future troubles appeared as early as the early 1980s. In the latter years of that decade, the financial empire slowly bega n to crumble. While Although each subsidiary had its share of problems, consensus seemed to be that AMEXAMEX had expanded too rapidly without enough attention as onto how all the parts would fit together and so could not manage itself efficiently. AMEXAMEX’s first big problem with a subsidiary came in 1983.An insurance industry price war had caused Fireman’s Fund (FF) to lower its policy prices and add business. A surprisingly large number of claims on these policies caused AMEXAMEX to have to add $230 million to FF reserves causing a $141 million fourth quarter loss for the unit and a $22 million loss for AMEXAMEX. AMEXAMEX managers said they were blindsided by the losses while FF managers said they had tried to warn their superiors at AMEXAMEX but were ignored. AMEXAMEX profits dropped 11 percent in 1983 due to FF losses, breaking the much hallowed 35- year earnings record.AMEXAMEX later sold off Fireman’s Fund to the public, keeping the life insurance divisio n, but retaining only 27 percent of the property and casualty business. In spite of their magnitude, the problems at Fireman’s Fund had little impact on AMEXAMEX as a whole. They did, however, draw attention to AMEXAMEX’s management style and what impact it might have on the other divisions. Shearson Lehman Hutton, the nation’s second largest securities firm, was probably the biggest disappointment of all.After the acquisition, Shearson imposed its existing no no-bbonus onus policy for clerical employees at the investment bank where everyone was up to that point used accustomed to annual bonuses. Shearson also imposed its much less generous medical benefits plan on Lehman employees and even made them take lie detector tests. Most job openings after the acquisition were filled with Lehman employees in an attempt to appease them, but this wound up alienating Shearson employees. Lehman also lost many top clients after the acquisition including ABC, Chase Manhattan, and Uniroyal.Big M & A deals, the reason Lehman was acquired in the first place, never materialized. The loss of clients and internal talent was too big to overcome and only a trickle of small deals and its brokerage operations kept the unit going. Even with 1988 revenues of $10. 5 billion (same as Merrill Lynch), the unit’s earnings had dropped to 81 eighty-one cents from $4. 34 two years earlier. Robinson admitted he wanted to sell Shearson, but couldn’t because he wouldn’t get the price he wanted. Card CompetitionIn 1991,, AMEXAMEX debuted its â€Å"Membership Miles† loyalty program, which gave customers one point for every dollar spent on the card. These points could be exchanged for credit in frequent flier airline miles. The program had the dual benefits of attracting more customers and increasing the spending volume of customers who wanted airline miles. The success of this program’s introduction was offset, however, by problems with the Op tima card. Though Optima made the company one of the ten largest credit card issuer issuers worldwide, AMEXAMEX’s first offering in the credit card category was fraught with problems.The company’s decision to offer the card only to existing cardholdercardholders, who were accustomed to paying their entire balances monthly, led to millions of dollars in bad debt. AMEXAMEX failed to account for the fact that a significant portion of charges on their classic cards were business expenses for which the cardholdercardholder was reimbursed. Therefore, the majority of Optima cardholdercardholders used that card strictly as a credit device, and as a result only five 5 percent of Optima accounts paid the full monthly balance.The resulting losses rose to 10 percent of outstanding balances in 1992, which was double the industry average. In its first three years, Optima cost American Express $2. 3 billion. The company was forced to re-evaluate its Optima portfolio, and relaunched t he card in 1992 with a slightly different payment structure. In 1994, the company pared the number of Optima cardholdercardholders to 3 million from about 3. 5 million. By 1996, Optima’s 5. 2 percent annual loss rate was only marginally higher than the 4. 6 percent industry average.Other card companies were able to make up enormous ground on the American Express by offering bonuses, service benefits, and cheaper fees to both merchants and consumers. Bank cards certainly lacked the prestige factor, but, as one analyst noted, â€Å"Prestige is less of a Nineties concept than an Eighties concept. †[ii]2 AMEXAMEX’s traditional points of difference were service and prestige, but 1990s’ consumers appeared to place greater value on â€Å"function [and] utility. †[iii] Compounding problems was the launch of Visa’s brilliant ad campaign, â€Å"Visa.It†s Everywhere You Want to Be. † That campaign highlighted desirable locations, resorts, events, restaurants, etc. – none of which would take American Express. AMEXAMEX was under siege from a number of new competitors, such as Capital One, which in 1991 was the first company to issue so-called â€Å"teaser rate† cards with introductory rates well below the standard 19 percent. Other sources of competition came from co-branded or â€Å"affinity† cards, which were becoming increasingly popular with consumers seeking added value in the form of additional goods or services.AMEXAMEX had the opportunity to issue one of the first co-branded cards back in 1985, when American Airlines approached the company with a proposal for a joint credit card that would offer frequent flier miles for dollars spent on the card. AMEXAMEX rejected the offer and American Airlines inked a deal with Citibank instead, which that attracted 4 million cardholdercardholders within a decade and set off a co-branding trend. AMEXAMEX similarly declined to enter into a co-branding agre ement with AT&T in 1990.Within five years, the AT&T card had more than 11 million cardholdercardholders. Many corporations began to issue co-branded credit cards, including General Motors, Shell, all major airlines, and Sony. Other entities with co-branded cards included NBA basketball teams, the University of Alabama Alumni Association, Star Trek, and the National Wildlife Federation. Between 1990 and 1992, the number of American Express cardAmerican Express Cards in circulation dropped by 1. 6 million, or six 6 percent. The company was in danger of seeing its competitive advantage disappear.Attempts to diversify into financial services had largely failed, and the company’s flagship card business was faltering. â€Å"We were losing relevance with our customers,† said current CEO Kenneth Chenault. â€Å"We were trying to be all things to all people with a few products. †[iv] This developments led AMEXAMEX’s board to force James Robinson to resign as CEO i n 1993. AMEXAMEX FOCUSES ON ITS CORE BUSINESS Divestiture After forcing Robinson’s resignation, American Express selected Harvey Golub to succeed him as chairman and CEO in February 1993.Golub was a nine-year veteran of the company, having come to the IDS division from McKinsey & Co. consulting firm. He immediately initiated a series of divestitures to reduce AMEXAMEX’s holdings. Golub negotiated the sale of the Shearson brokerage operation and the Lehman Brothers investment bank. These sales, combined with other profit-saving cutbacks, eliminated 50,000 of the company’s 114,000 workers. Following these moves, the now-leaner company was in a position to focus on its core competencies: charge and credit cards, Travelers Cheques and travel services, and select banking and financial services.In the midst of these cutbacks, Golub pursued aggressive plans for high growth in the card sector. In mid-1994, he announced plans to introduce up to 15 fifteen different credi t cards. Ready to improve on the company’s first credit card offering – —Optima – —AMEXAMEX introduced its next card, called Optima True Grace, in August 1994. The Optima True Grace card Card featured a low introductory rate of 7. 9 percent and came with an automatic â€Å"grace period† of 25 twenty-five days after a purchase, during which time no interest would be charged to the cardholdercardholder.Additionally, the company would waive the annual fee for cardholdercardholders who used Optima True Grace at least three times per year. These features came as a result of a year-long research effort that included 4,000 consumer interviews. The Optima True Grace launch was accompanied by a $40 million marketing campaign starring lifestyle maven Martha Stewart. In its first year, Optima True Grace was selected by about 1. 4 million users, a figure that doubled the company’s membership predictions.The flexibility of Optima True Grace marked a departure from AMEX cardAmerican Express Card policies of the past. As bank-issued cards exploded in the 1980s by enticing customers with low annual fees, cash back offers, partnerships, points bonuses, and other special offers, AMEXAMEX continued to charge high annual fees and flatly refused to partner with other corporations despite offers from companies such as American Airlines. The gap in market share between AMEXAMEX and Visa and Mastercard only widened, and Golub reflected in 1995, â€Å"We should have seen what was happening. . . We were inflexible. We were arrogant. We were dreaming. †[v] To spur growth in the card category, Golub sought to greatly increase merchant acceptance of American Express cardAmerican Express Cards. In October, responding to the requests of over more than 14,000 card members, AMEXAMEX inked a deal with Wal-Mart stores to have its cards accepted at over more than 2,300 Wal-Mart locations. During 1995, other retailers such as Laura Ashley, S hopRite, Service Merchandise, and Vons Supermarkets signed on to accept AMEX cardAmerican Express Cards. That year, research by the ompany showed that based on card member purchasing patterns, AMEXAMEX customers charged 86 percent of their spending to AMEX cardAmerican Express Cards. Said CEO Kenneth Chenault, â€Å"If our customer wants to use the American Express cardAmerican Express Card at a hot dog stand, we want to be there. †[vi] In addition to adding merchants that would accept the cards, Golub worked to improve relations with the existing merchant roster. In the past, AMEXAMEX was able to demonstrate to merchants that its cardholdercardholders charged a higher volume with their cards.For many merchants, this mitigated the fact that AMEXAMEX’s merchant discount was considerably higher than Visa or MasterCard’s. Purchases by AMEX cardAmerican Express holdercardholders carried discount fees of over more than 3. 5 percent, compared to merchant discounts low er than 2 percent for Visa and Mastercard. By 1991, however, the case for accepting American Express was not as compelling. Not only were there a greater number of Visa and MasterCard goldGold cardholdercardholders, but also nearly 90 percent of all AMEXAMEX customers carried bank cards as well.AMEXAMEX needed to retain as many merchants as possible, since overbecause more than half of its annual revenues came from merchant discounts. The turning point came in 1991, with the so-called â€Å"Boston Fee Party. † A group of Boston restaurant owners coordinated a boycott of the American Express cardAmerican Express Card because they believed the discount rate to be too high. American Express worked rapidly to repair relationships with these and other merchants. By 1996, the discount rate for AMEXAMEX purchases was below less than 3 percent and all the Boston Fee Party boycotters had been re-signed.Golub also attempted to better relations with current cardholdercardholders. In Oct ober 1995, the company expanded its Membership Miles program to include points bonuses for retail merchandise and gourmet gifts, as well as more travel offerings such as car- rentals, hotel stays, and vacation packages. This revised program was named Membership Rewards, and points earned through the program had no limit or expiration date. The renewed focus on American Express’s core business led to the first new campaign for American Express Travelers Cheques in twenty years.Though still dominating the Travelers Cheques category with $64 billion in annual worldwide sales and a 45 percent market share, AMEXAMEX was looking to protect its lead against competitors like Visa. In 1994, a new $15 million advertising campaign updated the classic Travelers Cheques commercial, which traditionally featured hapless travelers falling prey to criminals while abroad and then experiencing firsthand the safety and security features of the Travelers Cheques. The new crop of ads focused on th e â€Å"Cheques for two† feature, which enabled the same checks to be shared between two parties.Instead of getting stolen, the Travelers Cheques in the new ads were only lost, and features featured lost-and-found employees in travel destinations describing the quirky items they encountered in the line of duty. The ads were intended to illustrate in a more lighthearted fashion the benefits of AMEXAMEX Travelers Cheques. In 1995, the company renamed its IDS division â€Å"American Express Financial Advisors† (AEFA) in an effort to provide with a more uniform image to its customers.AEFA, which provided financial and estate planning, annuities, mutual funds, life insurance, pension plans, 401(k) plans, and loans and accounting services to businesses and individuals, was part of the â€Å"select financial services† that contributed to AMEXAMEX’s core competencies. A One-third of AMEXAMEX’s net income in 1996 came from AEFA, which controlled $130 billio n in assets. After firing Chiat-/Day, AMEXAMEX re-hired Ogilvy- & Mather, who introduced a corporate ad campaign themed, â€Å"Do More. † This global ad campaign extended the company’s advertising to include financial services and travel in addition to its card businesses.The purpose of the campaign was to underscore the transformation that had taken place at American Express during the previous several years, given that the company had: 1)Sold or spun off subsidiaries and refocused on businesses operating under the American Express brand; 2)Broadened its traditional charge card business to include revolving credit, co-branded cards and other products aimed at specific customer segments, such as students and senior citizens; 3)Expanded its global travel network; )Begun a major expansion of its financial services businesses; and 5)Introduced new products to its corporate services customers. â€Å"For much of our history, our company’s brand was defined by our ca rd and Travelers Cheques businesses,† said John Hayes, executive vice president of Global Advertising. â€Å"Now we are extending our brand to a variety of other products and services to mirror both where our company is and where it is going. What will remain consistent is our vision— — to become the world’s most respected service brand. The new advertising campaign was designed to capitalize on several of American Express’s historical brand attributes: trust, customer focus, travel, and financial insight. â€Å"American Express is one of the very few global brands in the financial services arena,† Hayes added. â€Å"All over the world, people’s experiences with our travel services, card products, and financial advice have defined our brand’s characteristics, reflecting the reasons that both corporations and consumers are loyal to American Express. Themed, â€Å" American Express Helps You Do More,† the campaign attempt ed to bridge both the company’s historic strengths and, as well as its newer initiatives. The pool of advertisements included commercials that featured a range of American Express products and services, as well as those designed to focus on individual businesses, such as American Express Financial Advisors. It also included ads for the American Express charge cards, â€Å"Our advertising used to be about a limited number of products and services, and was often defined by the people who used them.This campaign stresses our growing number of services and what American Express can do for you,† Hayes said. The television spots will ruran on network, cable, and spot television, supported by newspaper and magazine ads in a variety of publications including USA Today, tThe Wall Street Journal, The the New York Times, Time, and Newsweek. Card Wars American Express launched its first co-branded card in 1995 with Delta Air Lines. The airline miles card was called the Delta SkyMi les Optima, and within two years of its introduction it was the number-two airline affinity card with over more than 1 million cardholdercardholders.American Express forged co-branding relationships with other partners, including Hilton Hotels, ITT Sheraton, and the New York Knicks. Beginning in 1992, American Express used comedian Jerry Seinfeld in advertising that emphasized the card’s flexibility and added humor to the personality of the brand. In 1997, as part of the â€Å"Do More†Ã¢â‚¬â€œ themed campaign, American Express used ads featuring Seinfeld to emphasize the card’s acceptability in locations such as supermarkets and gas stations. In one ad, Seinfeld stops at a gas station to fill up.The premise is that he aims to put an even dollar amount into the car, presumably so he can pay with cash without breaking change. Upon reaching the target amount, he gives the pump an extra squeeze that pushes the total a few cents over. Onlookers gasp in dismay, until he pulls out his American Express cardAmerican Express Card in dramatic fashion and pays at the pump. Another ad starred Seinfeld and an animated Superman. The unlikely duo were depicted walking along a city block, when Superman spotted Lois Lane in peril at the front of a grocery store line.When the two come to her rescue, Lois informs them that she has forgotten her wallet. Superman pats his suit where pockets normally would be located and sighs, â€Å"I can’t carry money in this. I’m powerless. † Seinfeld exclaims, â€Å"I’m not! † and begins spinning around in a blur brandishing an American Express cardAmerican Express Card. Again in dramatic fashion, he swipes the card and pays for the groceries. American Express signed one of the leading athletes in the world in 1997 when it inked a five-year, $30 million endorsement contract with Tiger Woods.That year, Woods appeared in print ads and television commercials that promoted American Express Fina ncial Advisors. In one television spot titled â€Å"Tiger Wants,† the phenom golfer discusses discussed personal aspirations, which included â€Å"tak[ing] care of the ones who took care of me† and â€Å"help[ing] people who need help. † The campaign also featured Tiger’s father, Earl, who explaineds that with the help of an American Express Financial Advisor, he was able to retire early and dedicate himself to helping Tiger reach his goals.John Hayes characterized the endorsement deal as follows: The appeal of Tiger Woods – —and, indeed, of his father, Earl – —transcends the world of golf. While Tiger’s tenacity, work ethic, and abilities are outstanding, we also recognize him as a person whose achievements are the result of perseverance and an incredible focus on a goal. That kind of earned success is a hallmark of financial success as well. [vii] In appraising AMEXAMEX’s position, Hayes also noted: The market b ecame very segmented, and we needed to catch up with that to become more relevant to more segments.So now we’ve gone from a brand that was basically represented by one card product to one that has 25 products. That’s a drastic change. [viii] Our toughest balancing act is not to lose our traditional core customers and our reputation for premium quality and service while we enact new initiatives to expand against other segments. We’re tracking that on a quarterly basis to make sure we don’t go too far in one direction or the other. [ix] Marketing and Advertising In 1999, American Express unveiled the biggest new card launch since Optima, with the â€Å"smart smart cardcard† Blue.Blue, which was launched with a $45 million advertising campaign, was considered a smart card because it contained an embedded chip that enhanced security for Internet purchases using a home-encryption system. American Express issued Blue cardholdercardholders a home card car d-swiper free of charge, which could be used for Internet transactions. The card targeted the 25 percent of Americans that owned computers and used sophisticated consumer technology, as well as another 25 percent of the population learning to use such technology. Unlike other American Express cardAmerican Express Cards, Blue carried no annual fee.One perceived risk of the Blue marketing campaign was the implication that the other American Express cardAmerican Express Cards were not secure for use with Internet purchases. Said Alfred Kelly, president of the American Express Consumer Card Services Group, â€Å"I would rather be cannibalizing myself than have the competition do it. †[x] Launch advertising involved television, print, and subway advertising, as well as event marketing. The introductory television ads focused on the technology aspect of Blue. One ad showed a sea of amoeba dancing and multiplying over a rock-and-roll soundtrack.This ad was intended to demonstrate th e â€Å"evolving credit† aspect of the card, which meant that Blue would improve as the company added new functions features to it. Another ad emphasized Blue’s payment flexibility – —unlike other American Express cardAmerican Express Cards, monthly balances could be carried into the next month – —by showing the card bent, pulled, and reshaped by robotic arms to the sounds of a classical score. In addition to major network broadcasts, these ads ran during television programs targeting young people, such as Fox’s â€Å"The X-Files† and â€Å"Futurama. Print ads appeared in newspapers and magazines, as well as in sports clubs and on restaurant table-top menus. The ads did not use the familiar Roman Centurion soldier logo associated with other cards, choosing a new look that suggested a compact disc with blue concentric circles bordered by white. American Express also sponsored a concert in New York called â€Å"Central Park in Blue. † The concert was promoted by a â€Å"street team† of sharply- dressed scooter riders, who used handheld swipers to enable cardholdercardholders to pick up free tickets at nearby Blue information kiosks.These marketing activities were designed to give the card â€Å"a different, modern, more hip feel,† said Alfred Kelly. â€Å"We wanted to break out. †[xi] American Express continued to market cards based on prestige. In 1998, it introduced the matte Matte black Black Centurion Card – —otherwise known as the â€Å"black Black cardCard† – —for elite clients. To obtain an invitation invitation-o