AmEx Staff Misled Small-Business Owners to Boost Card Sign-Ups

Special Question 1. Some AmEx sales reps told business owners things that were not true about acquiring the card. Be a smart manager for AmEx. How could you fix this problem without resorting to punishments for bad behavior? Be clever and think about it carefully.

Special Question 2. What is the root of the AmEx mislead-customers problem? Is it the quality of sales reps, is it top management policies, or something else? Explain.

A. Identity of Business. What does the firm do? What is its business model? How does it make money? Who are its target customers? What is the competitive landscape? How hard or easy is it for a new competitor to enter? B. Problem What needs to be adjusted or improved? What are the obstacles to better business performance? If the business is having difficulties what are the sources of the problems? (Consider – internal management shortcomings, aggressive competitors, change in preferences of target customers, new technology, …) If the business is doing fine what threats can you identify that management should pay attention to? C. Recommendations What is your advice to top management? Be sure to support your advice with logical arguments. What are the alternatives to your recommendations and why are they not so good?