Finance
Ashley Rose Thomas FMS Delhi Good to Great – The American Express way
I was reading a book titled “Built to Last” recently. The book had named American Express as one of the visionary companies in the world. Though I found this idea a bit revolting, the one fact that took me by surprise was the knowledge that this financial services giant started off as a regional freight services company in 1850. So I decided to dig a bit of the company’s history. The journey from a freight business to financial services business seems so unlikely!! It probably should have become a UPS or Fedex, not a financial services business for that matter. How did this journey begin? American Express was founded by merging the express companies owned by Henry Wells, William Fargo and John Butterfield. This merger took place more as a consolidation of businesses basically to avoid a bloodshed while competing with each other for the same markets. Henry Wells (1805-1878) was largely responsible for the development of American Express and served as its President for the first 18 years. In its early years, American Express rapidly expanded its routes (via stagecoach, barge, boat and rail) and negotiated contracts with the railroads, specifically after the completion of the Transcontinental Railroad in 1869. After Wells' retirement as the President, William Fargo took charge from 1868 to 1881. James Fargo, his brother, led the company from 1881 to 1914.
Post Office had started money order business which was doing pretty well. But the quality of service lacked in terms of speed and reliability. Amex ventured into the money order business in 1882 – its first entry to into financial services business. It’s noteworthy that this service was developed by an employee named Marcellus Fleming Berry. That is, Amex’s venture into financial services business was not exactly a strategic diversification undertaken by the senior management. Money order business was a successful ???????????????????????????????????????????????????????!?????????????????????????????????????????()Q????????????????????????????????A??????)?????????????????????????????????????????????????????????????????????????????????????????????!?????????????????????????????????????????????????????!???????????????????????????????????????5??????? ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????]????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????qQ??????
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