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

“Let’s Talk About Sex” Documentary Essay

James Houston put together the documentary â€Å"Let’s Talk About Sex† that highlights the differences between American’s approach to sex education and that of other countries like the Netherlands. The stereotypes, controversy, and irony all related to sex is put out in the open and discussed. Throughout the film, it is obvious that America’s ways of sex education and attitude towards sex has created a negative connotation. The Europeans have a much more open approach when it comes to the discussion of sex and started sex education at an early age. American’s, on the other hand, have a very closed approach to sex discussion and save sex education for later ages. This negative connotation and approach to education has resulted in the States having much higher rates of teen pregnancy, teen birth, and sexually transmitted infections when compared to European countries. One could say that it’s time the United States changes its approach and opinions regarding sex, sexuality, and the education behind it. Throughout the movie, there was a commonality between those who held a biased opinion on the topic of sex. Those who believed abstinence should be enforced and were against an open discussion of sexual relations were often times from the older generation. It’s the parents of teens, most teachers of sex education, and even people within the churches that held a bias. They believed that teens should not be involved in sexual activities and that it should be saved for marriage. Along with that, they stood behind the idea that the teens should not be educated about sex until later in high school and the open discussion of sex and sexuality was not proper. Kelsey’s mother was one of these biased people. She was strongly against the idea of Kelsey taking part in sexual activities until she got married and did make it easy for Kelsey to openly communicate with her about her sexual relations. For those teens that do take part in sexual activities, they are looked down upon in the greater portion of American culture because of the negative connotations that have been established here in the United States. With these biases, it has put sex into a negative category not just for the minority, being the teens, but most Americans in general. In America, sex is not something people openly talk about nor is it something that teens are â€Å"suppose† to take part in. The idea of teens taking part in sexual relations prior to marriage is greatly frowned upon and the stigma of carrying a condom has scared them away from it. An example of this, which was shared in the movie, is that in the Netherlands, carrying a condom starting in their teens is very common and encouraged. Where as in the states, if a teen were to be caught with a condom, others would view that as a sign of someone who is very promiscuous. In the movie, females thought males who carried condoms wanted nothing but sex from a girl while males thought that women who carried condoms were easy and considered sluts. This negative impact in the States has generated these stereotypes surrounding sex. The effects of these stereotypes have negative outcomes. For example, if a guy is afraid to carry a condom because of the stereotype and when it comes time for him to take part in sexual activities, he won’t be properly prepared. Without the protection, he is at risk for STIs and possibility of pregnancy in girls. This is also true vice versa with girls; they too should carry condoms, but are afraid due to the negative association. There is also a negative idea behind the discussion of sex in an open setting. Most parents in the US are afraid to talk about sex with their teens sharing both their sexual lives and discussing their teens. Because the parents are not open to it, the teens are afraid to approach their parents with sex related questions or tell them they have taken part in sexual activities. Because of this, many teens go with out proper instruction and correct information in regards to sexual activities. Where as if the parents were more open and accepting of the idea of their teens taking part in sexual activities, it would open an avenue for better knowledge and maybe even help prevent STIs, pregnancies, and other sex related issues. The minority group in â€Å"Let’s Talk About Sex† stood as US teens. These teens faced the discrimination of elder groups and negative stereotypes, but throughout the course of the movie, it showed how things are slowly changing. Several people who are often viewed as community leaders are working to properly educate teens. An example was reverend Williams, who created an open area to discuss sex related things and offer proper education. Some teachers also voiced their opinion on how they believe sex ed. should be more about sexual relations and not about human anatomy. They also believe the education should begin at younger ages when kids are going through puberty and developing sexually developing. This is one way these teens are getting the upper hand on discrimination. Another is that opening the idea of family discussions about sex and the idea of teens being involved in sexual relations. Breaking the assumption that abstinence is the only answer and opening the door to discussion, using the Netherlands as an example. By the end of the movie, Kelsey, whose mother originally frowned upon sex before marriage, was able to change her mothers mind and even talk about her sexual relations. These are just a couple of the ways the teens slowly made change, there is still a lot more to be talked about and changed. When reflecting back, I too can relate to the US teens in the documentary. I have noticed the closed door in terms of the discussion of sex and human sexuality as well as the stigmas associated with teens’ involvement in sexual activities. I do believe there is something to be said about the Netherlands approach to human sexuality and sex, especially when looking at the number of teen pregnancies and transmission of STIs compared to the much larger number in the US. We, as the United States, could benefit from a change in the atmosphere surrounding teen sex, and sex in general. Sex is a natural thing.

Buddhist Beliefs

Core beliefs of Buddhism: Buddhism, as a religion, lays great emphasis on the adherence to the basic beliefs. Buddhism, like most of the great religions of the world, is divided into a number of different traditions. However, most traditions share a common set of fundamental beliefs. The basic Buddhist belief comprise of the basic teachings and concepts of Buddhism. Lord Buddha urged His followers to concentrate on the Four Noble Truths, which helps in attaining freedom from suffering. In the following lines, we have provided more information on the basic Buddhism beliefs: The Four Noble Truths: The Buddha's Four Noble Truths explore human suffering. They may be described (somewhat simplistically) as: Dukkha: Suffering exists: (Suffering is real and almost universal. Suffering has many causes: loss, sickness, pain, failure, the impermanence of pleasure. ) Samudaya: There is a cause for suffering. (It is the desire to have and control things. It can take many forms: craving of sensual pleasures; the desire for fame; the desire to avoid unpleasant sensations, like fear, anger or jealousy. ) Nirodha: There is an end to suffering. Suffering ceases with the final liberation of Nirvana (a. k. a. Nibbana). The mind experiences complete freedom, liberation and non-attachment. It lets go of any desire or craving. ) Magga: In order to end suffering, you must follow the Eightfold Path. Another fundamental belief of Buddhism is often referred to as reincarnation — the concept that people are reborn after dying. In fact, most individuals go through many cycles of birth, living, de ath and rebirth. A practicing Buddhist differentiates between the concepts of rebirth and reincarnation. In reincarnation, the individual may recur repeatedly. In rebirth, a person does not necessarily return to Earth as the same entity ever again. He compares it to a leaf growing on a tree. When the withering leaf falls off, a new leaf will eventually replace it. It is similar to the old leaf, but it is not identical to the original leaf. After many such cycles, if a person releases their attachment to desire and the self, they can attain Nirvana. This is a state of liberation and freedom from suffering.

Dome of the Rock: Jeruselam

1 Jake Kelly 4/27/2012 Art History 130c Report Dome of the Rock: Jerusalem The Dome of the Rock is in an area surrounded by religious influences and not all these are Islamic. It is located on the Haram al-Sharif in Jerusalem, which has gone through many religious changes. Religious groups have been fighting over this area for thousands of years and the fighting still continues today. Many different groups have inhabited this region, but not many have made the impact as the group responsible for the Dome of the Rock.The most dramatic change came when the Muslims took Jerusalem the Christians. When this historical event happened, the Muslims wanted to get rid of any Christian influence, and the Dome of the Rock reflects this idea. This new ruling group wanted to take the religious focus from every previous Christian piece of architecture and turn it towards the Dome of the Rock. To accomplish the construction of a building that overlooked all over Jerusalem, there needed to be a eleva ted, flat space.The location of its construction is a plateau above the holy city and is another clue to what the Muslims were trying to accomplish. The Haram had many Christian holy spots located there, including the tomb of Christ and the rotunda above it. The structure we see today, has pro Islam calligraphy on the outside walls as well as the mosaics located inside. This use of calligraphy in art work in the Dome of the Rock is one of the first used in Muslim architecture. They use the calligraphy for Qur’anic versus’ as well as explain their faith to people visiting the Dome.Even though the Muslims were trying to out do the previous 2 religion, Christian influence is seen through the octagonal shape of the structure. Along with the location and calligraphy, the nature theme of the art work inside show the religious shift that was taking place at the time of its creation. In early Islamic art that was used during this period of time, no human art forms are used. Th is was against Islamic law, and much of the Christian architecture of the region followed completely opposite guidelines with human forms. When the Islamic religion took hold of this egion, they did not integrate the Christian holy structures into a Mosque, but instead used Islamic art and architecture in the building of the Dome of the Rock to show the new Islamic dominance over the existing Christian architecture. â€Å"Tradition-Jewish, Christian and Muslim-holds that Solomon built this Temple, dedicated to the Israelite God Yahweh, in the southeast corner of what is now Jerusalem’s Old City, on a platform known to the Jews and Christians as the Temple Mount to Muslims as the Haram al-Sharif (the Noble Sanctuary). () (figure 1). The area known to the Muslims as Haram as-Sharif only because of its overlooking presence on the city of Jerusalem, was a very religious cite for the Christian religion that has ideas the Muslims do not agree with. In the Islamic faith, the follow ers believe Jesus was not the son of God. They believe Jesus was a prophet, but was not the son of God as he claimed during his life on earth. This is the major difference between the two faiths and has caused controversy among members of both religions.The single idea of whether or not Jesus is the son of God has, and will keep these two groups competing for dominance. This competition can be seen through the location the architect chose for the 3 Dome of the Rock. The Omayyad caliph ‘Abd al-Malik chose this position to draw attention from the old â€Å"center of Jerusalem† and the Christian Holy Sepulchre church and the rotunda over the tomb of Jesus, to a new Islamic architectural creation that later was caped with a golden dome. The Dome of the Rock now, dominates the Jerusalem skyline.Al-Malik’s plan worked, but was intended to do much more than just overlook old Christian structures. They wanted nothing to do with these structures and it is reflected by man y of the themes chosen for this piece of art. The design, structure, and art are all Islamic art forms intended to show the dominance of the new group over the people who previously dominated the area. â€Å"The Arabs referred to the Church of the Holy Sepulchre by a different name, using a pun in Arabic. In Christian tradition the church is widely known as the Church of the Resurrection-al-Qiyama in Arabic.The Arabs changed its name to al-Qamama- church of the Dung. †()(figure 2). Disrespect to the Christian faith was the intent of this name changing, but other reasons lie below the surface. The new ruling Islamic group changed the name almost as propaganda for the people to see this beautiful church as below the new Islamic architecture. This tactic has been used time and time again throughout art history to draw attention and show dominance of the new ruling religion or group. With all this negativity towards anything Christian, the Dome of the Rock would think to have no such influence.The golden dome is the exact same inner dimensions as the Sepulchre Church and the octagonal structure was first seen in Christian architecture. With the disagreement, the Muslim builders could not deny the Christian building 4 techniques and layout when creating the Dome of the Rock. The structure may be very similar, but that is not what sets it apart from Christian architecture. The art work incorporated with the building tells an Islamic story and shows the shift from tradition Christian art to a completely different style used by the creators. A major shift also occurs with the subject matter incorporated the art.The Christians used many statues and paintings in their religious locations, but the new Islamic group now only used things like nature and calligraphy in all there art. What is seen on the outside of the structure, on the mosaics inside, and the calligraphy around the arcades tell a Muslim story that was meant to show an end to the Christian rule of the area. â€Å"It rises atop a tall cylinder of some 98 feet (30m) over the platform. Constructed of wood, it is not gilded but covered with a special alloy containing gold that provides its vaguely golden tone.The cupola is supported by a circular arcade of four piers and sixteen columns flanked by two ambulatories surrounds the cylinder and holds tight, as in a ring. The ambulatories together are 46 feet (14m) deep, and give the whole building a diameter of some 157 feet (48m). It rises to only 36 feet (11m) inside and 43 feet (13m) on the outside, strengthening the impact of the central cylinder with cupola. † () The structure of the Dome of the Rock was not huge like many other Islamic religious structures.Compared with the Mosques and other Islamic holy sites studied in art history, this is very small and shaped different, but still keeps the normal Islamic theme of the time. Islamic holy sites are usually gigantic elaborate buildings on the outside as well as the in, but this is where the Dome is different. The only real elaborate piece to the outside is the golden dome that can be noticed and recognized from far distances. This was a structure made to look like structurally like the existing Christian holy sites. The similarity between structures was intended 5 ot to mimic, but to show that their religion was the truth, through the Islamic art work and calligraphy. The least elaborate section of the building is the outside and has calligraphy that was once with Islamic based mosaics. The gold dome with a plain building is a strategic move that give the structure a very unique quality. The inside of the Dome of the Rock may be more important than the dome itself and what it stood for. There are documents inside the building telling what the calligraphy inside the building can be translated to. This calligraphy is from the Koran and is on the top of the inner and outer octagonal arcades (figure 3).The calligraphy, â€Å"These passages make three poi nts: (1) God is one; He cannot be born or give birth, a basic Muslim position in relationship to the Christians; (2) God’s messenger is Muhammad, who was brought the divine message to mankind and (3) Jesus, the son of Mary, is also a messenger who should be honored and praised because of his virtuous life and because he carried some of the signs of the divine relationship to man. † () The Muslims and Christians are two religions that have many simililarites, but disagree with who was the prophet and if Jesus was the son of god or just a messenger.As stated earlier, these differences have caused controversy between the two groups, which are meant to be brought out by the Qur’anic versus. These messages of one God, Muhammad as the prophet, and Jesus only being a messenger were inserted in the inside art work to set in stone what religion now controlled this area. They wanted to show who now had the power of the area and wanted it to be clear through the art work an d calligraphy found on the inner and outer arcades. During the time of the construction, no human forms were used in 6 the art work.This is a reason calligraphy can be seen throughout this Muslim based piece of architecture. Calligraphy is a very important piece to almost and Islamic work and always tells a religious story from the Koran or other religious works. To take this even further, the Islamic people may have been trying to flex their chest a little more by staying away from any type of Christian art forms. Whatever the intent was, the calligraphy on the inner and outer arcades comes directly out of the Koran and puts to rest the old Christian ways of the area.To go along with the Islamic calligraphy on the inside of the Dome of the Rock, the incorporation of nature mosaics shows the shift in art work of the area. The patrons and builders of this great building obvisously wanted nothing to do with the art work of the Christians, and is the reason no blending of art happened between the two at this time. When the Christians dominated the area, portraiture was very popular as well as Christian statues and stained glass portraying holy people was not uncommon. During the time period when the Muslims conquered the Christians, human images were not allowed to be subject matter in and Islamic art.The Islamic people wanted to get rid of the Christian art work that went against their faith and first started with the Dome of the Rock. One similarity between the artwork of these two groups could be the use of glass, but they each used glass in different ways. Instead of stain glass mosaics of people, the Muslim builder used small pieces of glass called tesserae to create much of the mosaics that line the walls of the Dome of the Rock. This took time, but when one sees the inside of this great building, the time taken by these artists to do the mosaics was well worth it. 7 It is easy to enumerate the components: acanthus bowls of several different shapes; scrolls made of calices fitted into one another, occasionally simplified into a single ribbon with jewels and adaptable to almost any space; supporting rods, usually artificial cominations of repeated floral or ornamental elements; trees, among which palm trees can be recognized, and tufts of grass; garlands and single leaves which, especially on the soffits, serve as background for fruits; berries, fruits, and vegetables, among which pomergranets, olives, cherries, dates, grapes, and several kinds of cucumbers can be recognized; full or empty cornucopias of many different forms; vases shells; crescents and stars; an astounding array of insignia associated with royal power, such as crowns or tiaras, and other jewelry of many kinds with no royal association; pairs of wings; and artificial combinations of several of these elements to create imaginative and fantastic compositions† () (figure 4). This quote from a book written by Oleg Grabar tells the type of art work found in and around the dome of the rock. There are absolutely no human forms in any of this art work and is not done this way solely because this was Islamic law. The creators wanted to put a completely Muslim piece of architecture in the Jerusalem skyline to let the people of the city and visitors that this was now an Islamic dominated area. †¦reasons for the building of this monument include: (1) the portrayal of the triumph of Islam, the Final Revelation, based off the opulent surface decoration throughout the building, especially the jewel-studded mosaics, precious stones, etc. , and the calligraphy of specific Qur’anic versus symbolizing holiness, wealth, and power, and (2) the commemoration of the location of the Prophet Muhammad’s ‘Night Journey’, especially of the ‘rock’ itself on top of which, according to later traditions, the Prophet stood before being led by angel Gabriel to meet God in the second part of the ‘Night Journey’ â€⠀œ the Miraj. † () Jerusalem has always been an area of religious struggle, because of its location and importance to an abundance of religions. There were Jewish strongholds as well as Christians ruling this area way before the Islamic people came into power.The struggle for power has turned the 8 area into something so sought after, that when they gained control, triumph throughout the Islamic faith began. Constructing a great piece of architecture is a tactic used time in time again throughout history to mark a change in time, and these people were trying to do just that. This building was meant to be on top of the hill looking down over the city, to maybe instill pride in people of the area, but much more than the location is put into its creation. The subject matter of the art is that of Islamic wealth and power. These refrences paint the picture of what these new people to the area were all about.They had power, backed by the Islamic law, and enough money to build pieces of architecture like this all over the area. These rulers and wealthy citizens were very good patrons to the arts and is seen through the construction and choices of art work on the inside of the structure. Patrons willing to spend vast amounts of money on art and architecture can be seen throughout the Muslim history. To take this further, the subject matter and location of the building were not the only reasons for its construction. In the first part of the night journey, Prophet Muhammad travelled all the way to Jerusalem, where he met up the angel Gabriel on the rock contained inside the Dome of the Rock. (figure 5). They then travelled to heaven, hell, and to meet God.The Islamic people take this story, as well as many other stories, very seriously and truthfully believe events like this once occurred upon this rock. This type of religious belief system has been seen around the world for centuries, and anything from something in nature or the world and turn into a relic overni ght. Patrons, as well as builders did not just pick this area because it over looked the city of Jerusalem, they wanted to use the rock as a piece of art and almost a relic to be worshipped while inside the structure. Christian churches always have some type of relic or piece of art inside the church that can be 9 the center of worship. Many times a priest or holy person will kiss this relic that is usually contained inside the alter of a Christian church.People can walk into the Dome of the Rock and be able to relate a story to the rock and Muhammad much like Christians can with the relics in there churches. This may not be your typical art object or relic used in a church, but because its sacred history this giant rock is the center piece of this beautiful piece of art. The exterior of the Dome of the Rock is almost like night and day when you relate it to the elaborate mosaics and arcades of the interior chamber. This is a building that was made to be seen from far away as someon e journeyed into the city. â€Å".. the Dome of the Rock operates as a magnetic entity from afar and breaks down into partial and repetitive elements as one draws near it. () As you approach the city of Jerusalem, towering over the skyline is this magnificent golden dome that appears to be attached to an elaborate building. When one keeps travelling and gets closer to the actual building itself, the gold domed building that once looked elaborate is now very plain. â€Å"What distinguishes the Dome of the Rock, however is that the remote impact is the same wherever one becomes aware of its presence, and nowhere does perception of the building require or invite entry, as do, for instance, the funnellike facades of Gothic cathedrals. † () The evidence is really weak on why exactly this non elaborate technique was used on the exterior part of the building and seems very weird of Muslim architecture and art.Usually the entire structure of a holy location would be covered with art to almost draw in the 10 thousands of people a day to pray. Because it was created to be seen far away and dominate the Jerusalem skyline, they did not elaborately create the outside of the structure to be similar to the inside, but instead used a golden dome to draw people in. With this contrast brings curiosity and could have easily been a motive during construction. Even though the outside, bottom section of the building, is very bland when you compare it to the golden dome or the elaborate tesserae mosaics of the interior, many people still put rank it as one of the most beautiful in the world today.The symmetrical technique, octagonal shape, and the art used in the creation of the Dome of the Rock were before their time and are still thought highly of today. With all the Islamic influence as well as the incorporation of some Christian techniques, one would think there was no more room for outside influence. â€Å"Byzantine, Persian, and Arab design and architecture are blende d in it to create a magnificent whole. The blending of the three types of art is not surprising for all three people shared in the constrction. †() With all these different influences present during construction, no wonder many attribute this piece of architecture with beauty and uniqueness. The mosque of the rock is extrodinary and beautiful. I have visited many places and beautiful buildings in India, Europe, and other parts of the world, and as far as I can remember. I have not seen as magnificent of a building as the Dome of the rock. The symmetry and the gorgeous blending of colors I have not seen in any other building. † (5) Many people around the world share this same opinion of the incredible building. Everything that went into its construction, make it one of the most unique places to visit in the entire world. 11 The Dome of The Rock in Jerusalem was a building constructed by a group of people that were new to an area and wanted to make a point.These were peopl e of the book, with lives that revolved around following the readings found in the Koran. These religious ideas are seen throughout the entire building. Everything from calligraphy, mosaics, and relics are all geared towards Islamic law and pleasing God or Alah in the Islamic faith. This religious influence was not meant to be just looked at and admired by the Muslim people who now had power of the region. The creators and patrons wanted to give the people a building that towered and naturally looked down upon the Christian architecture that was already there. This group even changed the name of a great Christian church of the region to show who now was in control.The Muslim people of this time and place used Islamic art and architecture in the building of the Dome of the Rock to show there dominance over the group who recently inhabited the region. Figure 1 12 Figure 2 Figure 3 Figure 4 13 Figure 5 Bibliography Aref, Aref El. A Brief Guide to The Dome of the Rock and Al-Haram Al-Sh arif. Jerusalem: Supreme AWQAF Council, 1959. Print. Bloom, Jonathan M. Early Islamic Art and Architecture. Aldershot [u. a. : Ashgate Variorum, 2002. Print. Grabar, Oleg. The Dome of the Rock. Cambridge, MA: Belknap of Harvard UP, 2006. Print. Nuseibeh, Said, and Oleg Grabar. The Dome of the Rock. New York: Rizzoli, 1996. Print.Shanks, Hershel, and Hershel Shanks. Jerusalem's Temple Mount: From Solomon to the Golden Dome. New York: Continuum, 2007. Print. I watched a National Geography Video I ordered through the library ——————————————– [ 1 ]. Shanks, Hershel. Jerusalem's Temple Mount: From Solomon to the Golden Dome. New York: Continuum, 2007. Print. [ 2 ]. Shanks, Hershel. Jerusalem's Temple Mount: From Solomon to the Golden Dome. New York: Continuum, 2007. Print. [ 3 ]. Nuseibeh, Said, and Oleg Grabar. The Dome of the Rock. New York: Rizzoli, 1996. Print [ 4 ]. Nuseibeh, Said , and Oleg Grabar. The Dome of the Rock. New York: Rizzoli, 1996. Print [ 5 ]. Grabar, Oleg.The Umayyad Dome of the Rock in Jerusalem. Vermont: Ashgate Publishing Company, 2002. Pg. 224 [ 6 ]. M. Anwarul Islam and Zavid F. Al-hammad. The Dome of the Rock: Origin of its Octagonal Plan. http://web. ebscohost. com. ezproxy. wittenberg. edu/ehost/pdfviewer/pdfviewer? sid=b061e92d-24d2-41ec-9e4c-df5ed7fce55d%40sessionmgr15=4=11 [ 7 ]. Shanks, Hershel. Jerusalem's Temple Mount: From Solomon to the Golden Dome. New York: Continuum, 2007. Print. [ 8 ]. Shanks, Hershel. Jerusalem's Temple Mount: From Solomon to the Golden Dome. New York: Continuum, 2007. Print. [ 9 ]. Aref, El Aref. A Brief Guide to The Dome of the Rock. Jerusalem: The Supreme Awqaf Council. 1959.

Utilizing Database Performance Using Column Store Research Paper

Utilizing Database Performance Using Column Store - Research Paper Example This technique of data storage has its benefits but again several questions still exist on the same matter. For instance, how row based systems be able to be customized to achieve performances associated with column stores? This is the kind of question whose answers we seek to discuss in this document. 1. Introduction The paper seeks to show how database performance can be increases using database column storage techniques. The paper will be divided into sections which include a brief description about the database column storage, an explanation on how column store can utilize the performance of databases, how database performance will differ by using column store and not row storage. Additionally, areas where column storage count will also be discussed; these are areas of application of the technique will also be discussed. Finally, recommendations on the enhancements of column stores will come at the end of the paper. 2. Database Column Storage Column store database systems can be traced to the 1970’s; this was the first time when transposed files were being studied; Then followed the investigations into the vertical partitioning technique of clustering table attributes on a database. The mid 80’s witnessed the experience of the advantages of decomposed model of storage (DSM). This was the predecessor to column storage technique. It was considered better than the old row based system of storage. Nonetheless, row based database systems still went on to maintain dominance of the markets as a result of market needs, as well as non-favorable trends in technology to implement the column based systems of storage. This was despite the fact that the DSM technique was very suitable and had potential for better analytical queries. However, the 2000s had good tidings for research on column storage systems. Commercial systems of the same took off instantly. In this paper, we look at the technology and the application trends which have led to the renaissance of commercialization of the column stores. In comparison to the row-oriented stores of data, the column oriented, database systems were read optimized; this means that the when a query is sent, access is granted to the required fields only, and a reduction in disk input output processes and time is registered. student_Id Firstname Lastname Grade 1 James Smith A 2 Cathy Jones A- 3 Elizabeth Queen C Table 1: Sample Database Table In a computer, the database information has to be converted and bytes for storage in the hard drive or to be written onto the RAM. For row-based storages, the data in the database is serialized according to the values in each of the rows; then follows the data in the next row. The data is arranged as follows, in the row based model: 1, James, Smith, A; 2, Cathy, Jones, A-; 3, Elizabeth, Queen, C; On the other hand, the column based storage system would arrange the data in the following format for storage: 1, 2, 3; James, Cathy, Elizabeth; Smith, Jones, Queen ; A, A-, C; Research on column stores indicates that, with compression, row-stores perform less effectively than column oriented systems. More formally, column storage systems store their data tables in the form of columns of data unlike the row based systems which store data in the form of rows of data; as seen in most relational

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Security Network Intrusion detection system (IDS) - Essay Example 1) The first and foremost thing is to have a grip upon the mental approach. I would try to stay composed and relaxed rather than getting panicked. I would analyze the whole situation cool mind. Whenever a network is established, problems like these are likely to occur and companies always have a well organized solution for this. So, there is no need to get horrified. 2) Under such a situation, it becomes important to isolate the affected computer immediately. An affected machine on a network can cause all other machines on that network to be affected. I would unplug the cable and then disconnect the affected computer both from the internet and the network. This way, the intruder will not be able to have an access to the machine nor will he be able to attack other computers on the network by means of the affected one. 3) I would block the port 3389 temporarily. TCP port 3389 is the Remote Desktop Protocol (RDP) that enables a user to connect to a computer on a network. I will find out if VPN (virtual private network) had been established to protect the RDP or port 3389 traffic. I would make arrangements for the establishment of site-to-site VPN tunnel before reconnecting the computer to the network so as to secure the RDP traffic from Address Resolution Protocol (ARP) poisoning (Savill, 2008). Further investigations include: Were there passwords and sensitive information saved on the computer like ISP access passwords? These must be changed at once. How long has the intrusion gone undetected? The chances of co-computers on the network being affected increase with the time the affected one keeps on working on the network. I would investigate if the computer had updated anti-virus and desktop firewall software installed. I would make backups of all sensitive information and format the operating sys tem. Then, I will reload the sensitive information from backup files while scanning them

Competitive Analysis and Business Cycles Essay Example | Topics and Well Written Essays - 750 words

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