Order Description
1. How should American Express strategically as well as financially evaluate the opportunity for diversifying into Hotels & Airlines as an extension of their card service?(i.e, Net Present Value, IRR, Payback)
2. To what extent should American Express consider developing the opportunity in question 1) by themselves or in partnership / acquisitions with/of third parties? (i.e Mergers and Acquisitions framework/ Joint Venture)
3. What would be the advantages and disadvantages for American Express of developing the opportunities by themselves or in partnership/acquisitions?
MARKING CRITERIA
– The extent to which question 1 has been addressed in terms of undertaking a qualitative evaluation as to how a strategic option is financially assessed
– The extent to which question 2 has been addressed in terms of discussing the strategic issues surrounding the acquisition of resources and capabilities from third parties or developing them in – house as opposed to sharing them through outsourcing, alliances or partnerships
– The extent to which question 3 has been addressed in terms of evaluating the advantages and disadvantages of developing resources and capabilities in house as opposed to outsourcing or partnering /acquisitions
– Good clear critical writing that is well structured with headings and neatly presented and properly referenced
– Good clear definitions and application of the THEORETICAL concepts clearly stating any assumptions made in the analysis
– Good discussion of the analytical insights identified from applying THEORETICAL concepts and drawing appropriate conclusions
– Conclusions and Recommendations