Question

Kenneth Chenault, the CEO of American Express Co. hopes to issue American Express cards through U.S. banks. At present, banks that own Visa and MasterCard are not allowed to issue other types of credit cards. However, the Supreme Court may rule that Visa and MasterCard stifle competition and innovation by preventing banks that own these two cards from issuing competitive cards. Which of the following environmental forces would have the most impact on Chenault's decision to issue cards through U. S. banks?

Answer 1

Regulatory environment.

This environmental force would be the first step for Kenneth to be able to issue cards through US banks. A regulated environment is an environment that has control rules that set the operating guidelines in an enterprise to produce effective goods and services. These guidelines are instituted by various institutions such as the government, regulators and companies.