Contents

Introduction .................................................................................................................................................. 2
Products & services ................................................................................................................................... 2
Growth ...................................................................................................................................................... 4
PEST Analysis ............................................................................................................................................. 6
SWOT ........................................................................................................................................................ 7
Communication ............................................................................................................................................. 8
Definition: ................................................................................................................................................. 8
Communication process: .......................................................................................................................... 8
Communication channels: ........................................................................................................................ 9
Internal communication: .......................................................................................................................... 9
External communication: .......................................................................................................................... 9
Communication models and theories:.................................................................................................... 10
Shannon and Weaver communication model: ................................................................................... 10
Lasswell`s model: ................................................................................................................................ 11
Corporate social responsibility ................................................................................................................... 14
Definition: ............................................................................................................................................... 14
models..................................................................................................................................................... 14
Carroll’s pyramid ................................................................................................................................. 14
Ackerman’s model .............................................................................................................................. 16
Motivation................................................................................................................................................... 18
Definition: ............................................................................................................................................... 18
Theories: ................................................................................................................................................. 19
Four drive model of employee motivation: ........................................................................................ 19
Maslow Hierarchy of Needs: ............................................................................................................... 20
Conclusion ................................................................................................................................................... 21
Bibliography ................................................................................................................................................ 22
Introduction
MasterCard is an American Multinational Financial services company and the leader of the financial
industry Headquartered in US, New York (linkedin.com). Back in 1966, the association has been
founded by various California based banks to compete with BankAmerica Card (Visa) as the Bank of
America was the issuer at that time. United California Bank was the parent company behind
MasterCard and other Banks merged in later, such as, Crocker National Bank, Wells Fargo, Union
Bank of California and Bank of California (Successstory.com).In 1979, MasterCard has changed from
Association to a corporation. On May 25, 2006, MasterCard has been offered to be publicly held
company and under the symbol of MA, the stocks were traded in NYSE. MasterCard Worldwide is
owned by more than 25.000 financial institutions globally (Successstory.com).

As of 2015, 10,500 people have been employed by MasterCard Inc (successstory.com).

As a Technological company, MasterCard targets financial institutions, consumers, merchants,

governments and businesses worldwide, giving them the opportunity to use electronic methods of
payments rather than using cash and checks (newsroom.com).

The Mission of MasterCard is “Every day, everywhere, we use our technology and expertise to make
payments safe, simple and smart” and the mission is “A world beyond cash” (MasterCard.us).

Products & services

MasterCard have 3 types of Cards which will be mentioned below

 Credit: Pay Later (Credit Card)

Whether if premium cards that ensures the consumer a developed option like concierge services or
normal cards that provides basic credit needs, MasterCard introduce various products that helps the
consumer to pay later for the purchases (MasterCard.us).

 Debit: Pay now (Debit Card)

Globally, people would purchase their needs and withdraw cash immediately from the Banks and
credit unions, the point of sale and even from ATMs (MasterCard.us).

 Prepaid: Pay before (Prepaid Card)

MasterCard provide such types of cards to fulfill the needs of the consumers focusing more on the
governments, commercial and consumer cards that can be refilled.
On the other hand, MasterCard provides various services for the consumer

 Implementation Services
MasterCard helps their clients by finding new customers and manage the existing relationships with
a higher return for low investment which will give the clients the opportunity to succeed in their
investments and get a higher profit (MasterCard.us).

 Emergency Services
MasterCard provides services for their customers where ever they travel by relaying on the
MasterCard Global Service for any card-related needs. MasterCard team are available 24/7 helping
the customer in their issues like emergency replacement card, Emergency cash advances, and so on
(MasterCard.us).

 MasterCard Money Send

MasterCard has introduced money send service as it gives the customer the opportunity to send
money from a company to a company or from a person to another person. It gives the chance for
the client to transfer money safely and securely taking 24 to 48 hours to get the money sent which
makes the customer more comfort and trust towards MasterCard (MasterCard.us).

 ATM locator
MasterCard helps the customer to find the nearest ATM location by filling the form that is available
in their site and MasterCard Team will provide the customer with the nearest ATMS location
(MasterCard.us).
Growth
MasterCard is one of the biggest worldwide financial corporation that maintained their growth and
financial stability throughout the years (seekingalpha.com).

The Global Payment Industry has a Healthy Growth with an extraordinary year in 2014 growing
beyond expectations. The revenue has risen to 9 percent in 2014 which was double the growth in
2013. Although the revenue was $1.5 trillion in 2017, It has reached to $1.7 trillion in 2014 with an
expectation of reaching up to $2.3 trillion in 2019 (McKinsey).
Compared to 2015, the Operating profit for MasterCard have been dramatically increasing from 55.02
USD in the 2nd quarter in 2015 reaching to 58.19 in the 2nd quarter of 2016 (tradingeconomics.com).

MasterCard operates the second largest credit card payment across 150 currencies and 210 countries,
the stock price of MasterCard is increasing dramatically throughout the five years from 48.30 USD in
2013 to 150.85 USD in 2017 (Google Finance).

MasterCard has posted their earnings of $890 million in December 31,2016 with a revenue growth of 9%
excluding currency impacts (Thomson Reuters).
PEST Analysis
 Political
Government interventions:

The political instability and Government interventions in the market may affect MasterCard.

 Economical
Volatility in the currency markets:

Dow Jones Newswires reported that, MasterCard is exposed to foreign exchange volatility in 2 ways.
The banks fee payment is accepted in various currencies and it is converted into Dollars. It
repatriates the client’s transactions into their home currency resulting to a rise in the company’s
expense. The operating expense for MasterCard has rose to 6.1% in neutral currency
(westernunion.co.nz).

 Social
Global shift approaching the use of online payments

As of 2015, the retail transactions are being processed globally at a rate of 85% using cash and
checks. However, a gradual increase shifting to digital payments. According to industry report, 3
billion people are expected to have access to mobile internet in 2020 from 1.9 billion people in
2015. Payment technology companies like MasterCard will benefit from this shift
(swotandpestel.com).

 Technological.
Acquisitions to develop technology competency

MasterCard has been vigorously following acquisitions in the technological field to develop its
technological capabilities which is critical in financial service domain. The latest acquisition in
technological field is of Brighterion, Inc, an artificial intelligence specialists company. This acquisition will
improve MasterCard’s capabilities in various fields such as anti-money laundering (AML), fraud
preventions (swotandpestel.com).
SWOT
 Strength
MasterCard ensures high level profitability for its product and associations with top most brands.

 Weaknesses
Due to online processing of transaction, Mastercard has a deal with high risk of frauds.

 Opportunities
Increasing trends of online shopping and online business enhance the business of mastercard

 Threats
Increasing competition in market of card industry however, the biggest competitor of MasterCard is Visa
Card.
Communication

Definition:
The definition of business communication is the process of transmitting information about and within
the organization. (business communication, 2017). The key elements of communication are the Sender,
the Message and the Receiver.

In corporations communication is used to:

- Transmit information about their goals, strategies, expectations, management philosophy, and
values.
- Build commitment among subordinates to their programs and policies, convince allies in their
network to support them, persuade their bosses that they are performing well, and influence
stakeholders.
- Achieve coordination between different units within an organization, such as R&D, marketing,
and production.
- Help shape the image of themselves and the organization that they present to the world.

Communication process:
First of all, the sender who is the source of the information prepares his information he wants to
send which is the message. Then, he encodes the message through writhing it or records it or in
other ways, so the message reaches to the receiver who is the destination of the sender via the
channel, which could be internet or telephone or any other device. Finally the message reaches
to the receiver and he encodes the message by reading it or looks at and gives his feedback and
it goes through the same process.

Figure 1 communication process

Communication channels:
- Verbal/non-verbal.
- Formal/informal.

Internal communication:
Any communication that is happening within the company is called internal communication. And that
includes:

- Employees.
- Management.
- Shareholder/board.

External communication:
Communications between the company and another person or entity in the
company's external environment. And that includes:

- Customers.
- Community.
- Government.
 Communication models and theories:
- Shannon and Weaver communication model.
- Lasswell`s model.

Shannon and Weaver communication model:

This model was conducted in 1948 when Claude Elwood Shannon (mathematician) wrote an article “A
Mathematical Theory of Communication” with Warner Weaver (scientist). The theory later came to be
known as Shannon and Weaver communication model or “mother of all models” (Mishra, 2017).

Elements of the model:

- Sender: is the originator of the message or the information.
- Receiver: is the destination of the message from the sender.
- Channel: is the medium through which the message or the feedback is being sent.
- Encoding: is the machine used to transform the message into codes.
- Decoding: is the machine used to convert signals or binary data into message or the receiver
who translates the message from signals.
- Feedback: the respond by the receiver to the message.

Figure 2 Shannon and weaver communication model https://www.businesstopia.net/communication/shannon-and-weaver-model-

communication
Lasswell`s model:
Lasswell's communication model was developed by communication theorist Harold D. Lasswell in 1948
(Mishra, Lawsell`s Communication Model, 2017).

Lasswell's communication model has 5 components which are used as an analysis tool for evaluating the
communication process and components. The components are the questions to be asked to get the
answers and keep communication going.

Lawsell`s communication model components:

Components Meaning Analysis
Who The communicator or sender or source of Control analysis.
message.

Says what The content of the message. Content analysis.

In which The medium or media. Media analysis.

channel
To whom The receiver of the message or an audience. Audience
analysis.
With what The feedback of the receiver to the sender. Effect analysis.
effect

Figure 3 Lawsell`s model https://www.businesstopia.net/communication/lasswell-communication- For

model internal
 communication we will apply Shannon and Weaver communication model to extract the elements
of the model.

MasterCard measure their Internal Communications with Three Words: Inform, Engage and
Demonstrate (Warner, 2014).

The internal users for the MasterCard Company include:

 Employees within the company from different departments.

 The management board of the corporate who deal with the internal matters of the company.
Such as: the CEO tries to promote the new vision of the company which can be done through
many communication channels.

The most channels used in internal communications in MasterCard:

 Most of the internal communications are being done through E-mail and LinkedIn. The
reason behind that is the formality used in these channels is suitable for such occasions. And
the types used here are verbal and formal.
 Also management board tends to do Meetings, events and conferences which help the
employees understand what is being explained. Thus, these kinds of meetings and events
encourage the employees because all these are signs that the board care about their
employees. Meetings and events require verbal/non-verbal communication also it has to be
formal.

Shannon and Weaver communication model on MasterCard:

 Sender: any specific department: HR department, communication department or any

department that controls the internal matters.
 Receiver: employees, board of directors.
 Message: tasks, goals, promotions
 Channel: internet, computers, telephones…
 Encoding & decoding: presentations, images…
 Feedback: the reply and the respond.
For the External communication we will apply Lasswell’s.

The external users for the MasterCard Company include:

 Consumers and customers that use MasterCard.

 Government.
 Community and corporations with other companies.

Lasswell’s model on MasterCard:

 Who? Marketing department, communication department or media department.

 Says what? Promotions of the products or services, offers, partnerships and verifications from
the government.
 Channel: social media, presentations, letters or E-mails.
 To whom? Customers, company owners and governmental departments
 With what effect: getting the products of MasterCard or use their services, getting deals done
with other companies, verification of a certain service from the government.
Corporate social responsibility

Definition:
CSR which is a shortened for Corporate social responsibility. It’s an organization’s action to evaluate and
take responsibility for the effects of the company on the environment and the social welfare.

In business context: CSR is what the company behaves ethically towards society.

(Staff, 2017, investopedia.com)

models
There are many different models of corporate social responsibility. This report will discuss Carroll’s
model or Carroll’s pyramid and Ackerman’s model.

Carroll’s pyramid
is a simple structure which helps the argument of how and why should the organizations meet their
social responsibilities. The pyramid consists of 4 different parts:

1) Economic responsibilities: which is the business responsibility to be a profitable

company. The way to this is by maximizing the sales and minimizing the cost. Also
producing goods and services needed by society to sell and get profit.
2) Legal responsibilities: it is the responsibility of following the law and the other
regulations. For example health and safety, the competition and employment policies. In
other words, playing by the rules of the game.
 3) Ethical responsibilities: which is the responsibility of the company to act in moral and
ethical way. This responsibility also requires the company to go beyond the constricted
requirements of the law like the treatments of the employees and suppliers.

(The Exam Performance Specialists, tutor2u.net)

4) Philanthropic responsibilities:which is the most important one of all responsibilities

that’s why it stands at the top of the pyramid. It’s a responsibility of being a good
corporate citizen. The aim of this responsibility is improving the quality of life for the
society. providing volunteering programs or getting engaged with volunteerism to
support the community is an example for the philanthropic responsibilities, as well as
corporate contributions.

(Anon ,2017, linkedin.com)

According to Carroll’s pyramid, philanthropic responsibilities specifically, MasterCard has joined many
volunteering programs. 3 of them are listed below:

Inspiring careers in Science, Technology, Engineering and Math (STEM):

 Girls4TeachTM is their signature education program. It launched in 2014 and the have
reached around 11000 girls from different countries such as U.S., Germany, England,
China, Italy, Brazil, U.A.E, Singapore, Poland, Australia, Argentina, India and Belgium.

 Girls2Pioneers program with the UN women is supported by MasterCard in Singapore.

MasterCard employees run the workshops, as they inspire the girls in the program
throughout concatenation of STEM challenges (STEM stands for science,
technology, engineering, and math) . It has reached 6000 girls in its first two years.
  MasterCard have joined with Go4SET in the U.K., which is a program established by the
Engineering Development Trust. MasterCard Employees work as mentors for 9 weeks.
They work with girls and boys both aged from 12 to 14 on STEM activities.

(MasterCard, Corporate Philanthropy & Volunteering , 2017, mastercard.us)

Ackerman’s model
In this model 4 stages are involved about how to solve a problem:

1) The first step is to identify the most common problem socially and then stating the ability
to take a specific project to that might solve some social problems.
2) The second step is represented in meeting with the specialist to make a study with them
toget the best solution to solve the problem.
3) Applying the solution is considered as the third step.
4) Last step is to evaluate the solutions to check whether they were beneficial to the society
or not.

This model also consists of 6 strategies that shows the degree of the companys willing to help the
society:

1) Rejection strategy
2) Adversary strategy
3) Resistance strategy
4) Compliance strategy
5) Accommodation strategy
6) Proactive strategy
These 6 strategies explains the degree of social responsibility of the company. From low to high
responsibility, rejection strategy means that the company is totally ignoring the responsibility of helping
the society which is the lowest.A degree higher is the defense that shows that the company feels itself
forced to help the society while already not helping. Going higher is the accommodation responsibility
which shows that the company accepts to help the society without doing action. The highest point is the
proaction responsibility which means that the company wants to help the society as much as possible.
The company itself search for the social problem and get it solved.

MasterCard as an example for this has partnership with world food program.

(Faisal, 2017)
Motivation

Definition:
Internal and external factors that stimulate energy in people to be always interested in a job, rule or
make effort to reach a goal.

(businessdictionary.com,2017)

In business context:

Is a way that managers in a company promote and encourage their employees to achieve a goal or a
task, or to be more productive.
Theories:
Four drive model of employee motivation:
Drive to Acquire and Achieve:

To get material items like clothes, shelter, goods. To acquire things like status and
accomplishments.

Drive to Bond and Belong:

To seek strong working relationship with business. Employees want to feel like they are belonging
to the company and wanted in it.

Drive to Comprehend and Challenge:

Employees are welled to learn new things from different tasks that they are given, and employees
like that their work is recognized from other employees work. And that will make a challenge in
between the employees in work, all this will make the company reach its goals.

Drive to Define and Defend:

Defend their self’s, family, friends, accomplishments and position. Businesses try to avoid it by
providing an environment that the employee don’t need to defend themselves.

Learning and career development in MasterCard provides all managers training in management
and coaching skills, which will help to give all employees the perfect feedback on their tasks or
work to get engorged and get the most out of their talents and be successful. As well as it provides
financial assistance to employees that want to take their education to the next level and be more
professional.
Employees in MasterCard have many tasks to achieve and they are weld to be challenged in
different ways to get motivated and get work done to reach their goals and the company’s goals too.

(mastercard.us, Above and Beyond Benefits, 1994-2017)

Maslow Hierarchy of Needs:

Motivational theory in psychology comprising of five level pyramid.

 Physiological needs: basic needs, basic pay and conditions.(shelter, clothes, sleep,
food)
 Safety needs: safe working place and secure.
 Love and Belonging needs: belong to a society, belong to the company and has a
strong relationship with all the company.
 Esteem needs: recognition of accomplishments, responsibility.
 Self -actualization: achieve the full potential.
(bySaul McLeod, updated 2017,simplypsychology.com)

Safety needs in MasterCard:

MasterCard provides health insurance to its employees, and this is a good point for people that are
looking for a job and can be interested to apply in the company.

As well as the working area in MasterCard is a very safe working area and secure in different ways.
So it is free from injures.
Love and Belonging needs:

MasterCard Company has a strong relationship with its employees so they cane fell that they are a
important part of the company, which is a positive thing, because this can make them fell wanted
and their achievements are letting the company reach its goals, and when the company reaches its
goals that means that they will get commissions with the sealers

Self-actualization:

If all the needs are provided for the employees for sure the will be at the top and very motivated.
And this gets the employee very challenging and wants to give more and by the company will
achieve its goals.

Several motivation factors:

 Age
 Socioeconomic
 Academic level
 National culture
 The availability of work

Example of national culture: in Japan, when workers call in sick, their immediate manager will
probably visit them at home after work. This is seen as a form of encouragement – the boss cares
about his or her workers.

If this happened in the USA, UK, or other Western nations, the worker would probably think the
manager was suspicious and came to determine whether he or she really was ill.

(marketbusinessnews.com,2017)

Conclusion
In this report we covered we applied all three managerial areas: communication, CSR and motivation.
Within these areas the reports explained two models of each area and how it is relevant to MasterCard.
To conclude MasterCard is the perfect company to apply these managerial areas because any successful
company has to follow these basics.
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