...Morgan Stanley: Becoming a “One-Firm Firm” Time: Summer 1993 Scenario: John Mack has recently been appointed president of Morgan Stanley (MS). His primary goal is to recapture the “value of the franchise.” History of Morgan Stanley • Firm founded in 1935 when, in the wake of the Banking Act of 1933 (Glass-Steagall) requiring banks to separate commercial and investment-banking activities, six partners of J.P. Morgan left to form Morgan Stanley & Co. • In 1971, MS launched a sales and trading operation, a dramatic change from its exclusive focus on corporate finance to that point. The firm was very successful in this effort, dominating the sales and trading rankings for a decade. • In mid-1970s, MS began expanding internationally, before most other firms were acting on the potential of the global market. • By 1977, MS had over 1,000 employees, more than 4 times as many as in 1970. • While the firm had been one of the most prestigious banks on Wall Street and had developed exclusive relationships with many Fortune 500 companies, by the early 1980s the firm had started to rest on its laurels as many of its competitors were on the rise. • In the 1980s, corporations began to move from single long-term banking relationships to long-term transaction-based relationships predicated on receiving a variety of services. MS stumbled during this time, falling to sixth in global underwriting in 1983. • During this time, MS established merchant banking and asset management...
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...Developing and Managing Others Learning how to attract and retain the best people POST-COURSE ASSIGNMENT 2016 Part A. Morgan Stanley Case 3 My assessment of the new performance evaluation process 3 Did the new system meet expectations and targets? 4 Critical factors that contributed to the successful implementation of the system at Morgan Stanley 5 Part B. My personal development plan 5 Part C. Two people management examples using the SARL form 9 First example 9 Second example 10 Part A. Morgan Stanley Case Morgan Stanley is an American multinational financial services corporation. The corporation, formed by partners Henry S. Morgan, Harold Stanley and others, was founded in 1935. In 1993 the company headed by John Mack turned into a “one-firm firm.” At the beginning of 1990s, amid its rapid growth the company was facing a problem of choosing future leaders capable of effective management. Throughout its history, Morgan Stanley had formal performance evaluation and career growth systems. Each year the company was recruiting fresh blood from top universities who had “raw intellect and some basic social skill” and who shared the company’s values. The atmosphere within the company contributed to career development and growth. At the same time, the company itself didn’t monitor individual results or career growth of its employees on a regular basis. Performance evaluation was based on “up-or-out” principle. Managers didn’t pay enough attention...
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...Firmwide 360˚ Performance Evaluation Process at Morgan Stanley Case study Team no.2: Jana Baková Júlia Birčáková Eva Flaková Tomáš Szabo Martin Valdner 5th December 2005 CONTENTS The Firmwide 360˚ Performance Evaluation Process at Morgan Stanley 1 CONTENTS 2 Introduction 3 What is the 360˚ Performance Evaluation Process? 3 What is the problem? 5 Evaluation Criteria 5 Telling the truth / how to achieve correctness of the questionnaires? 5 Fighting for points 6 Possible solutions for our problems 7 Problem no. 1 – how to set evaluation criteria 7 Problem no. 2 – Telling the truth / how to achieve correctness of the questionnaires? 8 Problem no. 3 – Fighting for points 9 Conclusion 10 Introduction Morgan Stanley (MS) is a leading U.S. investment bank. It was founded in New York on the 5th September 1935 by Henry S. Morgan, and Harold Stanley. Since its inception it was transforming itself into a “One-firm company” under the leadership of John Mack (the president of Morgan Stanley since 1993). Morgan Stanley changed the presentation of itself towards its clients in a more unified way. Employees have become the main source that helps Morgan Stanley to achieve it. Organizations are changing fast - diversity is valued as a critical component of a business environment that encourages new and innovative approaches to accomplishing organization’s mission. Morgan Stanley has a target to be the best investment bank...
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...Firmwide 360˚ Performance Evaluation Process at Morgan Stanley Case study Team no.2: Jana Baková Júlia Birčáková Eva Flaková Tomáš Szabo Martin Valdner 5th December 2005 CONTENTS The Firmwide 360˚ Performance Evaluation Process at Morgan Stanley 1 CONTENTS 2 Introduction 3 What is the 360˚ Performance Evaluation Process? 3 What is the problem? 5 Evaluation Criteria 5 Telling the truth / how to achieve correctness of the questionnaires? 5 Fighting for points 6 Possible solutions for our problems 7 Problem no. 1 – how to set evaluation criteria 7 Problem no. 2 – Telling the truth / how to achieve correctness of the questionnaires? 8 Problem no. 3 – Fighting for points 9 Conclusion 10 Introduction Morgan Stanley (MS) is a leading U.S. investment bank. It was founded in New York on the 5th September 1935 by Henry S. Morgan, and Harold Stanley. Since its inception it was transforming itself into a “One-firm company” under the leadership of John Mack (the president of Morgan Stanley since 1993). Morgan Stanley changed the presentation of itself towards its clients in a more unified way. Employees have become the main source that helps Morgan Stanley to achieve it. Organizations are changing fast - diversity is valued as a critical component of a business environment that encourages new and innovative approaches to accomplishing organization’s mission. Morgan Stanley has a target to be the best investment bank worldwide...
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...this has been more apparent in the UK business environment. One argument is that service costs have escalated, resulting in a greater influence being put on the home e.g. laundrettes having being replaced by washing machines globally. Manufacturing firms have recognised the wider markets here and have put increased emphasis on their marketing activities. The service sector following deindustrialisation has seen a decline in public transport although during the 1980’s financial and business services grew. One good example of this is the banking industry, in the service sector, which has gone through huge changes in recent years. By taking full advantage of information and communication technology, banks have vastly reduced their number of HR requirements. Many banks and building societies, across the world have merged to form ‘leaner’ business’ capable of reaching out to a wider customer base. The banking industry has shown that its environment has become less labour intensive;...
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...Morgan Stanley: The 360 Performance Evaluation Process ▪ 1993: Morgan Stanley (MS) implements firmwide 360-degree evaluation process for over 2,000 professional employees at cost of over $1.5M. ▪ MS’s HR department is called Office of Development; Chief Development Officer is Tom DeLong The New System: ▪ Guiding Principle: 360-degree feedback solicited from: o Superiors o Peers o Subordinates o “Internal Clients” ▪ The Process: ▪ Professional Employees identify folks in Firm with whom they regularly interact. ▪ List of Prospective Evaluators (Evaluation Request Form or ERF) is reviewed by evaluatee’s manager. ▪ ERF submitted to Office of Development ▪ Office of Development distributes eval forms to the people on the ERF, collects complete evaluations and processes them into Year-end Packet for each evaluatee. ▪ Concurrently, each professional completes a self-evaluation ▪ Evaluation Criteria: ▪ A big challenge was deciding on criteria. 4 broad categories won out: • Market/Professional Skills (analytical skills, market knowledge) • Management and Leadership ...
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...How News Lifts- or Sinks- Worlds Stock This paper will speak about the changes in consumer demand trends after the crash for two different stock companies as well as the attempt the companies made to make profits from rising consumer demands after the crash. The local news that some of us can do without, while others must have it like a morning cup of coffee can get the world wrapped up in 30 minutes to an hour. We get the good, the bad, the ugly, and let us not forget our local weather. News has a very profound effect on us whether we realize it or not. How many times has the weather man been wrong, but regardless, we prepare for the weather they predict? After all, they do have the latest Doppler forecasts. We feed into the frenzy fed to us by our local newscasters. We rely on them to keep us up to date concerning the world around us. It is because of this insatiable need for the news is precisely why it has such an impact on our lives. So it goes without saying, that when the local news reports on how bad our economy is doing, it strikes fear into all viewers. Fear unchecked will inevitably lead to panic. A few short years ago, our country faced the worst recession since The Great Depression. One company after another failed. Companies that had been around for generations fell victim and had to close their doors. And how did we stay abreast, by watching the news daily. Not only did we hear of the many companies that were failing daily, we were also privileged...
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...Google’s Cash Management Google Inc., the world’s largest searching engine operator, has huge cash amount during operation. According to the news on Bloomberg, the company wants to keep money on hand in order to be able to invest quickly when needed, (2013). On Feb 28th, Patrick Pichette, Chief Financial Officer of Google, disclosed the company’s strategy to retain its “strategic ability to pounce” at a Morgan Stanley conference. In general, Google wants to maintain the ability of quick acquisition in cash to make the investment more sufficient, just like the $12.5 billion acquisition of Motorola in 2011(Pichette, 2013). At the end of 2012, Google had $48.1 billion in cash and short-term investment, and the number increased to $44.4 billion on Jun 30th, 2013(Yahoo, 2013). Patrick Pichette also mentioned that the accumulating money on hand might increase the pressure to return more to shareholder, but Google thought preparing for future investment was the best use of money for shareholders(2012). In addition, while the cash is increasing, Google keeps most of its cash overseas to reduce its tax bill, and in order to avoid large transfer fee, Google mostly uses the foreign cash outside the United States (Washington Times, 2013). Basically, Google’s cash management strategy shows the company’s stress on speculative purposes of cash, which enable the company to quickly take advantage of bargains, discounts, new investments, shifts in interest rates and...
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...MORGAN STANLEY RESEARCH ASIA/PACIFIC Morgan Stanley Asia Limited+ Brian Y Leung Brian.Leung@morganstanley.com +852 2848 5220 Jacky Chan Jacky.K.Chan@morganstanley.com +852 2848 5973 Angus Chan, CFA October 25, 2013 Industry View In-Line Angus.Kon.Chan@morganstanley.com +852 2848 5259 China Property Asia Insight: Is 2014 Another Robust Year? We expect 2014 contracted sales growth to be flat while policy risk is on the rise given the strong ASPs. We downgrade our industry view to In-Line. We favor stocks with greater exposure to the mass market segment of non-top-tier cities; Vanke, CG and Shimao are our top picks. Industry view downgraded to In-Line: We are less optimistic than consensus about the contracted sales and ASP outlook in 2014; we expect flat growth amid the increased policy risk and steady demand. MSCI China Real Estate index has outperformed MSCI China by 15% in the last 12 months. The average share price upside of our coverage universe has narrowed to 11%. Favor non-HPR/mass-market: We are more skeptical about tier-one cities given the 56% jump in land sales volume YTD and heightened policy risk amid the surge in ASPs. Demand-supply in lower-tier cities should continue to improve; we think there could be a third consecutive year of zero growth/decline in land sales in 2013, bringing down inventory-turnover. 17% contracted sales growth in 2014: We expect our coverage universe to continue to gain market share but they may only achieve half...
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...Raising Capital 10 Goldman Sachs 2011 Annual Report For Prada, the time had come to capitalize on the power of a global brand In 2010, Prada, one of the world’s most recognizable fashion brands, knew it was time to go public, and that the place to do it was Hong Kong. The reason for choosing Hong Kong was simple: Asia, with its fast-growing economies, had become Prada’s biggest growth market. By 2010, Asia had rivaled Europe and had outpaced North America, accounting for 43 percent of Prada’s annual sales. With Goldman Sachs’ London investment banking team working with the family-owned company, Prada began preparing to go public in 2007. Postponed by the global financial crisis, the IPO was moving forward again in 2011, with Goldman Sachs as lead underwriter. As the IPO approached, work on the complex transaction stretched across continents and disciplines. While our London team worked with the company on capital markets strategy, our Hong Kong investment banking team took responsibility for deal execution. In marketing the offering worldwide, Goldman Sachs helped Prada present its story to more than 250 leading investors. The IPO raised $2.5 billion. It was the largest consumer goods IPO ever in Hong Kong, and the largest IPO to date of any global luxury brand. The offering enabled Prada to reduce its debt while funding future growth across China and the rest of Asia. By 2015, China alone is estimated to comprise 20 percent of the world’s luxury goods market. Prada...
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...Morgan Stanley (MS) * Describe the nature of this company’s business according to the Annual Report. Morgan Stanley is a financial services holding company that operates on a global basis through its subsidiaries and affiliates to maintain a competitive market position within its business segments. The three segments MS primarily positions itself in are the following: Institutional Securities, Global Wealth Management Group, and Asset Management. MS provides these services to a wide and varying client base consisting of governments, individuals, and almost everything in between. (p 50) * Was that description of business in line with what you thought the company’s main business was before reading the MD&A? Yes, it was in line with what I thought MS, and their subsidiaries business interests were involved with. I was however unaware that the Global Wealth Management Group position of MS made up 65% of the company’s operating interest. * List five positive events (outcomes) mentioned in the MD&A. What is the source of/reasons for these positive things? Were those things good/positive due to management’s effort or due to external factors? In other words, who should/did take credit for these good things? 1. Morgan Stanley’s DVA income increased from 2011 to 2012 by $721 million. This can be considered a positive event because the decrease in the company’s liabilities is in a sense, a source of profit. (p 58) 2. Global Wealth Management Group...
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...The New York Times Co. Why is the newspaper industry so family controlled? What other industries have a lot of family-controlled companies? What attributes might support family control? Family owned newspaper companies believe that the journalistic integrity of the newspaper demands family control, so called “family values”. The reason the families give is that the ownership of a newspaper is a "public trust" because of the role of the press in a democracy. Therefore, if a person unrelated to the founder (or some long-ago acquirer as in the New York Times case) takes control over the newspaper, they would manage it with the aim of maximizing profits and thus change the company’s value and reliability in providing quality information to its customers. Family-owned enterprises play a powerful role in the world economy. The auto Industry such as Porsche, Ford Motor Co., Hyundai Motor, and Peugeot Citroen S.A., and retail grocery and consumable business such as Walmart and Carrefour are great examples of family-controlled companies. In order to be successful as both the company and the family grow, a family business must achieve strong business performance and keep the family committed to and capable of carrying on as the owner. A prime determinant of how long a family dynasty will endure is how well its business is run and how effective its management is. Attributes such as control of ownership (how shares can be traded inside and outside de family), governance...
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...1.Evaluate the effectiveness of the Morgan Stanley performance assessment and mgmt system. The strategic goal at Morgan Stanley is to transform the company’s work environment into one that promotes teamwork, innovation and absolute integrity. In order to achieve this goal, President John Mack and his executive team recognized that a culture change in the way staff were evaluated and compensated would be necessary. They instituted a 360-degree performance evaluation system two years ago allowing professionals in the firm to be evaluated by superiors, subordinates and peers. According to the textbook, the advantages of such a system are numerous when compared to traditional assessment systems. The authors state that “supervisors, peers, subordinates and employees themselves differ in their ability to appraise various dimensions of performance” and that “these raters observe different behaviors and may interpret them with divergent standards.” Therefore, the purpose of 360-degree feedback is to give staff a better understanding of their strengths and weaknesses which, in turn, allows them to better identify aspects of their work needing professional development. The fact that Morgan Stanley introduced a 360-degree performance assessment tool is commendable. However, the effectiveness of this tool in its current state has not yet been optimized. In particular, the company’s vision statement appears to be very solid as it clearly articulates how employee abilities should...
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...changed as a result of the financial crisis," said Global Finance publisher Joseph D. Giarraputo. "The best institutions are those that have a business model focused on customer needs." For editorial information please contact: Dan Keeler, Editor, email: dan@gfmag.com GLOBAL AWARDS | Best Investment Bank | Morgan Stanley | Best Equity Bank | Morgan Stanley | Best Debt Bank | Barclays Capital | Best M&A Bank | Morgan Stanley | Best Up-and-Comer | QInvest | Most Creative | Bank of America Merrill Lynch | SECTORS | Consumer | Credit Suisse | Financial Institutions | Bank of America Merrill Lynch | Health Care | J.P. Morgan | Infrastructure | Scotia Capital | Industrial/Chemicals | J.P. Morgan | Media/Entertainment | J.P. Morgan | Metals & Mining | BMO Capital Markets | Oil & Gas | Bank of America Merrill Lynch | Power | Morgan Stanley | Real Estate | J.P. Morgan | Technology | Credit Suisse | Telecom | J.P. Morgan | REGIONAL AWARDS | NORTH AMERICA | | Best Investment Bank | Morgan Stanley | Best Equity Bank | Morgan Stanley | Best Debt Bank | Barclays Capital | Best M&A Bank | Morgan Stanley | WESTERN EUROPE | |...
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...A Morgan Stanley Case Study Operating Globally Through Technology Course: MGMT420 STRATEGIC MODELING Crn: 29022 Group Members: Nicole Blenman Mark Hamel-Smith Allison Joseph Cynthia Kennedy Kelly Singh Lecturer: Ms. Kinda McGowan April 18, 2015 Introduction Morgan Stanley was founded as an investment bank in New York in 1935, it has evolved into one of the world’s foremost financial institutions, with more than 45,000 employees on six continents. Though headquartered in the U.S., they are a leader in the integration of financial services around the world. As technology links them closer together the firm is in a unique position to address the increasingly global needs of their clients. Morgan Stanley mobilizes capital to help governments, corporations, institutions and individuals around the world achieve their financial goals. ▪ As a global bank it provides: Investment banking advice on mergers and acquisitions, financial restructuring and privatisation. ▪ Major underwriter of stocks and bonds and provides research, sales and trading services in almost every type of financial instrument. ▪ Manages private partnerships that invest in venture capital, property and other private equity opportunities. ▪ Provides other related products and financial services, including credit cards. At its foundation are four core values — putting clients first...
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