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Morgan Stanley Case Study

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Morgan Stanley Case Study 1

“Morgan Stanley Case Study”

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Dr. Judie Bucholz

Strayer University

Robyn L. Snow

April 29, 2012

Morgan Stanley Case Study 2

Abstract

Morgan Stanley was established by J.P. Morgan Jr in 1935 in New York. Before 1935, Morgan Stanley was only an investment department in J.P. Morgan group. Since its inception in 1935, Morgan Stanley has been a leader in investment management. The company provides a wide range of financial services for individuals and institutional investors. Morgan Stanley investment advisors educate clients at all stages of life in the benefits and risks of investing in mutual funds, stock, and bonds. Working with clients, they help to determine investment strategies based on goals and objectives, the time horizon for investing, and risk tolerance. The company relies primarily on sales force skilled in the investment areas that hold specific licenses to sell securities. In the first year the company operated with a 24% market share in public offerings and private placements. The main areas of business for the firm today are Global Wealth Management, Institutional Securities and Investment Management. In 1997, the company merged with Dean Witter Discover and Co. from Sears. After that, they became one of the largest global financial services firms. (www.oppapers.com/essays/Morgan-Stanley-Case-Study/146469)

Morgan Stanley Case Study 3

In recent times, the structure and operation of many major industries has changed greatly through their use of information technologies.
For example: * online data systems have transformed the potential cost profiles of airlines, opening up the way for operators such as EasyJet * databases allow distant customers to discover new products and order them over the Internet, thereby changing the nature of retailing * in financial services, customers can access and manage much of their financial business from their own homes.
Two developments are particularly exciting. * New technologies are increasingly able to interact with each other e.g. cameras with computers, telephones with televised images. * Advances in telecommunications mean that output of combined new technologies can be transmitted worldwide almost instantaneously in usable form e.g. interactive transmission from/to an Afghan cave to/from a New York or London office.
Although the convergence of technologies has helped to make organisations more efficient and has reduced their costs, it has also raised customer expectations and created a new scenario for competitive activity. In recent years, the new technologies have become the central driver of many large organisations as they seek to develop competitive advantages in global markets.
The challenge to these organisations has been to use the new technologies to: * create new ways of working better suited to a global market * capture new customers.

4
The most successful ventures have been the outcome of creative imagination; clear, correct thinking, and careful planning. They have relied heavily on 'knowledge' workers: people given the opportunity to connect their ideas with an organization’s resources in order to make them work.

This case study examines: * the work undertaken by Morgan Stanley to ensure that it is making the best possible use of the opportunities offered by new technology * the benefits to itself and its customers resulting from its conspicuous success
(www.businesscasestudies.co.uk)

Morgan Stanley is one of the best-known names in financial services. As a global bank, it provides investment banking advice on mergers and acquisitions, financial restructuring and privatizations. It is a major underwriter of stocks and bonds and provides research, sales and trading services in almost every type of financial instrument. Morgan Stanley also manages private partnerships that invest in venture capital, property and other private equity opportunities. Besides managing a range of financial assets, it provides other related products and financial services, including credit cards.
As global markets become tightly linked by technology, Morgan Stanley has expanded around the world in its drive to meet the expectations of global clients. A substantial part of its business is outside the USA, and Morgan Stanley has now become a market leader in Europe, Asia Pacific and the Americas. 5
Morgan Stanley's clients have increasingly looked for more than just financial products and services, and their needs are becoming more diverse and demanding. To meet this challenge, Morgan Stanley has over 700 offices in 28 countries and a workforce of 57,000 people who between them represent 120 nationalities and speak 90 different languages. Whatever their business area, these people focus upon creating customer-tailored solutions that help Morgan Stanley's clients to convert new business and financial opportunities into reality.
(www.businesscasestudies.co.uk)
Morgan Stanley's move from using technology functionally into using it strategically has been underpinned by 5 main driving forces. * Developing people. Morgan Stanley sees its workforce as a key resource. The new way of working offers Morgan Stanley's employees an opportunity to be innovative, creative and closely involved in problem-solving. It is helping to enrich jobs and enhance job satisfaction. * Risk management. The company knows that any organization operating at the frontiers of technology and/or developing new ways of doing business must develop a procedure for assessing risk and the costs of reducing the probability of things going badly and expensively wrong. * Efficiency. Intense competition in the financial services industry has given Morgan Stanley a huge incentive to explore every possible avenue for improving its operating efficiency. * Client centricity. The company recognizes that the key to ongoing success lies in offering superior consumer-service. * Innovation. The company realized that new technologies offered the prospect of trading 24 hours a day worldwide. The challenge was to be the first to turn potential into reality by finding ways of maximizing the opportunities that new technologies offered.

6
Information technology is the key to Morgan Stanley Dean Witter's ability to operate globally. The global financial services industry is an exciting, fast moving environment which requires dynamic, innovative responses both from its people and its systems. Straight through Processing aims to meet the challenges faced by the global financial services industry. It also enables Morgan Stanley Dean Witter to maintain its competitive advantage and increase its market share within a complex business environment.

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