Morgan Stanley Case Study
Essay by 24 • July 21, 2011 • 416 Words (2 Pages) • 1,763 Views
In this case, through we analysis the article, it can be seen from �because the outdated computer systems could not handle, the task during normal business hours’ (Laudon & Laudon 2007). So obviously, the competitive forces in Morgan Stanley which are technology and service. Due to the outdated computer system, they can’t solve the complex problems, and even can’t deal with normal problems. The situation of backward in technique would influence on the service, the profits and margins all fell down significantly, many brokers left company include some top brokers, they should increase investment in technology. Silva (2005) said that technology makes an important role in the competition, and the competition makes us enhance the technology and management. Thus, in following article, this company used new system which is better integrated with backend system so that brokers have a better view of client portfolios (Laudon & Laudon 2007). And brokers can supply good service to customers. Moreover, the profit was also increased precipitously. They used the competitive force model of technology and service to indicate the importance and influence of technology in company.
ADDITIONAL INFORMATION ABOUT THE COMPANY CONCERNED
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. 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 (http://www.morganstanley.com/about/company/historyflashpresentation.html).
In the past 35 years, Morgan
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