Morgan Stanley Case Study
The main focus of this essay is to present an analysis on Morgan Stanley’s business condition and troubles they were facing in the past and to provide solutions to solve their struggle. First, we will evaluate Morgan Stanley’s business by using the Porter’s 5 Competitive Forces Model. Then, we will illustrate the changes in the firm’s value chain before and after June 2005 by using the Value Chain Model. More than that, we will also analyze Morgan Stanley’s business by using the Management, Organization and Technology (MOT) factors. Lastly, we will include recommendations to solve their problems by using the MOT factors.
Morgan Stanley is a global financial services firm which was founded in 1935. The corporation operates in four different segments which include Institutional Securities, Asset Management, Retail Brokerage and Discover. The Discover division was founded in 1997 through the merger between Morgan Stanley and Dean Witter Discover and Co. This merger created bags of problem towards the company. Morgan Stanley’s staff did not accept the merger while Dean Witter’s employees felt disrespected by outsiders. The Retail Brokerage division did not integrate well with the other divisions. More than that, the company also faced difficulties because they did not invest enough technologically. In consequence, the company’s computer system was outdated and could not handle daily tasks efficiently, computers often crashed, printers clogged, and clients often complained about their website. In addition, the company’s competitors were already heavily investing in technology and this further complicates the situation. All of this occurred during the administration of Philip Purcell, the CEO at that time. In 2005, Purcell resigned and the board named John Mack as the new CEO of Morgan Stanley. Under the administration of John Mack, the company changed its directions and began to address the technology issue. John Mack also renamed the Retail Brokerage Division into
Morgan Stanley is a global financial services firm which was founded in 1935. The corporation operates in four different segments which include Institutional Securities, Asset Management, Retail Brokerage and Discover. The Discover division was founded in 1997 through the merger between Morgan Stanley and Dean Witter Discover and Co. This merger created bags of problem towards the company. Morgan Stanley’s staff did not accept the merger while Dean Witter’s employees felt disrespected by outsiders. The Retail Brokerage division did not integrate well with the other divisions. More than that, the company also faced difficulties because they did not invest enough technologically. In consequence, the company’s computer system was outdated and could not handle daily tasks efficiently, computers often crashed, printers clogged, and clients often complained about their website. In addition, the company’s competitors were already heavily investing in technology and this further complicates the situation. All of this occurred during the administration of Philip Purcell, the CEO at that time. In 2005, Purcell resigned and the board named John Mack as the new CEO of Morgan Stanley. Under the administration of John Mack, the company changed its directions and began to address the technology issue. John Mack also renamed the Retail Brokerage Division into