Morgan Stanley Case Study

2163 Words Oct 17th, 2008 9 Pages
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
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Their competitors can be put into two categories namely the domestic financial services firms and the international financial services firms. Hence, we can assume that there are quite a number of competitors that Morgan Stanley is facing as they operate globally. Morgan Stanley has a capital introduction team that has developed long-standing relationships with more than 1800 global institutional investors including pensions, endowment, foundation, insurance companies. This proves that Morgan Stanley has high level of differentiation of inputs. As it is long-standing relationship, Morgan Stanley’s cost of inputs should probably be the same during that period therefore the price of the services should be the same too.

Next, we will analyze changes in the firm’s value chain. Base on the analysis of Morgan Stanley’s case, it is obvious that Morgan Stanley was suffering from poor firm value chain before June 2005.

As we can see, the main problem that occurred was due to the fact that Morgan Stanley had underinvested in the information technology sector. Thus, this occurrence led the Retail Brokerage department to not integrate well with the rest of the company. Irregularity in platform systems created difficulties in daily operations and inefficiency in employees’ performance. More than that, the computer systems were outdated in the assist of the

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