Morgan Stanley
...er to the public and to Sears shareholders: within three years, share price more than doubles. By 1997 Morgan Stanley group, inc. and Dean Witter, Discover & co. merge creating a global market leader in securities, asset management and credit services. In 1998 they raised 4.4 billion for Dupont spin-off of conoco. It is the largest U.S IPO to date, despite difficult market conditions. By 2001 Morgan Stanley sells $6 billion offering of agere systems, largest technology IPO in US history, Discover financial services enrolls more than five million accounts in its online center and by 2002 Morgan Stanley completes a $6 billion global bond offering which is the largest financing in the Firm’s history. The value chain model helps financial service company’s like Morgan Stanley, highlight its primary and support activities that add value to its products and services where information systems are best applied to achieve a competitive advantage. The global-access portal helps clients trade multiple products, monitor their holdings, manage transaction costs by using a graphical interface of their choice. This type of system is used in technology which is a support activity. A system used in their area of customer relationship management allows financial advisors to obtain a 360-degree view of each client through a menu of reports accessed through the internet where the data can be sorted in a number of ways. This technology allows the company to do predictive modeling and shift the mix of services to their high value customers. Morgan Stanley could see that only 5% of their clients are providing 95% of the firm’s revenue. Morgan Stanley knows how important risk management is operating in the financial service business, where they are always looking for new technology to develop new ways of doing business. A procedure must be developed for assessing and the costs of reducing the probability of things going expensively wrong. The competitive forces model is used to describe the interaction of external influences, specifically threats and opportunities that affect an organizations strategy and ability to compete. Morgan Stanley must deal with the bargaining power of suppliers and customers, and the positioning of traditional industry competitors. Morgan Stanley is a vast customer of technology that it has hundreds of suppliers. The firm is giving more business to fewer vendors in trying to consolidate. About three years ago about 70% of its IT dollars went to 20% of vendors and now 80% goes to 10% of its vendors. The firm is still open t...