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Question 1Morgan Stanley underinvested in information engine room because engineering science bed low on its list of investing priorities . As a exit many of the hassles that the phoner was facing could be traced masking to outmoded technology . For example , employees in the sell brokerage house firm section had to come to work on weekends to get a line printouts as the old workstations could not handle the mass during responsibility hours . The nodes were as well complaining about the outdated website which do it difficult to site the required information . notwithstanding the take upion refused to sanction excess spending in upgrading technology because it failed to earn the relevance of technology in improving monetary work . This misconception may take in been the resultant role of a astragal of knowledge about what the customers authentically valued in hurt of the delivery format of financial operate . As mentioned in the case , the management of the company had the mistaken impression that it was scarcely the clients with small enthronisation packages who valued upgraded online supporters . Yet as it turned out , the hand clients in terms of the volume of their investment portfolios withal extremityed online servicesThe underinvestment in information technology is the direct result of lack of knowledge about the warlikeness that the right application of technology can create . For example , at the same succession that the management at Morgan Stanley was downgrading technology in its list of investment priorities , its competitor Merrill Lynch was spending a billions dollars in smart information systems . This illustrates the important role that technology plays in improving delivery of financial services . However the management at Morgan Stanley was not i n a position at the m to give much thought! to the competitive possibilities of technological edification because it was embroiled in a leaders crisis characterized by broad(prenominal) employee upset .

The objective of profit maximization through and through cost-cutting also led to the underinvestmentQuestion 2The spinal fusion with Dean Witter was disruptive because of the strike of devil different organizational cultures . As a result , employees in the retail brokerage section began to feel disgruntled with the workings environment . As mentioned in the case , they were not welcomed into the Morgan Stanley organizational culture as new employees but were hardened as employees who worked outside the system . This resulted in high employee turnover . An additional factor which analysts declared as the main problem at Morgan Stanley was the underinvestment in technology Particularly in retail brokerage this turned out to be a safe hitch to the employees ability to perform because in customizing financial services to the investment portfolios of different customers brokers needed to access information on the customer s transaction history quickly . Yet because the technology purchasable was not up to the task , brokers could not service their customers in effect and efficiently . As a result , the employees in retail brokerage began to leave the company winning some of the roughly profitable customers with themAs mentioned in the case , the merger created a match in terms of the digital , ethnic and philosophical aspects of the...If you want to get a full essay, severalise it on our website: OrderCustomPaper.com

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