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Question 1Morgan Stanley underinvested in information engine room because technology graded low on its list of investing priorities . As a dissolventant many of the chores that the phoner was facing could be traced secretiveness to outmoded technology . For example , employees in the sell brokerage firm firm section had to come to work on weekends to hire printouts as the old workstations could not handle the plenty during stead hours . The nodes were as well complaining about the outdated website which do it difficult to site the required information . save the oversight refused to sanction excess spending in upgrading technology because it failed to moot the relevance of technology in improving monetary run . This misconception may take in been the result of a cast off of knowledge about what the cus tomers authentically valued in footing of the delivery format of financial function . As mentioned in the case , the management of the company had the mistaken impression that it was merely the clients with small enthronisation packages who valued upgraded online processs . 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 post result of lack of knowledge about the competitoryness that the neat 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 in a rate at the m to giv e much thought to the competitive possibilit! ies of technological edification because it was embroiled in a leaders crisis characterized by broad(prenominal) employee upset .

The objective of profit maximization by means of cost-cutting also led to the underinvestmentQuestion 2The nuclear fusion reaction with Dean Witter was disruptive because of the face-off of devil different organizational cultures . As a result , employees in the retail brokerage section began to feel displease with the workings environment . As mentioned in the case , they were not welcomed into the Morgan Stanley organizational culture as new employees but were tempered as emplo yees 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 sincere 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 victorious some of the roughly profitable customers with themAs mentioned in the case , the merger created a match in terms of the digital , heathenish and philosophical aspects of the...If you want to get a full essay, run it on our website: OrderCustom Paper.com

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