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Question 1Morgan Stanley underinvested in information engineering because engineering science stratified low on its list of investing priorities . As a resoluteness many of the worrys that the phoner was facing could be traced hiding to outmoded technology . For example , employees in the sell brokerage firm firm section had to come to work on weekends to live with printouts as the old workstations could non handle the loudness during mail inspection and repair hours . The nodes were as well complaining about the outdated website which make it difficult to site the required information . in time the forethought refused to sanction excess spending in upgrading technology because it failed to tally the relevance of technology in improving monetary work . This misconception may take in been the allow of a befuddle of knowledge about what the customers authentically valued in name of the delivery format of financial go . As mentioned in the case , the management of the company had the mistaken impression that it was solo the clients with small enthronisation packages who valued upgraded online services . 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 range result of lack of knowledge about the war-riddenness that the befitting 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 w as not in a get at the m to give much thou! ght to the competitive possibilities of technological edification because it was embroiled in a leading crisis characterized by broad(prenominal) employee dis grade .

The objective of profit maximization with cost-cutting also led to the underinvestmentQuestion 2The amalgamation with Dean Witter was disruptive because of the friction 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 w ere interact 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 dear 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 , cultural and philosophical aspects of the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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