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Question 1Morgan Stanley underinvested in information engine room because engine room ranked low on its list of investing priorities . As a final ensue many of the chores that the phoner was facing could be traced screen door to outmoded technology . For example , employees in the sell securities firm firm section had to come to work on weekends to gain printouts as the old workstations could non handle the muckle during note hours . The nodes were as well complaining about the outdated website which make it difficult to site the required information . hitherto the steering refused to sanction excess spending in upgrading technology because it failed to bring down the relevance of technology in improving monetary run . This misconception may take in been the result of a disgrace of knowledge about what t he customers authentically valued in toll of the delivery format of financial work . 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 gains . 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 acquire result of lack of knowledge about the war-riddenness 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 put down at the m to give much thought to the competitive possib! ilities of technological edification because it was embroiled in a leaders crisis characterized by broad(prenominal) employee dollar volume .

The objective of profit maximization through cost-cutting also led to the underinvestmentQuestion 2The amalgamation with Dean Witter was disruptive because of the bump around of devil different organizational cultures . As a result , employees in the retail brokerage section began to feel dissatisfy with the workings environment . As mentioned in the case , they were not welcomed into the Morgan Stanley organizational culture as new employees but were interact as empl oyees 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 proficient 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, beau monde it on our website: OrderCu stomPaper.com

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