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Question 1Morgan Stanley underinvested in information engineering because engineering science stratified low on its list of investing priorities . As a outgrowth many of the jobs that the phoner was facing could be traced privacy to outmoded technology . For example , employees in the sell brokerage house firm section had to come to work on weekends to move out printouts as the old workstations could non handle the intensity during parting hours . The nodes were as well complaining about the outdated website which do it difficult to site the required information . only the vigilance refused to sanction excess spending in upgrading technology because it failed to canvass the relevance of technology in improving monetary operate . This misconception may take in been the go away of a magnetic inclination of knowledge about what the customers authentically valued in damage of the delivery format of financial function . As mentioned in the case , the management of the company had the mistaken impression that it was but 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 select result of lack of knowledge about the combativeness that the strait-laced 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 maculation 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 derangement .

The objective of profit maximization with cost-cutting also led to the underinvestmentQuestion 2The spinal fusion with Dean Witter was disruptive because of the detrition of devil different organizational cultures . As a result , employees in the sell 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 employee s but were set 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 wicked 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 , ethnical and philosophical aspects of the...If you want to get a full essay, roam it on our website: OrderCustomPaper.com

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