A 6 page paper providing a STEP (social, technological, economic and political) analysis and a SWOT analysis of the sixth-largest investment bank in the financial services sector. Mutual reform has resulted in a $50 million fine for Morgan Stanley. Management of the company appears to be weak at the moment, but it may later prove to have been ahead of its industry in reforming its internal structures in advance of regulatory requirements. Bibliography lists 6 sources.
Name of Research Paper File: CC6_KSmgmtMorgStan.rtf
Unformatted Sample Text from the Research Paper:
is one of the largest investment banks on Wall Street, and it continues to be one of the most highly capitalized. Its share of the market, however, is declining,
even though it posted gains in several areas during the most recent second quarter of 2004. Despite negative aspects of its business, however, Morgan Stanley continues to grow in
terms of capital asset management. STEP Analysis Social Factors NASD, the former owner of NASDAQ, is "the worlds leading private-sector provider of financial
regulatory services" (NASD Corporate Description, 2004). This organization has charged Morgan Stanley with "preferentially selling certain mutual funds in exchange for extra-rich commissions" (Martin, 2004; p. 10), apparently without
regard for the interests of its investors, many of which are institutions and individuals investing pension funds (Fulman, 2004). These actions and "kickback"
pay structures for Morgan Stanley violate the anti-reciprocal rule. As penalty, "Morgan has paid a fine of $50 million plus the extra revenue deriving from the preferential sales activity"
(Martin, 2004; p. 10). Technological Factors There is a wide array of technological tools available to Morgan Stanley. As the sixth-largest brokerage
firm on Wall Street (League Tables, 2004, Morgan Stanley trails no other competitor in terms of technological factors that could affect its business. Economic Factors
Morgan Stanley offers a full range of investment products for both individuals and institutional investors. It has not placed as much attention on online trading as have
most of its competitors, however, and as a result has lost ground in revenues resulting from stock trading. It sold its fund administration business in 1998 (now J.P. Morgan