...Introduction Morgan Staley was founded in 1935, by Henry S. Morgan and Harold Stanley. Today Morgan Stanley is one of the world's top financial services companies and a leader in investment banking, private wealth management, bonds and stock trading. In 1993 a new president was named in Morgan Stanly, John Mack. He had a vision of transforming Morgan Stanly into a “One-FirmFirm”. From this vision came out the firm’s mission statement, Our goal is to be the world’s best investment bank and the Firm of choice for our clients, our people, our shareholders. Another important innovation in Morgan Stanly brought by John Mack was the 360-degree performance evaluation process. He wanted to create a team of people inside the Firm who would “Shake up the culture”. One of his most important recruits was Paul Nasr, very highly regarded baker, with more than 20 years of experience. He was placed to be senior manager to a newly created Capital Market Services department. Nasr has already experience with this kind of services, and Morgan Stanley was lacking behind other similar competitor banks. After acquiring the job, John Mack started creating his team for increasing the market share of Stanley Morgan which obviously was a major goal for the firm. To achieve that goal, he needed energetic, aggressive and employees who are not afraid to pursuit customers and develop a long term relationship with them. With clearly set attributes for the job position, he recruited Rob Parsons, a young...
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...A Morgan Stanley Case Study Operating Globally Through Technology Course: MGMT420 STRATEGIC MODELING Crn: 29022 Group Members: Nicole Blenman Mark Hamel-Smith Allison Joseph Cynthia Kennedy Kelly Singh Lecturer: Ms. Kinda McGowan April 18, 2015 Introduction Morgan Stanley was founded as an investment bank in New York in 1935, it has evolved into one of the world’s foremost financial institutions, with more than 45,000 employees on six continents. Though headquartered in the U.S., they are a leader in the integration of financial services around the world. As technology links them closer together the firm is in a unique position to address the increasingly global needs of their clients. Morgan Stanley mobilizes capital to help governments, corporations, institutions and individuals around the world achieve their financial goals. ▪ As a global bank it provides: Investment banking advice on mergers and acquisitions, financial restructuring and privatisation. ▪ Major underwriter of stocks and bonds and provides research, sales and trading services in almost every type of financial instrument. ▪ Manages private partnerships that invest in venture capital, property and other private equity opportunities. ▪ Provides other related products and financial services, including credit cards. At its foundation are four core values — putting clients first...
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...Morgan Stanley’s Return on System Noninvestment Case Study Summary Morgan Stanley was established in 1935, and in 1997 merged with retail brokerage firm Dean Witter Discover and Co. to become a global financial services organization that employed more than 53,000 people in over 600 countries including Australia. Institutional Securities, Asset Management, Retail Brokerage and Discover were the four segments of Morgan Stanley. The merger altered the working environment of Morgan Stanley and created a divide in employee acceptance of the Retail Brokerage segment. It did not integrate well with the firm partly due to the information systems being different to the rest of the company. Under CEO Philip Purcell’s management, Morgan Stanley’s infrastructure and systems did not grow with the needs of employees and customers, nor did it apply future technologies to their current systems, its focus was reducing overheads to maximize profits in the short term. Many brokers resigned, taking with them valuable portfolios and profits. In June 2005 Purcell resigned, and John Mack provided new leadership. The firm then began to change its information systems and provide better services for clients, which saw stronger ethos and integrity within the employees. The new leadership at Morgan Stanley instigated change, and the realization that the Company must grow to keep up with the competition in the financial services industry. Not only did technology need overhauling within all the...
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...INFO3110 Management Meeting 1 Notes Morgan Stanley’s Return on System Noninvestment CASE STUDY 1. Why did Morgan Stanley underinvest in information technology? The CEO at Morgan Stanley clearly miscalculated the market. Purcell felt that the rebound of the economy would be slow following the stock market crash in 2001. In order to survive, he felt that the company needed to concentrate on maximizing profits instead of generating revenue. Given this strategy, he cut costs, jobs, and investments in areas such as information technology. It is also possible at the startup of the company in 1935 or thereafter there was not an importance given to IT development; this culture might have persisted or simply a refelection of management’s perspective as to the need of information technology. 2. Why was the merger with Dean Witter disruptive for the company? Morgan Stanley operates in four segments: Industrial Securities, Asset Management, Retail Brokerage, and Discover (formerly Dean Witter). Despite the merger, the Retail Brokerage group was never accepted as an equal partner by the rest of Morgan Stanley. This was clearly an employee integration problem either because of the employees’ perception or their reality. This division was also not well-integrated with the rest of the company. Former Dean Witter employees claimed that they felt like disrespected outsiders after the merger. The unification of Morgan Stanley and Dean Witter created a digital, cultural, and philosophical...
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...Morgan Stanley, a leading U.S. Investment Bank, was attempting to transform it’s work environment to one that fosters teamwork but promotes innovation as well. This vision was developed under the leadership of the new president John Mack and his executive team. President Mack was looking for people to “shake up the culture.” With heavy resistance, he recruited Paul Nasr to be the Senior Managing Director in Capital Market Services. Paul was a highly regarded banker with over twenty (20) years of experience. He knew that one of Morgan Stanley’s weak areas was Capital Market Services, an area where he had been successful in the past. Paul also knew that it would take more than a traditional corporate banker to penetrate this market. That person must be energetic, aggressive and innovative. That’s why he recruited Rob Parson. Rob developed relationships with the important players in the banking and insurance industries and a strong reputation. Rob is not easily discouraged or intimidated and knows what it takes to get the job done. His drive and ambition allows him to connect with his clients but sometimes distances him from his co-workers. The position that Paul needed to fill was difficult to perform and had a very high turnover rate. He thought that Rob was the perfect person to fill that billet. Rob accepted the position with the understanding that there was a potential for growth because the effort was in need of repair and that the Morgan Stanley had done very little business...
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...Rob Parson at Morgan Stanley Rob Parson was a market coverage professional in the Capital Markets division. He had been hired by Paul Nasr and had generated substantial revenues since joining the firm. Unfortunately, Parson's reviews from the 360º feedback said that he was having difficulty adapting to the firm's culture. So Nasr faces the difficult decision to promote Parson to Managing Director. Nasr must complete Parson's performance evaluation summary and conduct Parson's performance review. Question 1 What are the advantages and disadvantages of the 360º feedback system at Morgan Stanley? When John Mack became President of Morgan Stanley in 1993, he brought a new vision to the bank named “One-Firm Firm”. That vision focused on performance which can be translated in creating value for the clients, the employees and the shareholders. Mack thought that could only be achieved through a culture that promoted teamwork and innovation and never sacrificed the firm’s integrity. The 360º performance evaluation process was brought by Mack to Morgan Stanley with the intention to “encourage employees to conform to a new way of doing business that emphasized team-work, cooperation, and cross-selling”. It also intended to “provide comprehensive development feedback so that employees could continue to improve their skills in four areas: Market/Professional skills, Management and Leadership effectiveness; commercial Orientation; and Teamwork/One Firm Contribution”. These...
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...Morgan Stanley, a leading U.S. Investment Bank, was attempting to transform its work environment to one that fosters teamwork but promotes innovation as well. This vision was developed under the leadership of the new president John Mack and his executive team. President Mack was looking for people to “shake up the culture.” With heavy resistance, he recruited Paul Nasr to be the Senior Managing Director in Capital Market Services. Paul was a highly regarded banker with over twenty years of experience. He knew that one of Morgan Stanley’s weak areas was Capital Market Services, an area where he had been successful in the past. Paul also knew that it would take more than a traditional corporate banker to penetrate this market. The Capital Markets Services(CMS) division, which has established as an interdisciplinary concern to address the issues of focused client attention and cross-divisional collaboration, required professionals who not only had domain specific industry knowledge but were also skilled at responding to client needs by designing products in collaboration with product specialists within Morgan Stanley. Market coverage professional to be compatible with the staff of other departments, but can't rely entirely on product designers, because they do not understand markets and customers, do not know the customer's needs. It is important to fully understand the market, product, and customer information in three areas and needs. That person must be energetic, aggressive and...
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...Firmwide 360˚ Performance Evaluation Process at Morgan Stanley Case study Team no.2: Jana Baková Júlia Birčáková Eva Flaková Tomáš Szabo Martin Valdner 5th December 2005 CONTENTS The Firmwide 360˚ Performance Evaluation Process at Morgan Stanley 1 CONTENTS 2 Introduction 3 What is the 360˚ Performance Evaluation Process? 3 What is the problem? 5 Evaluation Criteria 5 Telling the truth / how to achieve correctness of the questionnaires? 5 Fighting for points 6 Possible solutions for our problems 7 Problem no. 1 – how to set evaluation criteria 7 Problem no. 2 – Telling the truth / how to achieve correctness of the questionnaires? 8 Problem no. 3 – Fighting for points 9 Conclusion 10 Introduction Morgan Stanley (MS) is a leading U.S. investment bank. It was founded in New York on the 5th September 1935 by Henry S. Morgan, and Harold Stanley. Since its inception it was transforming itself into a “One-firm company” under the leadership of John Mack (the president of Morgan Stanley since 1993). Morgan Stanley changed the presentation of itself towards its clients in a more unified way. Employees have become the main source that helps Morgan Stanley to achieve it. Organizations are changing fast - diversity is valued as a critical component of a business environment that encourages new and innovative approaches to accomplishing organization’s mission. Morgan Stanley has a target to be the best investment bank...
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...Firmwide 360˚ Performance Evaluation Process at Morgan Stanley Case study Team no.2: Jana Baková Júlia Birčáková Eva Flaková Tomáš Szabo Martin Valdner 5th December 2005 CONTENTS The Firmwide 360˚ Performance Evaluation Process at Morgan Stanley 1 CONTENTS 2 Introduction 3 What is the 360˚ Performance Evaluation Process? 3 What is the problem? 5 Evaluation Criteria 5 Telling the truth / how to achieve correctness of the questionnaires? 5 Fighting for points 6 Possible solutions for our problems 7 Problem no. 1 – how to set evaluation criteria 7 Problem no. 2 – Telling the truth / how to achieve correctness of the questionnaires? 8 Problem no. 3 – Fighting for points 9 Conclusion 10 Introduction Morgan Stanley (MS) is a leading U.S. investment bank. It was founded in New York on the 5th September 1935 by Henry S. Morgan, and Harold Stanley. Since its inception it was transforming itself into a “One-firm company” under the leadership of John Mack (the president of Morgan Stanley since 1993). Morgan Stanley changed the presentation of itself towards its clients in a more unified way. Employees have become the main source that helps Morgan Stanley to achieve it. Organizations are changing fast - diversity is valued as a critical component of a business environment that encourages new and innovative approaches to accomplishing organization’s mission. Morgan Stanley has a target to be the best investment bank worldwide...
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...Name: Wong Ka Yan UID: 3035104544 Assessment 2- Case Synthesis: Morgan Stanley 1. Basic Empirical Facts of the problem Du Jun, former Morgan Stanley managing director was jailed for seven years for trading with inside information. He brought shares of the Chinese commodities trader after realizing the proposed acquisition of oilfield assets while he was helping it to sell bonds. He was then ordered to compensate HK$23.9 million to investors who sold him shares in 2007 after his conviction with his assets frozen by SFC at the same time. 2. Causes and Antecedents 2.1 Breach of fiduciary duties Du’s failure to perform his fiduciary duty can be attributed to an easy access to nonpublic securities in the company. He was made privy to the details of the pitching exercise of Kazakhstan acquisition and handled a lot of confidential e-mails related to the project. Taking the advantage of this privilege, he got permitted to trade in CRH’s shares with approval from his designated manager without critical scrutiny. During the transaction, Du did not act with integrity in the best interest of his trustees. Instead he breached his duties and committed fraud by having 10 purchases of CRH shares before the announcement of its proposal and that alleged an act of insider dealing contrary to the Securities and Futures Ordinance (SFC). He even counseled and procured his wife to deal in the listed securities of CRH. 2.2 Inadequacy of internal control system A well-developed and comprehensive internal...
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...V O L U M E 1 7 | N U M B E R 4 | FALL 2005 Journal of APPLIED COR PORATE FINANCE A MO RG A N S TA N L E Y P U B L I C AT I O N In This Issue: Executive Pay and Corporate Governance Pay Without Performance: Overview of the Issues A Remedy for the Executive Pay Problem: The Case for “Compensation Discussion and Analysis” Developments in Remuneration Policy Corporate Culture and the Problem of Executive Compensation Taking Shareholder Protection Seriously? Corporate Governance in the U.S. and Germany University of Rochester Roundtable on Corporate M&A and Shareholder Value 8 Lucian A. Bebchuk, Harvard Law School, and Jesse M. Fried, University of California at Berkeley 24 Jeffrey N. Gordon, Columbia University 36 Alastair Ross Goobey, International Corporate Governance Network and Morgan Stanley Europe 41 44 Arthur Levitt, Jr., The Carlyle Group Theodor Baums, University of Frankfurt, and Kenneth E. Scott, Stanford Law School and Hoover Institution 64 Panelists: Robert Bruner, University of Virginia; Cliff Smith and Gregg Jarrell, University of Rochester; James Owen, The Bank Street Group; Marla Sincavage, Ernst & Young; and Matt Ostrower, Morgan Stanley. Moderated by Mark Zupan, University of Rochester. Takeover Defenses and Bargaining Power Is U.S. CEO Compensation Broken? Top Management Incentives and Corporate Performance Letting Go of Norm: How Executive Compensation Can Do Better Than “Best Practices” Finance, Politics, and the Accounting...
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...STRATEGIC HUMAN RESOURCE MANAGEMENT MANAGEMENT 5340 Fall 2011 EXECUTIVE MASTER OF BUSINESS ADMINISTRATION (EMBA) Shanghai Modern human resource management may be viewed as a process of acquisition, development, utilization, and maintenance of a human resource mix (people and positions) to achieve strategic organizational goals and objectives. The purpose of this course is to provide the student with an understanding of human resource management from theoretical, practical, and empirical viewpoints. Material will be presented and discussed from the perspective of the operating or line manager as well as the human resource specialist. Attention will be devoted to the various contexts of human resource management, basic techniques and methods, and the changing nature of managing human resources. More specifically, our concerns will include human resource and employment planning, employee recruitment and selection, training and development, performance planning and evaluation, compensation administration, organizational career management, structure of the human resource function, and the strategic role of human resource management. Objectives of the Course: During the course, the student will hopefully progress toward attainment of the following objectives: 1. Become familiar with the human resource management process (or HR value chain) and its key elements: a. Organization and human resource goals and strategies b. Human resource...
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...the different investment options within CMBS. New material since our last edition includes sections on the various types of AAA CMBS classes, total rate of return swaps, floating rate large loan transactions, and an updated version of the commercial mortgage default study. We hope you find this book useful and welcome comments so that we can improve future editions. FIFTH EDITION 2005 Transforming Real Estate Finance A CMBS Primer Primary Analysts: Howard Esaki Marielle Jan de Beur Masumi Goldman The Primary Analyst(s) identified above certify that the views expressed in this report accurately reflect his/her/their personal views about the subject securities/instruments/issuers, and no part of his/her/their compensation was, is or will be directly or indirectly related to the specific views or recommendations contained herein. This report has been prepared in accordance with our conflict management policy. The policy describes our organizational and administrative arrangements for the avoidance, management and disclosure of conflicts of interest. The policy is available at www.morganstanley.com/institutional/research. Please see additional important disclosures at the end of this report. Morgan Stanley & Co. Incorporated December 16, 2004 450 Transforming Real Estate Finance A CMBS Primer 1 2 INTRODUCTION T O C MBS 1 – 8 History and Structure Rating Agency Methodology MAJOR P ROPERTY T YPES I N...
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...Forbes Alexander, Jabil Circuit; Steve Munger and Don Chew, Morgan Stanley. Moderated by Jeff Greene, Ernst & Young Liquidity, the Value of the Firm, and Corporate Finance 32 Yakov Amihud, New York University, and Haim Mendelson, Stanford University Real Asset Valuation: A Back-to-Basics Approach 46 David Laughton, University of Alberta; Raul Guerrero, Asymmetric Strategy LLC; and Donald Lessard, MIT Sloan School of Management Expected Inflation and the Constant-Growth Valuation Model 66 Michael Bradley, Duke University, and Gregg Jarrell, University of Rochester Single vs. Multiple Discount Rates: How to Limit “Influence Costs” in the Capital Allocation process 79 The Era of Cross-Border M&A: How Current Market Dynamics are Changing the M&A Landscape 84 Transfer pricing for Corporate Treasury in the Multinational Enterprise 97 The Equity Market Risk premium and Valuation of Overseas investments John Martin, Baylor University, and Sheridan Titman, University of Texas at Austin Marc Zenner, Matt Matthews, Jeff Marks, and Nishant Mago, J.P. Morgan Chase & Co. 113 Stephen L. Curtis, Ernst & Young Luc Soenen,Universidad Catolica del Peru, and Robert Johnson, University of San Diego stock Option Expensing: The Role of Corporate governance 122 Sanjay Deshmukh, Keith M. Howe, and Carl Luft, DePaul University Real Options Valuation: A Case study of...
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...organizational, managerial and strategic behavior. In particular, the author argues for a critical common sense and the use of philosophical pragmatism (Watson, 2006). He also questions the way work is organized and managed. Finally, the process-relation perspective, a critical perspective of how to think about organizations and their relations and interactions with people, is taken by Watson (2006). This paper will start with a description of the two theories “System-control framing” and “Process-relational framing”. Afterwards the three concepts strategic exchange, negotiated order and double control will be defined and exemplified by different cases from the course. Finally, the paper will look into the complexity of managing knowledge at organizations supported by examples from Danone and McKinsey. In the field of leadership and management studies, there are two main perspectives “System-control framing” and “Process-relational framing”, which can help to analyze and make sense of complex organizations. The system-control perspective recognizes organizations as an entity that is “a system of managerially designed rules and roles existing on its own terms […] based on an organization design with a set of structural and cultural characteristics” (Watson, 2006, p.30). According to the system-control perspective, an organization that matches these characteristics will succeed in reaching its organizational goal. In other words, the system-control perspective assumes that organizations...
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