Morgan Stanley SWOT Analysis
Morgan Stanley is a market leader; operating in more than thirty three countries and having more than with 600 offices worldwide. The company has a workforce of approximately 45,000 employees. According to reports the company has about US dollar 779 billion as assets.
Morgan Stanley has established a good reputation over the years in the industry. It has been a part of some of the biggest joint financings and public offerings in history, most notably the US; Shell Union debenture of 1946, Rail financing of 1939, Apple common stock IPO of 1980, Jersey Standard’s transaction of 1949, Google IPO in 2004 and Conoco IPO of 1998.
Morgan Stanley has an ability to completely reinvent itself which is one of its strengths. Since its incorporation the company has introduced innovation financial solutions and have reinvented various financial services. The firm has frequently discovered and reached new grounds in developing strategic transaction methods for the clients. It has developed new opportunities for individualist and institutionalized investors.
Also, the company has shown a remarkable growth in the last few years which shows its right strategies, excellent leadership and management.
Morgan Stanley faced a management crisis in the late 90s due to which the company lost much of its new talent and competitive employees. This ultimately ended up in the firing of the Philip Purcell, CEO then in year 2005. Since then the company is still going through reorganization and is reforming its strategies which again caused many job cuts.
Performance of the company Morgan Stanley depends greatly on the economy. As the economies follow a cyclic growth, the company also goes into a bad phase when the economy is poor or is going through a depression.
Morgan Stanley, in the year 2003, spent billions of dollars to settle many of its legal issues, actions an investigations related to the scam that was purportedly carried out upon retail investors by many large investment banking securities and brokerage firms.
Morgan Stanley is continuously discovering and entering new markets and has also got licenses now to enter the South Korean and Russian markets. The well built reputation of the company can help it in entering new markets and expansion of its share.
Over the last few years, Global savings are continuously increasing contrary but the increase in recent years has been at a lesser rate than that of world GDP. Indeed, the global saving rate is about 22.8% of the growth of world GDP in 2006.
There are some big players in the market that the company is competing with. Some of the large players in the investment banking business include Lehman Brothers, Citigroup Global and Goldman Sachs, etc.
Due to the recession the mortgage problems have resulted into entire credit squeeze on Wall Street. The share prices of the firm have fallen to very low and the new buyers are the sovereign wealth funds while China is one of the most prominent one.
As mentioned earlier due to reorganisation and restructuring of the company there has been a high employee turnover being faced by the company.