A Look InsideA Look Inside

Morgan StanleyMorgan Stanley

Professor: Dr. Li-Yueh LeeStudent: Vu Thanh Thuan (ID:

G960L027)

Kun Shan UniversityKun Shan UniversityOrganizational Theory and ManagementOrganizational Theory and Management

Founded in 1935, one of the oldest and most established securities firms on Wall Street.

Morgan Stanley provides financial services and opportunity investments for its clients.

In 1997, Morgan Stanley’s merger with Dean Witter Discover Co. was intended to create a financial services powerhouse.

Dean Witter Discover Co was a purveyor of credit cards and stockbrokers

But, the two sides clashed from the start

Morgan Stanley and Dean Witter Discover Co. had conflicting goals from beginning.

Purcell, head of Dean Witter, still kept his job and effectively forced Mack, from the Morgan Stanley and gave Purcell almost total control over management changes and the nomination of new directors

He continued building his power by stacking the board with allies and placing loyal Dean Witter managers in key positions.

The Morgan Stanley managers began leaving the firm in droves.

In early 2005, three more high-level Morgan Stanley executives departed and prompted the call for the chairman and CEO Purcell’s ouster.

A group of eight stockholders launched a public campaign calling for the ouster of Purcell.

The public antagonismWeak financial performanceSagging stock price

The board and Purcell reconsidered and made a joint decision that Purcell would resign

New leadership may resolve the discord and set Morgan Stanley on the smoother course with a united vision.

Thank you