Morgan Stanley Macro Environment Analysis

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Morgan Stanley 

Morgan Stanley macro analysis

Macro Environment Analysis

Political/Legal Environment

After the financial crisis, every country realized the importance of regulating financial industry.  It is commonly agreed to strengthen supervision of financial service institutions from credit rating agencies and money-market funds to broker-dealers, investment advisers and hedge funds. The rules on bank capital and liquidity will be tighter. In a global perspective, world regulators have committed create common standards across international boundaries. As a result, Morgan Stanley need increase the reserves and improve the transparency and credibility of its business.

Economic Environment

The world economic is going to recover from this recession. The emerging economic units such as China have experienced rapid economic growth again while the advanced economies are struggling to stimulate their national incomes. As government in developing countries aim to boost domestic demand, the saving rates are expected to decline in those countries. Along with the depreciation of US dollar, the purchasing power of citizens in developing countries is predicted to increase steady in the future. One the other hand, the consumer confidences in developed countries are still low. However, the hardest time has already gone. Every country is trying to find new economic growth points. The economic trend is expected to be favorable in the future, especially in emerging markets.

Sociocultural Environment

In Asia, the increasing trend of aging population can be seen in past several years. Financial service agencies are predicted to be more engaged in providing retirement related services. As general public was hurt painfully in this financial crisis, the trust towards financial institutions had declined a lot. People are much more cautious about financial products now.

Technological Environment

The revolution of Information Communication Technology has been greatly facilitating international communication. It will continue supporting international coordination of financial institutions, helping communicate with customers and speeding the spread of information.

Besides, huge amounts of money have been invested in financial investment technology. Technology is essential for precise predictions and wise investment.  Based on the research conducted by UMASS Boston College of Management, technology related to back office operations are predicted to be outsourced to overseas partners.