Morgan Stanley 2001 Annual Report Download - page 9

Our response in 2002 will be to:
>Continue our strategy of client centricity to understand
and meet our clients’ needs ahead of competitors.
>Align our resources by client to bring all of our firm’s talent
and capital to bear on the needs of each client.
>Continue to invest in people and capital, notably in both
our equity and fixed income trading and sales activities
in Europe.
>Maintain cost control while continuing to support our core
businesses and delivering value to clients.
As always, downturns in the economy present the highest
risk to the returns we can generate for shareholders.
Specific challenges also present themselves in 2002. We
must protect ourselves from the decline in credit quality that
always accompanies recessions and higher unemployment.
In addition, the precipitous decline in air travel will likely
pressure the profitability of our aircraft leasing business.
We will continue to measure success, in every business,
by our ability to increase market share and deliver prof-
itability. We are confident that by building on the progress
we made in 2001, we will be able to achieve market share
gains in 2002. The combination of market share increases
and secular growth in financial markets will provide the
offset to margin pressures.
We know our geographic and product breadth, innovative
and talented people, and strong client-centered culture give
us the competitive advantage to continue to be a market
share leader in our core businesses.
Our employees are the key to our success. We have been,
and continue to be, committed to providing an environment
in which outstanding individuals with diverse skills, experi-
ences and backgrounds are valued and rewarded. With our
global operations and broad client base, we believe that diver-
sity in our workforce maximizes the level of creativity and
problem solving that is critical to serving our clients well. This
year we published our first Diversity Report, which commu-
nicates the importance we place on, and some of the action
we take to foster, diversity. We were pleased to receive exter-
nal recognition of our commitment from leading organizations
and publications. For example, Fortune magazine named us
2001
2000
1999
1998
8,862
8,208
6,655
4,403
2001
2000
1999
1998
500
459
470
410
INSTITUTIONAL SECURITIES SALES AND TRADING NET REVENUE*
(Dollars in Millions)
*Includes principal trading, commissions and net interest income
ASSETS UNDER MANAGEMENT OR SUPERVISION
(Dollars in Billions)
MORGAN STANLEY ANNUAL REPORT 2001 7