In: Accounting
Marcetta, Wong & Palmirotto Investment Company, a corporation dedicated to brokerage, has as General Manager Sherry Faye Stull, in addition to being the principal officer the which is in charge of the portfolios of rich and famous clients.
The General Manager disagrees with the system proposed
by Financial Investment
Decision Support System Group because it does not think it's right
for the needs of the
company.
In the investment firm there is a variety of portfolio
managers, some of the Portfolio managers were hired by their
clients to be the managers from the sale and purchase of bonds and
shares, these are subject to individual and lucrative arrangements
both for them and for the investment house others are employees of
the firm and are assigned to cases as required. Some clients
delegated to their administrators all the decisions that had to do
with their portfolios, others gave them freedom of partial
decision, that is, they imposed restrictions of investment in the
type of investment and the amount of investment where they do not
have to be consulted, Any investment outside these parameters
must
be consulted with the client.
The house investment rate is 2.3% of the first million
dollars in investments and .72%
in excess of the first million. At least once a year portfolio
managers are meet with their clients to review the contracts, and
specifications on the types of investments and investment
strategies.
There are clients who are aggressive about their
investment strategies and they like the
risky investments that pay higher profits, while others are more
conservatives and prefer a lower risk, greater confidence in the
investment and that leaves a gain although less, stable.
Portfolio managers try to vary the type of investment
between bonds, shares and
other instruments, in fact, the most aggressive have more
investments in stocks, while
the most conservative have a high proportion in government bonds. Once established the strategy and chosen the main investments the managers are dedicated to buy or sell when the prices of the instruments are outside the regular price or when They look lucrative, or when their client needs more cash.
They take care not to make many transactions if they are not necessary since each transaction It costs a commission to your client With the advent of Internet portals that are dedicated to taking investments, such as Ameritrade, Charles Schwab Online Investment, and others, the Board of Directors entrusted a project that will implement an information system that will automate most of the decisions on portfolios. Will use mathematical-financial procedures to examine each portfolio daily to find better and more advantageous ways to distribute the investments, as long as they are consistent with the strategies discussed with their clients.
Since portfolio managers were busy in meetings with their clients, the most outside the city, the system could have the advantage of making time transactions short taking departure of the fluctuations of the market, for this it would be given to the system that the maximum of the portfolio tied to these short-term investments would be 10% of any portfolio Of the remaining 90% the portfolio manager together with his client would have the power of decisions.
General Manager, Sherry Faye Stull understands that you have to compete with the house of investments online, using a system that is online, since the proposed one although it takes advantage of the market when portfolio managers are busy, the investor who invests in line does not want to know about intermediary, what he wants is to make his investment, benefit from the reports from the investment house and any global advice on "hot" investments of the moment.
Furthermore, she understands that this system benefits
only rich investors, but she
understands that in the market there are groups of investors who
are willing to invest but not They have large amounts that can be
paid by an individual portfolio manager.
Questions.
1. Harmonize the ideas of the General Manager and the Financial Investment Automated Decision Support System Group in such a way that both the Board of Directors and the General Manager are pleased and can draw up a strategic plan based on the system to be implanted.
2. Of your opinion on investments through the Internet
and if the house of established investor like Smith Barney, UBS
Paine Webber, Merrill Lynch among others, they should look at this
possibility as an option or as a necessity. Justify your answer
based on factors such as investment in systems of
information Vs. strategic advantage, market movement and any other
Valid approach to strengthen your position.
3. How can you include the strategy of using the Cloud as part of a resource for virtual storage? How would it alter the technology of Data Banks? (Database) necessary for Marcetta, Wong & Palmirotto Investment Company. see this as an alignment of business with the strategies of information technology.
4. Describe an information protection system that you
would recommend for this
situation. It can be one or more than one. Be as specific as
possible in the identification of security processes and how they
would be used to project the information. Justify your answer.
5. With the advent of electronic commerce and corporations with a presence virtual that are made public like Amazon among others. The offering of shares and bonuses can also be in a non-classical way, since you have to rely on the solidity of a corporation that "does not exist physically".
Like you I would recommend that the offer, purchase and administration of these instruments of these companies? What would be your recommendation to modify the system to manage the administration of the portfolios with instruments of virtual companies? Within your explanation, include critical points of the system, strategic planning of information technology.
1. As the investors who invest with low risk and standard returns are taken care by the firm's portfolio managers , change in that decision might not help as it's established well but the aggressive clients who invest with higher risk expect higher returns, change in moving their portfolio managers from the house should be regulated as investors without intermediary earns higher than the firm's clients by their absence in the house. The board of director's automated decision support is helpful but making sure that the client have all the necessary sources to be engaged in the investment even though he moves outside the city.
2. They should definitely look it as a necessity as the aggressive clients expect higher return which is definite for the firm to provide him more return as better as possible. The strategic advantage having information by market research is necessary to retain those type of clients and making them satisfied to the fullest for the firms efficiency.
3. Cloud for virtual storage is helpful for it's data security of companies related to information technology like in our case the decision makers bulk data can be stored at Cloud at ease and access the information whenever necessary for future growth of the investment firm by fluctuation of market prices in so and so date and time. The main thing is easy access for the necessary managers and decision makers in the firm helps this way in altering the technology of data banks.
4. Cloud security has it's own advantage as mentioned above in terms of the data security, ease access to necessary decision makers etc,. but not to outsiders. This way it would be very helpful in presentation with some tight elements for network layering and transporting of data as threats occur ony in these two aspects.
5. Yes, if the company doesn't physically exists the offer, purchase and administration of these instruments can be can be made solid only to apply metrics and analyze tools that can pave a way to improve their instruments' efficiency but not the various access codes which could collapse the firm for some or the other reason.