Morgan Stanley Dean Witter

EXECUTIVE SUMMARY

Investment Banks are defined as financial intermediaries that focus on the capital raising needs of firms through the use of debt and equity. In this capacity, Investment Banking firms concentrate primarily on underwriting debt and equity issues, as well as provide valuable consulting information for other firms in need of merger and acquisition expertise.

A co-petitive analysis provides the analytical framework for an industry to evaluate its key external relationships relative to the industry's customer base and supply inputs. Some customer competitors identified are investment banks offerings in the same markets, federal and municipal governments, and Big 6 accounting firms. Examples of supply competitors include commercial banks, private investors, and strategic consulting firms. Customer complementors consist of financial media, institutional investors, and software developers. Lastly, corporations subject to consolidation and higher institutes of learning compose the industry's supply complementors

In determining "what matters" in the external environment, competitive, social/cultural, legal, economic, political, and technological forces are analyzed. Factors such as pressures for globalization, demographic trends, changing legal policies, and strong economies impact the investment