Strategic Analysis of Goldman Sachs Company Essay
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The role of the corporation and the measurement of its success – Goldman Sachs Goldman Sachs is a giant investment bank that has recently proven itself and its ability to be one of the most successful banks of all time by not just surviving the recent financial meltdown but overcoming the odds and managing to be at the forefront of banking industry. Goldman managed to survive the financial meltdown with some help from the government by changing itself into a commercial bank holding firm in 2008.
Goldman Sachs engages in investment banking, securities and investment management. Goldman’s main role is that it acts as a financial advisor as well as manages money for its numerous stakeholders which include: corporations, governments and high net-worth families all over the world. The company is also involved in mergers and acquisitions, where it plays an advisory role to its clients. It also provides underwriting as well as asset management services. Goldman Sachs also has a significant role in the private equity and proprietary trading world The U.
Treasury securities market is one of GS’s clients where the company is a primary dealer. Goldman Sachs is a multi-business as well as transnational company as the aforementioned states. The company has major offices in London, New York, Hong Kong, Tokyo and Frankfurt to name a few. Goldman Sachs’ mulitibusiness is divided in three groups: Investment Banking, Trading and Principle Investments and Asset Management and Securities Services. Goldman Sachs has proven to be successful over the past century by taking advantage of different performance measurements.
Goldman, out of all the investment banks has managed to create the most value for its company as well as shareholders and stakeholders. The company has done this by taking up strategies like spreading revenues evenly throughout all their different business segments. My analysis of the company stressed on the fact that Goldman’s success has also stemmed from trading more in technology than its competitors and this seems to be a more focused way of trading which has done the company more harm than good.
The people that GS recruits are one of Goldman’s biggest assets and an insurmountable degree of value is created here. Goldman’s bottom line is its employees. The company is focused on recruiting the best and the brightest and spends a significant amount training them to be leaders. For example the recent implosion of the mortgage market which ended up forcing most of the company’s rivals to take huge write downs did not deter Goldman from reporting a 79% increase in profit. Goldman Sachs success is evident in comparison to its other rivals like Lehman and Merrill Lynch.
The company has not gone through any drastic mergers but has instead always acted like a partnership. The company has also not allowed the importance of its most valuable asset, its employees, to be reduced by a conglomerate. Even though Goldman Sachs has had some blemishes for example it’s acquisition of Spear, Leeds & Kellogg which turned out to be a costly mistake, it has always been able to afford to lose some of its brightest talents because it is focused heavily on personal coaching.