GOLDMAN SACHS

OUR CLIENT INTREST COMES FIRST

Krishna Jalan Ishrath fathima Sowmya CG Meghana Prasad Rohit Agarwal

About the company

Founded in New York in1869 Operates in about 25 different countries Goal is to assist clients with the tools and services needed to decrease administrative burdens of managing money to allow them to focus on increasing trading performance, building their business and attracting new sources of capital Mission Statement

SERVICE

Investment banking
Trading Division Asset Management Securities Services Risk Management

Organizational Structure

Flat

Minimum chain of command Efficiency is key

Decentralized

Authority is delegated to divisions, functions and employees at lower levels.

Focus on management principles

1. Division of work Dividing work equally 2. Authority and responsibility flows according to the hierarchy 3. Discipline professionalism is maintained in the organization. 4. Centralization and decentralized follow Decentralized policy

Focus on management principles

5. Unity of Command and Direction Orders and instructions receive from top level management 6. Subordination of Individual Interest to General Interest The goal which is set by the Organization comes first and the individual goals come later. 7. Order Systematic and orderly arrangement of physical and social factors

Focus on management principles

8. Fair remuneration to employees Goldman Sachs is known for paying high salaries to its employees depending upon their skills and knowledge 9. Equity They follow the principle at every level 10. Stability of Tenure of Personnel Stability of job, providing adequate training and development

Focus on management principles

11. Scalar Chain CEO (Chief Executive Officer) Vice President General Manager Assistant General Manager 12.Espirit de corps spirit of co-operation

Firms Management Style

Style - Management by objective

Employees are given control over goal setting. Management only intervenes when something is not going right.

Organizational Controls

Output Controls

Flat and decentralized = focus on divisional and individual goals

Culture

Company values (fourteen principles)

Behavior Controls

Incentives such as pay raises and bonuses

Investment Banking Segments

Financial Advisory and public offerings and private placements of equity, equity-related and debt instruments. Leading investment banks in its market Mergers and acquisitions

avoid hostile takeovers this segment accounts for around 15 percent of Goldman Sachs' revenues

PERFORMANCE APPRAISAL

Goldman Sachs follow 360 degree appraisal where in an individuals performance evaluation includes annual narrative feedback from superiors, subordinates and peers, including peers from outside of an individuals business unit and division

MOTIVATION TECHNIQUES

Monetary Factors

Bonus Cash awards Retirement benefits

NON- MONETARY FACTORS

Service protection Assignment of challenging job Workers participation in management

RECRUITMENT PROCEDURES

Job experience depending on their job profile Minimum of 8 interview, every individual has to undergo Depending upon the job requirement, individuals are tested and selected. Decision making ability

Technology

Advances in technology lowered transaction costs raised the market operating efficiencies Client demand for specialized investment products new financial product innovations new hedging vehicles, derivative products, and specialized mutual funds. speeds up market response and transaction time

Globalization

U.S and European investment banks are expanding to China rapidly growing Chinese market Goldman Sachs: joint venture investment banking company, Goldman Sachs Gao Hua Securities hold a one third stake which is the maximum allowed lent $100 million to Fang Fenglei, a Chinese dealmaker who set up Gao Hua

S.W.O.T. Analysis
Strengths

Weaknesses
Negative cash flow from operations Interest income instability

High profitability and margins

Leader in merger and acquisitions advisory services

High brand equity

investment banking operations

Strong

Opportunities
Focus on investment banking in the US & Southeast Asia Private equity account generation

Threats
Financial Market Volatility Consolidations Conflicts of interest

Organizational Values

Clients come first

Fiduciary responsibility

Creativity and Imagination

Ability to avoid pitfalls others could not because employees are challenged to think out side of the box.

Integrity and Honesty

Trust is key in financial industry

Competitive Advantage
Quality Focuses on having the greatest product lines and managing affairs in all aspects of business Leader in new products and processes

Innovation
Efficiency

Focuses on streamlining processes, large investments in technology innovations Customer Small number of clientele allows for Responsiveness more focused customer service