Presentation for PPM

By ASGAR HUSSAIN INAMDAR

Company Brief

Founded in 1869 by Marcus Goldman and Sameul Sachs

Worldwide offices Investment Services Industry

Goldman entered the IPO market in 1906 when it took Sears, Roebuck and Company public.

The deal occurred due to Henry Goldman's personal friendship with the owner of Sears, Julius Rosenwald.

Products OR Services

Asset management Commercial banking Commodities Investment banking Investment management Mutual Funds Prime brokerage

Internal Analysis

S.W.O.T. Analysis

Threats Financial Market Volatility Consolidations Conflicts of interest

Opportunities Focus on investment banking in the US & Southeast Asia

Private equity account generation

Weaknesses Negative cash flow from operations Interest income instability

Strengths High profitability and margins Investment banking leader High brand equity Recruitment & retention of talent

Business Definition/Mission

Definition Global Investment banking, securities, and

investment management firm.

Mission As far as our group could discern, Goldman does

not have a mission statement.

Firm’sManagement Style

Style - Management by objective

Employee’s are given control over goal setting.

Management only intervenes when something is not going right.

Organizational Structure

Flat Minimum chain of command Efficiency is key

Decentralized Authority is delegated to divisions, functions and

employees at lower levels.

Organizational Controls

Output Controls Flat and decentralized = focus on divisional and individual

goals

Behavior Controls Incentives such as pay raises and bonuses

Clients come first Fiduciary responsibility

Organizational Values

Creativity and Imagination Ability to avoid pitfalls others could not because

employee’s 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

Innovation Leader in new products and processes

Efficiency Focuses on streamlining processes, large investments in technology innovations

Customer

Responsiveness

Small number of clientele allows for more focused customer service

3-year est. growth(sales)

Net Profit Margin

Return on Equity

Goldman

Sachs

43.2% 13.58% 18.75%

Merrill Lynch 34.9% 10.74% 14.62%

Morgan Stanley

30.1% 10.32% 16.50%

Industry 20.7% 10.08% 15.32%

Financials

Critical Issues

Current events & concerns

Critical Issues

Volatility of Financial Markets Drastic stock changes Harmonizing Client requirements Profitable market returns

Balancing Secrecy and Transparency SEC reporting

Questions

Final thoughts?