gold man ppt 2

7/31/2019 Gold Man Ppt 2

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GOLDMAN SACHSOUR CLIENT INTREST COMES FIRST

Krishna JalanIshrath fathima

Sowmya CGMeghana Prasad

Rohit Agarwal
http://upload.wikimedia.org/wikipedia/en/6/61/Goldman_Sachs.svghttp://upload.wikimedia.org/wikipedia/en/6/61/Goldman_Sachs.svg


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About the company

Founded in New York in1869

Operates in about 25 different countries

Goal is to assist clients with the tools andservices needed to decrease administrativeburdens of managing money to allow them tofocus on increasing trading performance,

building their business and attracting newsources of capital Mission Statement
http://upload.wikimedia.org/wikipedia/en/6/61/Goldman_Sachs.svg


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SERVICE

Investment banking

Trading Division Asset Management

Securities Services

Risk Management


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Organizational Structure

Flat

Minimum chain of command

Efficiency is key

Decentralized

Authority is delegated to divisions, functions and

employees at lower levels.


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Focus on managementprinciples

1. Division of work

Dividing work equally

2. Authority and responsibility

flows according to the hierarchy

3. Discipline

professionalism is maintained in theorganization.

4. Centralization and decentralized

follow Decentralized policy


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5. Unity of Command and Direction

Orders and instructions receive from top level

management

6. Subordination of Individual Interest to GeneralInterest

The goal which is set by the Organization comes first andthe individual goals come later.

7. Order

Systematic and orderly arrangement of physical and socialfactors


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8. Fair remuneration to employees

Goldman Sachs is known for paying high salaries to itsemployees depending upon their skills and knowledge

9. EquityThey follow the principle at every level

10. Stability of Tenure of Personnel

Stability of job, providing adequate training and

development


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11. Scalar Chain

CEO (Chief Executive Officer)

Vice President

General Manager

Assistant General Manager

12.Espirit de corps

spirit of co-operation


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FirmsManagement Style

Style - Management by objective

Employees are given control over goal setting.

Management only intervenes when something isnot going right.


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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


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Investment BankingSegments

Financial Advisory and public offerings andprivate placements of equity, equity-relatedand debt instruments.

Leading investment banks in its market

Mergers and acquisitions

avoid hostile takeovers

this segment accounts for around 15 percent ofGoldman Sachs' revenues


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PERFORMANCEAPPRAISAL

Goldman Sachs follow 360 degree appraisalwhere in an individuals performance

evaluation includes annual narrativefeedback from superiors, subordinates andpeers, including peers from outside of anindividuals business unit and division


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MOTIVATION TECHNIQUES

Monetary Factors

Bonus

Cash awards

Retirement benefits

NON- MONETARY FACTORS

Service protection

Assignment of challenging jobWorkers participation in management


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RECRUITMENTPROCEDURES

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


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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, andspecialized mutual funds.

speeds up market response and transaction time


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Globalization

U.S and European investment banks are expanding toChina

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 Chinesedealmaker who set up Gao Hua


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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

Leader in merger and acquisitionsadvisory services

High brand equityStrong investment banking operations


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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


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Competitive Advantage

Quality Focuses on having the greatestproduct lines and managing affairsin all aspects of business

Innovation Leader in new products andprocesses

Efficiency Focuses on streamlining processes,

large investments in technologyinnovations

Customer

Responsiveness

Small number of clientele allows formore focused customer service

gold man ppt 2

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