Research the Goldman Sachsx - Global Experts4U

scalplevelpastoralΔιαχείριση

18 Νοε 2013 (πριν από 3 χρόνια και 4 μήνες)

72 εμφανίσεις

Research the Goldman Sachs website. Using your research findings from the Library and the Internet,
develop both an EFAS (External Factors Analysis Summary) table and an IFAS (Internal Factors
Analysis Summary) table. The tables are to be submitted in one
Excel file (one sheet for the EFAS and
one sheet for the IFAS), separate from your assignment that will be written in MS Word.


You will be graded on your knowledge of the software and math in building the MS Excel tables, and on
your ability to communica
te in writing and present your arguments. The description of both your
environmental and internal scanning process, including what factors you considered and why will be in
your MS Word file.


In summary, you will submit two files: one file in MS Excel,
which will count as two written pages, and
one file in MS Word, which should be 4
-
6 pages in length.

We bring together people, capital and ideas to produce solutions and results for our clients by playing a
number of roles: financial advisor, lender, inves
tor and asset manager.

Introduction

The Goldman Sachs Group, Inc. (Group Inc.) was founded in 1869 and is now a leading global
investment banking, securities and investment management firm that provides a wide range of financial
services to wide range o
f clients including corporations, financial institutions, governments etc.

As per Goldmansachs website, “It a
dvise companies on buying and selling businesses, help them manage
risks and raise capital, which enables them to grow, launch new products, build

factories and invest in
research and development.


It also helps governments finance their operations. It assists in buying and
selling
equities, bonds, currencies and commodities to facilitate transactions by our clients in all of the
key financial mark
ets. This helps businesses of all sizes find the capital they need to help create jobs and
fuel growth.

Its
activities
can be
divided into three segments:



Investment Banking.



Trading and Principal Investments.



Asset Management and Securities Servi
ces

Latest events

As per moneycentral.com, “

In March 2010, the Company's subsidiaries sold the La Francia mine and related infrastructure assets,
including Concession 5160, and Adromi Capital Corp., the holder of the La Francia II concession, to a
subsidi
ary of The Goldman Sachs Group, Inc. In May 2010, Nexen Inc. sold its natural gas trading
operations to a unit of The Goldman Sachs Group, Inc.”

Environmental Analysis

Environmental analysis is an essential element of formulating strategy. Srategy

is about:

“* Where is the business trying to get to in the long
-
term (direction)

* Which markets should a business compete in and what kind of activities are involved in such markets?
(markets; scope)

* How can the business perform better than the competi
tion in those markets? (advantage)?

* What resources (skills, assets, finance, relationships, technical competence, facilities) are required in
order to be able to compete? (resources)?

* What external, environmental factors affect the businesses' ability
to compete? (environment)?

* What are the values and expectations of those who have power in and around the business?
(stakeholders)”


Strengths

1) Strong Brand


Goldman Sachs

is one of the premier financial services brand in the world.
They have achieved
this due
to their relentless focus on client service. As per the corporate website, “
Client service is at the heart of
Goldman Sachs’ culture.


2) Superior
Income per employee

Its income per employee of $335,846 is superior
to

industry indicating better
productivity of employees.

3) Strong Recovery after year 2008 slump

In 2009 company has clocked turnover of more than $51 billion and net income of $13 billion which is a
turnaround as compared to the performance in 2008.

http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=ManagementEfficiency&Symbo
l=GS

Weaknesses

Decline in Sales and Profitability

There is decline in sales b
y 21% with respect to previous year

2009
. Moreover there is decline in
profitability by 25%.


http://moneycentral.msn.com/investor/invsub/results/compare.asp?Symbol=
GS

Allegations of manipulations in accounting

As per Wikipedia, “
In April 2009, there was controversy that Goldman Sachs had 'puffed up' its Q1
earnings by creating a December 'orphan month' into which it shifted large writedowns
.
In its first full
quarter

as a bank holding company, the firm reported a USD 780M net loss for the single month of
December alongside Q1 net earnings of USD 1.81B (Jan
-
Mar)


http://en.wikipedia.org/wiki/Goldman_Sachs


Huge

Size

This can lead to redtapism in Goldman Sachs lead
ing

to
slow decision making.


External environment analysis

Recession

The world economy is affected now by recession and contraction in GDP. Right now US economy is
facing severe recession as U.S
. gross domestic product (GDP) shrank 1% in the second quarter,
following the first quarter’s 6.4% drop. (Moneymorning, 2009) This may lead to reduced spending by the
businesses and the consumers which can lead to the contraction in worldwide demand. This

may lead to
reduction in margins and revenues. As per the annual report of the company, “
During 2009,


Business
activity across a wide range of industriesand re
gions was greatly reduced, refl
ecting a reduction in

consumer spending and low levels of liqu
idity across credit

markets.
” There has been also increase in
unemployment.


Signs of recovery

However, economic conditions became generally more

favorable during the second half of the year as
real gross

domestic product (GDP) growth turned positive in m
ost

major economies and growth in
emerging markets improved.

International risk factors

World is greatly affected by terrorism in the recent times. This may have adverse affect on the business.
It

can be greatly affected by political instabilities of vario
us economies in which it’s operating. It has to
manage the legislation and accessibility initiatives. Moreover
It
has to manage the patent, copyright,
trademark and trade secret laws worldwide, and agreements with the employees, customers, suppliers
and

other parties, to establish and maintain intellectual property rights in the technology and products that
it sell, provide or otherwise use in our operations.

Goldman will also be affected by:

• Economic or political conditions including inflation, rece
ssion, interest rate fluctuations and actual or
anticipated military or political conflicts;

• Longer accounts receivable cycles and financial instability among customers;

• Trade regulations and procedures and actions affecting production, pricing and mar
keting of products;

• Differing technology standards or customer requirements;


Competitive environment

Goldman
is

facing lot of competition from

other financial majors such as JP Morgan, CitiBank, Bank of
America,
Merrill Lynch, Deut
s
che Bank
. All the
competitors are big and global players having huge
financial resources.


http://finance.yahoo.com/q/co?s=GS+Competitors

Fluctuation in Asset prices

As per the annual report , “E
quity and credit

markets were characterized

by increasing asset prices, lower
volatility and improved

l
iquidity during the last nine months of the year.


I
nvestment banking business has been and may

continue to be adversely affected by market conditions.

Opportunities are
:



Better growth in emerging markets



Reduction in fluctuation in Asset prices in 2009



Ease of liquidity in the global markets


Threats are:



Demand impacted by recession



Increasing competition



Greater international risk



References:

http://www2.goldmansachs.com/our
-
firm/investors/financials/current/annual
-
reports/2009
-
complete
-
annual.pdf


http://www2.goldmansachs.com/our
-
firm/progress/what
-
we
-
do/index.html

http://moneycentral.msn.com/companyr
eport?Symbol=GS

http://moneycentral.msn.com/investor/invsub/results/compare.asp?Symbol=GS