Goldman Sachs Presentation.ppt
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Transcript of Goldman Sachs Presentation.ppt
Capstone Presentation
James DavalosNora Quintal Tuyet Nguyen
Ryan BilyeuAaron Sanchez
Daniel LizonMarcos Gonzales
Company Brief
Founded 1869 Worldwide offices Investment Services Industry
External Analysis
The Investment Services Industry
Five Forces Analysis
Industry Attractiveness
AttractiveOverall
5thModerately
Unfavorable
Buyer Power
4thFavorableSuppliers
3rdFavorableBarriers to Entry
2ndModerately Favorable
Threat of Substitutes
1st Favorable Rivalry
Macro Environmental Forces
Global Sustainable energy Infrastructure Emerging markets (BRIC)
Social Protect environment
Technological Improved systems
Less specialized IT Process time decreased.
Internet Communication Online trading
Macro Environmental Forces
Governmental/Political Securities Exchange Commission (SEC)
Sarbanes-Oxley Act 2002 (SOX) Financial Industry Regulatory Authority (FINRA)
Ethical Inadequately disclosed payments Use of market timing Abuse late trading Untruthful reporting
Economic Economy’s slowdown Sub-prime crisis Housing crisis
Competitors Analysis
Strategy/Position Merrill Lynch
Global Markets & Investment Banking Global Wealth Management
Morgan Stanley Institutional Securities Global Wealth Management Group Asset Management
Goldman Sachs
Internal Analysis
Inside Wall Street’s ‘Black Box’
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
Culture Company values (fourteen principles)
Behavior Controls Incentives such as pay raises and bonuses
Organizational Values
Clients come first Fiduciary responsibility
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
Small number of clientele allows for more focused customer service
Customer
Responsiveness
Focuses on streamlining processes, large investments in technology innovations
Efficiency
Leader in new products and processes
Innovation
Focuses on having the greatest product lines and managing affairs in all aspects of business
Quality
Popular Ratios
15.32%10.08%20.7%Industry
16.50%10.32%30.1%Morgan Stanley
14.62%10.74%34.9%Merrill Lynch
18.75%13.58%43.2%Goldman
Sachs
Return on Equity
Net Profit Margin
3-year est. growth(sales)
Critical Issues
Current events & concerns
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
Critical Issues
Credit Crunch Avoidance FICC fueled capital Went short Small CDO holdings Analysts now predicting
other firms write downs Entrepreneurial culture
Critical Issues
Volatility of Financial Markets Drastic stock changes Harmonizing
Client requirements Profitable market returns
Balancing Secrecy and Transparency “Black box” SEC reporting
Recommendations
Mission Statement & Recruiting
Mission Statement
Why have a mission statement
What are the benefits of the mission statement
What is the mission statement
Implementation of Mission Statement
Use the Mission Statement to explain the 14 Business Principles
Post is on bottom of emails
Create a beautiful 2 story water fountain with the Mission Statement in gold around the spout with Koi fish in the pond
Recruiting
Continue to seek out desired individuals
Matrix Program
Make a greater presence on college campuses
Recruiting Implementation
Use the Matrix Program
Be Proactive on College Campuses Talk to Student Orignizations
Delta Sigma Pi or Beta Alpha Psi etc… Career Services