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 communicate 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, investor 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 of clients including corporations, financial institutions, governments etc.
As per Goldmansachs website, “It advise 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 markets. 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 Services

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 subsidiary 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 competition 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 by 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 leading 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 regions was greatly reduced, reflecting a reduction in consumer spending and low levels of liquidity 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 most 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 various 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, recession, 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 marketing 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, Deutsche 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 , “Equity and credit markets were characterized by increasing asset prices, lower volatility and improved liquidity during the last nine months of the year.”
Investment 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-completeannual.pdf
http://www2.goldmansachs.com/our-firm/progress/what-we-do/index.html
http://moneycentral.msn.com/companyreport?Symbol=GS http://moneycentral.msn.com/investor/invsub/results/compare.asp?Symbol=GS