Sami Reme 1
Sami Reme
Dr Marilyn Kaplan
BA 1100 001
10/13/2012
Business Description
Goldman Sachs
Headquarters: 200 West Street, New York, New York, U.S.
Phone number: 212-902-0300
Web address: www.goldmansachs.com
‘Goldman Sachs’ Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. 22
July 2004. Web. 09 Oct. 2012.<http://en.wikipedia.org/wiki/Goldman_Sachs>
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Table of Content
-Executive summary
-Company description
-Vision and mission statement
-Competitive analysis
-Market analysis
-Marketing plan
-Growth plan
-Work Cited
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Executive Summary
Goldman Sachs proposes financial advisory services, trading and investment
management. Goldman Sach’s business activities are categorized into 3 segments: investment
banking, trading and stock investment, asset management and Securities Services (portfolio
management).
‘Business principles and standards’ Goldman Sachs Group, Inc. 03 april 2011. Web.
14 aug. 2012. <http://www.goldmansachs.com/who-we-are/businessstandards/business-principles/index.html>
Company Description
Products and services:
The first service Goldman Sachs provides is investment banking (it is the world’s
leader!),it actually provides a large sphere of investment banking services to a multiple
financial institutions, groups of corporations, governments and high-net-worth persons.
The second service they propose is trading and stock investment, in fact many people know
them for this activity; they became really famous in the last 20 years when they made huge
amounts of money just with stocks. They provide a service that assist the progress of client in
making transactions with a diverse group of corporations, governments and individuals,
financial institutions and takes proprietary positions through market making in, trading and
investing in fixed income and high value products, currencies and so one... Moreover, the
company engages in market-making and specialized activities on equities and options
exchanges and clears client transactions on major stock options and futures deals worldwide.
Basically the bank raises its own fund with its ‘speculators’ (traders) that are formed to make
money with money (by the stock as well).
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The third service Goldman Sachs proposes is asset management and Securities Services it
means overall investment advisory and financial planning services. They also offer
investment products over all majors assets categorized to a diverse group of institutions and
persons worldwide in addition to afford prime brokerage services, financing services and
securities lending services to pension funds, hedge funds, mutual funds, foundations and high
net-worth people worldwide. So as you can see, Goldman Sachs is actively involved in
financials activities.
‘Goldman Sachs macro review’ American Chamber of trade industry and commerce.
05 fev. 2011. Web. 02 sept. 2012. <http://seekingalpha.com/symbol/gs/description>
Unique selling proposition:
The Bank operates 24/24H on the 5 continents; it made more money than any other
bank in the last 50 years. It owns 700 billion dollars in assets which actually represents twice
the budget of France; its employees are extremely skilled and trained like no others and come
out from the best universities around the world. Goldman Sachs is unique because it is the
most powerful bank in the world but especially because is surrounded by an impenetrable
secret, no one really knows what stocks they are trading or what their strategies are…
‘Business principles and standards’ NYSE report. 08 may 2011. Web. 24 jan. 2012.
<http://nyjobsource.com/goldmansachs.html>
Vision and Mission Statement
Goldman Sachs‘s Mission Statement:
"1. Our clients' interests always come first. Our experience shows that if we serve our clients
well, our own success will follow.
2. Our assets are our people, capital and reputation. If any of these is ever diminished, the
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last is the most difficult to restore. We are dedicated to complying fully with the letter and
spirit of the laws, rules and ethical principles that govern us. Our continued success depends
upon unswerving adherence to this standard."
‘Goldman Sachs Group's Mission Statement’ Goldman Sachs Group Inc. 04 july.
2005. Web. 04 july. 2005. <http://manonamission.blogspot.com/2005/07/goldmansachs-gs-groups-mission.html>
Competitive Analysis
Main competitors:
Goldman Sachs’s main competitors are overall others companies in the financial
sector:
- Citigroup Global Markets Inc.
-JPMorgan Chase & Co.
-Morgan Stanley
-Merrill Lynch and Co., Inc.
-UBS Investment Bank
-Deutsche Bank AG
‘Direct Competitor Comparison’ NYSE daily report. 06 oct. 2012. Web. 11 oct. 2012.
<http://finance.yahoo.com/q/co?s=GS+Competitors>
Market Analysis
Demographic profile:
Overall customers that use Goldman’s services are weather rich individuals, or highnet-worth people basically people that have a portfolio to grow, often retired people that have
worked all their lives and want a more comfortable retirement.
‘Our People’ Goldman Sachs Group Inc 03 april 2011. Web. 26 aug. 2012.
<http://www.goldmansachs.com/careers/why-goldman-sachs/our-people/stephanie-rprofile.html>
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Psychographic Profile:
-Play Sports of wealthy society (Golf, polo…)
-Drive smart cars
-Have a big house (or houses)
Those are a kind of stereotype of rich people but really everyone that have money and
is interested in investing money in risk products can be a potential customer.
Customer’s behaviors:
Overall customers are risk takers because they know that in using Goldman Sachs
services there are enormous risks that are taken to win a mass of money in the lowest possible
time.
Marketing Plan
Place Strategy:
The Goldman Sachs headquarter is located in the U.S. but their activities have no
borders, they have investors from all over the world that want to benefit from their services.
They operate worldwide (the 5 continents).
‘Choose your path’ Goldman Sachs Group Inc 03 april 2011. Web. 29 aug. 2012.
<http://www.goldmansachs.com/careers/choose-your-path/our-divisions/investmentbanking/index.html>
Promotion Strategy:
As their activity is not always appreciated by people, they avoid big commercial
advertising campaigns with TV spots and posters in streets, their one is trickier they often
select persons that know potential investing people and invite them to Art expositions in
which they present their financial investing products or they sometimes play some videos on
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their commitment towards environment, but without doubts their best marketing argument is
their huge reputation.
‘Goldman Sachs Actually Better at Marketing Than Managing Asset’ Bloomberg
market magazine 25 jan. 2011. Web. 25 jan. 2011.
<http://nymag.com/daily/intel/2011/01/goldman_sachs_better_at_market.html>
Pricing Plan:
Basically the price of the service is a commission they take on the benefit of your
investment. For example I suppose you give them $100,000 expecting a 5% profit in a month,
at the end of the month they made $140,000 with your money. They will give you your 5%
and your money back as you expected ($5000) and keep the rest of the commission
($35,000). That’s a little bit exaggerated but that’s basically the way it works and people
come back again because no matter what take the company if in the end I’ll made money
without doing anything.
‘Goldman Sachs’ Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. 22
July 2004. Web. 09 Oct. 2012.<http://en.wikipedia.org/wiki/Goldman_Sachs>
Growth Plan
Growth Strategy:
The company expects to grow again in next couple of years despite the 2008 crisis that
seriously affected them, in frightening people to invest and to take risk. The purpose of the
company is to bet on renewable energies on the long run.
‘Population Growth and Ageing in the BRICs’ Goldman Sachs Group Inc. 05 april
2011. Web. 07 sept. 2012.
http://www.goldmansachs.com/our-thinking/topics/brics/population-growth-andageing-in-the-brics.html
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Closing thoughts:
They all are hoping that Goldman will fructify the amounts they invested in the company by
its genius in investing in risks products on stocks.
Goldman is notorious for beating guidance and forecasts, purportedly planting lower
expectations with analysts in order to throw off the scent. The market will be keenly focused
on seeing if Wall Street's golden boy can pull a rabbit out of the hat yet again, considering
high expectations for greater than expected write-downs and increased risk during the last 10
years. However a loss of money is a risk of investing in the Fund. An investment in the Fund
is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance
Corporation, so it is at your own risks…you can win a lot but in another hand lose
everything.
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Works cited:
-
‘Goldman Sachs’ Wikipedia, The Free Encyclopedia. Wikimedia Foundation, Inc. 22
July 2004. Web. 09 Oct. 2012.<http://en.wikipedia.org/wiki/Goldman_Sachs>
-
‘Business principles and standards’ Goldman Sachs Group, Inc. 03 april 2011. Web.
14 aug. 2012. <http://www.goldmansachs.com/who-we-are/businessstandards/business-principles/index.html>
-
‘Goldman Sachs macro review’ American Chamber of trade industry and commerce.
05 fev. 2011. Web. 02 sept. 2012. <http://seekingalpha.com/symbol/gs/description>
-
‘Goldman Sachs Group's Mission Statement’ Goldman Sachs Group Inc. 04 july.
2005. Web. 04 july. 2005. http://manonamission.blogspot.com/2005/07/goldmansachs-gs-groups-mission.html
-
‘Direct Competitor Comparison’ NYSE daily report. 06 oct. 2012. Web. 11 oct. 2012.
<http://finance.yahoo.com/q/co?s=GS+Competitors>
-
‘Our People’ Goldman Sachs Group Inc 03 april 2011. Web. 26 aug. 2012.
http://www.goldmansachs.com/careers/why-goldman-sachs/our-people/stephanie-rprofile.html
-
‘Choose your path’ Goldman Sachs Group Inc 03 april 2011. Web. 29 aug. 2012.
<http://www.goldmansachs.com/careers/choose-your-path/our-divisions/investmentbanking/index.html>
-
‘Goldman Sachs Actually Better at Marketing Than Managing Asset’ Bloomberg
market magazine 25 jan. 2011. Web. 25 jan. 2011.
<http://nymag.com/daily/intel/2011/01/goldman_sachs_better_at_market.html>
-
‘Population Growth and Ageing in the BRICs’ Goldman Sachs Group Inc. 05 april
2011. Web. 07 sept. 2012.
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http://www.goldmansachs.com/our-thinking/topics/brics/population-growth-andageing-in-the-brics.html