Goldman Sachs Case analysis

Summary

The case study analyzes the strategy and structure of Goldman Sachs that saved the company from the financial crises faced by all investment companies in 2007. The case study briefs the fact that five largest US investment banks-Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch an Morgan Stanley were facing serious threats due to the sub prime mortgages. However, all of them except Goldman Sachs faced losses that end up in winding up of the few. Whereas Goldman Sachs was not only able to sustain the crisis however was also able to reflect the profitability of $11.6 billion that was record on Wall Street. The company’s share prices also reached the record hikes and even the employees and executives were able to earn substantial profits.

The reason for such performance is remarkable and probes in the management style and structure of the organization. The case study reveals that Goldman Sach has flat organizational structure. The communication is at all directions and at the same time. The employees are ‘perfectionist’ of their jobs and find a lot to learn everyday.

The company has gone into IPO however, this is said that the structure of the company can be termed as partnership. The directors and senior executives are managing the company where the decision making is very centralized. The company attributes its success to the three parameters one is employees loyalty, secondly employees recruitment and thirdly the structure of command.

The company has employed co CEO’s and even at the manager level there are co-mangers that makes the decision. As per the company’s culture its is critical that the two people together come up at a decision rather than singly handled teams.

 

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