Goldman Sachs

Information about Goldman Sachs

Published on August 21, 2010

Author: sunilsahni



Goldman Sach : Goldman Sach 3/20/2010 Sunil K.Sahni 1 “Goal is to assist clients with the tools and services needed to decrease administrative burdens of managing money to allow them to focus on increasing trading performance, building their business and attracting new sources of capital – Mission Statement” Slide 2: 3/20/2010 Sunil K.Sahni 2 Company Brief Founded 1869 Worldwide offices Investment Services Industry Introduction : Introduction Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net-worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong 3/20/2010 Sunil K.Sahni 3 Slide 4: 3/20/2010 Sunil K.Sahni 4 Company Overview Founded in 1869, been providing investment banking, securities, and investment management services to corporations, government, and high-net-worth individuals worldwide operates in about 25 different countries and the United States. Investment Banking, Trading and Principal Investments, and Asset Management and Securities Services. The main headquarters for the company are located in New York, New York. Highlights of 2009 : Highlights of 2009 Net Revenues $45.2 bn Net Earnings $13.4 bn EPS $22.13 bn Return on Equity 22.5% 2009 BVPS +23% 3/20/2010 Sunil K.Sahni 5 Resource Allocation : Resource Allocation 3/20/2010 Sunil K.Sahni 6 About Goldman Sach : About Goldman Sach 3/20/2010 Sunil K.Sahni 7 New York London Hong Kong Tokyo Over 50 Offices Worldwide About Goldman Sach : About Goldman Sach Approx 32,500 employees globally (4200 in Technology) Approx 5000 employees in Europe ( 600 in Technology) Approx $2,000 mn annual technology spend 3/20/2010 Sunil K.Sahni 8 Slide 9: 3/20/2010 Sunil K.Sahni 9 What is Goldman Sach business? Equities Fixed Income, Currency and Commodities Investment Banking Investment Management Global Investment Research Merchant Banking Human Capital Management Operations & Finance Technology Services : 3/20/2010 Sunil K.Sahni 10 Services Investment banking Organizes transactions for corporations, financial institutions, and governments -mergers, acquisitions, divestitures, the issuance of equity or debt capital, or a combination of these Global relationships combined with its understanding of local economies, industries and cultures help to assist with elite advice and service consistently Trading Division Trading and Principal Investment speeds up customer transactions and takes aptness positions through market making, trading of fixed income and equity products, currencies, commodities and swaps and other derivatives The Trading and Principal Investments activities: Fixed Income, Currency and Commodities, Equities and Principal Investments Slide 11: 3/20/2010 Sunil K.Sahni 11 Services Asset Management Deals with the investment necessities of institutions, governments and government agencies globally A strong understanding in local economies, industries and cultures facilitates a global relationship which assists in assuring customers of their wants; being access to investment opportunities, consistent, risk-adjusted performance, and solid and consistent returns Resources and Relationship and In-Depth Research Resources and Relationships have offices in the United States, London and Tokyo where they offer access to portfolio management teams on-site and globally In-Depth Research has a stronghold on research stems through cautious gathering of information and perspectives which facilitates knowledgeable decision making and objective of solid, consistent returns Slide 12: 3/20/2010 Sunil K.Sahni 12 Services Securities Services Securities services include Global Securities Services which is a group pertaining to Prime Brokerage, Securities Lending, Futures Services and Financing Services with a varying and global client base Securities services include Global Securities Services which is a group pertaining to Prime Brokerage, Securities Lending, Futures Services and Financing Services with a varying and global client base. Goldman Sachs also offers a Prime Brokerage product The Goldman Sachs Securities Lending programs give clients an opportunity to create incremental revenues through low risk and well-understood transactions Slide 13: 3/20/2010 Sunil K.Sahni 13 Services Risk Management Division which primarily delivers favorable returns compared to the market Goldman Sachs client base looks to risk management to create performance dependable with their forbearance to risk The company provides clients with mutual funds and asset management products in addition to specialized services for their institutional investors Goldman Sachs looks to provide clients with global capabilities, flexible technology solutions and easy access to information. Slide 14: 3/20/2010 Sunil K.Sahni 14 Major Subsidiaries Goldman Sachs International Cogentrix Energy GS Capital Partners Goldman Sachs (Asia) Finance Goldman Sachs (Japan) Ltd. Goldman Sachs Canada Inc. Goldman Sachs Foreign Exchange (Singapore) Pte. Goldman Sachs (UK) L.L.C Goldman Sachs Bank USA Goldman Sachs Foreign Exchange (Singapore) Pte. Goldman Sachs L.L.C GS Equity Markets, L.P. GS European Performance Fund Limited GSCP (DEL) Inc. GSGF Investments Inc. The Goldman Sachs Group, Inc. The Hull Group, L.L.C Sargasso Limited Menhetia Inc. Slide 15: 3/20/2010 Sunil K.Sahni 15 Industry Segment Composed of two segments: investment management investment banking and brokerage Major reporting segments: provides different services to clients serve the purpose of bringing savers and borrowers together By pooling the savings of individuals, they increase liquidity, improve diversification, and reduce transaction costs for investors national full-line firms large investment banks regionals New York City based brokers discount and online brokers Slide 16: 3/20/2010 Sunil K.Sahni 16 Global Competitors Global investment banks Goldman Sachs Citigroup Morgan Stanley JPMorgan Chase Merrill Lynch Europe’s Credit Suisse UBS AG Deutsche Bank U.S based investment banks hold top six places in the global competitions Slide 17: 3/20/2010 Sunil K.Sahni 17 Business Concerns Reputation Regulatory Issues Risk - Financial - Operational - Systemic Control Security Speed of Information Time to Market Business Continuity Planning Slide 18: 3/20/2010 Sunil K.Sahni 18 Slide 19: 3/20/2010 Sunil K.Sahni 19 External Analysis The Investment Services Industry Slide 20: 3/20/2010 Sunil K.Sahni 20 Five Forces Analysis Industry Attractiveness Slide 21: 3/20/2010 Sunil K.Sahni 21 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 Slide 22: 3/20/2010 Sunil K.Sahni 22 Competitive Advantage Slide 23: 3/20/2010 Sunil K.Sahni 23 Firm’sManagement Style Style - Management by objective Employee’s are given control over goal setting. Management only intervenes when something is not going right. Slide 24: 3/20/2010 Sunil K.Sahni 24 Organizational Structure Flat Minimum chain of command Efficiency is key Decentralized Authority is delegated to divisions, functions and employees at lower levels. Slide 25: 3/20/2010 Sunil K.Sahni 25 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 Slide 26: 3/20/2010 Sunil K.Sahni 26 Ratios Show’s Presented By : Presented By Sunil Kumar Sahni (MBA 2009-2010) 3/20/2010 Sunil K.Sahni 27

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