Key Strategies of Goldman Sachs Group Inc.

Goldman Sachs Group Inc.

Introduction

Having more than 150 years of solid industrial experience, Goldman Sachs Group has proven one of the leading financial institutions across the globe with multiple global rankings in its archives. The company pride itself on doing business with several top companies and corporations across the world including governments and private individuals. All of its business segments are strategically tailored to give every customer, regardless of their social and economic status the best customer service delivery, hence its global status as the best customer satisfactory bank. The success of this company has however been traced to the efficient use of its 4 key strategies, and although there are other multiple strategies utilized by Goldman Sachs Group Inc., to attain its feat, nonetheless, its major success boils down to these 4 major strategies. In this article, you would be shown in detail the 4 key strategies utilized by the giant company to achieve this great feat, however, not only would these key strategies, would, however, in addition, address other strategies utilized by this company which we recognized as contributing factors to the company’s growth and success.

Before delving to address the key strategies of Goldman Sachs Group Inc., it would be worthwhile to address and discuss the company in brief and have a glimpse of the major components that uphold the company. Thus, in this section, a quick review of the company’s core values as well as the aftermath of those core values after they are being adhered to which technically births – its competitive advantages, that is, the edge the company has over its industrial counterparts. 

Core Values 

Core values are key drivers that shape a company’s identity and the way it would operate. The core values of top companies all around the world serve as the foundation upon which the company’s successes are laid. In fact, core values are the key metrics that would determine how far a company’s strategy would go and how successful it would be; for it is the values that everyone tends to add whilst using the company’s core value as a template that guides them into taking rational actions and making positive decisions in favor of the company  

Core values of Goldman Sachs Group Inc. Include: 

Partnership 

Customer Service 

Integrity 

Excellence 

Competitive Advantages 

As said in the introductory part of this section, competitive advantages are the byproducts of a company’s core values are competitive advantages which give the company an edge over several competitors. Goldman Sachs Group Inc. includes:    

Global Presence 

Exceptional Expertise 

World Class Brand 

Risk Management 

Innovation 

Firmwide Strategy: The Four Key Strategy of Goldman Sachs Group Inc.

Following the integral aspect of this piece which is to give a detailed review of Goldman Sachs Group Inc., key strategy, this section will thus address the four basic strategies utilized by Goldman Sachs Group Inc., to achieve its successful feat. These four key strategies are recognized and name-tagged by the management of Goldman Sachs Group Inc., as “Firmwide Strategy”  which implies they are overarching strategies used across all branches and affiliates attached to the company. It is crucial to note that the use of these four strategies led to the birth of other smaller strategies which would be addressed in the succeeding part of this piece. 

Goldman Sachs Group Inc., Firmwide strategy comprises four major components they are: 

Strategy and GS Accelerate: 

This aspect takes a broad snapshot of the company’s overall operations – business segments, divisions, products and services, market niches, sales, and marketing, et cetera, and with the help of a formidable team of experts set aside to manage and control this strategy, the company draws an efficient blueprint to consistently propel the company onward.  

Mergers and Acquisitions: 

Another key strategy of the company are the style it has chosen in buying and acquiring companies. Goldman Sachs Group Inc. has an eye for companies with future potentials that is, long-term potentials, rather than companies with short-term success. This is evident in the philosophy and advice of the company’s founder, Marcus Goldman which states that investors should be greedy for long-term benefits of an investment rather than be weary of its short-term losses. Hence, with this belief inculcated into the company’s system, Goldman Sachs Group Inc., consistently purchases companies that are key players in the financial industry and as a result continued to outstretch its business dominance. 

The Office of Integration: 

This strategy strictly deals with enhancing and supporting the company’s overall distinctive culture. This Firmwide strategy ensures that the goals, objectives, as well as any related information about the organization, are clearly spelled out and disseminated to relevant stakeholders which include its members of staff, its customers, as well as the general public, and the strategy has worked efficiently for the company. For instance, employees who are furnished with the right information about the company’s goals and objectives and how far they have gone would be motivated to deliver optimally in order to achieve more goals for the company.

Strategic Investing:  

Since the company’s inception in 18969, Goldman Sachs Group Inc. has consistently invested in diverse areas such as human capital investment, asset investment, innovation, and technology investment as well as investment in the social and philanthropic courses.  The strategy has paved a soft ground for the company to stride on and the confluence of these series of investments has led to the massive growth of the company. 

Additional Strategies: The Byproducts of the Firmwide Strategy 

Human Capital Development 

Acting as the byproduct of strategic investment, this strategy consistently develops the human capital of Goldman Sachs Group Inc., which comprises all members of its staff. With relevant and frequent training and conferences, Goldman Sachs Group Inc., is able to mobilize its formidable team of experts to help deliver its services and product offerings to the general public. 

Preaching the Goldman Sachs Culture  

Serving as the byproduct of the office of integration strategy, Goldman Sachs Group Inc., leverages its clear and understandable corporate culture to build itself an uncompromising internal force that is responsible to drive the company into its expected and desired status. Using key factors like Business Principles (including, operational excellence, exceptional clients services, commitment to responsibility, and integrity, winning culture), Code of Conduct (including, portraying its heritage, how it treat its major stakeholders), Code of Ethics for Finance Professionals (involving the ethical disposition of its professionals) as well as its Leadership Governance; Goldman Sachs Group Inc., is able to put the entire organization in shape for its massive exploits.         

The Compliance System 

Compliance is an integral aspect of every financial institution as such must be held in high esteem, Goldman Sachs Group Inc., understood this fact and has leveraged its internal control to build itself a brand that runs automated checks and balances of the overall operation of the company. Units such as internal audits, risk management, finance, and regulations compliance are tailored to ensure the company has a strong and viable control system in place.  

The Client-Centric Approach 

This approach attests to Goldman Sachs Group Inc.’s understanding that the key to the success of every organization solely depends on its customers, Goldman Sachs Group Inc., strives meticulously to ensure it gives nothing but a delightful and memorable service experience to every customer regardless of its sex, age, race, and financial status. As a result of this commitment, all its business products, and service offerings which include: Investment Banking, Asset Management, Wealth and Consumer Management, as well as the Global Market – are built using a customer-centric approach that helps retains and build a long-lasting relationship with every single customer that comes in contact with the company.  

Passion for Continual Growth:  

This serves as the byproduct of Strategic and GS Accelerate and is one of the key drivers of the company’s incessant expansion and resilience. Through this strategy, Goldman Sachs Group Inc. has been able to grow exponentially taking down key players in the industry.  

Commitment to Social Course 

Serving as the byproduct of Strategic Investing, Goldman Sachs Group, partners with companies that values human development, and together they help me provisions to help support ad improve the social wellness of their immediate communities through innovative programs as well as social-oriented programs that help harmonize the human space.    

Conclusion 

As you have been shown extensively in this piece, the key strategies of Goldman Sachs revolve around the four aforementioned strategies known as the Firmwide Strategy which comprising four aspects including, Strategy and GS Accelerate, Merger and Acquisition, Office of Integration as well as Strategic Investing. With the Firmwide Strategy, however, comes multiple byproduct strategies which include, passion for continual growth, the client-centric approach, the compliance system, preaching the Goldman Sach culture, as well as human capital management. That said being, I hope you are able to understand how important and crucial strategies are for firms through this article, and the success of every company is tied to how efficient they are able to utilize and leverage their strategies.