Strategic Analysis of Goldman Sachs: Market Position and Value Chain

This report provides a comprehensive analysis of Goldman Sachs, a leading investment bank, focusing on its strategy management. It begins with an introduction outlining the importance of strategic planning for organizational success. The report then evaluates Goldman Sachs' performance, market position, and value chain using SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The analysis highlights the company's strong customer satisfaction, successful track record, and skilled employees. It also discusses weaknesses such as the lack of innovation in core business, challenges from new competitors, and inadequate investment in R&D. The report explores strategic planning, including mission, vision, and strategic objectives. It examines the application of the Ansoff matrix for market penetration, market development, product development, and diversification. Furthermore, the report applies Porter's generic strategies, including cost leadership, differentiation, and focus strategies. The report concludes with an action plan including budget allocation and controlling/monitoring practices to implement the proposed strategies effectively.

Strategy Management
13

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Part A: Evaluation of performance, market position and value chain required...........................3
Part B: Plan about the company’s strategies................................................................................4
PART B...........................................................................................................................................8
Reflection.....................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Forming strategies is something which is very much essential for the companies or
organisation to perform. The strategies are make to achieve the organisation their desired level of
goals or objectives and organisation makes the strategies or adopt the strategies which enables
them to reach them to their goals. This report discusses about the market positions, value chain,
reflection and about the competitive advantage of the company and they uses these factors with
the use of various strategies and models. For reference purpose this report has taken an example
of a company, Goldman Sachs Group. It is a bank which deals in investments and services
related to finance. It has its head quarters in New York City. Various services are provided by
this bank some of which may include brokerage, investments, management of asset and many
others. Goldman Sachs Group bank was founded in the year 1869.
TASK
Part A: Evaluation of performance, market position and value chain required
The competitive strength and weakness can be ascertained by performing the SWOT
analysis for the company. The SWOT analysis is the evaluation or analysis of internal factor of
organization which helps the company in analyzing its internal factors. Through SWOT analysis
the organization makes their strategies accordingly. The SWOT analysis of Goldman Sachs
Group is as follows:
Strengths:
 The level for customer satisfaction is
very high, as the services providing by
the company are very promising.
 The past record which the company has
is very successful.
 The company has very motivated and
skilled employees.
 Apart from this the company has
operated and performed very well in its
business market and life yet, which has
helped in gaining the confidence and
trust of the people into the market.
Weakness:
 The company does not catch any
success beside their own core business
which is a biggest weakness they have.
 It also been said that the company is not
able to handle the competition which it
is facing from the new entrants of the
industry.
 The demand forecasting of the
Goldman’s company is also not
appropriate which helps them in
estimating the approximate demand
they will going to have in the near
future.
 The technology which is used by the
company is also not upgrading or new
according to the market technology up
gradation which impacts the
performance of activities of company.
 It has also been noticed that the
investment which the company does in
R&D department is not appropriate

which has resulted in lack of
development in the R&D area and
makes them little behind from other
competitive companies.
Opportunities:
 The mergers and acquisition can be a
big opportunity for the company which
it can explore more for its growth and
success.
 The company can also put its
investment in up grading its technology
so that its customers can avail its
services within the shortest period of
time. Technology in financial service
sector is what the customers are looking
for because now the customers want
their transactions and services to be
done within the shortest time possible.
Threats:
 The company does face the threat from
any unfavorable change in the political
factor.
 Apart from this the increase in
competition in the market place within
its sector has created the tension and
burden for the company.
It has been noticed that the market position of the Goldman’s Sach bank is among the highest in
all bank which is present and operate in the world with the total market share of 7.5%. The
services which the company has yet managed to provide to their customers or into the market
have helped them in gaining the more trust and customer base. The percentage of string customer
base is highest with this bank (Chang, 2016). Apart from this the company is the innovator is
various policies and the financial ideas which have given a new path or way for investment.
The company with some of the much strength also needs to make some of the changes to acquire
more value chain in its operations. The major value chain which the company can gain is from its
improvement in technology. The improvements in technology would help the company in
serving the customers with more better and advance services. This can also help them in gaining
the competitive advantage. The Goldman Sach bank can also gain value chain in innovating the
new services and products which can make the financial market more strong and innovative.
Part B: Plan about the company’s strategies
As far as increasing serious edge in market, it is critical for individual organization like
Goldman Sach bank to deliberately execute their arrangements by thinking about their huge
apparatuses and strategies. For this, Goldman Sach bank can improve its online presence with the
assistance of vital arrangement regarding expanding intensity (Cheng and et al.,2017). For this,
key arrangement ought to be figured in Goldman Sach bank so legitimate execution of plan can
be done:

Mission: The mission is to offer acceptable quality items and administrations to their potential
clients considering their inclinations and necessities that helps in conveying great quality items
to clients regarding creating viable client base.
Vision: To become the extraordinary pro of financial division by attempted noticeable standards
and ways of thinking regarding achieving huge objectives and goals.
Vital Objectives:
•To upgrade its online administrations regarding fulfilling the prerequisites of clients and
furthermore increment their deals by 20% toward the finish of next two years.
•To increment the client base by 12% in a year.
Strategies which the company may apply:
Ansoff Matrix: In terms of noticeably accomplishing development in the market
Goldman Sach bank utilize Ansoff network as far as distinguishing the manners by which
organization can accomplish development in market.
•Market Penetration: According to this methodology current items and administrations of the
organization are given in the current market by considering the low costs improve advancements,
etc (Gajfullina and et al., 2017). It is useful for the organization as far as and guaranteeing their
piece of the pie and coming to towards the enormous number of clients regarding expanding
deals. It is considered as the safer development procedure which is helpful purchase Goldman
Sach bank so as to improve their piece of the pie and development. By offering unmistakable
items at the low costs divider what can reach and require huge number of clients in the market
region.
•Market Development: Undertaking this is methodology for and items are offered in the new
Marketplace by which most extreme number of clients can be reached in the different market. It
is useful for the organization so as to pick up the Economics of scale by coming to towards the
white market as far as improving the globalization of an organization and worldwide brand
picture that can be created by organization in the market. Regarding Goldman Sach bank they
can go into the developing business sector by expanding their market arrive at which is useful so
as to upgrade the productivity (Liu and et al., 2018).
•Product Development: Undertaking this methodology organization can offer new items and
administrations inside the current market as it is useful for the organization and request to reach
to the new client base and furthermore accomplish development in Strategic way. This should be
possible by the organization with the assistance of appropriate innovative work of different
organizations and Rivals (Lyngso, 2017). In connection with divider what they can utilize this

system by upgrading their item like creation improvement in them at the online stage so various
administrations can be offered to their clients so as to improve the consumer loyalty.
•Diversification: Considering this procedure and Organization will in general offer new items
and administrations in the market as it is considered as the least secure system which is it
incorporate both the market and item new and it takes part of interest as far as entering in the
new market and building up another item. It is useful for the organization so as to accomplish
upper hand in the market territory by considering the prerequisite of clients that prompts offer
imaginative items. Goldman Sach bank can utilize this procedure as far as growing in the
developing business sector and furthermore offer assorted assortments in their items.
Goldman Sach bank can utilize above talk about system as it prompts increment their client base
and market reach by offering conspicuous serious items to their expected clients. Goldman Sach
bank can utilize item separation as far as improving the advancement of its concerning items by
attempted the inclinations and necessities of clients.
Porter’s Generic Model: regarding increasing upper hand in the market zone watchman's
nonexclusive model can be gotten as it is useful for the organization so as to choosing the
successful methodology for focusing available. Noteworthy procedures that are useful for
Goldman Sach bank are talked about as underneath:
•Cost leadership: This procedure portrays that organization build up its items and administrations
at the low costs which is helpful for organization itself to procure enormous market zone and
draw in clients towards them. This is technique can be gotten by Goldman Sach bank by a casing
its item at the limits and deal which is helpful for them so as to draw in enormous number of
client base as correlation with its rivals so the high benefit can be accomplished by organization.
•Cost focus: According to this system organization attempt to accomplish cost advantage as far
as selecting the little market with the goal that organization can turn into the cost head in the
particular market territory. It is useful for organization so as to get serious inside the particular
market so high gainfulness can be accomplished (Nelipa and Batrymenko, 2018).
•Differentiation leadership: Undertaking this methodology organization wills in general objective
the necessities of enormous market thinking about the upper hand by offering various items and
administrations to their clients. With the assistance of concerning technique unmistakable
changes are attempted in regards to the prerequisites and requirements of clients that can be

satisfied distinctly by offering them extraordinary items and administrations by which
organization can get serious in-market and endurance gets smooth.
•Differentiation focus: In this procedure organization can zero in on the fundamental prerequisite
of little portion clients by which they can turn out to be exceptionally serious as far as meeting
the necessities of target market fragment. This technique offer chance to association regarding
giving various items in contrast with their rivals inside the market.
Along these lines, as far as Goldman Sach bank they can select separation administration
procedure regarding improving their online administrations considering the inclinations and
needs of clients that can be accomplished in a conspicuous manner. It tends to improve the
necessity of clients by offering simple and quick administrations that can spare their time and
give them quality items.
Action Plan:
Financial plan allocation: In terms of noticeably actualizing the methodologies chose by the
organization it is basic that successful financial plan is created undertaking the exercises that are
required for the entire cycle. It is useful for the organization to improve the productivity and
adequacy of wanted outcome as it will in general execute the technique for upgrading the online
administrations of Goldman Sach bank by considering the noticeable spending that can be
successfully utilized by organization (Vogelmeier and et al.,2017).
Particulars Amount (£)
Advertising activities 3300
Company’s personnel’s 8000
Investment in technology or R&D 170000
Cost for materials 36000
Controlling and Monitoring: It is noteworthy that noticeable controlling and checking
rehearses are executed under taking the usage technique of methodology so expected objectives
and destinations can be practiced. With the assistance of key execution pointers and
benchmarking instruments it tends to be done so effectively thinking about the distinctions of
genuine and assessed result and furthermore productively make improvement during the
execution of methodology.

PART B
Reflection
Undertaking this module has been learning and advancing experience for me as I got the
opportunity to see by what method the general presentation of an organization can be assess. Not
just this, I got a chance to discover that it is significant for an association to keep up an elevated
level of execution as it can add to its general gainfulness just as position in the market. I
comprehended the significance of a vital arrangement for the organization and its function in
helping the organization accomplish its objectives and targets in a compelling way. I got an
opportunity to build up a superior comprehension of one of the main financial associations,
Goldman Sach bank in a productive way. My general reasoning abilities have advanced while
watching a vital perspective on an organization inside its market.
The module will add to my general vocation improvement later on the grounds that I need to
construct my profession in the financial business. There are different aptitudes that I have
learned by embraced this module, similar to my general composed correspondence has improved
and I am ready to introduce my contemplations in a substantially more successful manner (Wang
and et al., 2018). I can say that endeavor this module has just added to building my general
reasoning aptitudes and expanding my capacity to comprehend various ideas quicker.
Accordingly, the module will help me in my profession as it has helped me in learning new
ideas.
CONCLUSION
From the above report, it tends to be reasoned that vital administration assumes a
significant function inside an association and causes it accomplish its objectives and destinations.
It permits associations to create and define viable systems and settle on educated choices.
Goldman Sach bank is a main organization working inside the US financial market. It has had
the option to keep up a solid hold of the market on account of its qualities and powerful vital
administration. Subsequently, if an organization needs to hold its clients and stay serious, it
ought to receive different procedures that permit it to direct its business tasks easily and viably.

REFERENCES
Books & Journals
Chang, J. F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Cheng, X., and et al.,2017. High efficiency power management and charge boosting strategy for
a triboelectric nanogenerator. Nano Energy. 38. pp.438-446.
Gajfullina, M. M., and et al., 2017, June. Formation of strategy of effective management of fixed
production assets of oil company. In International Conference on Trends of
Technologies and Innovations in Economic and Social Studies 2017. Atlantis Press.
Liu, H., and et al., 2018. Pilot injection strategy management of gasoline compression ignition
(GCI) combustion in a multi-cylinder diesel engine.Fuel. 221. pp.116-127.
Lyngso, S., 2017. Agile strategy management: techniques for continuous alignment and
improvement. CRC Press.
Nelipa, D. and Batrymenko, O., 2018. Strategy, management model and educational scientific
civil servants training program in postgraduate studies of the university. Науковий
вісник Національного гірничого університету. (2). pp.178-183.
Vogelmeier, C. F., and et al.,2017. Global strategy for the diagnosis, management, and
prevention of chronic obstructive lung disease 2017 report. GOLD executive
summary.American journal of respiratory and critical care medicine. 195(5). pp.557-
582.
Wang, H., and et al., 2018. A new strategy for integrated urban water management in China:
Sponge city. Science China Technological Sciences. 61(3). pp.317-329.