Goldman Sachs Strategic Recommendation

505 Words3 Pages
Sergio Turbides BUS451 Assignment # 4 Professor Bateh February 28, 2012 Strategic recommendation for Goldman Sachs Based on Goldman Sachs’ SWOT analysis, I would like to suggest a few key points that the firm may find resourceful. While reviewing the weaknesses and threats of Goldman Sachs, I saw that the firm has been going through rough economic downturns specifically within the European region due to the financial crisis in that area. My advice to the firm for this issue would be to refocus on its strong points and develop ways to keep these points profitable despite the financial troubles. In addition to that, the firm should limit the amount of investing in places that are deeply impacted such as Spain, Greece, and Italy. In no way am I suggesting to completely abandon business activities in these countries, but staying and helping to restructure financial stability in these places may prove to be beneficial sometime in the future, but for now they should focus on the areas that are economically stable. Also since Goldman has large amounts of investments and assets in Europe, It would be wise to strengthen its risk management practices. This way the firm can ease vulnerability in the troubled markets of Europe. Since Goldman Sachs is known far and wide for being considerably the best in the business segments of investment banking, institutional client services, mergers and acquisitions, and investment management, I would like to also recommend based on the SWOT analysis for them to put more emphasis on their core competencies. They should also capitalize on conditioning and empowering their employees on how to execute the key functions so that the performance in their main segments does not continue to decline and affect profitability. A strong competent employee body will always prove beneficial, and in properly educating their
Open Document