Evaluating the SWOT Analysis: Goldman Sachs Bank - Case Study Example

Evaluating the SWOT Analysis: Goldman Sachs Bank Evaluating the SWOT Analysis: Goldman Sachs Bank Company’s competitive position Goldman Sachs Bank is still in a strong competitive position. The organization’s culture contributes to its superiority in the market. Research attributes the profits and durability of the bank to its robust culture. A culture is a normal and existent way in which an organization operates. The culture in a company outlines the attitudes upheld by the workforce in executing their duties.

The organization boasts an extensive domination of over-achievers as its major composition of high-level management. A solid trust exists between the company and its’ partners. This is because the company has a culture of producing high returns in highly risky investment ventures. The corporation focuses on orienting the employees to their expectations. This contributes in creating a long-term culture of diligent commitment and teamwork spirit amongst the employees. The company embraces a culture of proper integration between one’s ambitions and the inter-mural play.

Goldman Sachs Bank flourishes in a fast, accurate, extensive, and robust communication network that enhances the efficiency in the company’s operation. Can it pursue its current business or corporate-level strategy profitably? The company is in a good position to continue pursuing its business level strategies and maintain its profitability. Goldman Sachs Bank integrates three crucial strengths in its operational structure. The strengths are so wide, diverse, exceptional, and important in any organization in its course of pursuing profitable business strategies (Bhagat & Bolton, 2013).

The company benefits at large from the loyalty of its staff, the staff recruitment strategy, and the reliable command structure. The employee’s operation as a family creates focus and a motivated spirit to contribute to the achievement of the organization’s goals. There is high motivation to the workers through monetary compensation and rewards that boosts their commitment and loyalty. The company hires perfectionists. It involves highly skilled personnel in the recruitment process. The company recruits individuals with an already built passion for success.

The bank operates on a flat institutional structure with a pattern of shared command for two top managers. This approach strengthens the capability of the company to implement viable and profitable strategies. Measures to turn weaknesses into strengths and threats into opportunities A solution to the slow decision-making process is the incorporation of a more efficient decision-making technique in the managerial structure. The Majority Rule is a proper recommendation. In this technique, individuals make a single votes and the group goes for an option that receives the greatest number of votes.

The technique is simple, fast and has a fair representation of the personnel’s decisions. Training over the importance of humility in teamwork is a solution to the managerial blunders that arise because of an employees’ stubbornness. The training may cover a wide range of topics that may boost the operation of the bank. The company’s projection over the decline in the health of the mortgage market necessitates a significant decrease in mortgage-backed securities. The process needs to be efficient and drastic.

The strategy helps in sustaining the capital for loaning new consumers. The aim to focus on minimizing losses and maintaining profits is practical way to evade the storm New functional, business, or corporate strategies to accomplish the change It is not pragmatic for the company to develop a new corporate strategy. The bank already has an established viable working environment for business. The strategy in place is still a success to the operation of the business. Goldman Sachs Bank generates massive profits from the high risking strategy.

The corporation needs to reduce on mortgage investments. This is because it is normal for the market to be unhealthy at some point and healthy at another time. Dropping on the number of mortgage investments increases the chances of adaptability to the next change in the market. Evading the business change strategy helps in sustaining the company’s competitive advantage in the market. References Bhagat, S., & Bolton, B. J. (2013). Bank executive compensation and capital requirements reform.

Social Science Research Network. Available at SSRN 1781318.