Goldman Sachs
Goldman Sachs
1. Which forces in Goldman Sachs’s external environment have accounted most for “the fortunes of fate” that the company – indeed, the investment banking industry – has experienced since 2008? The forces in Goldman Sachs’s external environment that accounts most for “the fortunes of fate” are the economic dimension, the sociocultural dimension and the regulators that are part of the task environment. For the economic dimension is when Goldman Sachs was in time of a global financial crisis, which made some of the investors at jittery and nervous and so they begin to sell off their shares until the company’s stock price fell in half. After they transitioned from an investment bank to a holding – company bank and the big external force were the regulators; like the Securities and Exchange Commission, and the sociocultural dimension. When they transitioned, they differed from their high-risk, high- return culture because at the time they needed to respond to the changes of customs and values in their society and their company, which is the reason why they became a holding-company bank. They adjust to what ever happens in their environment and is one of the reasons why Goldman Sachs’s has been able to survive for so long in the financial market.
2. Explain the roles of Goldman’s partners, both as owners and employees, in forming and managing its internal environment.
As owners, Goldman’s partners helped the company form its internal environment by investing their own money and handling the company’s assets long term. As owners they also help by leading as example for their employees by at first showing their values in high-risk high reward and hard work and then recruiting employees with the same values. This will help shape the future of the corporate culture by recruiting the certain and specific employees. Their recruiting process is a very gruesome task but is a very big part of Goldman Sachs’s strategy to further shape the company’s internal
1. Which forces in Goldman Sachs’s external environment have accounted most for “the fortunes of fate” that the company – indeed, the investment banking industry – has experienced since 2008? The forces in Goldman Sachs’s external environment that accounts most for “the fortunes of fate” are the economic dimension, the sociocultural dimension and the regulators that are part of the task environment. For the economic dimension is when Goldman Sachs was in time of a global financial crisis, which made some of the investors at jittery and nervous and so they begin to sell off their shares until the company’s stock price fell in half. After they transitioned from an investment bank to a holding – company bank and the big external force were the regulators; like the Securities and Exchange Commission, and the sociocultural dimension. When they transitioned, they differed from their high-risk, high- return culture because at the time they needed to respond to the changes of customs and values in their society and their company, which is the reason why they became a holding-company bank. They adjust to what ever happens in their environment and is one of the reasons why Goldman Sachs’s has been able to survive for so long in the financial market.
2. Explain the roles of Goldman’s partners, both as owners and employees, in forming and managing its internal environment.
As owners, Goldman’s partners helped the company form its internal environment by investing their own money and handling the company’s assets long term. As owners they also help by leading as example for their employees by at first showing their values in high-risk high reward and hard work and then recruiting employees with the same values. This will help shape the future of the corporate culture by recruiting the certain and specific employees. Their recruiting process is a very gruesome task but is a very big part of Goldman Sachs’s strategy to further shape the company’s internal