Management Case Study
Running head: MANAGEMENT CASE STUDY 1
MANAGEMENT CASE STUDY
Management Case Study
Case Question One
The external environment that affected Goldman Sachs was the financial crisis that happened in 2008. The company was in the undertow of the financial crisis that happened globally. This financial crisis affected Goldman Sachs to a point that it let a percentage of its workers go. To be exact, approximately 3000 workers were forced to leave their jobs and this was a clear indication to most of the shareholders that the company was heading for the worst. The external shareholders got nervous and started selling their shares ahead of time before the company got into trouble. Majority of external shareholders decided to pull out. The reaction of other shareholders made them follow the same path. Goldman Sachs executives tried to talk to the external shareholders to assure them that the company would pull through, but the shareholders did not listen. Stakeholders who parted ways made the stock prices fall from a peak of $247.92 by 50%. The pressure finally made the company announce that it was transforming from an investment bank to a holding company bank. The new transformation meant that the company was now under strict federal laws they had low profits and there was little creativity that tends to maintain the culture they used to have.
Case Question Two
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The partners at Goldman Sachs refer to the owners and employees of the company. They are 470 employees out of approximately 35,000 employees globally. Their role in the company is to get a share of the company's total profits of the company. The New York Times refers to this as an investment opportunity that is not offered to other employees of the company. The New York media meant that the partners do not want other employees to have a share of the profit even if the company makes massive profits. Their role is to be the chief owners of the company since they have a majority of shares in the company. The partners also make the highest-level team of management decisions in the company. They ensure that all decisions are made by them to avoid any faults that might put the company in a bad situation. The partners demonstrate that they only care about their interests, and they do not want decisions to be made by other people. The partners are also responsible for maintaining the company's assets over long periods of time. The senior executives at the company also have developed a culture of high risks, high returns. The high risk, high returns culture, however, has a limit that cannot be crossed by the partners. The partners ensure that the company makes the right decisions internally. The partners in the company make it difficult for other employers to rise in their carrier ranks since most of the partners want the same position as well. The unhealthy competition means it will be difficult for an ordinary employee to compete with the owner for the same position. No matter how hardworking or creative you are, it is difficult to rise in ranks. This makes employees at Goldman Sachs work harder at all times. The owners are also responsible for hiring the best people in the job market. This makes every employee competitive and keeps the company's culture at the high level.
Case Question Three
Charles D. Ellis described the Goldman Sachs organizational model as effective and having a good decisive advantage in the management. Goldman Sachs has a good communication structure that has speed, accuracy and the extent of communication that is within the organization. The organization has two main strategies; that is its approach to recruiting and the loyalty of the employees. The company believes in collaboration of the workers, teamwork and integrity. All these make the organization deliver the best services to their clients. There is leadership that is portrayed to everyone who is creative and has ideas to bring to the table. This means that any employee can become a leader and employees are not treated as just employees but as leaders as well. This is the reason Goldman Sachs employs the best workers in the market. This means that great brains are at the company and with great minds great things come as a result.
Case Question Four
Goldman Sachs is described as impossible to beat in terms of its culture. The company believes that culture holds the key to its success for years. The workers who are employed by Goldman Sachs are the top 5 employees in the market, and this means that they are smart in whatever they do. The workers are competitive towards each other trying to please the companys executives in order to get promotions and better pay. However, individual ambitions come to the fore for the sake of being noticed. Individualism can be of importance to an employee whenever their managers notice them for their hard work. The individual work at times slows down the teamwork that is considered useful. Despite the employees being ambitious individually, they are also required to show teamwork in order for them to be considered for promotions. Individual work, therefore, ensures that the employees are hardworking and ambitious at all times making them the most productive workers. The company was among the best 20 because of its culture. If I were a top manager at the company, I would encourage the same culture, but ensure that the workers engage in teamwork. Without teamwork, the company cannot be productive as it should have been. Therefore, I would ensure that the employees balance their individual ambition and robot-like teamwork.