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Goldman Sachs Case Study

Decent Essays
1. Why Goldman Sachs Needs a Systematic Approach

Historically, Goldman Sachs (GS) has been known for its high-end performance and reputation as one of the top investment banking firms in the U.S. Placing its customers’ interests as the first business principle (Groysberg and Snook, 2005, p. 16), GS takes pride in the high-quality work and heavy teamwork culture in order to execute the best in class financial services. As a small firm, GS relies on its apprenticeship model, where a new manager will informally learn the job and leadership from an experienced leader (Groysberg and Snook, 2005, p. 7). However, the booming of financial service opportunities, the introduction of the High Tech industry, and the global expansion of the firms in the 1990s reveals that there is a discrepancy in GS’s mentorship model and the business goals of the firm. Consequently, GS should consider supplementing the current training method with a more systematic approach to leadership development to prepare its leaders for the changing business contexts.

1.1 Competitive Investment Banking Service

From 1990 to 1999, the continuous bull market and the Initial Public Offering (IPO) of many private firms promote the growth of investment banking business. Since the larger resources mean higher competitiveness for the banks (Groysberg and Snook, 2005, p. 2), many financial service firms are consolidating to increase their competitive advantages. GS’s reputation requires the company to deliver its
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