Goldman Sachs versus Deutsche Bank

Goldman Sachs versus Deutsche Bank Free Essay

The Goldman Sachs is known to have been founded in 1869 and it’s an American investment bank, which specializes with financial securities, investment banking and financial services (Vault, 2010). Its major clients are institution as compared to the Deutch bank whose major clients are corporations, private and public business clients. The deutsche bank is a German bank whose network is covered globally. This bank is in over 74 countries and with more than 100,000 employees (Vault, 2010). The product and services offered by this bank range from risk management, derivatives, fund management, wealth management to mergers and acquisitions. It should be noted that the Goldman Sachs is a primary dealer in the US Treasury security market.

Structure, Network and Value Chain of Goldman Sachs

In terms of structures, bank value and network base of these two financial institutions when compared it will be observed that the Goldman Sachs bank by its fiscal financial year ending 2010 they had a revenue worth $39.2 billion while the Deutch bank had a revenue of $28.47 billion (Andre, 2010). Given their $8.54 billion difference in operating income it can be stated that the Goldman Sachs investment group had a higher gross profit value which gives them an edge over the Deutch bank when it came to conducting of their global business. At the same time the Deutch bank incurred allot of expenses, which involved catering for salaries of there over 100,000 employees as compared to the 36,000 people who worked for the Goldman Sachs (Vault, 2010). These two financial institutions have really helped shape how banking business and investment is conducted on the global arena.

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In summary, the Deutsche bank organizational structure is divided into, Corporate and investment bank, Private wealth management, communication, private client and asset management and acquisitions thus making it live by its motto of making it the best financial institution in the world while the Goldman Sachs lack such a detailed division of work and this form of divisions helped the Deutsche get through the 2008 financial crisis.

PEST Analysis of Goldman Sachs

PEST analysis involves analyzing, Political, Economic, Social and Technological factors affecting the financial operation of an organization. Given the case of Goldman Sachs, it should be noted that they have a strong political and economical support of the government as they are involved in the US Treasury security market. They also enjoy fair taxation policies and tariffs as compared to other investment banks. The Goldman Sachs is also involved in many social and charitable activities; this has led to an increase in sales of its products for consumers can easily identify with them (Vault, 2010). There has been great investment in technological innovation by the company. This has enabled their customers to access their services online and in real time and at the same time it has been costly for them to implement this technological changes.

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