Case Study
Case A explores Goldman’s corporate strategy and growth, charting its history from when
Marcus Goldman moved to the US and launched a commercial paper business in 1869. It
follows the firm’s expansion in terms of its products/services, and its growth via acquisitions
and alliances. Throughout the 20th century it built a reputation for innovation as a leader in
M&A advisory, but remained firmly focused on investment and wholesale banking (the B2B
side). Subsequently, in the aftermath of the 2008 financial crisis and a period of
underperforming on the stock market, Goldman pivoted to retail banking in search of new
growth and more stable sources of income. How effective its strategy would be remained to
be seen.
Case B explores how Goldman Sachs built the capabilities to enter consumer finance – a
whole new market. Whereas others entered the market through acquisitions, alliances, or
internal development, Goldman began by recruiting talent and gradually building a consumer
business internally, then adding a combination of bolt-on acquisitions, partnerships, and
further internal initiatives. The case ends in 2022 with the question: Did Goldman Sachs
choose the right strategy?
Faculty
Associate Professor of Strategy
Professor of Strategy
