Goldman Sachs and the Future of the Internet Essay

Goldman Sachs and the Future of the Internet - Essay Example Gus Levy, senior partner of the firm from1969 until 1976, is known for articulating the firm’s investment strategy as being â€Å"long-term greedy;† i.e. willing to absorb short term losses in exchange for the promise of long term profits. The dark side of the company’s dealings has been the fodder of many a polemical writer, however, and not without cause. In 1928 it started the Goldman Sachs Trading Company, which operated much like a Ponzi scheme and collapsed in the crash of 1929. In 1970 it nearly went under when the Penn Central Transportation Company went bankrupt, owing tens of millions of dollars in commercial paper from Goldman Sachs. A crisis erupted which involved numerous lawsuits. In 2007 Two Goldman traders, Michael Swenson and Josh Birnbaum, made a $4 billion profit by short-selling subprime mortgage securities. By 2008 their involvement in the financial products contributed to the global meltdown that occurred that year. A source of long-term con troversy has been the ease with which Sachs employees transition into government roles. American president George H.W. Bush made former Goldman CEO Henry Paulson his Secretary of the Treasury. Current Secretary Timothy Geitner’s chief of staff is former Goldman lobbyist Mark Patterson. The current CEO of the company has visited the White House at least ten times since Barak Obama became president. It is reported that the firm was a major contributor to Obama’s 2008 campaign. (A Brief) This dichotomous image of being at once financial geniuses and underhanded opportunists is buttressed by Goldman’s activities since the early days of public Internet use. The company handled the IPO of Microsoft,... This essay stresses that Goldman profits regardless of how the company they promote fares over time. However, there are two possible disadvantages in this scenario. Goldman may not sell its holdings in the company before the bubble bursts. It will then lose the profits earned from the stock’s price going up. Additionally, investors may be reluctant to invest money in firms promoted by Goldman if their reputation suffers over the long term. This paper makes a conclusion that it is worthwhile for Goldman to invest in Internet firms such as Facebook is dependent on which scenario best benefits its overall profitability. Given that the last dot-com bubble is still remembered, a cautious strategy would be for the firm to exercise due diligence practices before promoting such companies. Unlike the 1990s, there now exist mature, stable web-based companies that show strong prospects for solid, continued growth into the future. The aforementioned Facebook is one example. This paper has only considered the question from a monetary viewpoint. There are also ethical considerations, however. Deliberately creating bubbles may benefit the firm doing so, but it virtually guarantees an economic contraction and ruined portfolios in the longer term. That same outcome can also be seen as undesirable purely from a selfish viewpoint. The world economy is currently in a very fragile state, largely due to the real estate bubble aftermath.

Business Research Essay Example | Topics and Well Written Essays - 2250 words

Business Research - Essay Example This trend of use of celebrities in adverts is not likely to change in the near future. The media have contributed to this obsession through overloading the society with information and demonstrations of celebrities and giving them entertainment. The use of celebrities in adverts accrues benefits not only to the organization but also to the celebrity. Through the use of a celebrity, the consumer feels a positive feeling of association and security. The consumers deem their celebrities as idols, and once they recommend the use of a product, they deem such products as of high quality. Consumers like to be associated with celebrities, and they end up buying such products because they would like to be like the celebrity. In essence, the use of a celebrity makes a product stand out and be recalled by the consumers. The use of a celebrity makes the products or services stand out. Celebrity endorsement has been regarded as a way of getting the brand noticed amidst the high competition in th e market environment. There are huge impacts of the use of celebrities in adverts among consumers through audio visual commercials. ... Relevance of the Research Numerous studies have been carried out to identify the impact of celebrity endorsements on sales and marketing. Nevertheless, there is disagreement and debate on the precise role of celebrity endorsement on customer discernment towards the brand. Customer attitudes form the basis for increased sales and marketing of a product. Some studies note that there is a weak correlation between the two while others state that there is a strong correlation between the two. This research proposal will provide a basis on the acquisition of insights in the field of consumer discernments towards a brand or product and the impact of celebrity endorsements on them to influence sales and marketing. This proposal will structure a systematic review with respect to these associations to offer marketing economists a useful guide on celebrity endorsement. Because this proposal will assist clarify the role of celebrity endorsement in adverts, it will also serve societal and practic al relevance. For organizations, it is particularly significant to identify the positive and negative effects of celebrity endorsement on the discernment of the customer towards the product and brand so purchase decision making and purchasing behavior can be increased. This paper will give insights on the significance of celebrity endorsement through giving reference to an example of celebrity endorsements such as David Beckham by Adidas. An enhanced comprehension of celebrity endorsement unquestionably prompts managers to take on an effective policy by which sufficient customer discernment will be engendered. This will lead to increased customer purchase intents, which will positively affect the