Long Term Wealth Creation

 

 

 

 

 

Long Term Wealth Creation

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Introduction

In the contemporary business environment,  long term wealth creation cannot be ignored by any committed corporation with a need to attain corporate social responsibility. Such companies are mainly concerned with the preservation of and expansion of natural, social, and human capital assets, which are critical for business operation and subsequent prosperity. In this regard, this paper delves into the description of long-term wealth creation and the possibility of embedding it in the heart of an enterprise (Hayes et al., 2015). This paper considered Apple Inc as a case study. Long-term wealth creation lies at the heart of the enterprise, and corporate leaders realize that companies ought to be structured and run for the long; to these corporate leaders, shareholder value and profits are enablers for long-term wealth creation but are not an end in themselves (Enderle, 2011).

Achieving the Long term Wealth

According to Hayes et al. (2015), there is an inextricable link between the well being of the society where a business operates and the well-being of the business itself. Similarly, Caldwell & Hansen (2010) posits that the well-being of society depends on the quantity and the quality of both non-human and human capital that can be obtained, mobilized, and aligned towards a production process. Therefore, significant benefits from a vast pool of global talent can be drawn by a company by committing to the enlargement of human capital stock. Further, a company can achieve long-term wealth creation through investment in the conversation of the environment; such endeavors can yield benefits to both the company and create the long-term well-being of the planet, communities, and countries. In the same vein, the support the expansion of social capital by the business and the society through action plans and advocacy for the regulatory and legal environment, democratic process, human rights, and the rule of law both the business and the society stand to benefit (Madden, 2010).

Although there are several impediments in long-term wealth creation, practice is helpful for a business to be successful. For instance, the temptation to stop induced by the companies that can reap benefits from other priorities, but have little or no willingness to commit to participating in the expansion strategies could be persuasive. Second, is the temptation to partake in short-time profits at the expense of the commitments to long-term creation of wealth, for instance, the attention to flows in capital investment in the short-run including a focus on private equity funds or hedge funds could seem significantly a worthy option (Caldwell & Hansen, 2010). However, the business should choose to align itself for a more sustainable option by aligning to the relevant internal or external policies, legislation, mandates, and required behavior under the long-term wealth creation strategies.

Case Study

Apple has undertaken several strategies to ensure long-time investment over the years. First, the brand since the 1980s fas worked to create a name over the years identical to design and innovation (Finkle & Mallin, 2010). The tech-giant also worked towards earning the trust of its employees, investors as well as customers. According to Cascio (2014), apple has workes the path of long term wealth creation by creating a long term corporate vision trough focus on new products and updates, innovation, and openness to creative culture. Apple has also worked over the years to implement employee retention as a strategy to ensure that the long-term wealth creation concept embeds in the hearts of the employees and their service delivery. The company has a retention of about 90% (Patel, 2020).  Through such strategies coupled with strategic leadership, and corporate governance, Apple has been able to experience immense growth, its valuation has grown manifolds, its share price was $0.39 in December 1980, and in July 2020 it is close to $364.11 (Nwogugu, 2015; Patel, 2020). In light of all the above points, we can say that Apple Inc has created an extremely long-term wealth creation model that looks to be more reliable over the coming years leading to more sustainable growth and prosperity.

 

 

 

 

 

 

References

Caldwell, C., & Hansen, M. H. (2010). Trustworthiness, governance, and wealth creation. Journal of Business Ethics, 97(2), 173-188.

Cascio, W. F. (2014). Utilizing employer branding, performance management, and human resource development to enhance employee retention.

Enderle, G. (2011). What is long-term wealth creation and investing?. 2011), Corporate Sustainability, and Business Ethics Cheltenham, UK, and Northampton, MA, USA: Edward Elgar Publishing, 114-31.

Finkle, T. A., & Mallin, M. L. (2010). Steve Jobs and Apple, Inc. International Academy Journal for Case Studies, 16(7), 31-40.

Hayes, L. A., Caldwell, C., Licona, B., & Meyer, T. E. (2015). Followership behaviors and barriers to wealth creation. Journal of Management Development.

Madden, B. J. (2010). Wealth creation: A systems mindset for investing and building in businesses for the long term (Vol. 541). John Wiley & Sons.

Nwogugu, M. C. (2015). The Case Of Apple, Inc., Corporate Governance, and Business Processes. Corporate Governance and Business Processes.

Patel, P. CASE STUDY III.