Samsung – “Embedding Long-Term Wealth Creation”
While there may be several goals that a company centers its organizational culture, practices and strategies on, including but not limited to profit maximization, social responsibility or change, etc., many argue that long-term wealth creation is perhaps the most prudent goal to central planning and strategy on.
Wealth refers to the cumulative value of all a company’s assets. Wealth can include land, buildings, factory machinery, office equipment, capital, etc. In this context, long-term wealth creation means accumulating multiple income streams or making numerous lucrative investments that increase the monetary value of the enterprise.
Embedding long-term wealth creation in the organization’s culture and ways helps companies achieve sustainability for the long run as well as increase the longevity of firms. To execute this properly, firms must carefully plan and strategize investments that promise returns and meet the organization’s needs. According to research, embedding long-term wealth creation in the company’s goals provides a competitive advantage to firms. Additionally, growing the overall wealth of the company proves to be promising in the eyes of potential investors and current shareholders of the business. For these purposes and more, multinational giants like Samsung have made this practice a core part of their growth and sustainability.
Samsung expanded to diverse industries
While the company is most famously known for its electronics and consumer tech products, not many know that Samsung originally began as a trading company. Over the following three decades, however, Samsung expanded into several different industries, including food processing, textiles, insurance, retail, securities, shipbuilding, etc. This diversification into other areas of business showcase Samsung’s dedication to increasing the long-term wealth of the company, as opposed to merely maximizing profits. Indeed, Samsung venturing out into the electronics industry is what has brought about the company’s exponential growth and has made it the Fortune 500 MNC it is today.
What are the future plans of Samsung?
Recently, Samsung announced plans to invest upwards of 200 billion USD over the next two to three years. Again, the company has set its sights, this time, on the biopharma, semiconductors and telecommunication sectors. In addition to this revelation, it also revealed plans for new mergers and acquisitions to strengthen its market position and safeguard its technological innovations. This is in line with other investments Samsung has made over the years, such as acquiring the US company Viv, which researched and developed Artificial Intelligence tech; its most noticeable work being Siri, the AI assistant used by Apple. In a similar move, later in the same year, Samsung bought out the Canadian company Rich Communication Services, which worked on developing new text messaging technologies.
While these are only some of the strategic investments Samsung has made since it first opened shop, these investments have factored significantly into enhancing the long-term wealth and longevity of the company by not only providing additional sources of income but also strengthening its position in respective markets by keeping Samsung a step ahead of its competitors.
Check the following reference articles to learn more about Samgsung – “Embedding Long-Term Wealth Creation”
- Park, K. (2021, August 24). TechCrunch is part of the Yahoo family of brands. TechCrunch. (URL)
- Study.com | Take Online Courses. Earn College Credit. Research Schools, Degrees & Careers. (n.d.). Study.Com. Retrieved February 16, 2022, from (URL)
- Wikipedia contributors. (2022b, February 11). Samsung. Wikipedia. (URL)
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