Leadership and Management Development
Introduction
Investors are always interested to know about the market capitalisation of the companies and
prefer to invest in those which have the value of million and billions. But what happens when
an investor sees a Trillion dollar company; there are usually two things they either get happy
if they have even a single stock of that company or get burst out badly if they either sold that
stock few days or months or years back. The same happened when Apple became the first
trillion dollar company and got the tile of being a Mega company.
Mega companies
By the word Mega we mean Big and Mega Corporation means big companies but the
question is what we actually mean by the big companies. A company can be big in terms of
its revenues, size, sales, market capitalization, employee base etc. Earlier in 1955, when
Fortune magazine listed America’s 500 biggest corporations then it considered revenue as a
parameter for stating the companies as mega companies. That year General Motors got the
first position with around $10 billion annual sales and it was big not only in terms of
revenues but also in terms of market capitalisation, assets, employment etc. As per the article
issued by the New York Times, Apple with US$1 trillion market valuation has been
considered as the mega company. Here, we could see that New York Times has taken market
capitalisation figure to title the company as Mega Company (The New York Times, 2018).
So, now-a-days companies with the highest market capitalisation are considered as mega
companies.
I do agree with the conclusion of the article which states that the when a company become
mega company in terms of market capitalisation then it lead to the problems like stagnant
wages, rising income inequality, a shrinking middle class etc. Earlier where only 109
companies were enjoying half of the total profits earned by the public trading companies now
it is just 30 companies enjoying half of the corporate profits. Half of the gains of indexes
come from the top 5 tech companies which include Apple, Facebook, Google, Netflix and
Amazon. However, it is good for an index only till the above stated companies are earning
profit or else it could lead to a big problem in case they incur losses. In America,
consolidation of corporates and their profits has started posing its adverse impact beyond the
stock market. Earlier, roughly two third of the total nation’s wealth was going to the workers
but recently from 2000s we could see that this share of worker has not gone up even a single
inch above 59% (The New York Times, 2017).
Significance of a trillion-dollar company
No doubt, being first in anything draws much attention than being second or third. The same
thing happened when Apple became first trillion dollar company. After becoming a trillion
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