Rolex is not like the majority of other watch companies. In fact, Rolex conducts business in a very different manner.
“The Rolex Way,” as the company’s slogan goes, could be applied to the way the company is run. Non-profit is not the first thing that comes to mind when thinking about a Gian luxury corporation like Rolex.
But the truth is that Rolex is still a non-profit organization. However, there is more to it than that. The foundation was founded in memory of his late wife, Florence Frances May Wilsdorf-Crotty, who died in 1944.
They pay their employees and donate the remainder of their profits to charity, which is why they are classified as a ‘non-profit organization.’ The term “non-profit” does not imply that the organization is uninterested in making money and seeing positive results.
However, Rolex differs from its competitors in that it does not have any owners or investors who may want a say in how the company is run; as a result, Rolex donates a large portion of its profits to charity and social causes.
A nonprofit organization (NPO), also known as a non-profit entity, not-for-profit organization, or nonprofit institution, is a group dedicated to furthering a specific social cause or advocating for a common point of view.
In economic terms, it is an organization that uses its revenue surplus to further its ultimate goal rather than distributing its income to the organization’s shareholders, leaders, or members.
Having said that, being a non-profit does not imply that the company is uninterested in making money and seeing positive results.
However, what it does allow, which distinguishes Rolex from its competitors, is that it has no shareholders or investors who may want a say in how the company is run, but it also places pressure on the company to keep the stock price high and constantly increasing, as well as increasing sales and profits.
Unfortunately, this has the potential to lead to the company being run with a short-term profit mindset rather than a long-term brand-and-company-building strategy that allows the company to thrive for many decades to come. Many companies, for example, release a plethora of limited-edition models solely to boost short-term sales, without considering the impact on the long-term value and strength of the brand.
Some have speculated that Rolex could continue to operate for years with no revenue at all, relying solely on what they’ve saved in the corporate mattress. But we’ll never know for sure because, due to their legal status, neither Rolex S.A. nor the Wilsdorf Foundation is required to disclose their financials.
That’s about it for this blog, if you have any further clock/watches-related questions, feel free to use the comment section below. And if you want to read an interesting article on why clocks don’t appear in dreams, we have a great article on just that so do give it a click if you are interested “Why don’t clocks appear in dreams? Clocks and dreams!“. Here is also a link about the history of clocks if you want to give that a look “History of timekeeping devices“