CORPORATE STRATEGY

ASSIGNMENT 1
REPORT ON LG COMPANY
SUBMITTED BY: MADHAV RAJBANSHI (19MBAJ0228)
SEC-D
MARKETING
DATE OF SUBMISSION:21 APRIL
FACULTY FACILITOR: Prof. LRS MANI
INTRODUCTION
 COMPANY BACKGROUND
LG Electronics is a core company of south Korean conglomerate LG group,
along side LG Chem. Founded in 1958, LG Electronics has led the country’s
electronics industry since its early days as the first producers of radios, TV’s
and other appliances. Now, it’s the second largest electronics maker after
Samsung Electronics.
Although LG Electronics lags far behind Samsung in semiconductors and smart
phones, the two companies are in close competition in areas such as TV’s
washing machines and refrigerators, at home and abroad. Head hunting and
patent infringements suits are also common between the two companies, LG
Electronics is known for its more laid-back work atmosphere compared to
Samsung, which requires its employees to deliver results in a short time.
Its affiliated companies, such as LG display and LG Innotek, produce liquid
crystal display panels and electronic parts. Amid increased competition with its
Chinese rivals in consumer products, LG Electronics aims to boosts sales of
electronics parts outside the group. IT has for example, set up a divisional
specialization in research and development and supply to automakers.
Koo Bon-joon, vice chairman of LG Electronics, is the brother of LG
corporation. Chairman Koo-moo, and the grandson of Koo In-hwoi, the
company founder. He cannot ignore his brother when making important
management decisions.
  BUSINESS SUMMARY
LG Electronics, Inc. engages in the manufacturing of displays devices, home
appliances, multimedia goods, electronics parts and develop software. It
operates through the following business area: Home entertainment, Mobile
Communications, Home appliances, Air conditioning, Energy Solution and
Independent Business area. The Home Entertainment business area provides
products such as televisions, monitors and personal computers for IT, car
infotainment and produces chemical and Electronic materials. The Mobile
communication business area offer products such as handset and tablets. The
home Appliances business area provides products such as refrigerators,
washing machines, cooking and cleaning and health care appliances. The
Independent business area provides products such as compressors, storage
devices, PC, telematics and solar cells. The company was founded by In-hwoin
Koo on oct 1, 1958 and its headquartered in Seoul, South Korea.
  VISION, MISSION, OBJECTIVES

VISION
LG Chem aims to connect science, which incorporates accumulated knowledge
knowledge, technology, and solutions with new insights towards a better
future life.
Connect
 Providing values to inspire customers based on their needs
 Linking organically with various external technologies and capacities

Science
 Establishing a new identity that encompasses science (knowledge,
technology, solutions) beyond chemistry
 Creating novel innovations that coverage knowledge from new fields

Life
 Connecting products and technologies to diverse parts of life
 Enriching the lives of customers and, furthermore, humankind

Better future
 Leading the construction of a sustainable future
The vision statement for LG Group is its strategic plan for their future-
defines what and where LG group Company wants to be in the future.
The vision statement for LG Group is a document identifying the goals of
LG group to facilitate its strategic, managerial, as well as general
decision-making processes.
  MISSION
To provide branded products and services of superior quality and value that
improves the lives of the world’s consumers, now and for generations to come.
LG committed to providing electronic products that helps customers lives
better. To support this, LG wish to continue bringing added value to the lives of
consumers. The mission of LG is to reach the customers with utmost
satisfaction through leadership.

 Objectives
LG strives to intensify the customer’s life and lifestyle with intelligent features,
institutive functionality and exceptional performances.

 BCG matrix of LG company

In this article we will discussed detailed, BCG matrix of LG Corporation which

operate is multidimensional company. Following are the segments of LG
Corporation, electronics, telecommunication and chemicals and each segment
has its subsidiaries. LG electronics subsidiaries are as follows, LG electronics,
LG display, LG Innotec, LG siltrom and lusum. Following are the subsidiaries of
LG chemical, LG chem, LG household and care and LG hausys. Subsidiaries of
LG Telecommunication are, LG up plus, LG international corp, LG CNS and
SERVEONE.
QUESTION MARK
Question mark are those segments which are operating in the high sales
growth rate industry and has low relative market share. LG telecommunication
segment can be labeled as Question mark because the profit center has low
market share and telecommunication should decide whether to invest more
money to increase the market share or sale it. If more money is invested on
the product development segment may turn into star. LG is investing more
money in the segment in this segment by offering more bundle deals to its
customers and by horizontal integration (purchasing the company of its
competitors and merging it with segment subsidiary.

CASH COWS
Those segments come in to the fold of cash cow’s category, which are
operating in the low sales growth industry but market share is very high. LG
chemical segment falls into the category of cash flows. LG Corporation has
been milking this segment for years despite the low industry growth rate,
chemical segment is generating a huge revenue. LG chemical is one of the
leading segments in chemical industry.
STARS
Such as segments have high market share and operate in the high sales growth
industry. LG electronics comes into the category of stars. Most of the revenue
of LG corporation is generated by Electronics segment. LG Electronic
manufacture many products such as televisions, home appliances, watches and
mobile devices.
DOGS
Dogs are the segment which are operating in low sales growth industry and
have low market share. None of LG segments fall into this category.
  LG McKinsey 7S model

STRATEGY
The strategic direction and the overall business strategy for LG group are
clearly defined and communicated to all the employees and stakeholders. This
helps the organization manage performance, guide actions, and devise
different tactics that are aligned with the business strategy. Moreover, the
business strategy’s definition and communication also make operations fort LG
group more transparent and aligns the responsibilities and actionsof the
company.
STRUCTURE
LG Group has a flatter organizational hierarchy that is supported by learning
and progressive organizations. With lesser managerial levels in between and
more access to the senior management and leadership, the employees feel
more secure and confident and also have higher access to information.
Moreover, the flatter processes for LG group and increases organizational
commitment in the employees.
SYSTEMS
LG Group has defined and well-demarcated systems in place to ensure that the
business operations are managed effectively and that there are no conflicts or
disputes. The systems at LG Group are largely departmental in nature, and
include, for example:
-Human resource management
-Finance
-Marketing
-Operations
-Sales
-Supply Chain Management
-Public relation management
-Strategic Leadership

SHARED VALUES
The core values at LG Group are defined and communicated to foster a
creative and supportive organizational structure that will allow employees to
perform optimally, and enhance their motivation and organizational
commitment. The core values at LG Group include, but are not limited to:
-Creativity
-Honesty
-Transparency
-Accountability
-Trust
-Quality
-Heritage
The LG Group business also ensures that all its activities and operations are
conducted with high ethical and moral standards that redefined and
benchmarked against international criteria.

STYLE
LG Group has a participate leadership style. Through a participate leadership
style, LG Group is able to engage and involve its employees in decision-making
processes and managerial decisions. This also allows the leadership to regularly
interact with the employees and different managerial groups to identify and
potential conflicts for resolution, as well as for feedback regarding strategic
tactics and operations. Through its participate leadership, LG Group is able to
enhance employee motivation, and increase organizational commitment and
ownership amongst employees as well as other stakeholders.
STAFF
LG Group has a sufficient number of employees employed across its global
operations. Employees for different jobs roles and positions are hired internally
as well as externally-depending on the urgency and the skills level required.
Based on this, it is seen that LG group has employee who are skilled as per the
requirements of their job roles and positions. All employees are given in house
training to familiarize themselves with the company and its values. External
training along with in-house training is provided for skill level enhancement.
All job roles and positions are designed to facilitate the achievements of
business goals, and as such, employee skill level at LG Group is sufficient to
achieve the business goals of the company.

SKILLS
LG Group has a commendable workforce, with high skills and capacities. All
employees are recruited based on their merits and qualifications. LG Group
prides itself on hiring the best professionals and grooming them further to
facilitate growth and development.
THANKYOU