INTRODUCTION

LG Mobile Communication Company (LG) is a global leader and innovator in the worldwide
mobile market, providing consumers with better mobile experiences through its advanced mobile
technology and premium handset design capabilities. LG is the largest handset provider in the
global CDMA market, and is rapidly expanding its presence in the GSM market.

HISTORY

LG Group is a grand South Korean chaebol (corporation), which was established in 1947 as a
‘Lucky Gold star’ and its short form LG, is assumed in 1995. LG provides good class electronics
devices including LG mobiles and petrochemical products. Before its short abbreviation LG
many electronic products were sold with the brand name Gold star, whereas several other
domestic products were sold with the brand name Lucky. Furthermore, the Lucky brand was
very victorious in South Korea for producing domestic cleaning goods and laundry detergents.
LG, a world-shattering developer that facilitated commercialization of iris recognition
technology in 1999, is the recent world leader in controlled iris recognition technology
classifications for security, privacy improvement, convenience, productivity and other identity-
dependent applications.

C.E.O, DIRECTOR, OWNER

The CEO of the company is Mian Pervaiz Akhter; the board of director’s is Mian Zeeshan
Akhter, Main Shazaib Akhter, AbduL Rauf and Naeem Akhter.

NATURE OF BUSINESS
The nature of the business is trading and manufacturing of different product. The company
business is divided in two divisions. One is Home Appliances and the other is GSM Mobile.
Home Appliance products are Air-condition, Refrigerators, Microwave Oven, Television, Audio
System, Washing Machine etc. In the field of cell phone devices LG cell phones are very famous
because of its latest technology and newest design models.

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PRACTICE OF MANAGEMENT

LG management practice is more effective and efficient. The management function that usually
follows after planning and it involves the assignment of tasks, the grouping of tasks into
departments and the assignment of authority and allocation of resources across the company. The
LG management is based on three group’s Upper management. Middle management and Lower
Management Company have two divisions and both divisions have separate Director’s Managers
and Staff. Company have running his business through proper departmentalization which are

Human Resource Department

Sales Departments
Marketing Department
Finance and Accounts
Leasing Department
Administration Department
Each department plays a vital role in the company business. Every department is based on Team
work. All departments’ managers coordinate with each other. The upper management designs a
hierarchy structure. The management provides clear direction to their employee’s and is to
ensure effective coordination of employee’s across departments. They set a formal task assigned
to individuals and departments formal reporting relationship including line of authority, decision
responsibility, and numbers of hierarchical levels and span of manager’s control. The
management of the company follows the three forms of the authority which are line authority,
staff authority and team authority. Company Line authority is direct supervisory authority from
superior to subordinate. Authority flows in a direct chain of command from the top of the
company to the bottom. Chain of command is an unbroken line of reporting relationships that
extends through the entire organization that defines the formal decision-making structure. It
helps employees know to whom they are accountable, and whom to go to with a problem. Line
departments are directly linked to the production and sales of specific products. Supervisors -- in
line departments, such as marketing and production give direct orders, evaluate performance, and
reward or punish those employees who work for them. Unity of command within the chain states
that each person in an organization should take orders from and reports to only one person.

The company Staff authority is more limited. The authority is based on expertise and which
usually involves advising line managers. Staff members are advisers and counselors who aid line
departments in making decisions but do not have the authority to make final decisions. Staff
supervisors help line departments decide what to do and how to do it. They coordinate and
provide technical assistance or advice to all advisors, such as accounting, human resources,
information technology, research, advertising, public relations, and legal services.

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Team authority is granted to committees or work teams involved in an organization's daily
operations. Work teams are groups of operating employees empowered to plan and organize their
own work and to perform that work with a minimum of supervision.

Company Team-Based structures organize separate functions into a group based on one overall
objective. Empowered employees create their own schedules, design their own processes, and
are held responsible for outcomes. This facilitates efficiencies in work process, and the ability to
detect and react to changes in the environment. Employees with the skills and knowledge to
manage more than one specialized task are able to promptly provide customers with quality
products and services. Cross-functionally training team members allows any member to perform
a variety of problem-solving tasks.

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SUCCESSFUL STORY OF THE COMPANY

Global leader and technology innovator in consumer electronics, LG mobile announced strategic
changes to the company’s structure, effective January 1, 2009.

At the core of LG reorganization is an increase in its focus on business solutions for tomorrow’s
challenging environment.

The company’s business portfolio has been restructured to maximize growth potential in existing
businesses while at the same time fully developing new ones.

““This strategy will enable us to capture even more of the ever-expanding commercial market. It
will also help LG expand the value chain from device (hardware) to solutions and allow us to
better address the lifestyle needs of our current and future customers.”

In addition to the changes to the company’s business units, the company so many achievements
in the past years which are

• Introduced the world's first CDMA digital mobile phone in 1996.

• Achieved annual growth rate of 46 percent from 2001 to 2006.
• 64 million in total sales in 2006 (25 million GSM/UMS +39 million CDMA unit).
• World's top CDMA handset producer.
• In 2006, launched the world's first 3G UMTS (WCDMA) commercial DVB-H phone
(U900).

LG has sold 64.4 million handset units globally, a 17 percent increase over last year, in part due
to its global hit product, the LG Chocolate. Given the rapid growth of the 3G market and LG's
position in the global

LG is the second biggest gainer (approx 17% share for a player who has just been active since 2
years) with most of the success came from its 2 successful models LG KG195 & KG270.
In 2007 to 2008 the LG mobile company got achievement for the highest sale of cellular in
Pakistan. Our Governor Sindh ISHRAT-UL_ EBAD gave a award to director Main Zeeshan
Akhter. The company designs a strategy to increase our sale. Company gives lots of scheme and
incentive to the dealer’s. The company gave tours for Korea to the dealer’s who achieve the
highest sales in the market. This strategy enhances the dealers they do more efforts and get
maximum success.
FAILURE STORY
In 2009 July the company faces a big problem due to damages of the mobile phone in rain. The
company starts downsizing because they cannot afford lot of expenses and they cannot take a
position again in the market because of non availability of stock and dealer’s demand for stock
for sale.

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RECOMMNEDATION
LG should provide better services and try to solve the hanging problem
LG Company should increase the awareness about 3G services
Company should offer more range of Rs 2000 or less than 10000 with advance options.
LG should try to expand its market share and also should try to increase the awareness through
the television advertisement.
LG Company should increase their distribution channel
The company should continue to work on the strategy of Total quality management
Consumer does not get satisfied with the promotional policies of the company. New techniques
of promotion are required to create awareness about the entire name of company products..
More detailed customaries service is to be provided.

The training to in shop demonstration should be given at frequent time interval and feed back
should be considered positively.

The company should look into the matter of person hiring for in shop demonstration. A big LG
showroom should have at least 2 such kind of person.

LG should try new dealer who have the potential. So they can target more market.

As there is a bottle neck competition between Samsung and LG, it is necessary to take measure
steps to overcome the area of downfall in LG with respect to Samsung.

The marketing managers should make better relations with dealers and reputation of the
company.

Customer considers quality as their first preference, so the company should give more stress on
this.

The switching of customer from LG product to other brand is due to the bed after sell service in
shop.

The product is well aware and it is on top of mind of customer. So company should always
improve services and update their technology.

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CONCLUSION

LG mobile is increasing its market share but that is only due to the sale of low end products. At
this point market is flooded with counterfeiting phones coming from china. So they must
explore new market or re visit their strategy in their existing markets. It is about time LG focus
on its advertising strategy for high end products and has more sophisticated approach. This
would improve the brand image of LG mobile in the market. If LG is able to change the
perception of the consumers about the brand it will for sure see a growth that is sustainable in
the long run as well.