LG ELECTRONICS

Presented by:- Group 5

Nayan Agarwal
Nitish Sharma
Neelesh Sinha
Piyush Mittal
Mukul Krishnatray

ABOUT LG ELECTRONICS
1.

Organization Name

LG Electronics Inc.

2.

Headquarter

LG Twin Towers, 128 Yeoui-daero,

Yeongdeungpo-gu, Seoul, Korea.

3.

CEO

Bon-Joon Koo

4.

Date of Establishment

1st Oct, 1958

5.

No. of employees

82,432 employees
(Korea: 38,440 & Overseas:
43,992)

6.

Main Products

TV, Home Theater System,

BluRay Player, Mobile Handset,
Laptop Computer, Refrigerator,
Washing Machine, Cooking
Appliance, Vacuum Cleaner,
Health Care Appliance, Air
Conditioner, Monitor, Security
System, Commercial Display,
etc.

FINANCIAL OBJECTIVES
In
2015-16
million $

2013-14

Sales
EBIT
Net Profit

2014-15

(Forecasted
)

$
54701.27
$ 1554.27 $ 1694.15
$ 426.15 $ 464.51

$ 48256.46 $ 50184.65
$ 1061.66
$ 189.30

Future financial forecast has been done as

per the Consumer electronic industrys
growth at a rate of 9%.
Reduction in overall tax incidence due to
the effect of GST will lead to increase in
disposable income which will further lead to

NON-FINANCIAL OBJECTIVE
Strive to become a brand recognized by customers for
the worlds best quality & safety products.

To acquire and retain customers by improving their

after sale service facility.

To increase the use of recycled materials and enhance

the e-waste management system.

To target new rural market where electricity facility has

been provided recently.

Employee training program should be conducted on

regular basis to improve their skills for the
demonstration of new product.

VISION
LG Electronics pursues its 21st century vision
of becoming a true top global digital leader
who can ensure its customers satisfaction
through its innovative digital products and
services.

LGE seek to secure three core capabilities:

product leadership, market leadership, and

people-centered leadership.

MISSION
LG Electronics ensures high quality and
constantly updated products to further ensure
its success as a top electronics manufacturer.
It embrace the philosophy of "Great Company,
Great People," whereby only great people can
create a great company, and pursue two
growth strategies involving "fast innovation"
and "fast growth."

MISSION EVALUATION
MATRIX
S.No

Criteria

1.

Customer

2.

Product or Service

3.

Markets

4.

Technology

5.

Concern for Survival,

Profitability & Growth

6.

Philosophy

7.

Self-Concept

8.

Concern for public image

9.

Concern for employees

Yes/No

EXTERNAL ANALYSIS
POLITICAL
- High Import Duty, GST
- Export promotion schemes
of Indian government.

ECONOMICAL
- Increase in per capita
income.
- Growing GDP high
disposable income, Increase
in spending.

PEST
SOCIAL
- Manufacturing Eco friendly
product
And Improving life style.

TECHNOLOGICAL
- Improvement in technology
made electronic products
cheaper.
- Focus on Smart
Technology adds
convenience and joy to
customers.

FIVE-FORCE MODEL
The
The Bargaining
Bargaining Power
Power of
of
Suppliers:Suppliers:- LOW
LOW
TUSCOR
TUSCOR INTERNATIONAL
INTERNATIONAL
BALAJI
BALAJI ELECTRONICS
ELECTRONICS
SUNSHINE
SUNSHINE ELECTRONICS
ELECTRONICS
PVT.LTD
PVT.LTD

The
The Bargaining
Bargaining power
power of
of
customers
customers (buyers):(buyers):- HIGH
HIGH
Mid
Mid to
to High
High price
price sensitivity
sensitivity
Customers,
Customers, Dell,
Dell, NEC,
NEC, ASUS,
ASUS,
Apple
Apple

VRIN
Resource/Capa
bility

Valuable

Rare

Costly to
Non
imitate? -substitut
e
Yes
No

Product

Yes

No

Research and
Development

Yes

Yes

Yes

Yes

Financial

Yes

No

No

Yes

Human
Resources

Yes

Yes

No

No

Organizational

Yes

Yes

No

No

VALUE CHAIN ANALYSIS

CORPORATE STRATEGY

Opened up a new mobile payment gateway

known as LG pay.
Focus on product innovation.
LG's corporate strategy focus on the long-run by
setting
Divisional, Strategic and Product

BUSINESS STRATEGY

LG is producing goods and services that are

unique to the market with the use of
differentiation strategy.
LG has differentiated its products using
technology and health benefits. The CTV range
has Golden Eye technology, air-conditioners

FUNCTIONAL STRATEGY
IT Innovation and develop new
technology
Research and Development

ORGANIZATION STRUCTURE

BALANCED SCORECARD
Area of
Objectives
Customers
1 Brand Identity
2 Satisfaction
Employees
1 Employee
Moral
2 Service
Training
Operations
1 Diversify
product line
Business Ethics

Measure or Target

Time
Expectation

Industry reports/Market Cap. Yearly

Customer Survey
Yearly

Marketing Officer
Marketing Officer

Survey

People Officer
Administrative
Officer

Administrative
Officer

Yearly

Recycling

No. of seminars
Yearly

LG Pay (Mobile Payment

Gateway)
Yearly

Recycle 50% of total wastes

Yearly

Financial
1 Revenues

Yearly

Yearly

Primary
Responsibility

Increase by 9% each year

Better than
Ratio Analysis competitors/industry Avg.

People Officer

Financial Officer
Financial Officer
(David jung)