LG turns crisis into opportunity
Company LG Electronics announced today its new long-term business plan and strategy aimed at preserving the company's success in the current business environment.
To maintain product leadership and increase market competitiveness, the Executive Director of LGE Yong Nam confirmed that the company is not going to reduce - and perhaps will even increase - investments in research and development, marketing, branding and design.
«Every company - and not just LG - was affected by economic downturn», said CEO LGE We, who successfully led LG Telecom from the Asian financial crisis of 1997. «The poor performance of many global companies in the last quarter of 2008 were a call to action, to what we had to take not only preventive, but decisive action».
The company said that to intensify their efforts to increase market share despite the unstable economic situation. To achieve this, LG has restructured its business portfolio to focus on areas with long-term potential for growth and profitability. In order to strengthen the position of the brand partnership will continue to play a role as a major element of the marketing activities of the company.
LG will continue to invest in promising areas such as the use of solar energy batteries, commercial air conditioners and B2B solutions. Ie across all sectors, which are expected LG, expand and become more profitable as soon as the economy recover.
At the end of 2008, LG Electronics has established a Crisis Operations Center Crisis War Room, comprises five units LG, eight regional headquarters and their leaders to implement and then manage the offensive business plan company. Only three short months of Crisis Operations Center, in collaboration with each of the units and departments of the company, such as managing supply chains, marketing, procurement, human resources and finance, has been identified and developed 11 key action plans. Units of the task teams, which will assume responsibility for management initiatives to reduce costs.
LG plans to reduce the cost of 3 trillion Korean won in 2009. This initiative throughout the company, which includes the headquarters and 82 branches worldwide and applies to production, and indirect costs. LG at the global level, working on further optimization, which includes everything: from raw material to investment in equipment, financial services and recruiting. LG optimization efforts have already led to a reduction in residual stocks, improve the management of supply chains and a more consolidated sales throughout the process.
To strengthen its global position of the company, LG will continue to direct significant resources to improve standards at the global institutional level. Efforts are being spent on the stage of implementation, include the improvement of HR systems, restructuring of business portfolios, focusing on the central client processes, selection and preservation of talented employees, the elimination of unnecessary costs and continued development of innovations in technology and design. As LG is now represented by the heads of non-holding five of the seven highest positions, and also taken to work around 200 other professionals throughout the world to control the marketing, supply and procurement system.
To maintain product leadership and increase market competitiveness, the Executive Director of LGE Yong Nam confirmed that the company is not going to reduce - and perhaps will even increase - investments in research and development, marketing, branding and design.
«Every company - and not just LG - was affected by economic downturn», said CEO LGE We, who successfully led LG Telecom from the Asian financial crisis of 1997. «The poor performance of many global companies in the last quarter of 2008 were a call to action, to what we had to take not only preventive, but decisive action».
The company said that to intensify their efforts to increase market share despite the unstable economic situation. To achieve this, LG has restructured its business portfolio to focus on areas with long-term potential for growth and profitability. In order to strengthen the position of the brand partnership will continue to play a role as a major element of the marketing activities of the company.
LG will continue to invest in promising areas such as the use of solar energy batteries, commercial air conditioners and B2B solutions. Ie across all sectors, which are expected LG, expand and become more profitable as soon as the economy recover.
At the end of 2008, LG Electronics has established a Crisis Operations Center Crisis War Room, comprises five units LG, eight regional headquarters and their leaders to implement and then manage the offensive business plan company. Only three short months of Crisis Operations Center, in collaboration with each of the units and departments of the company, such as managing supply chains, marketing, procurement, human resources and finance, has been identified and developed 11 key action plans. Units of the task teams, which will assume responsibility for management initiatives to reduce costs.
LG plans to reduce the cost of 3 trillion Korean won in 2009. This initiative throughout the company, which includes the headquarters and 82 branches worldwide and applies to production, and indirect costs. LG at the global level, working on further optimization, which includes everything: from raw material to investment in equipment, financial services and recruiting. LG optimization efforts have already led to a reduction in residual stocks, improve the management of supply chains and a more consolidated sales throughout the process.
To strengthen its global position of the company, LG will continue to direct significant resources to improve standards at the global institutional level. Efforts are being spent on the stage of implementation, include the improvement of HR systems, restructuring of business portfolios, focusing on the central client processes, selection and preservation of talented employees, the elimination of unnecessary costs and continued development of innovations in technology and design. As LG is now represented by the heads of non-holding five of the seven highest positions, and also taken to work around 200 other professionals throughout the world to control the marketing, supply and procurement system.
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