This document provides an introduction and overview of an internship report on an organisational study conducted at LG Electronics PVT LTD. It includes declarations, acknowledgements, contents, and an executive summary. The internship lasted 4 weeks with the objectives of gaining business insights and understanding how the different departments function within the organization. The report examines LG's marketing strategies, procurement practices, and McKinsey's 7S framework as applied to the company. It also provides a SWOT analysis and discusses the learning experience.

1. Internship Report On
“ORGANISATIONAL STUDY”
By
APOORVA D MUNIKRISHNA
[USN: 1AM16MBA04]
Submitted to
VISVESWARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
INTERNAL GUIDE EXTERNAL GUIDE
DR. K RAJESH KUMAR Mr. RANA PAL
[HOD-MBA] [HR BUSINESS HEAD]
DEPARTMENT OF MBA
[AMC ENGINEERING COLLEGE]
(18TH KM, Bannerghatta Road, Bengaluru-5600830
[Batch: 2016-2017]

3. DECLARATION
I Apoorva D Munikrishna hereby declare that the project report entitled “A
ORGANISATIONAL STUDY IN LG ELECTRONICS LTD,” prepared by me under the
guidance of Dr.K.Rajesh Kumar and External assistance by Mr.Rana Pal (HR Business
Head).
I also declare that this project work is towards the partial fulfilment of university
regulation for the award of degree of Masters of Business Administration by VTU, Belgavi.
I have undergone a internship project for a period of 25days, I further declare that
this project is based on the original study undertaken by me and has not been submitted for
the award of any other university/institution.
PLACE: APOORVA D MUNIKRISHNA
DATE: 1AM16MBA04

4. ACKNOWLEDGEMENT
I take this opportunity with pride and immense pleasure to thank DR.T.N.Srinivasan
Principal, AMC Engineering College, Bangalore who gave me an opportunity to undergo
research study.
I am very much thankful to DR.Rajesh Kumar, Head of the Management Studies for the
extensive help he rendered to carry out this study and for this guidance and valuable
suggestions in the preparation of the project work.
I would like to convey my grateful thanks to Mr. Rana Pal, the Human Resource Business
Part ner of LG Electronics PVT LTD who guided me offering all sorts of assistance and took
special interest in giving me training to make it a success.
Place: Bangalore APOORVA D MUNIKRISHNA
Date: 1AM16 MBA04

5. TABLE OF CONTENTS
CHAPTER PARTICULAR PAGE NO.
1 INTRODUCTION ABOUT INTERNSHIP 1-3
2 ORGANISATION PROFILE:
 BACK GROUND
 NATURE OF BUSINESS
 VISION, MISSION AND QUALITY POLICY
 PRODUCT/SERVICE PROFILE
 OWNERSHIP PATTERN
 ACHIEVEMENTS/ AWARDS
 FUTURE GROWTH AND PROSPECTS
4-26
3 Mckensy’s7S FRAMEWORK WITH SPECIAL
REFERNCE TO ORGANISATION UNDER STUDY
27-33
4 SWOT ANALYSIS 34-37
5 ANALYSIS OF MARKETING STRATEGIES 38-42
6. LEARNING EXPERIENCE 43-44
BIBILOGRAPHY 45

6. EXECUTIVE SUMMARY
LG is a multinational Company having its presence all over the world. LG Electronics’ brand
recognition in the global consumer electronics market has increased exponentially in the past
two years The Company successfully achieved “Global Top 3” status in almost every
business area in the first quarter of this year. Much of this success can be attributed to LG
Electronics’ commitment to drive “Innovation” and “Globalization”. LG Electronics is re-
inventing its global procurement organization from highly decentralized to centre-led,
establishing streamline procurement leadership across five business units (companies) and
eight regions. LGE’s procurement is currently comprised of2, 200 staff who are part of an
84,000-strong workforce in 115 operations globally, managing US$26 billion direct spend
and US$10 billion general spend, led by Tom Linton, Executive Vice President and Chief
Procurement Officer. The profitability of LG Electronics is heavily dependent on
procurement’s performance and efficiency since its spending represents80 percent of
revenues. LG Electronics procurement is re-positioning the organization to a new level while
maintaining its focus on high quality manufacturing and becoming a global top brand.
Speed of Transformation
The target among top management and employees is to be number one in every brand
category by 2012.The roadmap to reach number one not only resonates in the company’s
financial and marketing measurements but also in key functions such as procurement. This
can only happen if the company’s “Innovation” and “Globalization” occur at a pace that is
much faster than its competitors. At the beginning of 2008, LG Electronics started to lay out a
foundation to centralize its procurement function and it initiated a 3-year plan to transform
global procurement to a fully centre-led organization. Such transformation requires a
tremendous amount of teamwork and consensus across multiple functions and business units.
The speed, work ethic and culture to achieve this are very unique to LG Electronics with its
long history as a consensus-driven culture and strong “tear-down-rebuild” mentality where
people get behind an initiative very quickly once a decision has been made.

7. Procurement Leadership:
Unlike other global electronics OEMs, LG Electronics’ operation and business is deeply
rooted in the hands of individual business units.
Company-driven procurement organizations support an engineering powerhouse that excels
in manufacturing with close ties to R&D at the product level. But while procurement focused
on its delivery excellence in side each business unit. It was also losing the opportunity to
better leverage procurement resources and link key commodities across all companies. The
relationship-driven environment at times lost track of market competitiveness and produced
an epidemic of single sourcing and target costing with a poor selection of competitive
suppliers. Being convinced that this was a serious impediment to growth.
LG Electronics began leveraging corporate resources to establish centre-led procurement
organization with a cross-function matrix structure. Until 2008, procurement in four
companies was managed separately with decentralized business units divided by product
lines. For instance, there was a washing machine procurement group, refrigerator
procurement group and other groups in the Digital Appliance company (now called Home
Appliance).Now these groups are integrated into press, injection, electronic and circuit,
cutting and meld and die-casting groups that can manage across both Home Appliance and
Air Conditioning companies, guided by global commodity managers. Reporting channels also
changed.
All procurement teams now report to the Chief Procurement Officer, including direct
materials sourcing and indirect and general sourcing. Procurement also plays an important
role in LG Electronics’ top executive consensus meetings between company brand towers
and chief functional officers who serve as a platform to develop and promote best practices
and identify key bottom-line improvements. Cross functional top management meetings run
by the Chief Executive Office rare held monthly with his direct reports, including the Chief
Procurement Officer. Major initiatives led by the CPO are immediately evaluated and
implemented with top level consensus support.

8. Procurement Capability
Short-term and volume based negotiation tactics are being supplemented with process
oriented strategic cost management and cross-functional collaboration efforts.
Global procurement implemented the following initiatives to enhance its capability and
expand its coverage, “driving” cost management across business units and other functions,
rather than just “supporting”:
Procurement
Impact Procurement drove year-over-year material cost savings of US$4.7 billion in 2008.
In 2009, LGE procurement is driving close to US$6 billion in savings including direct
material and general spend. In direct materials the cost savings rate is expected to exceed 20
percent in 2009. Procurement’s financial impact on the corporate bottom line is projected to
be US$30 billion from 2008 to 2012. At this level, procurement’s influence in driving
material cost rate, SG&A and effective supplier management is fundamental to the
Success or failure of LG Electronics in the years to come

9. CHAPTER: 1
INTRODUCTION

10. WHAT IS INTERNSHIP PROGRAM?
An internship is a structured work experience related to a student’s major and /or career goal.
It is supervised by a professional in the field. It is an experience that is mutually agreed upon
by the student, organisation and faculty member.
The internship program gives the required knowledge, experience and skill sets in which to
those people who are looking out to explore their careers in the coming future times. In
relatively internship programs helps the students to experience the corporate world.
Generally, an internship consists of an exchange of services for experience between the
student and an organization.
Internship program is a 4 week based program to serve the twin objectives of better learning
skills and providing the most critical business insight and also to gain the high calibre which
help in the growth of daily basis from the beginning of a firm.
Internship program is done at LG ELECTRONICS PVT LTD for the following topic
“ORGANIZATIONAL STUDY IN LG ELECTRONICS” I found that LG is having very
good marketing strategies in the market to attract the customers all over the world.
MEANING OF ORGANISATIONAL STUDY:
Organizational studies is "the examination of how individuals construct organizational
structures, processes, and practices and how these, in turn, shape social relations and create
institutions that ultimately influence people", organizational studies comprise different areas
that deal with the different aspects of the organizations, many of the approaches are
functionalist but critical research also provide alternative frame for understanding in the field.
Fundamental to the study of management is organizational change. With the recent historical
turn, there is growing interest in historical organization studies, promising a closer union
between organizational and historical research whose validity derives from historical veracity
and conceptual rigor, enhancing understanding of historical, contemporary and future-
directed social realities.

11. The objectives of the study are:
 To familiarize the students with a business organization
 To familiarize them with the different departments in the organization and
their functioning
 To enable the students to understand how the key business process are carried out in
organizations
 Understand how information is used in organization for decision making at various
levels
 To relate theory with practice.
According to Buchanan and Huczynski, Organisational behaviour is “the study of the
structure, functioning and performance of organisations and the behaviour of groups and
individuals within them”. The aim of organisational behaviour is to achieve a better
understanding of human behaviour in organisations, thereby enhancing the effectiveness of
organisations. An understanding of organisational behaviour is both critical and central to the
task of management.

12. CHAPTER 2
ORGANISATIONAL PROFILE
LG ELECTRONICS PVT LTD

13. LG Electronics Inc. Korean: LG is a South Korean multinational electronics company
headquartered in Yeouido-dong, Seoul, South Korea, and is part of the LG Group, employing
82,000 people working in 119 local subsidiaries worldwide. With 2014 global sales of USD
55.91 billion (KRW 59.04 trillion), LG comprises four business units: Home Entertainment,
Mobile Communications, Home Appliance & Air Solution, and Vehicle Components, with
Starion India as its main production vendor for refrigeration and washing machines in the
Indian sub-continent. The CEO of LG Electronics is Bon-joon Koo, who assumed the role of
vice chairman of LG Electronics on 1 October 2010. In 2011, LG Electronics was the world's
second-largest television manufacturer.
Type Public
Traded as LSE: LGLD
Industry
Consumer electronics
Home appliances
Founded
October 1958; 58 years ago GoldStar
January 1995 (as LG Electronics)
(Reincorporated in 2002)
Founder Koo In-hwoi (The original GoldStar)
Headquarters Yeouido-dong, Seoul, South Korea
Area served Worldwide
Key people
Koo Bon-moo
(Chairman & CEO)
Kang Yu-sig
(Vice Chairman & Co-CEO)
Lee Woo-Rahm
(Chairman)
Cho Jun-ho
(EVP, COO, & Director

14. History
LG Twin Towers in Yeouido-dong, Seoul, where LG Electronics is headquartered
1958–1960s
In 1958, LG Electronics was founded as GoldStar. It was established in the aftermath of the
Korean War to provide the rebuilding nation with domestically-produced consumer
electronics and home appliances. LG Electronics produced South Korea's first radios, TVs,
refrigerators, washing machines, and air conditioners. Gold Star was one of the LG groups
with a brethren company, Lak-Hui (pronounced "Lucky") Chemical Industrial Corp. which is
now LG Chem and LG Households. GoldStar merged with Lucky Chemical and LG Cable on
February 28, 1995, changing the corporate name to Lucky-Goldstar, and then finally to LG
Electronics.
1970s–1990s
In 1978, LG Electronics earned US$100 million in revenue from exports for the first time in
its history. Rapid growth by globalization saw the company establish its first overseas
production, based in the United States, in 1982. In 1994, GoldStar officially adopted the LG
Electronics brand and a new corporate logo. LG Electronics acquired the US-based TV
manufacturer Zenith. In 1995, LG Electronics made the world's first CDMA digital mobile
handsets and supplied Ameritech and GTE in the US. The company was also awarded UL
certification in the US. In 1998, LG developed the world's first 60-inch plasma TV, and in
1999 established a joint venture with Philips – LG Phillips LCD – which now goes by the
name LG Display.
2000–present

15. In order to create a holding company, the former LG Electronics was split off in 2002, with
the "new" LG Electronics being spun off and the "old" LG Electronics changing its name to
LG EI. It was then merged with and into LG CI in 2003 (the legal successor of the former LG
Chem), so the company that started as Goldstar does not currently exist.
LG Electronics plays a large role in the global consumer electronics industry; it was the
second-largest LCD TV manufacturer worldwide as of 2013. By 2005, LG was a Top 100
global brand, and in 2006 LG recorded a brand growth of 14%. Its display manufacturing
affiliate, LG Display, as of 2009 was the world's largest LCD panel manufacturer. In 2010,
LG Electronics entered the Smartphone industry. Since, LG Electronics continued to develop
various electronic products, such as releasing the world's first 84-inch ultra-HD TV for retail
sale.
On 5 December 2012, the antitrust regulators of the European Union fined LG Electronics
and several other major companies for fixing prices of TV cathode-ray tubes in two cartels
lasting nearly a decade.
On June 11, 2015, LG Electronics found itself in the midst of a human rights controversy
when The Guardian published an article by Rosa Moreno, a former employee of an LG
television assembly factory.
At the end of 2016, LG Electronics merged its German branch (situated in Ratingen) and
European headquarter (situated in London) together in Eschborn a suburb of Frankfurt am
Main.
In March 2017, LG Electronics was sued for its handling of hardware failures with recent
smart phones such as the LG G4.
Operations
LG Electronics has four business units: Home Entertainment, Mobile Communications,
Home Appliances & Air Solutions, and Vehicle Components. The company has 128
operations worldwide, employing 83,000 people. LG Electronics owns Zenith and controls
37.9 percent of LG Display.

16. Products
LG Electronics' products include televisions, home theatre systems, refrigerators, washing
machines, computer monitors, wearable devices, smart appliances, and smart phones.
Televisions
LG Electronics launched an OLED TV in 2013 and 65-inch and 77-inch sizes in 2014. LG
Electronics introduced its first Internet TV in 2007, originally branded as "Net Cast
Entertainment Access" devices. They later renamed the 2011 Internet televisions to "LG
Smart TV" when more interactive television features were added, that enable the audience to
receive information from the Internet while at the same time watching conventional TV
programming.
In November 2013, a blogger discovered that some of LG's smart TVs silently collect
filenames from attached USB storage devices and program viewing data, and transmit the
information to LG's servers and LG-affiliated servers. Shortly after this blog entry went live,
LG disabled playback on its site of the video, explaining how its viewer analytics work, and
closed the Bright cove account the video was hosted on.
LG's remote uses Hillcrest Labs' Free space technology to allow users to change channels
using gestures and Dragon NaturallySpeaking technology for voice recognition
As of 2014, LG is using web OS with a ribbon interface with some of its smart TVs. LG
reported that in the first eight months after release, it had sold over 5 million web OS TVs.
In 2016, exclusively to India, Indian arm of South Korea's LG Electronics Inc started selling
a TV that would reject mosquitoes. It uses ultrasonic waves that are silent to humans but
cause mosquitoes to fly away. It was released on June 16, 2016. The technology was also
used in air conditioners and washing machines. The TV is aimed for lower-income
consumers living in conditions that would make them susceptible to mosquitoes.

17. Mobile devices
Mobile phones
LG G4 Global Launching
LG Electronics manufactures a wide range of smart phones and tablet devices. Other than the
G3, LG officially unveiled the curved smart phone, G Flex, on 27 October 2013. LG has
released it in South Korea in November 2013, and later announced releases in Europe, the
rest of Asia, and North America. At Consumer Electronics Show in January 2014, LG
announced a U.S. release for the G2 across several major carriers. In 2015, LG has released
LG G4 globally in late May through early June. On 7 September 2016, LG unveiled the V20.
LG G6 has been officially announced during MWC 2017 on 26 February 2017.
Tablet computers
In 2014, LG revealed three new additions to the G series of tablets, which each include LG's
Knock Code feature, allowing users to unlock devices with a series of taps. The tablets also
feature Q Pair which allows tablets to sync up with a smart phone, and for phone calls and
text messages passed on to the tablet in real time.
Smart watches
LG Watch Urbane LTE LG G Watch R

18. LG and Google announced the Android Wear-based smart watch, the LG G Watch, that was
in June 2014. In August 2014, the LG G Watch R that has a circular face (similar to the Moto
360) was released. The LG Watch Urbane that LG's third Android Wear-based smart watch
has released in April 2015. This is the first device to support new features such as Wi-Fi, and
new parts of Android Wear's software interface, like the ability to draw emoji to friends.
Rolly keyboard
In 2015, LG announced the first Bluetooth keyboard that folds up along the four rows of keys
that can be tossed in a purse or pocket. The Rolly keyboard is made of solid plastic. Two tiny
plastic arms fold out from the end of the keyboard to support a tablet or smart phone, and it
can toggle between two different Bluetooth-connected devices at a time. Battery life is an
expected three months on a single AAA battery.
Home appliances
LG manufactures and sells home appliances such as refrigerators, washing machines and
tumble dryers, vacuum cleaners, kitchen appliances, and air conditioners and even microwave
ovens In June 2014, LG Electronics also announced the launch of its smart appliances with
Home Chat messaging service in South Korea. Home Chat employs LINE, the mobile
messenger app from Korean company 'Naver', to let homeowners communicate, control
monitor and share content with LG’s smart appliances. Users can send simple messages, such
as "start washing cycle," in order to control their washing machines.
Marketing and public relations
Sponsorships
LG Sponsors the German Soccer Team Leverkusen.
In August 2013, LG Electronics announced that it would sponsor German Bundesliga club
Bayer 04 Leverkusen for the next three years with an option to extend for one more year. In
the U.S., LG Electronics' brand and product advertisements can be seen in Dodger Stadium of
the Los Angeles Dodgers and Great American Ball Park of the Cincinnati Reds. LG sponsors
the International Cricket Council, the world governing body for cricket, and also sponsors

19. ICC Awards. LG also sponsors two Korean professional golf players Ja-young Kim and
Bomi Lee.
From 2009 to 2013, LG Electronics sponsored Formula One for 5 years as a Global Partner
and Technology Partner of Formula One until 2013. LG was also an official supplier to
Virgin Racing and Lotus Racing team, plus engine manufacturer Cosworth from 2010-2012.
LG Electronics sponsored the English football club Weyside Rovers (Guildford) from 2000
until 2002 and the English football club Fulham F.C until July 2010. LG sponsored the
Brazilian football club Sao Paulo FC from 2001 to 2009, during which time the club were the
winners of the 2005 FIFA Club World Championship. LG currently sponsor the Australian
Football League team Fremantle Football Club, the Costa Rican football club Liga Deportiva
Alajuelense, the Australian National Rugby League team Cronulla Sharks, and the
Argentinian club Boca Juniors. LG also sponsors London Fashion Week and the LG Arena in
Birmingham.
During the period 2001–2003, LG sponsored the snooker Grand Prix. During these years the
tournament was known as the LG Cup. In 2008 LG became sponsors of the Extreme Sport
'FSO4 Freeze' festival. LG sponsored the LG Mobile World Cup texting competition.
Environmental record
Choice magazine, in independent tests of popular LG fridge models in 2010, found the
energy consumption in two models was higher than claimed by LG. LG was aware of the
problem and had offered compensation to affected customers. In 2004, LG made 4A-rated
water efficiency claims for numerous washing machines before they were certified. LG gave
undertakings to the Australian Competition and Consumer Commission (ACCC) to provide
appropriate corrective notices and upgrade and maintain its trade practices compliance
program. In 2006, LG overstated energy efficiency on five of its air conditioner models and
was again required to offer consumers rebates to cover the extra energy costs.

20. Proposed United States headquarters
The Hudson Palisades and Palisades Interstate Park with the George Washington Bridge at
left. LG Electronics USA in 2016 proposed revised plans to build a scaled-down, 64 ft (20 m)
American headquarters building atop the Palisades in Bergen County, New Jersey. Previous
plans for a 143-foot building had been opposed by environmentalists and other groups.
LG Electronics USA had proposed to build a new headquarters in the borough of Englewood
Cliffs in Bergen County, New Jersey, including a 143 ft (44 m) tall building that would stand
taller than the tree line of the Hudson Palisades, a US National Natural Landmark. The
company proposed to build an environmentally friendly facility in Englewood Cliffs,
incidental to Bergen County's per-capita leading Korean American population, having
received an initially favourable legal decision concerning building height issues. The plan,
while approved by the local government, met with resistance from the segments of the
general public as well as government officials in New Jersey and adjacent New York. The
initial court decision upholding the local government approval was overturned by a New
Jersey appellate court in 2015, and LG subsequently submitted a revised, scaled-down, 64-
foot building for approval by the borough of Englewood Cliffs in 2016. LG broke ground on
the new US$300 million Englewood Cliffs headquarters on February 7, 2017, to be
completed in late 2019.
Slogans
 "We put people first" (1997–1999)
 "Digitally Yours" (1999–2004)
 "Life's Good" (2004–present)

21. Jeong-Do Management
LG Electronics 'Jeong-do Management' embodies our high ethical standards and doing
business in a transparent and honest manner.
LG Way
"Jeong-do Management" is LG's unique application of ethics.
LG will succeed through fair management practices and constantly develop our business
skills.
Vision
LG’s vision is to become the market leading company with broad market recognition
Conduct
LG will succeed through the constant development of capability based in ethical management
Management Philosophy
Basic management philosophies that insure LG will accomplish its business activity goals.
Code of Ethics
It is the intention of LG, as set forth in the management charter, to spread the management
philosophies of "creating value for customers" and "respect based management" allowing for

22. more responsible and open management. LG continues to develop as the global leading
company through seeking greater public benefits founded in cooperation, mutual trust, and
respect for the free market economy. For this reason all LG employees promise to act
uprightly and make value judgments in accordance with the code of ethics.
Compliance of Conduct
LG Electronics is committed to "winning by the rules". We regard sound and transparent
management practices as the foundation to achieving individual success and global
competitiveness. Throughout our global operations, LG Electronics pledges to comply with
local laws and regulations, compete fairly, and uphold the highest standards of business
conduct. The LG Electronics Compliance Code of Conduct sets forth clear standards for legal
and regulatory compliance all employees should live by in order to realize the principles
provided in the LG Code of Ethics.
Global Operations
LG Electronics plays an active role in world markets with its assertive global business
policy. As a result, LG Electronics controls 119 local subsidiaries worldwide, with
roughly 83,000 executives and employees.
Brand Identity
LG is the brand that is delightfully smart. "Life's Good" slogan, and futuristic logo are
a great representation of what we stand for.
Global, Tomorrow, Energy, Humanity and Technology are the pillars on which the
corporation is founded on; with the capital letters L and G positioned inside a circle to centre
our ideals above all else, humanity. The symbol mark stands for our resolve to establish a
lasting relationship with and to achieve the highest satisfaction for our customers.
The letters "L" and "G" in a circle symbolize the world, future, youth, humanity, and
technology. Our philosophy is based on Humanity. Also, it represents LG's efforts to keep
close relationships with our customers around the world. The symbol mark consists of two
elements: the LG logo in LG Grey and the stylized image of a human face in the unique LG
Red colour. Red, the main colour, represents our friendliness and also gives a strong

23. impression of LG's commitment to deliver the best. Therefore, the shape or the colour of this
symbol mark must never be changed. We have two versions of our logo: Corporate Logo and
3D Logo. The updated 3D Logo retains the heritage and equity of the Corporate Logo, while
aligning with our new positioning. It was redrawn to strengthen the visual impact of our
symbol mark and help communicate our attributes.
Why LG?
LG provides opportunities for growth based on individual talent. We provide a
welcoming environment for those prepared to work hard and achieve at the highest
level, and reward exceptional employee performance in kind.
Why join LG?
LG Electronics will allow you to realize your dreams. Our corporate environs promote
respect and nurture individual creativity, offering the keen opportunities for growth and
rewarding exceptional performance at every level. In all, LG is a pretty great place to work.
Great Opportunities
LG offers opportunities for fast growth to talented individuals and technical experts in offices
and hubs around the world.
Great Spirit
LG looks after those who are determined to succeed, and who demonstrate great initiative
and professional skills.
Great Rewards
LG offers guaranteed rewards for exceptional employee performance.
A Global Corporation
LG Electronics is a global corporation with 82,000 employees working for its 81 subsidiaries
around the world. LG Electronics strives to provide its customers with new products and
technologies. LG Electronics is a world-class electronics/telecommunication giant.

24. LG Electronics produces CDMA handsets, Plasma TVs, DVD players, optical storage
products, air conditioners, and much more. LG Electronics designs cutting-edge technologies
for a vast range of areas, from mobile networking to digital TVs, displays, and home
networking. LG Electronics is, therefore, equipped with the ability to realize an all-
encompassing environment.
What's more, LG Electronics' innovative products enhance people's lives, and have
established a corporate culture based on challenge and innovation. LG’s culture of non-stop
innovation is prompting us to lead through change. The sky's the limit with LG Electronics.
LG’s heritage
Since its establishment in 1958, LG Electronics has, over the past 50 years, developed
cutting-edge technologies and products in the areas of electronics, information &
communications technology. LG Electronics is now the global leader in the
electronics,information & communications technology industries. Take a look at LG’s
technology development records by entering the LG History Hall.
Business domains
LG Electronics has secured global product leadership and market leadership through bold
R&D investments, positive global marketing efforts, and ongoing activities. LG Electronics is
the first to launch state-of-the-art products such as next-generation mobile handsets, digital
TVs, and Internet-capable home appliances, opening up a whole new future for the global
electronics, information & communications technology industries.
HOME ENTERTAINMENT
LG makes a full range of products designed to deliver a home entertainment experience like
no other. A top producer of LCD and plasma TVs, LG is also one of the leading makers of
other audio and video products for the global consumer and professional markets, including
home theatre systems, Blu-ray disc players, micro audio systems, optical storage, plasma
display panels and more.

25. MOBILE COMMUNICATIONS
LG Electronics Mobile Communications Company is a leading global mobile communication
and information company. LG creates handsets that provide an optimized mobile experience
to customers around the world with its cutting-edge technology and innovative handset
design capabilities. Increasingly, LG is pursuing convergence technology and the
development of mobile computing products, as well as taking leadership in the mobile
communication environment.
HOME APPLIANCE
LG is a global leader in the home appliance industry, dedicated to creating total home
solutions through advanced products that fit consumers' everyday lives. Innovative home
appliances include washing machines, refrigerators, cooking appliances, vacuum cleaners,
and built-in appliances.
AIR CONDITIONING
LG is the number one brand of residential air conditioners with the world's highest market
share, maintaining its position as a sales leader since 2000. Launched in 2009, the new Air
Conditioning Company will meet the needs of customers by focusing on commercial and
residential air conditioning systems, compressors, and solution business.
BUSINESS SOLUTIONS
LG's Business Solutions Company provides the best value-added solutions in LCD monitors,
commercial displays, car infotainment and security. LG is committed to supplying smart
solutions for businesses with products that best serve the end customer.
BENEFITS
LG Electronics is a global company that can introduce you to the future. For its employees
competing on the global stage, LG Electronics offers competitive salaries and a
comprehensive range of benefits.
LG Electronics is an innovative company, designing and selling products, reinforcing the fact
that "Life's Good." LG Electronics offers its employees opportunities to work on exciting and

26. innovative products that influence the lives of people worldwide. If you are considering a
career change or looking for your first job, LG Electronics understands that the benefits that a
company can offer you are one of the first things you will consider. LG Electronics is
committed to being a global player, offering competitive salary and benefits packages.
LG Electronics is committed to helping its employees achieve financial security and a better
quality of life by offering them a comprehensive and flexible benefits package. Benefits vary
according to region and country. More details will be provided during the application
process. For your reference, these benefits may include: medical insurance, a retirement plan,
holiday pay, annual leave, company product discounts, etc. These benefits will keep its
employees healthy and enable them to balance the demands of their work and personal lives.
The Right People
LG is always seeking out committed and enthusiastic team players. Exceptional individuals
who possess the necessary skills to perform at the highest-level. Keen thinkers who armed
with both professionalism and a desire to take an active role on the global stage. And
achievers well-versed in global market issues, with cultivated knowledge, expertise, and an
engaging work style.
At LG Electronics, we call the talented people that we seek—"The Right People"—the are
those who will fit in well with the company's corporate culture and who are determined to
succeed. They are dedicated and enthusiastic, with a marked and insatiable hunger for
challenge. They are pro-active, highly competent, and able to take quick and decisive action.
They bring100% determination to the pursuit of short- and long-term goals—equally
dedicated to performing brilliantly, with a passion for the big win.

27. An LG Career
For its employees competing on the global stage, LG offers competitive salaries and a
comprehensive range of benefits.
LG HUMAN RESOURCES
LG Electronics creates working environments that enable its employees to demonstrate their
capabilities, focus on their work, and create value for their customers. Employees are
encouraged to take a creative and individual approach to challenges, with a strong emphasis
placed on performance and skill—and equal, merit-based opportunities across the board.
HR PRINCIPLES
CREATIVITY AND AUTONOMY
An individual's creativity is the basis for value creation. LG Electronics respects diversity and
autonomy, allowing each of its employees to exercise their creativity to the full.
COMPETENCE
Competence is the cornerstone of performance and thus we take competence to be the most
important factor our personnel decisions.

28. PERFORMANCE-BASED REWARDS
Rewards based on performance are essential for motivation. LG Electronics evaluates
performance results fairly and rewards them accordingly.
EQUAL OPPORTUNITIES
Equal opportunities build trust among people. LG Electronics ensures equal opportunities
regardless of gender, race, age, religion, or nationality.
LONG-TERM PERSPECTIVE
Maintaining a long-term perspective is the foundation for LG's human resource policies. LG's
human resource programs are designed with a long-term perspective and implemented with
dedication and persistence.
TRAINING
Through its education centres worldwide, LG Electronics offers diverse educational programs
to its employees. These opportunities are accorded by rank and job to encourage growth and
development—to instil the professional capabilities they’ll most need, such as enabling them
to apply the latest technologies to their work.
REWARDS
LG Electronics employs a competitive, unique rewards system that takes account of
employee working situations by nation, region, and job. This rewards system motivates
employees to perform better by helping enhance their quality of life.
LG'S REWARDS SYSTEM FEATURES BOTH FIXED SALARIES AND FLEXIBLE
SALARIES.
Fixed salaries are determined every year through a fair evaluation process. Flexible salaries
are immediate rewards given to individual employees for their performance and competence.

29. CES 2017 Awards & Reviews
Want proof that LG Electronics truly delivers Innovation for a Better Life? We are the proud
recipient of more than 20 CES Innovation Awards for 2017 across multiple categories
including Home Entertainment, Home Appliances and Mobile.
The LG SIGNATURE OLED TV W features a "Wallpaper" design so impossibly thin and
light that it attaches to the wall, while delivering unbelievable color and contrast, plus active
HDR with 4K resolution.
 Consumer Technology Association™ 2017 CES Best of Innovation Awards Honoree
 Consumer Technology Association™ 2017 CES Innovation Awards Honoree - Video
Displays
 Engadget Best of CES 2017 - Best of the Best
 Engadget Best of CES 2017 - Best TV Product
 (Article) LG's new OLED TVs are so thin they have to be wall mounted
 Reviewed.com CES Editors’ Choice Awards
 (Article) This new wallpaper TV sticks to your wall using magnets
 TechRadar 2017 CES Awards - Best in TV & Editor’s Choice
 Dealerscope IMPACT! Awards – Video: TVs
 9to5 Toys Best of CES - Best TV
 Advertising Age Best of CES - Coolest Gadgets
 BGR Best of CES
 CNET Best of CES – Best Thing We Saw
 CNN Money Coolest Tech Products at CES
 Expert Reviews CES Top Picks – Best TV
 FOX News 10 Best Gadgets at CES
 HD Guru CES Top Picks
 Men’s Health Editors’ Choice Awards
 PCMag Best of CES
 Pocket-Lint: Best TVs of CES
 Popular Mechanics' Best of/Editor's Choice CES Awards
 SlashGear Best of CES
 Sound & Vision/What Hi-Fi: Stars of CES Awards
 Stuff Magazine Best TVs of CES 2017

30.  T3 12 Best Gadgets We've Seen at CES
 Techlicious CES Top Picks
 TechnoBuffalo Readers Choice Awards
 Tom's Guide / LAPTOP Magazine Best of CES Awards
 Tweaktown Best of CES
 TWICE Picks Awards CES – Video & TVs: Flat-panel TVs – 58 inches and larger
 Ubergizmo Best of CES
 The Verge Awards CES – Best TV
 Wall Street Journal: Best of CES
Here’s a full list of awards won by LG at 2015 CES
Engadget Best of CES 2015
 Best TV Product: LG Art Slim 4K OLED
USA Today/Reviewed.com CES 2015 Editors’ Choice Winners
 LG 65EF9800 Flat 4K OLED TV
 LG G Flex2 Curved Smartphone
 LG TWIN Wash System
Digital Trends Top Tech of CES 2015 Awards
 Best Home Video: LG EF9500 Flat 4K OLED
 Best Mobile: LG G Flex2
TechRadar CES 2015 Staff Picks
 Best in Show: LG 77EG9900 4K Flexible OLED TV
 Best TV: LG EF9500 4K OLED TV with webOS 2.0
 Best Smartphone: LG G Flex2

31. Techlicious 2015 CES Top Picks
 LG TWIN Wash System
PCMag Best of CES 2015
 Best Phone: LG G Flex2
 Best Digital Home Gadget: LG Twin Wash
 Best HDTV: LG 55EF9500
HD Guru CES 2015 Top Picks
 Best OLED TV
 Best Blu-Ray Player
 Best Sound Bar
Tech Times 2015 CES Best of Innovation Honorees
 Audio: LG Music Flow Wi-Fi Series
 Television: LG “Color Prime” 4K Ultra HD TV series with Wide Color LED
and Quantum Dot technology
Men’s Journal Best of CES 2015
 LG Twin Wash System
 LG 55EG9600 55-inch 4K OLED TV
 LG G Flex2
 LG Music Flow Sound System
Better Homes and Gardens Editors’ Choice Innovation 2015
 LG EcoHybrid Dryer
 LG G3 Smartphone
TechnoBuffalo Best of CES 2015 Readers Choice Award
 LG G Flex2

32. GottaBeMobile Excellence Awards CES 2015
 LG G Flex2
Laptop Top Picks CES 2015
 LG G Flex2
Android Central 2015 CES Top Pick
 LG G Flex2
Android Authority Top Picks CES 2015
 LG G Flex2
Ubergizmo Best of CES 2015
 LG G Flex2
Expert Reviews CES Top Picks 2015
 LG G Flex2
Consumer Electronics Association 2015 CES Innovation Awards:
 LG 21:9 IPS Curved UltraWide Multi-Monitor
 LG Flexible Ultra HD 4K OLED TV
 LG 55-inch ULTRA HD OLED TV with Floating Stand Design
 LG 65-inch Floating Slim CURVED 4K OLED TV
 LG 65-inch IPS Art Slim Color Prime Quantum Dot 4K ULTRA HD TV
 LG EcoHybrid Dryer with Heat Pump Technology
 LG Four-Door French-Door Refrigerator with Double Door-in-Door
 LG Side-by-Side Refrigerator with Door-in-Door
 LG Smart HOM-BOT Square Robotic Vacuum
 LG G3 Smartphone

33. “At the heart of all of our products is our promise of delivering innovation for a better life,”
said William Cho, president and CEO, LG Electronics USA. “That promise is the foundation
of scores of new LG products unveiled during a remarkable week in Las Vegas. This
recognition validates our commitment to excellence, and inspires us to continue raising the
standard for innovation in 2015 and beyond.”
The Consumer Electronics Show (CES) is an annual event which ran the span of January 6th
to January 9th for its 2015 edition. Tech companies from across the globe gathered to
showcase their latest devices and innovations at the thrilling event that held in Las Vegas,
USA.
LG’s future plans: Android tab and Firefox phone are coming soon, flexible handheld
isn’t
According to an LG executive, the company is looking to get back in the Android tablet game
in the near future. As for smartphone plans, these apparently include a Firefox OS-based
handheld, but no device sporting a flexible screen.
LG’s mobile division hasn’t exactly been a money-making machine these past couple of
years, but the Nexus 4 and Optimus G have turned the company’s fortunes around a bit. Sure,
LG is still not a worthy adversary for Samsung, its neighbor and arch nemesis, but it could
get there in no time.
The Optimus G Pro doesn’t look half bad, the G2 is expected to be one of the world’s first
phones to pack a Qualcomm Snapdragon 800 CPU, plus there apparently is a new Android-
based tablet in the making.
Wait, what? An LG-made tab? But didn’t they say they were not interested in pursuing that
road anymore? They did, but that was a long time ago. Plus they clearly specified at the time
that tablet development was merely “on hold”.
Okay, so how will this slate look then? Will it be a budget-conscious 7-incher to take on
Google’s Nexus 7 or a premium-looking, high-quality and costly 10-incher to go after
Apple’s iPads? I’m sorry, but I don’t have an answer for you yet.

34. Kim Wong, the company’s European Mobile Vice President, kept vague and only mentioned
LG is preparing its Android tablet return in a recent interview, plus he said the Windows 8
“situation is being closely monitored”.
The executive did go into a little more detail when talking about some of LG’s smartphone
plans for the near future, which apparently include a device not based on Android (likely
Firefox OS-powered), but sadly no handheld sporting a flexible display.
According to Wong, “the technology for this is not yet mature enough”, so the earliest we
could hope to see an LG bendable phone is the second half of 2014. Bummer!
As for the Optimus G2, LG’s likely next flagship device, this will be pushed globally soon
after its formal intro, which goes to show you the Koreans have learned their lesson after the
G and G Pro snafus. At least in theory, because it remains to be seen how things will look in
reality.
has won a total of 41 awards for its revolutionary devices and technology. The South Korean
tech company bagged CES 2015 Editors’ Choice Winners award with the all-new LG G
Flex2 curved smartphone as well as Techradar’s Best Smartphone.

35. CHAPTER 3
Mckensy’s 7S FRAMEWORK

36. Mc Kinsey 7s Framework
INTRODUCTION:
Mc Kinsey 7s Model is a tool that analyzes firm’s organizational design by looking at 7 key
internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to
identify if they are effectively aligned and allow organization to achieve its objectives.
Mc Kinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert
Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since
the introduction, the model has been widely used by academics and practitioners and remains
one of the most popular strategic planning tools. It sought to present an emphasis on human
resources (Soft S), rather than the traditional mass production tangibles of capital,
infrastructure and equipment, as a key to higher organizational performance. The goal of the
model was to show how 7 elements of the company: Structure, Strategy, Skills, Staff, Style,
Systems, and Shared values, can be aligned together to achieve effectiveness in a company.
The key point of the model is that all the seven areas are interconnected and a change in one
area requires change in the rest of a firm for it to function effectively.
Below you can find the McKinsey model, which represents the connections between seven
areas and divides them into ‘Soft Ss’ and ‘Hard Ss’. The shape of the model emphasizes
interconnectedness of the elements.

37. The model can be applied to many situations and is a valuable tool when organizational
design is at question. The most common uses of the framework are:
 To facilitate organizational change.
 To help implement new strategy.
 To identify how each area may change in a future.
 To facilitate the merger of organizations.
Strategy is a plan developed by a firm to achieve sustained competitive advantage and
successfully compete in the market. What does a well-aligned strategy mean in 7s McKinsey
model? In general, a sound strategy is the one that’s clearly articulated, is long-term, helps to
achieve competitive advantage and is reinforced by strong vision, mission and values. But it’s
hard to tell if such strategy is well-aligned with other elements when analyzed alone. So the
key in 7s model is not to look at your company to find the great strategy, structure, systems
and etc. but to look if its aligned with other elements. For example, short-term strategy is
usually a poor choice for a company but if its aligned with other 6 elements, then it may
provide strong results.

38. Structure represents the way business divisions and units are organized and include the
information of who is accountable to whom. In other words, structure is the organizational
chart of the firm. It is also one of the most visible and easy to change elements of the
framework.
Systems are the processes and procedures of the company, which reveal business’ daily
activities and how decisions are made. Systems are the area of the firm that determines how
business is done and it should be the main focus for managers during organizational change.
Skills are the abilities that firm’s employees perform very well. They also include capabilities
and competences. During organizational change, the question often arises of what skills the
company will really need to reinforce its new strategy or new structure.
Staff element is concerned with what type and how many employees an organization will
need and how they will be recruited, trained, motivated and rewarded.
Style represents the way the company is managed by top-level managers, how they interact,
what actions do they take and their symbolic value. In other words, it is the management style
of company’s leaders.
Shared Values are at the core of McKinsey 7s model. They are the norms and standards that
guide employee behaviour and company actions and thus, are the foundation of every
organization.
LG Electronics Mc Kinsey 7s framework:
1. STRATEGY:
LG entry strategy is that, it plays alone in the Indian electronic market. It followed a Niche
market catering to the premium segment to start with. Its main focus was on health factor of
the Indian consumers, which made a revaluation in Indian market, which proved that Indian
consumers are quality sensitive. In short health has been its USP and quality its main driving
factor. Eg: LG Golden Eye.

39. 2. STRUCTURE:
The company has a holding company structure. The purpose of creating the holding company
structure as the first in Korea was to ensure new corporate governance with management
transparency, simplicity, while increasing shareholder value and corporate value.
Under this new structure, LG has dismantled Korean conglomerate’s chronic problem of
cross-payment guarantees between the affiliates. Now, the holding companies are responsible
for all the investment portfolios of its subsidiaries and each business unit is responsible only
for their business operations. It provides the subsidiary companies independence and freedom
to strengthen their core business competitiveness without having to worry about equity
investments nor their affiliates.
3. STYLE (Pioneering spirit):
LG Electronics takes the initiative in leading the development of Korea’s electronics industry
through a pioneering spirit of transforming vision into reality. In 1959, the company
manufactured the radio, the first undertaking of its kind in Korea. Furthermore, the company
achieved other firsts in the country by developing telephones, refrigerators, black n white
televisions and colour television sets. LG Electronics is one of the country’s pioneers,
spearheading Korea’s electronics industry since its inception 40 years ago. This success was
made possible because of LG Electronics’ boldness in product innovations and its
fearlessness in accepting many challenges. LG Electronics espouses and believes in the
dictum no success without challenges as it proudly exercises its global leadership in the field
of digital TV and other state-of-the art products.
4. SHARED VALUES:
(i). Labour Management Relations
LG Electronics chooses to promote harmony and built constructively on a labour-
management relationship rather than an employee-employer relationship. This illustrates that
management and workers are not in a vertical relationship, but in a horizontal one, with each
party on equal footing and working together based on mutual trust and respect. By shifting
the paradigm from an employee-employer relationship to that of labour-management, LG
Electronics and its members discard the old vertical relationships of pursuing and keeping
their respective shares. Instead, a horizontal relationship type is embraced wherein workers
and management assume their functions and roles in pursuit of a common goal; boosting

40. competitiveness and enhancing the quality of life while promoting mutual trust and respect.
Because of this harmonious relationship, the company’s labour and management work
together to establish and cultivate a world-class corporate culture
This culture is necessary for LG Electronics as it strives to become one of the world’s top
companies. Such a relationship is transformed into a value-creation relationship whereby both
parties endeavour to address mutual problems and create new values together.
(ii). Management by Principle
LG Electronics management seeks to employ fair and transparent methods in all its
transactions to compete fairly and to elicit customer acceptance and loyalty. LG Electronics
aims to become a superior and highly competitive company based on customer-oriented
services. A fair and transparent management is one of LG Electronics corporate ethical
criteria. LG Electronics strongly believes that this is the way towards achieving the status of a
superior, world-class corporation. The company will continue to pursue its goals together
with its partners in an environment of mutual trust and cooperation.
5. SKILLS:
Embracing the slogan of No. 1 LG, LG Electronics is continuously steering various reform
initiatives to secure global competitiveness. The company has been undertaking ‘Super A’
pioneering activities since 1993, seeking to strengthen its competitiveness and create
profitability. The company is also practising TL 2005, a technological management strategy
aimed at building and sustaining prominence in the global market. In addition, LG
Electronics is carrying out the six sigma campaign to achieve an ideal management base. LG
Electronics is exerting its best efforts to respond positively to the fast-changing business
environment and to shore up its global competitiveness in its core businesses. Embracing the
slogan of No.1 LG, LG Electronics is continuously steering various reform initiatives to
secure global competitiveness. The company has been undertaking ‘Super A’ pioneering
activities since 1993, seeking to strengthen its competitiveness and create profitability. The
company is also practising TL 2005, a technological management strategy aimed at building
and sustaining prominence in the global market. In addition, LG Electronics is carrying out
the six sigma campaign to achieve an ideal management base. LG Electronics is exerting its
best efforts to respond positively to the fast-changing business environment and to shore up
its global competitiveness in its core businesses.

41. 6. STAFF:
The employees of LG have been taken care of very well, so as to motivate them to produce
the best. The company achieved the six sigma certification, which was the result of the best
of training and motivation techniques used by the personnel department. The employees are
sent to Korea for extensive training programme to lever the employee’s abilities at full.
7. SYSTEMS:
Systems are routine processes and procedures followed within an LG to implement the
strategy and to run day to day affairs. These processes are mainly designed to achieve
maximum effectiveness. Traditionally, the higher management makes the most decisions.
Increasingly, the organisation is using innovation and new technology to make decision-
making process quicker.

42. CHAPTER 4
SWOT ANALYSIS

43. Definition
SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats. As a
company plans its next move, it should consider all of these things before proceeding. The
plan's strengths and weaknesses are factors within the company's control. The company can
then work to make the most of its strengths and eliminate the weaknesses. Opportunities and
threats, on the other hand, are external factors within the community that could affect the
project's success. The company does not have much control over these situations.
Benefits
Performing a SWOT analysis of a particular idea means that you are thoroughly thinking
through every aspect of the project before getting started. This allows you to estimate the
project's success before investing a lot of time and capital. It can also give you confidence
that you are on the right track.
SWOT ANALYSIS OF LG ELECTRONICS PVT LTD:
Strengths in the SWOT analysis of LG electronics
1. Global Giant: LG Electronics controls 114 local subsidiaries worldwide, with
roughly 82,000 executives and employees. LG is an MNC and is a well-recognized
brand which deals in white & brown goods. It has always been known for its simple
design, easy to use, Innovative & reliable technology.
2. Extensive distribution system: LG being a fast moving consumer durable company
makes its products available in the markets through its distribution partners. Because
of its pull strategy, LG observes very fast stock rotation but also has to use dumping
of stocks to the channel partners. It uses Glo-cal strategy (be global act local) to
market its products.
3. Diversified products across the categories: LG has a huge product line and length
across the product categories both in white & brown goods.
4. High TOMA: Through its continuous branding efforts, sponsoring sporting &
lifestyle events like ICC cricket world cup, Formula one championship, soccer
matches etc. LG has created high visibility and thus is successful in its branding
efforts.

44. 5. CSR activities: LG has always been involved in community work so as to involve the
people in the co-creation of the wealth.
6. Brand equity – The long term presence of LG in the market, along with their
amazing product strategies, and reliability on their products has ensured that LG has a
strong brand equity, and hence is able to survive in a tough business environment.
Weaknesses in the SWOT analysis of LG electronics
1. Management: Due to its extensive presence in the white & brown goods market they
are not able to focus on every single product category properly due to which they are
losing their market share in several products like T.V, Refrigerator etc.
2. No Cash cows – Samsung has amazing brand equity due to its smart phones and
smart TV’s. Similarly, most brands have a super hit product which is a cash cow.
However, in LG, there is hardly any product which is a cash cow for them.
Opportunities in the SWOT analysis of LG electronics
1. Changing lifestyle: Growing urban population, Rise in disposable income, shift
towards technological products & migration from rural to urban areas are some of the
factors that will be the driving force for the home appliances, electronics goods
2. Competitors helping in the adaptation of the new technology: Intense competition
in the industry is helping LG in making their products acceptable to the society. So
LG can leverage out benefit of this & can increase their market share by considering
competitors move.
3. Market Expansion: By further penetrating to the emerging markets will help the
company in accelerating its growth rate.
4. Strategic Partnership: Till now LG has been involved in the collaborative
partnership with many companies. It is making technology advances and identifying
business opportunities through various partnerships relationships with some of the
world’s leading companies. Strategic alliance between corporations in which
companies with different infrastructures cooperate in the fast-developing.

45. Threats in the SWOT analysis of LG electronics
1. Intense rivalry within the industry: Every company in this industry is fighting hard
to make their presence felt & hold their market share. Majority of the players in the
industry follows red ocean strategy in order to kill the competition which is affecting
the industry as a whole.
2. Stagnant Urban demand dynamics: Since more & more companies are venturing
out in the over competitive urban market, there is little growth left in these markets,
so over dependence on these market will be riskier for the company like LG.
3. Government Regulations: Government policies relating to use of innovative
technology for energy & power conservations is by & large affecting the industry &
forcing them to switch to renewable sources of energy.
4. Sluggish Economy: Macroeconomic uncertainty, Recession, un-employment etc. are
the economic factors which will daunt the industry for a long period of time.
5. Rising Raw material cost: Due to rising raw material prices & labour cost, LG’s
margins are shrinking which is making the business operations less profitable.

46. CHAPTER 5
ANALYSIS OF MARKETING STRATEGIES

47. Marketing strategy has the fundamental goal of increasing sales and achieving a
sustainable competitive advantage. Marketing strategy includes all basic, short-term, and
long-term activities in the field of marketing that deal with the analysis of the strategic initial
situation of a company and the formulation, evaluation and selection of market-oriented
strategies that contribute to the goals of the company and its marketing objectives. Marketing
strategies cover everything from Pay per click; search engine marketing, public relations
(PR), Engineering with Marketing & the much more.
LG electronics is a multinational company of South Korea that deals in electronic goods. This
Global Company has spread its network all over the world with its headquarters in Seoul. It
was founded in the year 1958 with the aim of rebuilding its nation with domestic consumer
goods. From a national company to an international company it has come a long way.
Currently LG electronics has become the second largest manufacturer of television in the
world. It also comes under the top hundred brand names in the world. Some of its chief
competitors in the world market are as follows –
 Samsung
 Sony
 Videocon
Product in the Marketing mix of LG
LG electronics deals in various electronic industries like vehicle components, mobile devices,
consumer goods and home appliances. The company holds the distinction of being the first to
make the CDMA mobile digital handsets and the first to develop the plasma TV of 60-inch.
LG electronics is also the largest manufacturer of LCD panel in the world. In the year 2010,
the company took initial steps in the smartphone industry. Its products include-
Television –
1. 55-inch OLED TV
2. 65-inch and 77-inch OLED TV
3. LG Smart TV
4. Plasma TV

48. Smart Devices and mobile phones – A varied range of tablet devices and smartphones
like
1. G3,
2. G Flex
3. G2
4. A smart watch that is based on Android wear
Home Entertainment
1. Music Systems
2. Home Theatre Systems
3. BLU Ray Players
4. DVD Players
Computer products like monitors
Home appliances
1. Refrigerators
2. Dishwashers
3. Microwave Ovens
4. Vacuum Cleaners
5. Washing machines
6. Water Purifiers
7. Air conditioners
LG gives tough competition to Samsung and other top brand companies due to its ability to
have a complete chain of products. If you look at the product range of LG, it is second to
none. Thus, in the marketing mix of LG, you will find that product is the topmost advantage
of the brand.
Place in the Marketing mix of LG
LG electronics serves a worldwide market with five business units in nearly a hundred and
ten locations. Its aim is rapid and fast growth and as it can only be achieved through

49. globalization. It started its overseas operation with USA. In order to sell its products LG has
tied up with a number of distributors who are given the responsibility of distributing the
products efficiently and timely with minimum of fuss. In India, the company realized that it
had to be innovative in order to capture the market. Therefore, it sent vans with company
logos to every part of the country, sometimes covering a distance of 5000km in a month, in
order to increase the awareness about its brand.
Next, it opened its own manufacturing units in places like Noida, Bhopal etc. The company
tied up with retailers for the direct sales of its products and distributors for the channel sales.
LG has 46 branch offices that work directly with every field of distribution. A policy of
regional distribution is maintained and they follow the policy of stock rotation. LG products
are available very easily at all the malls and supermarkets. The company has its own well-
maintained showrooms to provide every service to its customers. Online shopping for LG
products is also possible at every shopping site. The LG exclusive showrooms are known to
be the most profitable for retailers because of the product depth that LG has. Excellent
distributors and the companies focus on supply chain are the two reasons for the success of
the place element in the marketing mix of LG.
Price in the Marketing mix of LG
The pricing policy of LG consists of “cost plus fixed markup”. It means that the policy for
pricing consists of cost of the product and a reasonable profit.A special team has been
appointed to research the market in a detailed manner. Here the prices of its competitors are
collected along with the consumer’s thoughts through extensive research. Every factor is
thoroughly analyzed and after evaluating its own costing and the market research the actual
price of a product is determined. When the company launched its products in India for the
first time, they were all of high range but later as the company opened its own manufacturing
units; it has been able to lower the prices of the products.
LG electronics has decided to follow a policy of price competitiveness for the rural areas. In
order to reach out to the rural base in every nook and corner it has decided to reduce the
prices as increase in volume will result in huge revenues and profits.

50. Promotion in the Marketing mix of LG
LG electronics has always believed in the concept of promotional advertisement. It feels that
a direct communication with the consumer is necessary to sell its products and hence its
advertisements can be seen throughout the year in televisions, magazines, newspapers and
internet. The brand also gives special discounts to retailers and distributors who advertise
regularly and who open exclusive shops for LG. The advertisement is the maximum for
newly introduced products and for products which give high turnover like panels and
refrigerators.
In order to maintain its brand name the company is accustomed to invite famous personalities
from the field of entertainment and sports. For example, In China Kim Tae-Hee, a famous
actor is its brand ambassador, whereas in India, Akshay Kumar, the famous Bollywood actor
has acted in the LG commercials. LG became the first brand to sponsor the 1999 and 2003
world cup of cricket. LG has also sponsored the ICC Awards and the Formula-One for five
years from 2009-2013.

51. CHAPTER 5
LEARNING EXPERIENCE

52. Every student doing a professional course needs to undertake summer training or internship
in her respective field, which gives her a chance to explore her skills and suit himself in the
work environment.
The objective of the internship is to benefit both the students working as interns as well as the
company for which the students are working. The students get to learn the basics of their
education and them turning into realities, whereas the companies could add value to their
services through the creativity and the innovative skills possessed by the new generation. The
internship periods, also helps a student to judge herself, whether she would be able to adjust
in the corporate environment or not.
The organisation study at LG Electronics Pvt Ltd, Bangalore has given me the opportunity to
gain valuable industry related experience that would allow me to expand my career options.
The skills and knowledge I gained at LG Electronics was quite different from the experience
I gained at my previous company i.e. Haier. I was able to utilize and engage the knowledge
and skills gained at Haier in a more practical approach at LG. the guidance, support,
feedback, useful suggestions and advanced insights about my subject which was provided by
my project guide helped me to successfully complete this Organisational Study.
The organisational study definitely broadened my mind. What stood out during the
Organisational study at LG Electronics was the dedicated LG Electronics staffs and a great
working environment.

53. BIBLIOGRAPHY
1. www.google.com
2. www.wikipedia.com
3. www.lgindia.com
4. Business World
5. Business Today
6. LG magazine
7. Marketing Management book- Philip Kotler
8. Human Resource Management- T.N. Chhabra
9. A& M Magazines
10. “Global News” LG weekly news bulletin