This document provides an overview of LG Electronics, a South Korean electronics company. It discusses LG's products such as TVs, appliances, mobile phones, and automotive components. It also outlines LG's management philosophy of customer-focused innovation and people-oriented practices. Additionally, it examines LG's organizational structure, annual turnover, opportunities, challenges, competitors, and expectations from the government to further support the electronics industry in India.

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Experiential Learning Project
Company Namesubtitle
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A STUDY ON
LG ELECTRONICS
Submitted by:
Group 7
Shireen Iftkhar Ahmed (19DM196)
Sneha Shaw (19DM216)
Shreyansh Singh (19DM206)
Tanvi Mangal (19DM226)
Zaisha Chadha (19DM237)
Divya Singhal (19DM248)

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Table of Contents
1. COMPANY OVERVIEW ....................................................................1
1.1 LG Electronics India Pvt. Ltd. ..........................................................1
2. COMPANY`S MANAGEMENT SYSTEM ...........................................2
2.1 Corporate Governance....................................................................2
2.2 Management Philosophy.................................................................2
3. PRODUCTS OF LG...........................................................................4
2.1 Home Entertainment........................................................................4
2.2 Home Appliance & Air Solution........................................................5
2.3 Mobile Communications ..................................................................5
2.4 Vehicle Component Solutions..........................................................5
2.5 Business Solutions..........................................................................5
4. ORGANISATIONAL STRUCTURE ....................................................6
5. ANNUAL TURNOVER OF LG............................................................7
6. OPPORTUNITY & CHALLENGE .......................................................7
7. EXPECTATIONS FROM GOVERNMENT .........................................8
8. COMPETITORS OF LG.....................................................................9
9. KEY LEARNINGS............................................................................10

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1. COMPANY OVERVIEW
LG Electronics is a South Korean multinational electronics company headquartered in
Yeouido Ong, Seoul. The major products of LGE are Refrigerator, Washing Machine,
Residential/Commercial Air Conditioner, Cooking Appliance, Vacuum Cleaner, TV,
Monitor, PC, Stereo System, Video System, Mobile handsets, Automotive Components,
Solar Energy System, etc. It is the world's second-largest television manufacturer and
the world's third largest mobile phone maker. LGE employs 72,612 (37,700 in Korea
and 34,912 overseas) people across various domains.
In 1958, LG Electronics was founded as Goldstar. The group was formed through the
merger of two Korean companies, Lak-Hui (pronounced "Lucky") and Goldstar, from
which the abbreviation of LG was derived. The current "Life's Good" slogan is a
backronym. Before the corporate name changed to LG, household products were sold
under the brand name of Lucky, while electronic products were sold under the brand
name of Goldstar.
1.1 LG Electronics India Pvt. Ltd.
LG Electronics India Pvt. Ltd. is a wholly owned subsidiary of LG Electronics, South
Korea which was established on 12 May 1997. In India for 17 years, LG is the market
leader in consumer durables and recognized as a leading technology innovator in the
information technology and mobile communications businesses. In 1998, LG set up its
state-of-the art manufacturing facility at Greater Noida, U.P. and in 2004 at Pune,
Maharashtra. 3.2 Products of LG LGE is composed of Home Appliance & Air Solution
(H&A), Home Entertainment (HE), Mobile Communications (MC), Vehicle component
Solutions (VS), and Business Solutions (BS). H&A is in charge of home appliances
including refrigerators, washing machines, and vacuum cleaners, while HE is
responsible for TVs, monitors, digital media products; MC for mobile phones; VS for
automobile parts, and BS for displays and solar energy generation modules.

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2. COMPANY`S MANAGEMENT SYSTEM
2.1 Corporate Governance
LG considers it essential to practice stable, efficient and transparent corporate
governance for continuous growth of the company, increase of the company value as
well as protection of the rights and interests of the shareholders.
More than 50% of the board members (four out of the seven board members in total)
are independent directors in order for the Board of Directors (BOD) to practically carry
out its function of keeping the management’s business conducting rights in check.
Furthermore, our independent directors are transparently and fairly elected by the
Independent Director Candidate Recommendation Committee (where independent
directors have a majority).
LG complies with the "principle of diversity” in forming the BOD in order to prevent it
from having a majority of members from a specific common background or representing
certain interests. In actual operation of the BOD, LG is trying to recruit people from
various areas of expertise so as to prevent the BOD from tilting towards specific
backgrounds or professions. As the independent directors are composed of experts
from industrial, financial/accounting and administrative fields, the BOD can perform
sound deliberation of the agendas suggested to it based on various personal
backgrounds and areas of expertise and efficiently monitor how the management
conducts its business.
2.2 Management Philosophy
The LG Way is LG's unique management
philosophy, which guides the thoughts and
actions of all LG associates. The LG Way
aims to achieve LG's vision of "No. 1 LG",
by practicing “People-oriented
Management”, and “Creating Values for
Customers” through “Jeong-Do
Management”.

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VISION – No. 1 LG
The ultimate goal of LG is to be recognized as the market leader in business
performance as well as in management practices.
BEHAVIORAL MODE – JEONG-DO MANAGEMENT
Ethical management and code of conduct to enable capability development and fair
competition.

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MANAGEMENT PRINCIPLES
The fundamental organizational principle guiding LG from beginning as a firm.
CUSTOMER -VALUE CREATION
CUSTOMER FIRST
 - Think of customers as the top priority – the starting point of
management
 - Make decisions with the emphasis on the end-user
DELIVERY OF SUBSTANTIVE VALUE
 - Be on step ahead in finding latent customer needs
 - Provide the best products and services that exceed customer
expectations
INNOVATION-DRIVEN CREATION
 - Come up with differentiated ideas that sleep “outside the box”
 - Always look for and practice better method and practices
PEOPLE-ORIENTED MANAGEMENT
SELF-MANAGEMENT AND CREATIVITY
 -Take ownership in all matters and take initiatives
- Break free from conventional ways to pursue new ideas and
think outside the box
RESPECT FOR HUMAN DIGNITY
 -Respect diversity and dignity of individuals
- Consider people as the most important asset
CAPABILITY DEVELOPMENT AND
ACTUALIZATION
 -Believe in your ability to become Number One and focus on
developing competencies through work
- Provide the opportunity for individuals to demonstrate their
potentials to the maximum
PERFORMANCE-BASED REWARD
 -Set a challenging goal and make sustained achievements
-Evaluate and compensate fairly to reflect short and long-term
achievements
3. PRODUCTS OF LG
Company has strengthened its position in the industry as a total solution provider that
meets customer needs. LG is continuing to launch differentiated and market-leading
products in all spheres like-
2.1 Home Entertainment
TVs, is their flagship product group, and LGE has built a high-end brand image with the
launch of the world’s first OLED TV and the expansion of its sales while leading
commercialization by releasing entry-level models of high-definition, ultra HD TVs. In
addition, LGE is striving to lead the market by introducing innovative products and
strengthening product competitiveness in smart TVs, the AV and commercial business
sectors. LG Electronics is expanding its products and services to move customers and
gain their trust. In particular, LGE is applying optimized AI technology to each product
and service to provide the best experience for customers while using them.

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2.2 Home Appliance & Air Solution
LG’s Home Appliance business is making great leaps toward becoming a global No.1
home appliance provider by improving their cost competitiveness while securing
differentiated products, especially large-capacity and high-efficiency products based on
core parts technology, and developing customized products for every market. LG’s Air
Solution helped them to secure product competitiveness through production innovation
and launch of new products based on a global production network. Through chillers,
smart grids, and an ESCO (Energy Service Company) that provides integrated energy
solutions for technologically competitive and energy- efficient home and commercial air
conditioners, LGE is providing differentiated energy saving solutions.
2.3 Mobile Communications
LG’s Mobile Communication (MC) company delivers unique products equipped with
superior hardware capabilities, innovative technologies and outstanding design to
greatly enhance customer value. LGE smartphones offer differentiated designs and
multimedia functions in line with market trends. In addition to smartphones, LGE is
working as a core partner of Google, a global IT company, in the field of future mobiles.
LGE will focus on research and the development of core technologies for next-
generation product development and strengthen their leadership in smartphones and
other new smart devices cutting-edge products and solutions to corporate clients.
2.4 Vehicle Component Solutions
LGE’s Vehicle Component Solutions (VS) Company produces global top-tier vehicle
components under our vision of Innovation Partner for Vehicle Electrification. In the
telematics sector, LGE maintains a stable market share by pre-emptively responding to
LTE technology for vehicles based on the communications capabilities of its mobile
business. In terms of display audio and navigation, LGE is utilizing our display and
software capabilities for product differentiation.
2.5 Business Solutions
LGE’s Business Solutions (BS) Company is a business partner that provides cutting-
edge products and solutions to corporate clients worldwide. Building on our global
market-leading ‘OLED Signage’ and ‘Video Wall’, LG Electronics is recreating the space
of customers. At the same time, LG Electronics provides new customer value in the
energy sector with our high-efficiency solar modules, Energy Storage System (ESS),
and Energy Management Solution (EMS). Moreover, LGE is delivering integrated
solutions customized to given spaces such as homes, buildings, hotels, and complexes
in order to grow together with our customers.

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4. ORGANISATIONAL STRUCTURE
The organization structure of LG Electronics is given below.
Board of Directors
Following the launch of the holding company, LG Corp., LG Electronics operates under
an advanced corporate governance structure that comprises a professional
administrator and a Board of Directors. This structure helps us deploy more transparent,
value-creating management activities that help increase corporate and shareholder
value.

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5. ANNUAL TURNOVER OF LG
LG has held on to its title of the second most profitable consumer electronics brand after
Samsung. It leads the washing machines, microwave ovens and direct cool refrigerators
markets in India
LG’s revenue figures from its television and home theatre divisions stood at Rs 4,546
crore during FY 2018. LG Electronics has also retained the tag of the second largest
player in the LED TVs space in India.
In comparison, Samsung’s TV and home theater segment registered revenue figures of
Rs 4,512.8 crore during FY 2018. Samsung was able to register gross profit figures of
Rs 221.9 crore from this revenue.
The revenue figures generated by LG’s home appliances and air-conditioner
businesses stood at Rs 10,903 crore during FY 2018. Samsung, on the other hand was
able to generate a revenue of Rs 6,732.2 crore from its home appliances business in
FY 2018.
Touted as India’s largest white goods maker, LG Electronics India’s net profit figures
were Rs 1,454.2 crore during FY 2018. These figures represent a 14 per cent jump in
net profit figures the brand had filed during the last fiscal.
6. OPPORTUNITY & CHALLENGE
LG firmly believe that customer value should take priority in all corporate activities and
that companies which fail to do so will find it difficult to survive. With that in mind, all
systems and policies at LG Electronics are decided from the customers’ standpoint. At
LG Electronics, customer service is not merely the responsibility of the relevant
department but recognized as an objective of the entire company.
Building a ‘people company’ where talented people are given the opportunity for self-
development is vital to attaining our vision. At LG Electronics, individual employees are
working to enhance their market value by carrying out their work in the best possible

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way with a view to becoming the world’s best. Their efforts are supported by the
company’s extensive training program which gives individuals the chance to develop
their abilities and gain global experience.
Voluntary initiatives to reduce greenhouse gases and address climate change are
helping to shape LG Electronics into a green company. As a company with 36 production
facilities around the world, LG is guided by an environmentally-friendly vision and
strategies befitting a global enterprise. We set up a greenhouse gas inventory starting
with our plant in Cheongju to monitor our emission levels. Moreover, LG is enhancing
production processes and developing technologies to curb greenhouse gas emissions.
Life cycle assessments are undertaken to assess emissions throughout a product’s life
cycle. After broadly classifying emissions into the production and usage stages, LG
found that more than 80% is attributed to product usage.
LG recognize that raising energy efficiency of electronic products could be the most
effective way to provide economic benefits to consumers while curbing global warming.
Regions such as the EU are tightening regulations on energy efficiency and standby
power. Keeping in step with such regulatory trends, LG Electronics is continuing with
R&D to acquire the highest grades of energy efficiency for its products.
Regulations on hazardous substances (RoHS, REACH), recycling (WEEE), energy
efficiency and eco-design (EuP, climate pact) have generated greater demand for green
products. Environmental factors are a key determinant of a product’s competitiveness
due to heightening environmental awareness among consumers. LG Electronics
realizes that meeting these demands is an important part of corporate social
responsibility and is leading the way in responding to the changing social trends.
7. EXPECTATIONS FROM GOVERNMENT
LG Electronics, has voiced concerns on the lack of enough incentives to expand local
television manufacturing. According to Mr. Umesh Dhal, chief relationship officer, LG
Electronics India, local manufacturing can be made attractive by “abolishing customs
duty on panels and open cells till manufacturing ecosystem for same is ready in India”.
He also said the government should incentivise manufacturers for local production. The
statement came at a time when the country’s largest consumer durable firm Samsung
India was negotiating hard with the government.
Dhal also said the goods and services tax (GST) rate on TV sets should be brought
down, “as it is more of an educative device”.
The demand for a reduction in GST rate on TV sets is not new. Since the introduction of
GST, TV makers have been asking the rate to be cut to 18 per cent from 28 per cent for
all types of sets. Though a partial relief was offered by lowering the rate to 18 per cent
for TVs measuring 32 inch or smaller, larger TV sets still attract 28 per cent GST rate.
Consequently, manufacturers have raised prices by 5-7 per cent. LG, however, was not
halting its production.

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While India has been trying to bring investments in this field through its electronics
policy, private players cutting down on imports continue to be a pain point. Data from
the ministry of electronics and information technology show that till September 2018,
only 13.45 per cent of the proposed Rs 61,925-crore investment materialised under
modified special incentive package scheme in the electronics system design and
manufacturing space.
8. COMPETITORS OF LG
Samsung Electronics
Samsung Electronics is another top company that manufactures electronics. It also
operates through divisions i.e. Device solutions division, IT and mobile communications
division and consumer electronics division.
Samsung is clearly the topmost amongst all LG Competitors due to many reasons. LG
and Samsung are big time competitors in products like refrigerators, television and
others. They are also competitors in Smartphones as well as Laptops. Samsung is in
fact an all-around LG competitor and hence the toughest competitor LG has to beat.
Sony
Like Samsung and LG, Sony’s modus operandi is through segments, i.e. the financial
services segment; mobile communications segment; network services and gaming
and product imaging and solutions.
Since the 1980s, Sony communicates to its customers through slogans. In the early
1980s, the slogan was ‘the one and only’ after which it adopted ‘Its Sony’ until the year
2002. From then the slogan changed to ‘like no other’ and in 2009 another one dubbed

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‘make belief’ was introduced. ‘Make believe’ was abolished in 2014 and ‘Be moved’
which is still in use introduced. The company has around 14,000 employees.
Whirlpool
Whirlpool manufactures home appliances. Some of its products include; laundry
appliances, home freezers, and refrigerators, dishwashers, cooking appliances, mixers,
air conditioning equipment et cetera. The company was founded in the year 1898 in the
United States and has its headquarters in Michigan. It is also recognized as the largest
home appliance maker in the world. Whirlpool is known for its washing machines and it
is one of the toughest LG competitors in this product.
Electrolux
Electrolux also referred to us AB Electrolux has been continuously ranked as world
number two after whirlpool in terms of unit sales. Electrolux manufactures home
appliances. Its operations are based on two segments i.e. Professional products
segments and consumer Durables segment. The professional products division handles
food service equipment for institutions, hotels, and restaurants while the consumer
durables division deals with small appliances.
9. KEY LEARNINGS
 We have identified two broad categories of LGs products, vehicle components
and corporate displays, which were new knowledge to us.
 The refined Korean Management principle of “JEONG-DO MANAGEMENT”,
which mainly focus on ethical and customer oriented approach.
 The distribution of sales figures across different product portfolio.
 The extent of competition across different product categories.