LG Electronics was established in India with the strategic intent of becoming one of the top three electronics brands worldwide by 2010. Its goals included enhancing the domestic market through innovative new devices, making products affordable to all consumers, and manufacturing high quality products. LG aimed to achieve this through strategic directions like product and market leadership, as well as emphasis on research and development. By 2010, LG doubled its sales volume and profit in India and became a global leader in consumer electronics.

1. STRATEGIC INTENT
OF
LG Electronics
SUBMITED TO— SUBMITED BY—
Prof. Kamad Sir Mohd. Adil Shaikh
Roll No-40 (Finance)

2. DEFINING YOUR STRATEGIC INTENT:
Any successful business—large or small—didn’t achieve success on good ideas alone.
Succeeding in the business world requires what professors Gary Hamel and C.K. Prahalad
term “strategic intent.” Strategic intent, they explain, is a business’ long-term, far-reaching
goal. In order to determine your business’ strategic intent, you must not only consider what
you want in the next five or ten years, but what you want to accomplish in a 50 year
timeframe.
For example, decades ago, Coca-Cola’s strategic intent was for there to be a Coke within the
reach of every human being on the planet. This seemed like a crazy idea at the time, but think
about how prevalent Coke products are these days. By setting a developing a vision of the
future and developing long-term goals, Coca-Cola made enormous strides in developing their
brand.
The main tenets of strategic intent planning are direction, discovery and destiny.
• Sense of Direction includes an understanding about the long-term market or competitive
position that a firm aims to build over the next decade. Your sense of direction should be a
view of the future that conveys a unifying and personalizing sense of direction.
• Sense of Discovery. Your strategic intent should retain a sense of discovery and excitement
about the future. This helps create a competitively unique outlook and gives employees the
opportunity to explore new competitive territory.
• Sense of Destiny. Strategic intent has an emotional edge to it and it should be a goal that
both you and your employees perceive as inherently worthwhile.
But strategic intent is not just a concept; it’s also a three-step process.
• Set the Strategic Intent (having all three characteristics stated above).
• Set the Challenges: find appropriate challenges and communicate them to the entire
workforce. These challenges are the means to get into the Strategic Intent. (For example:
Suppose the Strategic Intent of Google is: Allow end users to access all of the information of
the Internet with the click of a mouse. A strategic challenge could be: Come up with a search
engine capable of producing accurate search results.)
• Empowerment of the Strategic Intent: The strategic intent works best when everyone is
invested in its goals. Managers and business owners should keep in mind the “wisdom of the
anthill” and challenge traditional downward communications styles.
Defining your strategic intent clarifies objectives for both you and your employees. By
setting out your strategic intent, you make clear your company’s goals and help set the path
for future successes.

3. LG Electronics
Worldwide& in India
LG Electronics has been set up in India with a vision to rise high in the electronic equipment
industry. The chief aim of LG India is to enhance its domestic market by inventing new
electronic devices in state-of-art form with the best technology possible. The price range of
the products of LG India is quite
reasonable and affordable so as to make
it easier for every class of people to go
for it thereby increasing the consumer
level. LG India manufactures products
of high digital innovativeness to satisfy
the needs of its consumers not only in
the domestic market but all across the
globe. The upcoming goal set by LG
India for its growth is to be among the top three brands in terms of electronic devices,
information, and telecommunication companies in the world. The three main capabilities of
LG India are product leadership, people leadership, and market leadership that will intensify
the company's abilities for teamwork. One of the recent targets of LG India is to attain its
goal of doubling the sales volume and profit by 2010.
Some of the most eminent and profitable products manufactured by LG India are listed as:
FLAT PANEL DISPLAY
COLOUR TELEVISION
DIGITAL AUDIO VIDEO
COMPUTER PRODUCTS
MOBILE PHONE
REFRIGERATOR
WASHING MACHINE
VACUUM CLEANER
MICROWAVE OVEN
ROOM AIR CONDITIONER
COMMERCIAL AC
These products of LG India have their own sub-products as well. The sub-products of LG
Flat Panel Display are LCD TV and Plasma TV. The sub-products of LG Color Television
include Slimagic and Flatron TV; Digital Audio Video consists of 6.1 inch AV receiver,
Home Theater System, Music System, and DVD Player. LG Computer Products include
Notebook PC, Desktop PC, Monitor, and Optical Storage Device. Mobile Phones of LG India
comprise of brand names like Shine, Dynamite, Pulse, and Bullet. The Refrigerator products

4. of LG India comprise of Side-by-Side Refrigerator, Frost Free Refrigerator, and Direct Cool
Refrigerator. LG Washing machine has a range of Dish Washer, Washer Dryer, Front Load
Washing Machine, Top Load Washing Machine, and Semi-Automatic Washing Machine.
The Microwave Oven range of LG India includes Solardom Microwave, Convection
Microwave, Grill Microwave, and Solo Microwave. The range of LG Room Air Conditioner
in India includes Split Inverter AC, Split Art Cool AC, Floor Standing AC, Multi Split AC,
Hot and Cold AC, Split AC, and Window AC. The last product, that is the Commercial AC
range of LG India comprise of Ductable Type AC, Cassette Type AC, Multi V plus (VRF),
MPS, and ECO.
LG India is working hard on its R & D unit in order to generate products of superior value
technology along with a unique style for each of its products. It has won a number of awards
for its state-of-art form of manufacturing products and this had really boosted up the
company's flourishing electronic industry further.

5. LG Electronics
MISSION, VISION & VALUES
LG Electronics is pursuing the vision of becoming a true global digital leader, attracting
customers worldwide through its innovative products and design. The company’s goal is to
rank among the top 3 consumer electronics and telecommunications companies in the world
by 2010. To achieve this, we have embraced the idea of “Great Company, Great People,”
recognizing that only great people can create a great company.
Mission
The mission of LG is:
To create value for customers
To respect human dignity
To become the best in its class by winning customers' acclaim as a true leader in the
global market
Vision
The quest to make LG the most exciting and successful enterprise -will be won on the factory
floor, in the offices, on the field, face to face with the customers, with everyone
understanding and focused on the essential mission of a corporation -Serving Customers.
Winning depends not on the big deals, acquisitions etc. but on a thousand smaller victories
won by men and women who come to work every day excited about finding a better way of
doing things and in doing so, making lives better and our Organization THE BEST Creating
“A Pleasant Work Environment” through:
Trust, Respect & Cooperation
Employees fulfilling their dreams
Ideal Place To Work
Business Definition
Scope of Operation
Electronics
Chemicals
Telecommunications and Services
Business Model
Fast innovation calls for securing a competitive edge over the competition by setting—and
meeting—the highest of goals in all realms of innovation, by at least 30%. This applies to

6. new-product development and unveiling, innovation in design and technology—as well as
product sales, market share, and corporate value. Fast growth is the result of implementing
strategies designed to swiftly expand market size and earnings, with an eye toward monetary
growth.
Goals and Objectives
LG extends a warm hand to contribute to the community, to touch hearts of each & everyone
around us, our customers & friends, shareholders &partners and our "employees". They invite
customers to an organization with no boundaries and limits, a workplace activated by
opportunities and challenges leading to high levels of excellence through innovation. Their
focus is to create a platform for leveraging the Internet and IT advantage in favour of our
Organization. They aim to provide you with a career driven by targets to help you grow and
in turn contribute to the goal of the organization. They offer customer to become a part of our
Mission of becoming the No. 1 Organization by the year 2003. They want to be the Number
One Organization in every aspect of Corporate Governance i.e. viz. - People, Product,
Philosophy, Quality, Ethics, Partnership and The Most important Work Culture”.
LG India has been set up with the aim to acquire a leading position in the global digital
market by applying fast and innovative techniques in the manufacturing of products. Also, it
aims to meet the maximum requirement of consumers and give them the optimum service
required.

7. Balance Sheet of LG
Period Ending 31-Dec-2010 31-Dec-2009 31-Dec-2008
Assets
Current Assets
Cash And Cash Equivalents 1,437,000 702,000 1,071,000
Short Term Investments 1,324,000 2,147,000 1,627,000
Net Receivables 2,870,000 2,643,000 1,696,000
Inventory 1,952,000 1,432,000 900,000
Other Current Assets 207,000 140,000 195,000
Total Current Assets 7,790,000 7,064,000 5,489,000
Long Term Investments 297,000 253,000 90,000
Property Plant and Equipment 11,292,000 8,241,000 7,317,000
Goodwill - - -
Intangible Assets 476,000 303,000 162,000
Accumulated Amortization - - -
Other Assets 221,000 265,000 285,000
Deferred Long Term Asset Charges 947,000 795,000 482,000
Total Assets 21,022,000 16,920,000 13,825,000
Liabilities
Current Liabilities
Accounts Payable 5,360,000 3,498,000 2,794,000
Short/Current Long Term Debt - - 914,816

8. Other Current Liabilities 2,467,000 2,080,000 993,000
Total Current Liabilities 7,826,000 5,578,000 3,788,000
Long Term Debt - - 2,766,669
Other Liabilities 3,443,000 2,720,000 2,779,000
Deferred Long Term Liability Charges 6,000 - -
Minority Interest 22,000 - -
Negative Goodwill - - -
Total Liabilities 11,298,000 8,299,000 6,566,000
Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 1,576,000 1,536,000 1,416,000
Retained Earnings 6,164,000 5,152,000 4,060,000
Treasury Stock - - -
Capital Surplus 1,984,000 1,933,000 1,782,000
Other Stockholder Equity - - 140,213
Total Stockholder Equity 9,724,000 8,622,000 7,258,000
Net Tangible Assets 9,248,000 8,319,000 7,096,000

9. CONCLUSION
Each company has its own definition of success, every company will be
known or developed concept based on a specific theory and on a clear aim
to seek, in spite of the difficulties and obstacles, competitors and market
conditions.
LG Electronics believes that technological innovation is the key to success
in the marketplace. With its commitment to innovation and assertive global
business policies, LG aimed to become a worldwide leader in advanced
digital technology.
Concept LG Group was and still is built on the basis of "We want to draw
the attention of the world for our products," and on this basis of this
concept, the company has evolved from relatively humble beginnings to
occupy a prominent place and mission in the world of international trade
LG Electronics' success in the global market is also partly due to the
company's ceaseless efforts to expand its production facilities and
strengthen its research and development.
LG Electronics has come to prove its leadership throughout the past year
with all of their notable accomplishments and achievements.