LG: From Underdog to Icon
LG Electronics started its journey when the two low scale Korean electronics companies Lucky and Goldstar joined forces in 1990 and became LG (Lucky Goldstar). Since then the transformation from ultra-cheap Lucky Goldstar to the LG brand that it is today has been nothing short of a remarkable journey. In 1995, Lucky Goldstar purchased the last remaining American-based TV manufacturer, Zenith Electronics. That acquisition provided the impetus for the plan to upgrade the brand, but it would take a number of years to accomplish this. From the very beginning of the of its operations LG has taken up unique marketing strategies to change its brand value and brand image and they have been successful in doing so and become the top name for electronic home appliances. LG have been named the 7th most innovative company in Business Week magazine’s annual ―50 Most Innovative Companies‖ story. With a circulation of just under one million and a history dating back to its first issue in 1929, this is a big accolade from a well-known and respected publication. LGE comprises of: LG Home entertainment Company, LG mobile Communications Company, LG Home appliance Company, LG air Conditioning Company, LG Business solutions Company. To begin, LG made great improvements in terms of their financial performance. It generated noteworthy earnings, increased their market share, and achieved noticeable results in efficient cash management. It also made significant improvements in innovation, constantly demonstrating leadership in introducing a host of new and creative products. In addition, LG broke into the ―Global Top 3‖ as a result of our efforts in every aspect of our operations. It also brought an increased consumer focus to our businesses, stressing the need to understand and solve their problems and build closer and more strategic relationships with our partners. Besides this, its multi-talented human resources became more globally-oriented, helping it to secure world leadership in each local market it operates in. Finally, it strengthened their brand position and posted extremely positive outcomes. The brand is fundamental to everything LG do. It’s a core asset that affects every part of its business. LG promises communication without compromise, performance without effort, comfort without waste, solutions without stress and subtly designs its products to enrich customers’ life with breakthrough innovations. LG Electronics operates under an advanced corporate governance structure that comprises a professional administrator and a Board of Directors. This structure can help you deploy more transparent, value-creating management activities that help increase corporate and shareholder value. The leaders of LG light the "fire in their bellies," to get them to feel passion about the company and connect to their visions and thus pave way for it to reach the sky. A standard training method is used here that is maintained in all nations LG operates. Training characteristics, design factors that affect transfer of training are maintained appropriately. Succession plans in LG are carried out by identifying leadership qualities, designating top candidates, retaining key employees and attract high-potentials and can use it in the process of replacing a CEO, managerial, professional, and administration leaders. Succession management in LGE is used to refer to the process of replacing a CEO when the position became vacant due to foreseen or unforeseen circumstances. These days, LGE understand the importance of implementing a succession plan for more and more roles across the company–in some cases extending to the larger population (managerial, professional, and administration). Succession planning is also an important way to identify, develop, retain and allocate key members of your workforce long before any talent gap occurs. LG’s initial step was to try to get distribution in higher-end retailers but this effort was stymied by...
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