Project report on

Business management & organization system

Submitted under
Guru Tej sir

Submitted by
Gaurav Agrawal
MBA 1st semester

Student declaration
While many students know they are interested in business, there are so many career
possibilities and potential work environments; it can still be very challenging to find a
good fit. You have to consider what types of daily activities you want to complete, the
size of the organization you want to work for and even the type of organization you want
to join. The Career and Community Learning Center is a resource available to CLA
students to help them identify a career path which fits well with their unique interests,
personality, values, and skills. The office provides many ways to help students through
this process including:
 Executive summary

A business can be defined as an organization that provides goods and services to others
who want or need them. When many people think of business careers, they often think of
jobs in large wealthy corporations. Many business-related careers, however, exist in small
businesses, non-profit organizations, government agencies, and educational settings.
Furthermore, you don't need a degree in business to obtain many of these positions. In
short, every sector of our economy needs people with strong overall skills that can be
applied to business-type careers. Business is a process in which a person or an
organization purchases and or sells goods in an attempt to make a profit. For example, a
person collecting and selling newspapers is said to be involved in a business

Meaning of business
A business (also known as a company, enterprise, and firm) is a legally recognized
organization designed to provide goods or services, or both, to consumers, businesses and
governmental entities. Businesses are predominant in capitalist economies. Most
businesses are privately owned. A business is typically formed to earn profit that will
increase the wealth of its owners and grow the business itself. The owners and operators
of a business have as one of their main objectives the receipt or generation of a financial
return in exchange for work and acceptance of risk. Notable exceptions include
cooperative enterprises and state-owned enterprises. Businesses can also be formed not-
for-profit or be state-owned.

The etymology of "business" relates to the state of being busy either as an individual or
society as a whole, doing commercially viable and profitable work. The term "business"
has at least three usages, depending on the scope — the singular usage (above) to mean a
particular company or corporation, the generalized usage to refer to a particular market
sector, such as "the music business" and compound forms such as agribusiness, or the
broadest meaning to include all activity by the community of suppliers of goods and
services. However, the exact definition of business, like much else in the philosophy of
business, is a matter of debate and complexity of meanings.

The size and scope of the business, and its anticipated management and ownership.
Generally a smaller business is more flexible, while larger businesses, or those with
wider ownership or more formal structures, will usually tend to be organized as
partnerships or (more commonly) corporations. In addition a business that wishes to raise
money on a stock market or to be owned by a wide range of people will often be required
to adopt a specific legal form to do so.

 The sector and country. Private profit making businesses are different from
government owned bodies. In some countries, certain businesses are legally obliged
to be organized in certain ways.
 Limited liability. Corporations, limited liability partnerships, and other specific types
of business organizations protect their owners or shareholders from business failure
by doing business under a separate legal entity with certain legal protections. In
contrast, unincorporated businesses or persons working on their own are usually not
so protected.
 Tax advantages. Different structures are treated differently in tax law, and may have
advantages for this reason.
 Disclosure and compliance requirements. Different business structures may be
required to make more or less information public (or reported to relevant authorities),
and may be bound to comply with different rules and regulations

Strategy at Different Levels of a Business

Strategies exist at several levels in any organisation - ranging from the overall business
(or group of businesses) through to individuals working in it.

 Corporate Strategy - is concerned with the overall purpose and scope of the business
to meet stakeholder expectations. This is a crucial level since it is heavily influenced
by investors in the business and acts to guide strategic decision-making throughout
the business. Corporate strategy is often stated explicitly in a "mission statement".

 Business Unit Strategy - is concerned more with how a business competes

successfully in a particular market. It concerns strategic decisions about choice of
products, meeting needs of customers, gaining advantage over competitors, exploiting
or creating new opportunities etc.

 Operational Strategy - is concerned with how each part of the business is organised to
deliver the corporate and business-unit level strategic direction. Operational strategy
therefore focuses on issues of resources, processes, people etc.
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.Meaning of management

The efficient and effective operation of a business, and study of this subject, is called
management. The main branches of management are financial management, marketing
management, human resource management, strategic management, production
management, operation management, service management and information technology
management.

Management in all business areas and organizational activities are the acts of getting
people together to accomplish desired goals and objectives. Management comprises
planning, organizing, staffing, leading or directing, and controlling an organization (a
group of one or more people or entities) or effort for the purpose of accomplishing a goal.
Resourcing encompasses the deployment and manipulation of human resources, financial
resources, technological resources, and natural resources.

Because organizations can be viewed as systems, management can also be defined as

human action, including design, to facilitate the production of useful outcomes from a
system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting
to manage others
Management can also refer to the person or people who perform the act(s) of
management.

DEFINITION:
 F.W. Taylor -“Art of knowing what you want to do and then seeing that it is done
the best and cheapest way”.
 Henry Fayol –“To Manage is to forecast, to plan, to organise, to command, to co-
ordinate and to control”.
 Peter F.Drucker –”Management is work and as such it has its own skills, its own
tools and its own techniques”.
 “Management is the art of getting things done through and with people”.

CHARACTERISTICS OF MANAGEMENT

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1) Is a Process /a function.
2) Is a Social Process.
3) Involves Group Effort.
4) Aims at achieving predetermined objectives.
5) Required at all levels of management
6) Is a Profession
7) Is comprised of following functions:
 Planning
 Organising
 Directing
 Controlling
 Co-ordination
8) Is an art and science.
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Systems approach to management

EXTERNAL ENVIROMENT

I
External Environment

Opportunities

Threat
 FUNCTIONS OF MANAGEMENT

Planning
 Look ahead and chart out future course of operation
 Formulation of Objectives, Policies, Procedure, Rules, Programmes and Budgets

Organising
 Bringing people together and tying them together in the pursuit of common
objectives.
Enumeration of activities, classification of activities, fitting individuals into functions,
assignment of authority for action
Directing
 Act of guiding, overseeing and leading people.
 Motivation, leadership, decision making.

 Controlling
 Laying standards, comparing actuals and correcting deviation-achieve objectives
according to plans.

 Co-ordination
 Synchronizing and unifying the actions of a group of people.

MANGEMENT IS AN ART AND SCIENCE

Art
 Practical know how
 Technical skills
 Concrete results
 Creativity
 Personalized nature

Science
 Empirically Derived
 Critically tested
 General principles
 Cause and effect relationship
 Universal applicability

MANAGEMENT AS A SCIENCE PROVIDES PRINCIPLES AND AS AN ART

HELPS IN TACKLING SITUATIONS.
The management of a large organization may have about five levels:

1. Senior management (or "top management" or "upper management")

2. Middle management
3. Low-level management, such as supervisors or team-leaders
4. Foreman
5. Rank and File

Top-level management

 Require an extensive knowledge of management roles and skills.

 They have to be very aware of external factors such as markets.
 Their decisions are generally of a long-term nature
 Their decisions are made using analytic, directive, conceptual and/or
behavioral/participative processes
 They are responsible for strategic decisions.
 They have to chalk out the plan and see that plan may be effective in the
future.
 They are executive in nature.

Middle management

 Mid-level managers have a specialized understanding of certain managerial tasks.

 They are responsible for carrying out the decisions made by top-level
management.
 finance, marketing etc are comes under middle level management
 Lower management
 This level of management ensures that the decisions and plans taken by the other
two are carried out.
 Lower-level managers' decisions are generally short-term ones.

How Strategy is Managed - Strategic Management

In its broadest sense, strategic management is about taking "strategic decisions" -

decisions that answer the questions above.

In practice, a thorough strategic management process has three main components, shown
in the figure below:
Strategic Analysis

 This is all about the analysing the strength of businesses' position and
understanding the important external factors that may influence that position. The
process of Strategic Analysis can be assisted by a number of tools, including:

PEST Analysis - a technique for understanding the "environment" in which a business

operates
Scenario Planning - a technique that builds various plausible views of possible futures for
a business
Five Forces Analysis - a technique for identifying the forces which affect the level of
competition in an industry
Market Segmentation - a technique which seeks to identify similarities and differences
between groups of customers or users
Directional Policy Matrix - a technique which summaries the competitive strength of a
businesses operations in specific markets
Competitor Analysis - a wide range of techniques and analysis that seeks to summaries a
businesses' overall competitive position
Critical Success Factor Analysis - a technique to identify those areas in which a business
must outperform the competition in order to succeed

Meaning of business administration

Business administration is the process of managing every aspect of a business in order for
it to maintain its growth or stability, depending on the overall goal of the owner or
owners. Most companies have a dedicated group of administrators who work to ensure
this takes place. Most also work to get to this point by setting up a hierarchy. This starts
with lower management, and works its way through middle management to upper
management.

In business, administration consists of the performance or management of business

operations and thus the making or implementing of major decisions. Administration can
be defined as the universal process of organizing people and resources efficiently so as to
direct activities toward common goals and objectives

In business administration program, the

Difference between business management & business administration

"There's no difference. The word "administration" and "management" are somewhat

different when defined in a dictionary. But in the real world of business, they are the
same unless one begins splitting hairs.

There can be a lot of confusion between the ‘administration’ and ‘management’ of

businesses. In the practical world of business, they are very similar, and generally have
identical functions and responsibilities. Many may think that administration is more about
paper-pushing and clerical work, while management is more about authority and
decision-making. However, unless clearly defined by a particular company, business
management and administration are generally the same.
 Management is the actual concentration within business administration, and you cover
organizational behavior/structure, leadership in organizations, managing change, and
things like human resources (people) management. Some schools might have "business
administration and management" to refer to the management major.

business administration is usually the name of the degree or program (like BBA or MBA)
and not really a concentration. Every business discipline combined is pretty much
"business administration" as a whole. In fact, you can even take out the word
"administration" and just leave it at "business" as a field of study. So saying you study
"business administration" is saying you study "business."

Business Management concerns itself with the act of directing people towards
accomplishing organizational goals and objectives.
Business Administration concerns itself with the performance or management of business
operations. It's a systems approach to organization, problem solving and solution finding
as it pertains to the whole of the organization.

Business management is a method of aligning an organization with the wants and needs
of its clients. Whereas business administration includes the performance or management
of business operations and implementing major decisions involved in an organization.

Business Management is the influencing of people to help accomplish the goal of an

organization where Business Administration is the actual management, growth, strategies
of any business
administration is your workforce,the employees.And your business management is the
order in which the business and it's affairs are conducted.

Types of business:

The most common types of business are-

Sole Proprietorship - liability is unlimited.

 Partnership - liability is joint and several and is unlimited.

Partners - Two types 1. Active Partner 2. Sleeping Partner

 Limited Liability Partnership - Liability is limited

 HUF (Hindu Undivided Family) - businesses owned by a joint family belonging
to Hindu religion. Even though Jain and Sikh families are not governed by the
Hindu law, they can still form a HUF.
  Cooperative
 Family Owned Business
 Pvt. Ltd. (Private Limited Company): Ltd.
 (Public Limited Company)): p.l.c.
 Public Sector Unit (PSU) - Alternatively known as Public Sector Enterprise
(PSE). It may be public limited company listed on stock exchanges with major
ownership by a state government or a central government of India or it may be
unlisted entity with major ownership by a state government or a central
government of India. Some of these entities are formed as business entities
through special legislation, where these entities are governed by the statutes of
these legislation and may or may not be governed by company laws like a typical
business entity.
 Unlimited company. A company, similar to its limited company (Ltd., or Pvt.
Ltd.) counterpart, but where the liability of the members or shareholders is not
limited.

Meaning of organization
Organization a group of people who work together. "he claims that the present
administration is corrupt"; "the governance of an association is responsible to its
members"; "he quickly became recognized as a member of the establishment”. He
changed the arrangement of the topics"; "the facts were familiar but it was in the
organization of them that he was original"; "he tried to understand their system of
classification". An organization is a social arrangement which pursues collective goals,
controls its own performance, and has a boundary separating it from its environment.
The word itself is derived from the Greek word organ on, itself derived from the better-
known word ergon.

In the social sciences, organizations are the object of analysis for a number of
disciplines, such as sociology, economics, political science, psychology, management,
and organizational communication. In more specific contexts, particularly for
sociologists, the term "institution" may be preferred. The broader analysis of
organizations is commonly referred to as organizational studies, organizational behavior
or organization analysis. A number of different theories and perspectives exist, some of
which are compatible,
 Leadership in organizations: these are two types of Leadership in organizations.

 formal organizations
 informal organizations

 Leadership in formal organizations

The formal organization is expected to behave impersonally in regard to relationships

with clients or with its members. According to Weber's definition, entry and
subsequent advancement is by merit or seniority. Each employee receives a salary and
enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors
or of powerful clients. The higher his position in the hierarchy, the greater his
presumed expertise in adjudicating problems that may arise in the course of the work
carried out at lower levels of the organization. It is this bureaucratic structure that
forms the basis for the appointment of heads or chiefs of administrative subdivisions
in the organization and endows them with the authority attached to their position.

 Leadership in informal organizations

The informal organization represents an extension of the social structures that

generally characterize human life — the spontaneous emergence of groups and
organizations as ends in themselves. In prehistoric times, man was preoccupied with his
personal security, maintenance, protection, and survival. Now man spends a major
portion of his waking hours working for organizations. His need to identify with a
community that provides security, protection, maintenance, and a feeling of belonging
continues unchanged from prehistoric times. This need is met by the informal
organization and its emergent, or unofficial, leaders.

Types of Organization
 These are three types.

1. Static Organizations :

Fixed practices, fixed size. Like static equations, these organizations have no
variables -- time doesn't change them significantly. They persist until some new
organization occupies their niche.

2. Dynamic Organizations:

Fixed practices, variable size. Like dynamic equations, these organizations vary
in size over time, even though their underlying practices don't change much. They
go through a single life cycle, each growing rapidly as it occupies its niche, then
declining as its competitors implement better practices that steal away its clients.

3. Adaptive Organizations:

Variable practices, variable size. Like complex adaptive systems, these

organizations vary their practices, seeking the constant improvement that launches
life cycle after life cycle, creating new products, services, and processes that hold
on to clients generation after generation.
They will soon motivate employees to climb adaptation curves by using ISOPs to
fairly share the wealth that each innovation creates. ISOPs ensure that the
innovator, the predecessors, and each shareholder in the corporation benefits.
They will displace dynamic and static organizations in economic competition, so
that within a generation, most people will have learned to expect continual
improvement in their life experience. The fact that their ancestors once worked at
the same job in the same way for an entire lifetime will seem almost as incredible
as the fact that people used to stay at jobs they didn't thoroughly enjoy.

TYPES OF OWNERSHIP
There are basically three types or forms of business ownership structures for new small
businesses

1. Sole Proprietorship: A business owned and operated by a single individual and the
most common form of business structure in the U.S. The advantages with a sole
proprietorship include ease and cost of formation wssimply announcing you are in
business and requesting any licenses and permits you may need; use of profits since
all profits from the business belong exclusively to you, the owner; flexibility and
control you make all the decisions and direct the entire business operations; very little
government regulations; secrecy; and ease of ending the business. There are
disadvantages, however, including unlimited liability all business debts are personal
debts, meaning you could lose everything you own if the business fails or loses a
major lawsuit; limited sources of financing based on your creditworthiness; limited
skills the sole proprietor really must be a "jack-of-all-trades," part manager, marketer,
accountant, etc.; and limited lifespan the business ends when the owner dies.

2. Partnership: A business that is owned and operated by two or more people and the
least used form of business organization in the U.S. There are two basics forms of
partnerships, general and limited. In a general partnership, all partners have unlimited
liability, while in a limited partnership, at least one partner has liability limited only to
his or her investment while at least one other partner has full liability. Most states
require a legal document called the "Articles of Partnership" that delineates details
about each partner's investment and role in the new company. The advantages of a
partnership include ease of organization simply creating the articles of partnership;
combined knowledge and skills using the strengths of each partner for better business
decision-making; greater availability of financing; and very little government
regulations. There are disadvantages, however, including unlimited liability all
business debts are personal debts; reconciling partner disagreements and action each
partner is responsible for the actions of all the others; sharing of profits all money
earned has to be shared and distributed to the partners per the articles of partnership;
and limited lifespan the partnership ends when a partner dies or withdraws.

3. Private Corporation: A business that is a legal entity created by the state whose
assets and liabilities are separate from its owners. While there are also public
corporations who stock (and ownership) are traded on a public stock exchange most
small businesses are (or at least start as) private corporations. A private corporation is
owned by a small group of people who are typically involved in managing the
 business. Forming a corporation requires developing a legal document called the
"Articles of Incorporation" and submitting them to the state in which the corporation
wishes to reside. Advantages of a corporation include limited liability an owner
(stockholder) can only lose up to the amount s/he invested; unlimited lifespan a
corporation is charted to last forever unless its articles of incorporation state
otherwise; great sources of funding; and ease of transfer of ownership. Disadvantages
include double taxation the corporation, as a legal entity, must pay taxes, and then
shareholders also pay taxes on any dividends received.

Two other types of ownership of interest to entrepreneurs include:

 S Corporation: A form of ownership that is the best of both partnerships and

corporations. Owners have limited liability, greater credibility (for obtaining
financing), and no double taxation as all profits pass directly to the owners and the
corporation pays no taxes. There are, however, restrictions on the number and
type of shareholders.
 Limited Liability Company (LLC): A form of ownership growing in popularity
in the U.S. that provides limited liability and is taxed as a partnership or sole
proprietorship (depending on the number of members). This type of business
formation formed by submitting articles of organization to the state in which the
company resides is growing rapidly because it is flexible, simple to run, and does
not require all the paperwork of corporations.

Vision mission & goal

Vision:
 Corporate vision is a short, succinct, and inspiring statement of what the organization
intends to become and to achieve at some point in the future, often stated in competitive
terms. Vision refers to the category of intentions that are broad, all-inclusive and
forward-thinking.  It is the image that a business must have of its goals before it sets out
to reach them. It describes aspirations for the future, without specifying the means that
will be used to achieve those desired ends.

Mission:
A mission statement is an organization's vision translated into written form. It makes
concrete the leader's view of the direction and purpose of the organization. For many
corporate leaders it is a vital element in any attempt to motivate employees and to give
them a sense of priorities.
A mission statement should be a short and concise statement of goals and priorities. In
turn, goals are specific objectives that relate to specific time periods and are stated in
terms of facts. The primary goal of any business is to increase stakeholder value. The
most important stakeholders are shareholders who own the business, employees who
work for the business and clients or customers who purchase products and/or services
from the business.

Goals:
The major outcome of strategic road-mapping and strategic planning, after gathering all
necessary information, is the setting of goals for the organization based on its vision and
mission statement. A goal is a long-range aim for a specific period. It must be specific
and realistic. Long-range goals set through strategic planning are translated into
activities that will ensure reaching the goal through operational planning.

Organizational structure
  
Definition

Formal and informal framework of policies and rules, within which an organization
arranges its lines of authority and communications, and allocates rights and duties.
Organizational structure determines the manner and extent to which roles, power, and
responsibilities are delegated, controlled, and coordinated, and how information flows
between levels of management. This structure depends entirely on the organization's
objectives and the strategy chosen to achieve them. In a centralized structure, the decision
making power is concentrated in the top layer of the management and tight control is
exercised over departments and divisions. In a decentralized structure, the decision
making power is distributed and the departments and divisions have varying degrees of
autonomy. An organization chart illustrates the organizational structure.
Types of organizational

1. The BLACKHOLE Organization

- This is the organization that just sucks the life out of you. Everybody has lots to do but
nothing gets done. Things go in but never come out. The only reason this organization
survives is because of economic crutches.

2. The ROLLER COASTER Organization

- This organization is exciting, lots of things happening but it isn’t going places. It is
competitive to a minimum level of performance. While the talk is always about external
competitors, all the conflicts are internal. It is a very tiring place to work in.

3. The OLD FAITHFUL Organization

- This organization has culture and an elegance to it. People come to work knowing
exactly what to do and just get the job done, very refined, very clear and make steady
continuous progress. There is strong focus on external competitors. People are proud to
be part of the brand.

4. The TRAIL BLAZER Organization

- This organization is organized-ly disorganized. It moves very quickly based on windows

of opportunity. A lot of energy, excitement and celebration that goes on with every win.
Keeping score is big and people are pumped up. This organization grows by leaps and
bounds.
Strengths, Weaknesses, Opportunities and Threats (SWOT).

SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of planning and helps marketers to focus on key issues. SWOT stands for strengths,
weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.
Opportunities and threats are external factors.

Strength:

 Your specialist marketing expertise.

 A new, innovative product or service.
 Location of your business.
 Quality processes and procedures.
 Any other aspect of your business that adds value to your product or service.

A weakness:

 Lack of marketing expertise.

 Undifferentiated products or services (i.e. in relation to your competitors).
 Location of your business.
  Poor quality goods or services.
 Damaged reputation.

An opportunity:

 A developing market such as the Internet.

 Mergers, joint ventures or strategic alliances.
 Moving into new market segments that offer improved profits.
 A new international market.
 A market vacated by an ineffective competitor.

A threat:

 A new competitor in your home market.

 Price wars with competitors.
 A competitor has a new, innovative product or service.
 Competitors have superior access to channels of distribution.
 Taxation is introduced on your product or service.

LG Electronics LG 전자 KRX

Type Public K4orean: LG 전자 KRX: 066570 LSE: LGLD

Industry Consumer electronics

Mobile Devices
Home appliances
Air conditioning units.
Business Solutions

Founded 1958

Headquarters Seoul, South Korea

Area served Worldwide

Key people Yong Nam, (Vice Chairman & CEO)

Products Computer Monitors
Flash Memorys
LCD Displays
Plasma Displays
OLED Displays
TVs
DVD Players
Blu-ray Players
Home Cinema Systems
Movie Projectors
Mobile Phones
Laptops
CD and DVD Drives
Refrigerators
Washing Machines
Vacumm Cleaners
Air Conditioners

Employees 82,772 (29,948 in Korea/ 52,824 overseas) – as of 2006

Parent LG Group

Website LG Electronics Worldwide

LG Electronics was founded in 1958 at Seoul, South Korea. This multinational company
is the 2nd largest electronic products maker of South Korea and third largest appliance
maker in the world. LG manufactures, develops and sells Digital Display, Digital
Appliances, Digital Media and Mobile Communication products in international market.
LG Electronics is a project of LG Group which earns a revenue of USD$68.8 billion.
Yong Nam is the CEO. & Vice Chairman of the company who is making it possible to
spread the network of LG throughout the world. Headquarter of LG Electronics is in LG
Twin Towers at Seoul, South Korea.

There are more than 75 subsidiaries of the company in the world which designs,
manufactures, market and sells televisions, different electronic products, home appliances
and telecommunication devices. LG Electronics is the owner of Zenith Electronics and
has a joint venture with Philips Electronics under the name of LG Display. Both the
companies are putting their effort in manufacturing and developing the quality of their
products. Some important subsidiaries of LG Group are LG Electronics, LG Telecom, LG
Chem. and Zenith Electronics in more than 80 countries.

In early years of 2000 the company acquired popularity in new markets and earned more
revenue. In 2005 and 2006 the company did a record business in the market of electronic
products. LG is the largest plasma manufacturer of the world and LG Display is the
largest manufacturer of liquid crystal displays. In 2006 the company focused its attention
on mobile phones and introduced LG Chocolate. The company develops the designs and
functions of its mobile phone and marketed LG Shine and LG Prada which became very
successful. LG Electronics picked as "The Design Team of the Year" by Red Dot Design
Award in 2006 and 2007. It is also called “new Apple” & “new Sony” in the communities
due to its products and management.

LG Electronics was established in 1958 as Gold Star. It was a manufacturer of

refrigerators, TVs, air conditioners and washing machines. LG Group is the merger of
Lucky and Gold Star, two Korean companies. L is taken from Lucky and G from Gold
Star which formed LG Group. "Life's Good" is the slogan of the LG Electronics. Before
the name of LG Electronics, Electronic goods were sold under the name of Lucky and
similarly home appliances were sold under the name of Gold Star. Gold star produces
Interactive Multiplayer which was costly but it was very successful. In 1995 Gold Star
was renamed as LG Electronics and owned Zenith Electronics of USA. LG Electronics
sponsors sports in different fields such as football, cricket and racing etc.

LG Electronics of USA has introduced a variety of handsets which became very

successful. The company is producing a large number of handsets and it is expected that it
would become the fourth largest handset maker of the world in 2008. The mobiles of LG
are becoming popular in the telecommunication market due to its quality and advance
features. The division of home appliances manufactures products such as air conditioners,
refrigerators, ovens and washing machines for home users. North America is the largest
market for home appliances division of the company.

In display divisions LG Electronics is very prominent. The company manufactures, LCD

TVs, Monitors, Plasma TVs, OLED Panels, Flat Panel Monitors and USB Memory. The
company has launched many products in the field of digital media such as DVD
Recorders, CD RW, Home Theatre Systems, Notebook PCs, MP3 Players, Desktop PCs;
PDAs etc. LG has introduced a series of air conditioners which is successful in the market
of electronics.

Types of product

Computer Monitors
Flash Memorys
LCD Displays
Plasma Displays
DVD Players
Blu-ray Players
Home Cinema Systems
Movie Projectors
 Mobile Phones
Laptops
CD and DVD Drives
Refrigerators
Washing Machines
Vacumm Cleaners
Air Conditioners

History of LG Company

2005
 LG Electronics MobileComm becomes second largest mobile phone manufacturer in the
US
 LG Electronics MobileComm leads the U.S. mobile handset industry in customer
satisfaction
 LG Electronics MobileComm dominate CDMA sales

2004
 LG Electronics MobileComm becomes number one CDMA handset maker worldwide
2003
 World's first synchronous-asynchronous IMT-2000 mobile phone developed; the world's
largest 76-inch PDP TV developed; CDMA mobile handsets took the largest share in the
US CDMA market
 First LG Action Sport Championship is held in California
 LG Electronics MobileComm is number one CDMA manufacturer in US market

2002
 Under the LG Holding Company system, the Company spun off to LG Electronics
(LGE) and LG Electronics Investment (LGEI); the first home networking system
commercialized in the global market

2001
 LG.Philips Displays, a joint venture with Philips, is born

2000
 Merges with LG Information & Communications

1999
 Develops and sells Korea's first Korean-type digital TV
 Sells Korea's first 40-inch PDP TV
 Attracts foreign investment for LG LCD
 Declares Digital LG Vision
 LG-Philips LCD, a joint venture with Philips, established
 1998
 Strengthens restructuring efforts
 World's first 60-inch PDP TV developed

1997
 Develops world first reception IC for digital TV

1995
 Merges with Gold Star Communications
 Company name changed from Gold Star to LG Electronics
 Acquires Zenith of the U.S.
 Declares Challenge 2005?Becomes the second date of company birth for LG
Electronics

1992
 Merges with Gold Star Components

1991
 First in Korea to export over US $2 billion in home appliances

1984
 Sales exceed 1 trillion won

1981
 Establishes Korea's first overseas production subsidiary (LG Electronics AI)
1978
 First in the electronics industry to reach export of US$100 million
 Establishes sales subsidiary in the U.S. (LG Electronics US)

1977
 Sales reach 100 billion won mark

1968
 Establishes first overseas branch office (New York)
 Produces Korea's first air conditioner

1966
 Produces Korea's first black & white TV

1965
 Produces Korea's first refrigerator

1962
 Produces Korea's first telephone
 1959
 Produces Korea's first radio (A-501). Heralds beginning of electronics industry of
Korea

1958
 Gold Star Established

SWOT Analysis of LG Company

SWOT is the tool to see that where organization stands, which areas required
improvement, which areas required serious consideration, which would be the source of
growth, which things need avoidance and so on. The SWOT of LG will help to
understand the position of LG in the market.

Strengths

LG is a multinational company and a recognized brand around the world. It has

successful established not only in developed countries but also in developing countries.

LG products are reliable, easy to use, and have simple designs which satisfy customers
that’s why LG have the advantage of having loyal customers.

In LG Corporation the research and development has given greater importance because to
satisfy the customers and provide the customers what they want the research and
development is required.

LG try to keep products innovative to attract the customers and to capture more market
share.

LG is at its growing stage and its growing quickly. It is producing solid products which
rapidly satisfying the customers.
Weaknesses

The big weakness of LG is that it has very few competent employees mostly are not
skilled and also there is no training and development concern for employees.

Opportunities

The electronic market is expanding rapidly which is a great opportunity for LG to expand
itself in new market and to capture more market share. It also can expand its target market
geographically and socially both by introducing new products in existing market and
existing products in new markets.

Through the innovation in existing products it can attract more customers because at
present it is behind the market leadership so to become a leader it has to make innovations
to attract potential buyers and retain existing customers.

Threats

As the competitors of LG are more dominant in the market and continuously improving
their products so they can take away the existing customers of LG, so it has to work very
hard to retain and attract customers.

The condition of economy all around the world is not good and it is affecting the
purchasing power and priorities of the customers, people are facing difficulties in
satisfying basic and needs so how they can spend on electronics which is considered as
luxury items. This situation can affect the sales of the company.