STRATEGIC INTENT

OF

LG Electronics

SUBMITED TO— SUBMITED BY—

Prof. Kamad Sir Mohd. Adil Shaikh

Roll No-40 (Finance)

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.

LG ElectronicsWorldwide & 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 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.

LG Electronics

MISSION, VISION & VALUESLG 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

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.

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

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

CONCLUSIONEach 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.