Volume 2 Issue 31

1
Volume 2 Issue 31
August 8, 2005
CEO Message
Seek to Make a Healthy Organization
For us to achieve our goal the Global Top 3 by
2010 and in order to gain the best competitive
advantage in a very competitive market, we must
be a healthy organization. We can only continue
to grow rapidly if we are healthy enough to find
new energy. In order to create such a healthy
organization, each and every one of us must
maintain our emotional health.
From the August CEO Message
Vice Chairman and CEO LG Electronics
LGE Pride
LGE Sells Worlds First Enviro-Friendly Notebook
On July 2, UL (Underwriters Laboratories)
announced its approval of LG Electronics LW60
notebook as the first to meet the new
Restriction of Hazardous Substance standards
(RoHS). The standards, which are mandated under
the globally accepted Restricted Substances
Compliance Solutions (RSCS), disallow the use of
several substances that are harmful to the
environment. The standards will become mandatory
by next year. LGEs environmentally-friendly
notebook has none of the restricted substances in
either the computer or its parts. This
achievement shows LG Electronics continued
commitment to building premium,
environmentally-friendly products
.
OLED Deal to Help LGE Make Gains in Monitor Market
In an attempt to increase market share in the
growing OLED (Organic Light-Emitting Diode)
market, LG Electronics signed an agreement with
Kodak to use patented, core technologies in OLED
panels for portable electronic devices. LGE
currently has one production line for OLED panels
and will open a second later this year. The
panels use a diode which naturally emits light,
greatly reducing the amount of power the display
uses. This allows portable devices such as
notebooks and PMPs (Portable Media Player) to
have a longer battery life. .
LGE WAY
Seeking No. 1 for all LG Branded Companies
T
he capstone of LG Corporations LG WAY is the
vision of becoming No. 1 LG. To achieve this,
we must not only be recognized in our
market, but also become the leading company. We
must first become globally competitive by
directly competing with other leading companies
until we gain the proper business advantages.
Next, we must create a brand name with a premium
image so we can sell at premium prices. Finally
we must fulfill customer expectations by
providing first-class products which satisfy all
of their needs. Once we accomplish these three
goals, LGs output
LG WAY
No.1 LG
Management by Principles
Creating value for customers
Management based on esteem for human dignity
image of No. 1 LG will include four main
characteristics. First, customers should
acknowledge us as a first-class brand because of
the quality and value of our products. Second,
investors must be attracted to our high profit
margins. Third, employees should gain a sense of
personal fulfillment and ownership. Finally,
competitors will fear us, but want to learn how
they too can create great results through
first-class management. Achieving No. 1 LG is
not easy, but we can do it by practicing
Management by Principles and basing our work on
our two management philosophies.
.
How LGE got 71 of the Optical Storage Market
L
G Electronics completely dominates the optical
storage market in Korea. Recent market research
done by price comparison site Danawa
showed that LGE sold 71 of all optical storage
devices. LGE gained this chokehold on the market
through applying all three principles of Fast
Execution. First, LGE always released their
newest products faster than competitors. Second,
these products didnt just put LGE a step ahead
of competitors, but often leaps and
bounds ahead. One example is the super-multi DVD
writer. At a time when companies were fighting
over which of the many formats to support in
their latest versions, LGE simply supported them
all. LGE thus became the favorite choice of
customers who wanted to just burn a DVD or CD, not
worry about the details. Finally, LGE used many
different manufacturing innovations to
continually reduce their costs. This left over
more profit for the company, and also allowed LGE
to offer a lower price than competitors. LGE
achieved this through applying the three parts of
Fast Execution30 More Performance, 30 Faster
Speed, and 30 Lower Costs. We too can create the
same fantastic results in all of our product
categories, and thus achieve the Global Top 3 by
2010.
Creating Unity Through Service
Many companies continually encounter disputes
between management and labor unions or employees.
LG Electronics has been a bright exception to
this rule, displaying not only good relations,
but an ability to act as one. LGE accomplished
this by many methods, one being joint service
projects. In 2005 they sponsored a
touring trip to North Korea for disabled
individuals, participated in homebuilding
projects for Habitat for Humanity, and
conducted blood drives and food drives. These
activities not only help others around us, but
also improve the relationship between employees
and management.
LGE WAY Knowledge Quiz
Early Innovation Creates Competitive Advantage by
Doing What to Innovation?
Click Here For the Answer
Published by LG Electronics / Corporate Culture
Group Please refer questions, comments, and
suggestions on content to lgeway_at_lge.com