Volume 2 Issue 35

1
Volume 2 Issue 35
September 5, 2005
CEO Message
Pushing towards the Global Top 3
We have changed a lot. The 34,000 LGE employees
in Korea and the 40,000 overseas employees have
really worked at a global level to get us where
we are now. I am sincerely grateful for this.
However, we still have a long way to go. But if
we push forward, we will have no problem in
achieving the Global Top 3 by 2010. I am
confident we will accomplish this and I believe
in all of you.
From the HQ Seminar CEO Speech, Aug. 24, 2005
Vice Chairman and CEO LG Electronics
LGE Pride
LGE Strengthens No. 3 Position in North America
LG Electronics increased its market share in the
North American cellphone market. During the first
quarter of the year, LGE moved ahead of Nokia
into the No. 3 spot, and has continued that
trend, selling 11 million handsets (16.2 market
share) thus far in 2005. They also crept closer
to the No. 2 seller in North America,
Samsung, who sold only slightly more than LGE and
had a 16.3 market share. Motorola continued to
claim the top spot with 34.3 of the market. .
Framed Air Conditioner Receives Praise in Asia
The South China Morning Times in Hong Kong ran an
article introducing LG Electronics framed air
conditioner. The article, which ran in the Aug.
23 edition, praised the various features and
artistic style of the air conditioner. It also
mentioned that LGE has been the top seller of air
conditioners in the world, and that LGE has also
started selling the units with images to
Click For a Full Size Copy of the Article
target specific markets, like the Sydney Opera
House for Australia, Mecca for Muslims, and
soccer for Brazil. An air conditionerwith the
grill on the front does not match living room
furniture or décor. People dont want units which
intrude, so we design air conditioners to blend
in. said K.S. Hwang, the head of air conditioner
marketing for LG Electronics. .
LGE WAY
Delivering Packages Faster Through Fast Execution
U
nited Parcel Service (UPS) lives and dies by the
speed of its deliveries. The company, which
specializes in freight, parcel delivery, and
logistics outsourcing, is renowned for its
innovation in speeding up the delivery process.
They have applied Fast Execution to become the
largest such company in the world. Just a look at
their basic delivery trucks show their use of
Fast Execution. All packages are marked with
unique barcodes, so when a delivery enters a
warehouse to be loaded, the driver does not get
out of the
truck, but drives it past conveyer belts as it is
loaded. According to the locations of the
packages inside the truck, a computer notifies
the driver of the best route. As the driver
travels along the route, the GPS system not
only notifies the driver of locations and traffic
problems, but the HQ office can monitor problems
and check if the driver is speeding. Once the
driver arrives, he or she can now easily see the
package labels because UPS added a translucent
roof, allowing sunlight in, thus making it easier
to see. Finally, deliveries are tracked with
customer
signatures on electronic pads. LG Electronics'
Customer Service Operation is now using some of
the same Fast Execution technology to increase
their service. The service technicians all carry
a handheld computer which shows GPS position and
tracks customer service data to help improve
service. Through this kind of innovation, LGE
will reach the Global Top 3 by 2010.
Change Challenge
Framework For Change Maps Out LGE Future
A
s stated in the previous issue, the LGE WAY
will take effect in three different steps
unfreezing, moving, and freezing. These steps show
how change will occur over time. The framework
pictured below shows the direction of change.
This framework has four different factors
leadership, participation, communication, and
system. Each part of the framework
shows the map for change in LG Electronics.
Leadership For the LGE WAY to change our
culture, leaders in LGE must fully support the
LGE WAY. The top management must have strong
commitment to change, and the middle-management
needs to take responsibly for applying the LGE
WAY in their departments. Participation As
employees, we must all actively take part in the
changes. We must understand the LGE
Leadership
System
Participation
LGE WAY
Communication
WAY, accept it, and modify our work style. The
Change Agents (CA) in each group will help
facilitate this at the group level.
Communication Open-communication between
managers and employees is vital to achieve the
best results. Communication channels are varied
and convenient, and all of them will be used to
support change. System The various systems in
LGE will be aligned with the LGE WAY. This will
also help facilitate feedback and monitoring of
progress. These four factors support the changes
in the LGE WAY and if each one used
effectively, with the help of all employees, we
will be able to achieve the Global Top 3 by
2010. .
LGE WAY Knowledge Quiz
One of LG Electronics' two management
philosophies states that we must create _____
for customers?
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