Radical Reform
LG Group Chairman Koo Bon-moo has attracted attention by asking executives and employees at all of its affiliates to make a drastic reform in business structure according to the rapidly-changing business environment, including the low growth in China.
On Oct. 6, the last executive seminar of the year took place at the LG Twin Towers building in Yeouido-dong, in western Seoul. The LG Group holds an executive meeting in every quarter to discuss business issues and share business topics.
The seminar on the day took two hours, a little longer than usual. It is said that the meeting realistically analyzed “LG’s Present and Future.”
At the seminar, Koo said, “The uncertainty of the global economy is growing further, along with the economic slowdown in China, and the business environment is rapidly getting worse, including intensifying competition with global rivals. We need to understand the harsh reality and thoroughly deal with it.”
In particular, he said, “We should recheck our major management activities, such as business methods, research and development, purchasing, production, and marketing strategies, and improve them. If they don’t fit with the changing environment, we need to change them fundamentally and dramatically.”
Some say that the LG Group will carry out an extensive business reorganization focusing on its business, which shows stagnation in growth, in the future.
In addition, LG management and executives shared a success story of Fujifilm at the seminar. Keeping up with the rapidly-changing business environment from film cameras to digital cameras in early 2000, Fujifilm quickly reorganized its business. With the structural reform that combines its holding source technologies in chemistry, optics, and electro mechanics, the company developed new digital cameras and digital visual equipment and also successfully tapped into the new market of optical film for liquid-crystal displays (LCDs).