STRATEGIC MANAGEMENT ASSIGNEMT SAMPLE 2023
Introduction
The strategic management is addressed to the specific process that’s getting the procedures and the business goals to meet the objective and order to make the business company more competitive in the global field. Strategic management is one of the effective processes for deploying staff and achieving the desired goal of the organisation.
This study is focused on the strategic management of the LG company and critically analyses the scenario action. This study also effectively discusses the issues and the review of the issues. However, the proper justification of themes and the relevant literature is discussed in this study. The marketing mix along with the suitable themes is highlighted in this study.
The strategic management of LG led to the high market share and low growth mobile phone market. Moreover, the company also has a high rate of market share in the EV business across the world. The company effectively use the strategic management to make the important decision about the service portfolio across the global business context.
Background of the company
LG is one of the famous multinational electronics Companies which produces several products like OLED TVs, Pc products, and the Ev accessories. The company also produces the telecommunication products that divide the maximum value towards the consumer.
The strategic management of LG led to the high market share and low growth mobile phone market. The electric vehicle production of the company has high growth in the Tv and Ev markets and low growth in the EV market share. The strong strategic management for the company supports the pandemic situation and the low growth share in the Global business field. The home appliances market of the company effectively increases the loyal customer base across the globe and enhances the growth in the international field (Krakowski, Luger and Raisch, 2022).
Figure 1: LG worldwide revenue
(Source: Genus and Iskandarova, 2020)
Zubair and Khan, (2019) stated that the total global revenue from these four companies is over “KRW 80 trillion in 2022”. LG has proved itself as a leading manufacturer of commercial goods such as TVs, home appliances, and many more. LG is known for its premium LG SIGNATURE and LG ThinQ which are now distinguished as premium LG products throughout the world.
LG introduced itself as the top 100 global brands in 2006 and then the company achieved a growth rate of about 14%. LG is now known as the world’s largest plasma panel manufacturer which is the display of LG.
Identification of the scenario action
The accessibility and the overall performance of LG are making the growth prediction worth the change in the system. Technology advancement is accessible to manage and improve the overall system with a focus on the technological advancement that is being accessed by LG company. It was important to manage the overall system with a diverse culture that is accessible to manage and improve the overall suitability and growth prediction in the performance.
In words of Wajdi and Arsjah (2019), the change in the economy is sustainable when the downfall in the market of LG is taken place. It is also important to manage the overall function of the chain system and make the development with the growth and sustainability of the business. Robinson, and Breed (2019) stated that LG has showcased a diverse range of products and made innovations with the mobility in technology and connected it with the diversified culture.
It is being depicted that in South Korea LG has made a wider range of products that are required to achieve overall density and stability in performance. The broader feature is required to maintain the accessibility to manage the system with the Intelligence convention on the range and sources of the products. Kyere and Ausloos, (2021) stated that it is also important to manage the performance with the change in the product range and suitability of the business. The annual event is applicable to manage the system with the performance and stability of the business.
It is required to access and manage the system with the changing in the demand and price of the products. The diversification culture is being set with the decision-making and goal of the organization (Kryscynski, Coff and Campbell, 2021).
Figure 2: LG comparison with other company
(Source: Dorfleitner et al. 2020)
The economic recession in LG company is increasing the competition in the market and marketing the economic downturn. It is making the extent valuable with the changes in the system that is making the overall credential in managing and accessing the range of the products. In the case of global economic downfall, the company is having the sustainability to overcome the problem and maintain dignity in the business.
LG Electronics corporate governance and organization are introduced so that the investors and the current market holders can relate to the overall performance of the company. Dorfleitner et al. (2020) stated that LG has made a diversified products range that is making growth and improving the quality management with the changes in the system It is accessible to manage and improve the growth with the economic downfalls and sustainability impact on the sale and revenue of the business.
Moreover, the collapse of the LG company is applicable to achieve overall success and maintain stability in the business performance.
Figure 3: LG electronical share in global television
(Source: Alonso et al. 2019)
World-class 6G communication was displayed by LG and it included the full-duplex radio transmission and reception that has the capacity to hold the maximum amount of frequency and a power amplifier device which was built jointly with Fraunhofer Heinrich Hertz Institute.
LG Chem was the first in the domestic chemical industry to initiate Carbon Neutral growth which is reaching zero carbon emission by 2050 (Mello et al. 2021). The reason behind the cutdown of additional 10 million tons from the existing plans is so that they can reduce the emission. The plan of action was they would implement three different approaches.
The first one was that they would directly reduce carbon emissions by introducing something innovative that would convert things into eco-friendly ones. Alonso et al. (2019) stated that the second method was to expand the use of renewable energy. The third way was to compensate and use the products that are certified with high-quality carbon projects.
LG aims to take the low carbon commitment to a next level by studying LCA. LG chem also introduced a new technology to directly reduce the emission by CCU (Carbon Capture and Utilization).
Theory and practical implementation
“Oligopolistic Rivalry Theory” in LG also introduce3 LG solar energy in 2007 and also LG chem which is known for the production of polysilicon that is being used up by LG electronics for the making of solar cells and they help in the contribution of a green planet. Rodrigues, and Franco, (2019) stated that the antitrust regulators of the European Union charged a penalty to LG Electronics and with that many other companies in 2012 for putting up the prices of TV cathode ray tubes in two cartels that could last for about two years. LG was able to buy its domain LG.com in 2009 for around six figures in USD.
LG Electronics has been a global innovator in the field of technology and electronics. LG is now almost present in every country and holds an international workforce of more than 74,000.
LG has four companies under itself. They are home appliances and air solutions, home entertainment, vehicle component Solution, and business solution. “Leadership Style Theory” is required to set and make the overall credential with the change in system and dignity of the business. The involvement of “trait theory” is applicable to access and manage the system effectively. It is important to access and improve the overall performance with the changing system and stile of the organizational performance. The IEEE communication society is playing convention in management and access to the system with a wider range of products.
Clarification and Justification of Themes and Issues
LG is a multinational electronics company that has faced several issues and problems in the UK market in recent years. The following are some of the significant issues faced by LG in the UK:
- Declining Sales:One of the significant problems faced by LG in the UK is a decline in sales. LG’s sales have been declining in the UK market due to increasing competition from other brands, such as Samsung and Apple. LG’s market share in the UK has decreased from 7% in 2014 to 4% in 2020.
- Brand Perception:LG’s brand perception in the UK is not as strong as other brands like Samsung and Apple. LG has struggled to create a strong brand image in the UK, which has contributed to declining sales. LG’s lack of innovation in recent years has also contributed to this problem.
- Lack of Innovation: LG has faced criticism in the UK for its lack of innovation compared to other brands. LG has not introduced any significant new products in recent years that have captured the attention of consumers in the UK market.
- Customer Service:LG’s customer service in the UK has also been a significant issue. Customers have complained about the quality of LG’s customer service, with reports of long wait times on the phone and slow response times to queries.
- Pricing: Zubair and Khan, (2019) stated LG’s pricing strategy in the UK has also been an issue. LG’s products are often more expensive than similar products from other brands, which has contributed to declining sales in the UK market.
- Marketing:LG’s marketing strategy in the UK has also been criticized for its lack of effectiveness. LG has struggled to create a compelling marketing campaign that resonates with consumers in the UK market (Genus and Iskandarova, 2020).
- Lack of Retail Presence: LG’s retail presence in the UK has also been a significant problem. LG’s products are not as widely available in stores as other brands, which has contributed to declining sales in the UK market.
- Competition from Chinese Brands:LG has also faced increasing competition from Chinese brands like Huawei and Xiaomi, which have entered the UK market in recent years. These brands offer similar products at lower prices, which has made it difficult for LG to compete in the UK market (Kyere and Ausloos, 2021).
- Brexit: The UK’s decision to leave the European Union has also impacted LG’s business in the UK. The uncertainty surrounding Brexit has created challenges for LG, particularly in terms of trade and supply chain disruptions.
In order to address the issues and problems faced by LG in the UK market, the following are some solutions that LG can consider:
- Increase Innovation:LG should focus on increasing innovation and introducing new and exciting products that can capture the attention of consumers in the UK market.
- Improve Brand Perception: LG should invest in improving its brand perception in the UK market through effective marketing campaigns and partnerships with popular brands or celebrities (Fuertes et al. 2020).
- Enhance Customer Service:LG should improve its customer service by investing in more customer support staff and implementing faster response times to customer queries and complaints.
- Adjust Pricing Strategy:LG should consider adjusting its pricing strategy to make its products more competitive and affordable in the UK market.
- Expand Retail Presence: LG should expand its retail presence in the UK market by partnering with more retailers to make its products more widely available in stores.
- Emphasize Sustainability: The marketing team associated with LG should emphasize its commitment to sustainability by highlighting its eco-friendly practices and products, which can appeal to environmentally-conscious consumers in the UK market.
- Adapt to Brexit:LG should adapt to the changes brought about by Brexit by ensuring compliance with new trade regulations and exploring new partnerships and markets outside of the EU.
- Address Supply Chain Disruptions:Dorfleitner et al. (2020) stated that management need to address supply chain disruptions caused by the COVID-19 pandemic by diversifying its supply chain and exploring alternative sources of raw materials and components.
- Focus on Digital Marketing: LG should focus on digital marketing and social media advertising to reach a wider audience and engage with consumers in the UK market.
By implementing these solutions, LG can address the issues and problems it faces in the UK market and improve its competitiveness and market share in the years to come.
LG has faced several significant issues and problems in the UK market in recent years, including declining sales, brand perception, lack of innovation, customer service, pricing, marketing, lack of retail presence, competition from Chinese brands, Brexit, and the COVID-19 pandemic. LG will need to address these issues to remain competitive in the UK market and grow its business in the years to come.
Critically review the issues
LG has faced a wider issue in the discontinuation of the mobile phone service and it has made the telecommunication change with the downfall in the business performance. The growth credentials are accessible to manage and improve the quality of the products.
It is also being analyzed that the market share of LG in its products lead to a downfall in the market. It is facing the overall financial issue that is required to overcome the change impact on the financial performance. After the Android OEM LG has not made enough products. Huang et al. (2019) stated that it has had a downfall in its brand image with the announcement that officially LG is quitting the smartphone mobile and closing its stores in the year 2021. It has led to a huge impact on the financial performance and led a downfall in the business performance.
The company has closely set to make the products range with a diversified culture that is having the accessibility to manage and improve the overall performance of the business (Hitt, Arregle and Holmes, 2021). LG smartphones are applicable to the access and manage the changes in the system with the downfall and sustainability in the growth and decision.
The message for the appropriate bruise leads to accessing and managing the change in the system with the overall accessibility and credentials. It is important to manage the system with the chain that leads to growth and improves the product range of the business.
The company has also faced the issue in the overall market share and it has led to the downfall and gleaming in the business performance. The overall credential is being set with the changing in the system that is important to assess and manage the entire body to shape and improve the performance.
It is important to achieve a dynamic function with the change in the management system. Berrone et al. (2020) stated that the company “ping-ponged” between the building extension with the change in the system that delivered the overall marketing brand recognition.
The accessibility to manage and maintain the gimmick phone in the market is not possible for LG and it led to the downfall in growth production. LG V10 in 2015 has made only extrication and display the overall products with the range and offer sustainability in the business.
When people choose LG phones, they make sure that they would never be LG customers again. The company introduced defective smartphones that had poor build quality and phones that had very little capacity.
They also had faulty soldering in the motherboard which disconnects the phone and interrupted while booting up the phone. After many complaints, the company’s shoddy craftsmanship introduced a series of “boot loops” covering the phone like “G4, V10, G5, V20, and Nexus 5X”. Genus, and Iskandarova, (2020) stated that the Company also refused to give the customer the Android updates which used to appear on the other brands that were in the competition.
The company also told people about the “LG Software Upgrade Center” which would try to repair the phones but the company couldn’t keep up with its words and as a result, it led to the downfall of the company (Bevan, 2020). The only device which was available to the customer as the hope was its Nexus series which was built in collaboration with Google through the Nexus program but soon these phones also started to show their true colors and ended up dying soon due to LG’s boot loop fiasco.
The fundamental environmental variables, such as the rapid growth of technology, macroeconomic concerns, and LG’s emphasis on sustainability, are extremely important to the company’s strategic position. Depending on how the corporation approaches it, the conceivable scenarios of technology advancements, a recession, and the effects of climate change might have either beneficial or bad effects on LG’s strategic position. In order to guarantee LG’s sustainable development and competitiveness, an action plan is necessary. To encourage innovation and the development of new technologies, the corporation should increase its research and development budget.
LG may be able to re-engineer its operations with the assistance of premier technical businesses. The key to sustainable growth is reorganizing operations to save costs and enhance product offers, setting prices to maintain market share, and reducing the carbon footprint and overall environmental impact by investing in green manufacturing.
LG needs to keep putting an emphasis on innovation, sustainability, and competitiveness to adapt to the shifting business climate. By carrying out the action plan, LG may establish itself as a pioneer in the technology sector and achieve long-term expansion and profitability.
Conclusion
Hence, based on above discussion it can further be concluded that thorough grasp of LG’s current position and prospective future has been supplied by the strategic study of the firm conducted using the BCG Matrix, PEST analysis, SWOT analysis, and scenarios.
The LG OLED TV is a shining star, the PC industry is a money maker, the mobile business is a dud, and the EV business is up for debate. Politics-related issues, such tariffs and trade regulations, might harm a company’s operations. However, LG has potential thanks to the UK’s expanding economy and diversified culture. While LG has a high reputation for its brand and operates in a variety of sectors, its discontinuance of mobile phones and some of its businesses’ low profitability are drawbacks.
Although LG’s energy storage systems and electric vehicle parts offer a great deal of development potential, the business confronts stiff competition from other producers of electronics and home appliances, notably those in China and Japan.
References
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