LG electronics is a part of LG corportation. LG electronics which is called GoldStar at that time was founded by KOO IN-HWOI who was founder of LG corporation in 1st Oct 1958 at KOREA.
At that time, radios were attracting interests as embodiments of civilization, bringing news of the world to their listeners. Mr. Koo thought, ‘we could make a radio by ourselves likes TOSHIBA, NATIONAL.’ So, he founded GoldStar. And finally, at 15th Nov 1959 they made the first Korean radio which is including more than 60% of domestic components. It was beginning of both LG electronics history and Korean electronic industry’s history. LG electronics started expanding their business to overseas by exporting radios to U.S at 29. Nov. 1962. LG electronics Singapore. Started business as the international purchasing office(IPO) in Singapore in October, 1989 for the first time in the Korean industry history. LG Electronics was able to purchase parts from the Singapore manufactures at lower cost and supplied to the plants of USA ,Europe, and Korea.
They have 5 main business domains, which is Home Entertainment, Mobile Communications, Home Appliances, Air Conditioning and Business Solutions. LG Electronics Singapore Pte. Ltd.’s mode of entry is a wholly owned subsidiary. a wholly owned subsidiary is a means of entering new markets in which a firm fully owns its subsidiary in foreign countries. Because LG corporation which is holding company located in Korea owns all of the LG Electronics Singapore Pte. Ltd
The electronic industry is supported by the supply of raw materials from the petrochemical industry, without which it may grind to a halt. Electronic industry and IT sector is the fastest growing sector. Additionally, the electronic industry will not be able to perform without the components from the petrochemical industry(http://business.mapsofindia.com/india-petroleum-industry/electronics-industry.html)
International competition is fierce in this new millennium. Successful firms survive by creating high quality, competitively priced products and services. These goods must be well received both locally and globally.
So, I think First one of the environmental factor that affecting business of LG electronics is global consumer preferences. I mentioned before, electronic industry and it sector is the fastest growing sector. Consumer preferences also change fast. About 5 years ago. When consumer was buying cell phone, the most concerning is what is the function of the phone, how many they have. But, after smart phone released consumer is hardware such as concerning how much is cpu, is this phone’s internet is faster? Because, smart phone can add numerous function by downloading app. And, Consumer tastes and preferences are converging, even though some national differences persist.
The success of such firms as levi’s, mcdonalds, sony, taco bell illustrates this trend. part of the reason for the development of world wide tastes and preferences is the presence of the mass media, exposure to goods from various countries, and marketing strategies of multinational firms that tend to offer standardized products worldwide, because doing so costs less than customizing goods to local conditions.
So, For survive at international business, we need to know about global consumer’s preferences and tastes. and have to find the way to satisfy global consumer’s preferences and tastes.
Second one of the environmental factor is globalized production.
To be cost efficient, firms are increasingly splitting up production around the world to take advantage of other countries ability to perform parts of the process better for less money.
The electronics and biomedical manufacturing industries lead Singapore's manufacturing sector, accounting for 31.5% and 19.4%, respectively, of Singapore's manufacturing output in 2010(http://www.state.gov/r/pa/ei/bgn/2798.htm)
Singapore is good at manufacturing electronics. But wage is too high. So, make only technology-intensive part at Singapore, and make rest part at other ASEAN countries which has low wage.
Singapore is ASEAN country. So that use less money for manufacturing.
Third is changing demographics. The population is getting older in the industrialized country.
Singapore demographic is also getting older. From 1990 to 2011 55~64 ages change from 6.7% to 12.4% 65&over ages change from 6.0& to 9.3%
(http://www.singstat.gov.sg/pubn/popn/population2011.pdf)
Almost products and marketing is for young people. So we need to prepare the products for elderly
One of the main factors that affect the business is general business environment. the size of the market, the purchasing power of the population and the likely future wealth of consumers are affect benefit which is one of the general business environment.
Singapore’s general business environment for benefit is quite well. Although Singapore is small country, Singapore GDP was 5th of ASEAN. it means singapore afford to buy more products than other ASEAN country.
There was The global financial crisis of 2008 and 2009 had a sharp impact on Singapore's open, trade-oriented economy. Although Singapore saw its worst two quarters of contraction in late 2008 and early 2009, but quickly recovered with strong performance in later quarters. The Singapore economy grew a staggering 14.5% in 2010, the second-highest rate in the world that year. (http://www.state.gov/r/pa/ei/bgn/2798.htm)
But a firm may also can be faced with economic risk Risk is also factor of general business environment. the Asian development bank trimmed its 2012 growth forecast for emerging east Asian country includes ASEAN, China, Korea, Taiwan, Hongkong, as the euro-zone turmoil threatens to drag the global economy back into crisis.(7,dec a17).
We don’t know whether risk is come or not. Although Singapore overcome global crisis at 2008 and 2009, Singapore would be collapse by euro-zone turmoil. So company must prepare for next year’s crisis.
Now I want to apply the functions of planning/strategizing, organizing, leading and controlling.
First. Planning is a process that helps managers set objectives for the future and map out the activities and means that will make it possible to achieve those objectives here is four key element.
Objectives are goals or targets that the firm wishes to reach within a stated amount of time
Actions are the specific steps the firm intends to take to achieve the desired objectives.
Resource allocation is the planning step that determines where the resources will come from and how the resources will be deployed to achieve the agreed-on objectives
Implementation guideline is shows how the intended actions will be carried out
