LG Group chairman Koo Bon-moo said a time of crisis was the best litmus test for measuring a company’s core competence, calling on LG executives to get through its current rough patch and map out plans for progress in the next year.
Maintaining the quality of goods and services, timely investment, developing future technologies and securing the right human resources were the goals that Koo set out for the LG chief executives, who started their annual reports to Koo on this year’s achievement records in October. The session ended last week.
“Leading companies persevere through all kinds of conditions, including when the economy is down,” Koo told CEOs during the report session, the company said on Sunday.
Koo Bon-moo
His comments come as LG Electronics, the group’s flagship company and maker of electronic goods, is struggling to get back into the mobile device race with durable and reliable smartphones and tablet PCs.
LG Electronics recorded 221 billion won of operating profit in the third quarter this year as its mobile business units swung back into the black.
Koo said while the sheer volume of products, including those that lead the market, was an important aspect of business, it is actually more significant to produce items that can best satisfy the consumers.
“Investment for developing the necessary technology for creating high quality goods and services must be pursued so as to lay the foundation for becoming No. 1 in the market,” said Koo.
He added that timely investment was needed to develop and capitalize on new business operations.
For instance, in the display business, LG should place priority on OLED TVs to put OLED displays at the top of the market, the chairman noted.
“Future products and technologies must not be sidelined at all costs, and they must be pursued for producing next-generation goods,” he said.
Citing electric-car batteries ― an area LG stands as the market leader ― he said the company should prepare for the future by developing higher-capacity batteries that can better satisfy consumers.
By Kim Ji-hyun (jemmie@heraldcorp.com)
