LG 2003 Annual Report Download - page 10

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10
cannot be satisfied with our current accomplishments.
Early this year, we set an ambitious goal for making LG Electronics into a Global Top 3
company by the year 2010 and ultimately becoming a GCGP or “Great Company, Great
People.” In order to become a Global Top 3 company, LG Electronics is planning to further
develop its growth strategy with a main focus on exports. Our overall goal for 2004 is to
increase our sales by 9%, reaching about 22 trillion won while expanding our profit margin.
In order to ensure long-term growth, we are planning to greatly increase investments in
promising businesses. This year we will invest 1.1 trillion won in Capex and 1.2 trillion in
R&D. Thus a total of 2.3 trillion won will be earmarked to strengthen our core competencies
in successful businesses such as mobile handsets, PDPs and Digital TVs and also to incubate
new businesses such as telematics, and digital multimedia broadcasting (DMB) handsets.
We have thrown down the gauntlet and challenged ourselves to become a Global Top 3
company. The entire company is already stirring with excitement to reach this goal. Our past
successes are fertile ground to cultivate the confidence needed to be successful in the future.
TOWARD OUR 2004 GOALS
In order to accomplish our goal of Global Top 3, LG Electronics’ management has set out
the following course of action.
First, we must accelerate the globalization of our operations. Our overseas business
commanded nearly 76% of our total sales in 2003. However, we still have a long road ahead
of us considering that there are many countries with high growth potential such as China,
Vietnam, and India. Moreover, developed markets such as North America and Europe
present challenges as we strive to increase our presence. LG Electronics has decided to
concentrate on the global business in order to promote our future business growth. In
particular, we have reorganized the front by strengthening our China business platform and
establishing local headquarters in North America and Europe.
Second, we will pursue growth through our “Fast Growth Strategy.” Specifically, we will
foster LG as a global premium brand this year. We will pursue a high-end brand image of LG
by strengthening our multi-functional mobile handsets and by continuing to promote our
already well-known premium products such as side-by-side refrigerators, front-loading
washing machines, and DTVs.
Third, we will promote the ideal of GCGP to foster an organizational culture of
advancement for self and company. The GCGP culture refers to a milieu where challenge and
innovation are actively encouraged. It urges people to think from first principles instead of
blindly relying on conventional methods. The core of our philosophy rests on a 5/30 rule;
“5% increase is impossible, but 30% is possible”. That is, the ultimate goal is not to
continually find incremental changes in the current system but rather to develop new
approaches that can bring about quantum improvements. In order to accelerate such
|||||||Message from CEO