LG 2004 Annual Report Download - page 10

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GLOBAL
TOP 3
BY 2010
Strengthening our core competence as a global company in 2004
LG Electronics emphasizes quantitative growth, but the pursuit of qualitative growth is also
important for maintaining our competitiveness both at home and abroad. To this end, we continue to
enhance our employees' core competencies in order to establish a solid foundation for future growth. We
introduced an innovative activities called "Tear Down & Redesign (TDR)" which is based on Six Sigma. Using
this framework, our efforts towards change focused on all applicable management areas whether R&D or
marketing, production or design.
These innovative parameters were also applied to all management support sections on short and
mid-term bases. With these efforts, a new corporate culture has been established. As this corporate culture
has sunk its roots into the Company's overall organization, tangible results have already emerged. The
employee self-confidence has greatly increased, furnishing the energy necessary in overcoming intensified
market place competition. This brings us closer to our goal becoming one of the "Global Top 3".
Business direction in 2005
In 2005, the unfavorable business environment caused by decreased domestic consumption,
elevated oil prices, and a stronger Korean currency, will likely continue. However, LG Electronics will self-
confidently meet the challenge of becoming one of the top five electronics and telecommunications
companies in the world. This effort will be an important cornerstone in our joining the "Global Top 3" by
2010.
To accomplish this goal, we will keep placing the utmost emphasis on the crucial area of mobile
phone manufacturing and sales. This segment of our business will be the main determinant of the speed
and direction of future growth. Furthermore, digital TV market has potential for explosive growth, which
would boost sales in our display division. Thus, we will make a concerted effort to secure an edge over our
competitors in this market. We will also focus on the growing realm of digital media, which heralds an era
of digital convergence. We will increase the profitability of the digital appliance field in order to provide
ourselves with a healthy cash flow. Finally, we will continue to foster innovative management to maximize
productivity. These activities will form a strong base for continued growth for the foreseeable future.
Three key tasks in 2005
To become a global top 5 electronics companies in 2005, and to solidify our position as a
respected global company, LG Electronics will diligently undertake the following three tasks:
VISION
To this end, we continue to enhance our employees' core competencies in order to
establish a solid foundation for future growth.