“Success by effective overseas projects”… Samsung & LG Electronics to merge overseas branches
Park Seul Gee | seul@ | 2017-08-18 10:27:40
Samsung Electronics and LG Electronics are planning to integrate sales, marketing, and research and development corporations that have been in major overseas markets such as Europe, China and Southeast Asia. The two companies said that it is not the result of sluggish sales in the region, but it is a measure to proactively respond to uncertain business environments such as the spread of protectionism and to streamline overseas business.
According to the electronics industry on August 17, Samsung Electronics and LG Electronics are trying to streamline their management by integrating and integrating overseas subsidiaries in major markets.
Samsung Electronics liquidated SEU, a marketing company in Ukraine, and transferred its services to SEUC, a local electronics sales company in the second quarter of this year. The company said it intends to consolidate its sales network in Ukraine through combining service businesses with sales corporations. In January, Samsung Electronics also absorbed `SRR`, a Russian research and development (R & D) corporation, into a Russian marketing firm `SER`.
Samsung Electronics reorganized its business in Europe as well as in China. On August 1, the company merged and integrated 32 regional offices, which were managed by seven Chinese subsidiaries, and streamlined them into 22 regional headquarters (branch offices), which are headquartered in Beijing. In September last year, China`s electronics sales subsidiary `SCIC` merged with SSTC, a local telecom and network product sales corporation.
Meanwhile, LG Electronics also merged LGERO, a sales subsidiary in Romania, into LGEMK, a Hungarian sales subsidiary, in the second quarter of this year. The existing Romanian corporate office is planned to operate as a branch office. Besides, LG Electronics completed the liquidation procedure in the second quarter by transferring the service business of LGERI to LGERA, a local electronics manufacturing and sales corporation. The company said that it is aiming to speed up decision-making and management efficiency by managing a single entity from production, sales and service to the company.
Earlier, LG Electronics also cleared `LGESH` and `LGEVN`, which produced electronic products in China and Vietnam, respectively last year.
The two companies are trying to reorganize their overseas organization in order to improve the structure of overseas branches as global economic uncertainties such as proliferation of protection trade, prolonged THAAD retaliation, USD strengthening and raw material price volatility increase.
Samsung Electronics and LG Electronics accounted for 89.0% and 69.4% of overseas sales in the first half of the year, respectively. An industry expert said, "As the number of overseas organizations grows, so does the number of high-ranking management workers, which leads to additional costs such as wages. It is interpreted as a result of streamlining the organization and reducing costs.”
By Park Seul Gee seul@
[ copyright ⓒ The Digitaltimes ]
According to the electronics industry on August 17, Samsung Electronics and LG Electronics are trying to streamline their management by integrating and integrating overseas subsidiaries in major markets.
Samsung Electronics liquidated SEU, a marketing company in Ukraine, and transferred its services to SEUC, a local electronics sales company in the second quarter of this year. The company said it intends to consolidate its sales network in Ukraine through combining service businesses with sales corporations. In January, Samsung Electronics also absorbed `SRR`, a Russian research and development (R & D) corporation, into a Russian marketing firm `SER`.
Samsung Electronics reorganized its business in Europe as well as in China. On August 1, the company merged and integrated 32 regional offices, which were managed by seven Chinese subsidiaries, and streamlined them into 22 regional headquarters (branch offices), which are headquartered in Beijing. In September last year, China`s electronics sales subsidiary `SCIC` merged with SSTC, a local telecom and network product sales corporation.
Meanwhile, LG Electronics also merged LGERO, a sales subsidiary in Romania, into LGEMK, a Hungarian sales subsidiary, in the second quarter of this year. The existing Romanian corporate office is planned to operate as a branch office. Besides, LG Electronics completed the liquidation procedure in the second quarter by transferring the service business of LGERI to LGERA, a local electronics manufacturing and sales corporation. The company said that it is aiming to speed up decision-making and management efficiency by managing a single entity from production, sales and service to the company.
Earlier, LG Electronics also cleared `LGESH` and `LGEVN`, which produced electronic products in China and Vietnam, respectively last year.
The two companies are trying to reorganize their overseas organization in order to improve the structure of overseas branches as global economic uncertainties such as proliferation of protection trade, prolonged THAAD retaliation, USD strengthening and raw material price volatility increase.
Samsung Electronics and LG Electronics accounted for 89.0% and 69.4% of overseas sales in the first half of the year, respectively. An industry expert said, "As the number of overseas organizations grows, so does the number of high-ranking management workers, which leads to additional costs such as wages. It is interpreted as a result of streamlining the organization and reducing costs.”
By Park Seul Gee seul@