[Digital Times, Kim Eun] "Let`s stick to the essence", "Let`s make profitable growth", "Let`s make a product that was not in the world". LG`s vice chairman (photo), who is called "Mr. Cho", has three management philosophies that emphasize employees every time since his inauguration. In fact, Joe showed his performance in a year.

According to the financial information company F & G guide on December 10, LG Electronics recorded sales of KRW 16.15 trillion and operating profit of KRW 426.6 billion in the fourth quarter of this year, which is expected to exceed KRW 60 trillion for the first time this year. Operating profit is also expected to reach KRW 2.5 trillion to KRW 2.6 trillion this year, which is expected to double from last year. This is similar to the record high of KRW 2.687 trillion in 2009.

Vice-President of the past one year report that evaluation report is more than expected. Joe, who has been in office since his inauguration, has visited the field several times a week to check on the production process himself and is looking for improvement. It is characteristic of Joe Vice President, who already knows the industry that disassembling the product directly to find and fix the problem.

As a result, thanks to the introduction of new products such as dryers, stylers, and wireless cleaners as well as washing machines and refrigerators, which are traditional products, we have been steadily achieving the highest operating profit margin of 8% in the global household appliance industry. HE (Home Entertainment) division also posted double-digit OP margin in 3Q09, with OP margin of 9.9% being the highest recorded in 3Q10 thanks to strong sales of premium TVs such as OLED (organic light emitting diodes).

Joe Vice Chairman, in the business world, who knows the best of the field, has a strong will to innovate. Joe Cho, at the inaugural press conference held earlier this year, put forward "First-class DNA transplantation and profit-centered management in all business sectors" as the main business direction. Since his inauguration, he has strengthened the `highest quality` framework based on the management philosophy of quality as the core competitiveness of the company. In particular, it was reported that the company constantly demanded that its employees reach the highest level in all processes from product planning to production and sales.

At the same time, Vice Chairman Cho is evaluated as having succeeded in leading the business by pursuing profit - oriented strategy rather than quantitative growth. In particular, we continue to apply the modular design of the production line, which was first introduced in the washing machine in 2005, to other products, thus achieving cost savings. In addition, profitable organizations have been working directly on the CEO and reorganized their sales networks.

However, LGE`s mobile business, which has been in a deficit for 10 consecutive quarters, remains a challenge. Strategy We have been reducing the deficit by launching smart phones and improving our business structure. We are also making efforts to improve the constitution by replacing the head of smartphone business. An industry representative said, "LG Electronics is expected to further improve its earnings in the coming year with its cash cow, which includes premium appliances and all-new TVs, as well as automotive electronics parts (VC) business."


By Kim Eun silverkim@


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