Final presentation for our semester-long team project for the Business, Society, and Ethics class. Designed by Ayusha Mittal.

1. LG
HOUSEHOLD & HEALTHCARE

2. Industry
Soap and Other Detergents
Household and Personal Products
Oral Care
Hair Care
Laundry
Home Care
Cosmetics
Beverages

3. Competitors

4. CSR:
Focus Issues
Ø Product Safety
Ø Environmental Efficiency
Ø Employee Diversity and Equal
Opportunities
Ø Contribute to Local Community

5. Stakeholders
Employees
Customers Shareholders &
Investors
Community
Business Partners
Government and
Institutions

6. Key Financials
LG Market Cap: 11.4 billion
Sales: 8.8 Billion
Profits: 803 million
Assets: 15.8 Billion
MarketValue: 11.4 Billion
May 2015 (Forbes)

8. Compared to
Competitors
• Relatively small compared to
competitors in the industry
• Still in expansion phase
• Competitors operate worldwide
• Competitors have been operating
longer

10. LG’s Response
• Overseas expansion strategies
• Products promote health &
sustainability
• Is expanding target markets
• Is diversifying products

11. Customer
Needs
Healthy
Basic health and hygiene
needs
Beautiful
Skincare and beauty needs
Refreshing
Needs of the human body
3BroadValues

12. Creating
CustomerValue
Market Segmentation
Household Products: Middle Income
Families
Beauty Products: Upper Middle and
Middle Class Women
Target Market
High end Asian Women
Product Positioning
High-end cities in China and Asia

13. Operations
HQ:
Seoul, South Korea
Ø Provides a pure good
Ø Classifies operations into categories instead
of work centers
Ø Consumer-driven management

14. The 4 P’s of
Operations
People
Process
Partners
Place
• Payroll Employees
• Performance-based remuneration
• Seminars and teaching programs
• Non-union workforce
• Vertical Integration
• R&D Centers
• Acquisition of brands
• Outsourcing in Supply-chain
• Worldwide partners
• Follow strict CSR
• Customer service in South Korea
• Worldwide production and sales

15. SWOT AnalysisStrengths Weaknesses
Opportunities Threats
Employee Diversity
ProductVariety
Extensive CSR
Relatively small
Still in expansion phase
Lack of distinctiveness
Duty-free shops
Online malls
Environment conscious
Economic slowdown
Consumer-complaints

16. The 5 Forces Threat of New
Competitors
Threat of
Substitutes
Intensity of
Rivalry
Bargaining Power
of Customers
Bargaining Power
of Suppliers

17. Competitive
Strategy
Ø Cost Leadership
Ø Broad Market
Ø Attract Aspirational Customer
Ø Cater to Target Market
Ø Green Management

18. Ethical Issue Facing
Industry
Promoting Women
in the Workplace

19. Gender
Inequality
Labor Force Participation
Gender Pay Gap: Starting
Base Salary (Per $1)
Gender Pay Gap: Cosmetics/
Household Product Industry
(Per $1)
% Of CEOs
57% 70%
$0.78 $1.00
$0.70 $1.00
24% 76%

20. LG:
A Model for Equality
Wolgoo Kang
CSR Committee Panel
Member
Former Head of
Korean Women’s
Rights Commission
53% of All Employees
Are Female
75% Satisfaction Level
of Female Employees
$0.00 difference in
starting base salary
Certified as a “Family
Friendly Enterprise”

21. Frameworks
&
Blind Spots
Social Justice
Utilitarianism
Confirmation Bias
In-Group Favoritism

22. What about the
stakeholders?
Majority EmployeesMajority Customers

23. Mission
We will strengthen our
competitiveness as a world-
class company and create
values through sustainable
management activities for
shared growth with out
business partners and the
community, environmental
safety, and fair trade.
”
“

24. Our Thoughts
LG’s goal is to empower women
through beauty.
Successfully redefined productivity in
their supply chain.
LG sends a powerful message on gender
inequality.

25. THANKYOU

26. QUESTIONS?

27. TEAM 4
Max Leyn
Fun Manager
Ayusha Mittal
Facilitator
Owen Ward
Mediator
Jordan Brooks
Organizer
Paul Kim
Note Taker
ValeriaVillalobos
Researcher