Multicultural Organization: a Case Study of Lg (Life’s Good)

In: Business and Management

Submitted By pallvivadehra21
Words 2242
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Multicultural Organization: A Case Study of LG (Life’s Good)

By: Prof Pallvi Vadehra

Visiting Faculty (IHRM, HRM, OD)

pallvivadehra@gmail.com

Introduction of Problem

India has attracted a lot of foreign multinationals to invest via joint ventures or wholly owned Subsidiary here. With an increasing number and size of these ventures, it has been routinely seen that Indian Organizations tend to adapt the management models of foreign collaborations. This has created tensions and conflict in relationships sometimes. There are lots of big names in market like Procter and Gamble, Godrej, LG Electronics with CK Birla; Toyota with DCM. This tension is created due to dealing with two different cultural people, unsatisfactory corporate structure, management systems, employee oriented modes of management and the way companies were tackling the change in Organizations.

The Background of LGEIL:

Established in 1997, LG Electronics India Pvt. Ltd. is a wholly owned subsidiary of LG Electronics, South Korea. In India for a decade now, LG is the market leader in consumer durables and recognised as a leading technology innovator in the information technology and mobile communications business. LG is the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide reach, latest global technology and product innovation.

One of the most formidable brands, LGEIL has an impressive portfolio of Consumer Electronics, Home Appliances, GSM mobile phones and IT products. LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB).

The trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and 1/2 months with the commencement of operations in May 1997. LG…...

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