Lg - Implementation and Control

1st Implementation

Implement a cost control system to control overall spending of the company in order to develop a low price product to increase the adoption rate. Firstly, is to find out what is the cost that currently spending. It can be started by identify the cost centres of the LG company. The meaning of cost centres is the cost that does not provide a direct profit for the company like research and development, financing and marketing. Secondly, identify the type of cost that LG spending money on such as raw materials, costs of utility, rental fees and so on. Lastly, try to find out costs that can be offer easy saving. This means looking to the costs that can be change immediately rather than changing those fixed-costs or even ongoing costs which is harder to reduce in a short time. A cost control system can help to lower down the company expenses by limiting the money that company employee can spend. Moreover, a better cost record for LG companies. This record will show the amount of money spending in a category during which period and this can help the manager do a better budget planning. This can allow LG spend more on advertising the smartphone to increase the adoption rate.

1st Control

The first control that could help with the implementation of the cost control system is by setting up shorter performance review meetings throughout the years and not just by annually. The main reason for having a shorter performance review meetings instead of a longer one is to help prevent the arising of small performance problems of LG from becoming larger. It is obvious when any issues exist longer, it will be harder to rectify it. During this short performance review meeting, the employees and manager of LG with come together to discuss what are the problems being faced by LG and then coming out solutions in order to solve the problems. It also helps to evaluate whether the employees are able to achieve LG’s goals. The cost centres should be monitored occasionally by the appointed employee to prevent it from increasing the debt first before its profit. The overall spending of the company should be controlled by giving certain budget to each department so that they are able to estimate how much they are supposed to spend so that the money used won’t be wasted in a way as going over budget will lead to a disadvantage for the company.

2nd Implementation

Implement a more effective customer relationship management (CRM). Since planned to set up a LG retail store then LG should improve their customer relationship. This is because retail store requires a direct personal interaction with the customer and these also serve as a chance for LG to build a long term relationship with customer. Firstly, LG can collect the customer information in order to identify customer behaviour. The information can be collect through LG website which require customer to sign up and key in their basic demographic information. Secondly, to store the customer information in a reliable database to analyse customer in order to divide them in to a group based on their needs and expectation. When develop a new smartphone, marketer can refer the data collected and find out the needs and fulfil the needs.  These allow LG to market their product more effectively because they have a better understanding of the targeted valuable customer. LG can put more effort on the group of customer who bring more profitable. Focusing on provide a product or service that particular customer needs or expect from LG and this can help to reduce the dissatisfaction rate. Also, all the problem can be solve in a short time.