Impact of Government Action on Business (Essay Sample)

Impact of Government Action on a Business
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Impact of Government Action on a Business
Business Profile
LG Electronics Inc. Company is a South Korean-based multinational electronics company. The company was founded in 1958. LG Electronics Inc. Company's headquarter is in Yeouido-dong, Seoul, South Korea. The company offers electronics products and services worldwide and has global markets and customers. The company is currently ranked the second-largest electronics company globally after Samsung Inc. Company. LG Electronics Inc. Company has led South Korea's electronics industry since its inception in 1958. The company produces various electronics such as TVs, radios, and other electronic appliances. The electronics company has over 74,000 employees and currently holds multiple subsidiary companies. The company sources its employees worldwide and thus has the benefit of enjoying expertise services from top-notch talents across the world (Lockamy, 2018). The company has numerous affiliate companies that produce different products—for example, LG Innotek and LG Display, which manufacture electronics and liquid crystal display panels.
The company's mission is to create an all-inclusive work culture and environment that empowers its workforce, characterized by respect and dignity. Moreover, the company's vision is to be recognized as a firm where employees feel valued, respected, and treated with dignity and customers appreciate the company's friendly flyer services. The company's purpose is also to unite the world by connecting people. The company's market share has been upward for an extended period.
The company's major competitors are Samsung Inc. Company, Apple Company, Dell Company, Philips Company, Electrolux and Panasonic, and Sony, among others. The rival companies are LG Electronics Inc. Company’s direct competitors since they offer services similar to the services it provides (Wu, Choi & Park, 2020). The company is facing various threats as it maximizes its strength.
SWOT Analysis of LG Electronics Company
 

SWOT Analysis

 

 

 

 

 

Environment

 

 

 

Strength

 

Opportunity

 

LG Electronics Inc.


* One of the largest electronics companies
* Strong and established brand name
* Wide range of products
* Customer loyalty
* Top-notch employees
* Offers after-sales service

 

* Enhance the already robust portfolio of products
* Transform the company’s improved awareness and brand into sales
* Can effectively complete for potential customers
* Tap the growing market for electronic goods and home appliances

 


 

Weakness

 

Threat

 

 


* The company's brand lacks influence.
* Leadership problem has rocked the company.
* Inefficient work culture
* Limited market share to the industry leaders

 

* Losing competitive advantage due to troubles from the merger
* Highly competitive market
* Losing market share due to electronic companies which offer low-cost electronic products
* Price war

 

 

 

 

 

 

 

 

 

 

 

 

 

One of the world's largest electronics companies, the company produces multiple electronic products sold both locally and internationally. The company’s top competitors are Apple Inc., Philips Company, and Samsung Company. The company’s market size is more than other industry players, including Electrolux and Panasonic, Dell Company, and Seiko Epson Company. The company has more than 74,000 employees, ranking it among the world's top employers.
The company has a strong and established brand name that it has achieved through quality services, marketing, and aggressive alliances (Riyadi, (nd.)). The company is currently holding over 142 subsidiary companies.
The company’s fleet plans are flexible. The company suffered multiple losses in 2009 during the economic downturn. The company realized colossal failure due to the inflexibility of its flight plans (Ribiero et al., 2022). The company has since developed flexible flight plans that have enabled it to increase its appeal to the public.
The company immensely benefits from customer loyalty. It runs one of the best programs since it provides an array of electronic products with excellent after-sale services, which has enabled it to win customer loyalty. The company has entered into cooperation contracts and alliances, which has helped it open new destinations and access new markets.
The company has several weaknesses, including troubled operations due to stiff competition from active industry players and market leaders. The company is also experienced acute leadership challenges, which have adversely impacted its operations (Hong, 2020). Further, the company's weak culture hinders its operations.
Despite the weaknesses, the company is capitalizing on its opportunities even as it manages the threats. The company has segmented its market to compete favorably with the potential customers and retain a competitive advantage. The company intends to transform the enhanced product awareness and brand name into sales.
Among the threats, the company faces are the risk of losing market share to small electronic companies producing and selling the products at relatively low costs and several disasters related to public relations. Additionally, the company is facing a stiff price war with its key competitors, reducing its profits. The company operates in a very competitive industry that risks being edged out of the market by its direct competitors.
Government Action
Different government actions have dramatically impacted the company. The government action elaborated in this paper is the government's decision to underscore the company's effort to conserve the environment. The company had decided to establish its headquarters along River Hudson. This would lead to water pollution since the waste, and industrial effluents would find their way into the river. This decision was against the government and the public view due to the possibility of water degradation. The government is committed to environmental conservation. The government has developed various policies aimed at reducing environmental degradation and promoting a sustainable and social business environment. Due to the implicit consequence of the company's decision, the government moved slowly to stop the establishment of the head office adjacent to the river. The government has partnered with multiple organizations to scale its efforts to preserve the environment. The government's move to stop the organization's effort was right though it never addressed the company's needs. The government had stepped up measures to prevent environmental pollution right from 1960 when the industrial revolution began.
The company never considered the impact of creating an office adjacent to the river and ignored the possibility of water pollution. Various organizations fighting for a clean and sustainable environment underscored water conservation and pollution prevention's importance. Numerous Acts mandate the government to protect the environment from any activity that may result in environmental pollution. Safe Drinking Water enacted in 1974 and Clean Air Act adopted in 1972 are some of the constitutional amendments that mandate the government to conserve the environment. Further, the government can apply the 1963 Clean Air Act to prevent entities from degrading the environment. River Hudson is a victim of various pollutants such as effluents from industries. Mercury, PCBs, and Cadmium are some pollutants that make the water unfit for consumption. United States Water Act mandates the government to pressure companies to reduce or stop discharging industrial wastes into the water bodies.
Additionally, the Act authorizes the government to control the discharge of industrial wastes into water bodies such as River Hudson. The government has trailed LG Company, among other companies, to ensure they comply with environment conservation rules and policies. This government action has impacted the company's activities because it never considers its plights. The company has to get another land to establish the head office, which may be costly and at the wrong place.
Organization and teams
LG Electronics Company has a solid operational organization and teams. The company uses a multidivisional organization with a tal...