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Friday, April 16, 2004

Corporate Culture at Samsung and LG

Samsung and LG are both rocking conglomerates in S-Korea. We wrote yesterday about the tremendous success of Samsung, and the Korean Herald today describes the difference of these two companies in terms of culture.

The report is based on an online survey of 18,000 college students. LG is associated with trendy females, and Samsung with formally dressed corporate businesspersons.

In LG Electronics, employees wear casual but are not allowed to go beyond certain levels.

But then, if you remember, yesterday's write up described the strong growth of Samsung and in the hidden empire of Samsung, there is a group of 110 employees, working in the design area for mobile phones. And they are on their own, so to speak, isolated from the "conservative" culture. And they rock - they can do what they want as they are the ones that bring out the inspiring ideas for great products - they come up with the design and they ask the engineers to put in the functions and displays of the phones. It is said that they are trendy 20-somethings with platinum-dyed hair and baggy hip-hop style jeans. So here we go - a crucial part in Samsung is "liberated".

Of course, you have another Samsung - the one that is in semiconductors, were discipline is required.

Two more points drive home the statement that the companies see the world different. LG's slogan is "Great Company, Great People", while Samsung writes "Being with the Customer, Challenge to the World, Create the Future."

Both great companies, both differently positioned and both successful - but also a testimony that culture is important to stay ahead of the game. By the way - have you checked your cultural situation recently?

(By Asia Business Consulting)