Business Globalization

Strengths

LG is a multinational company and a recognized brand around the world. It has successful established not only in developed countries but also in developing countries.

LG products are reliable, easy to use, and have simple designs which satisfy customers that's why LG have the advantage of having loyal customers.

In LG Corporation the research and development has given greater importance because to satisfy the customers and provide the customers what they want the research and development id required.

LG try to keep products innovative to attract the customers and to capture more market share.

LG is at its growing stage and its growing quickly. It is producing solid products which rapidly satisfying the customers.

Weaknesses

The big weakness of LG is that it has very few competent employees mostly are not skilled and also there is no training and development concern for employees.

Opportunities

The electronic market is expanding rapidly which is a great opportunity for LG to expand itself in new market and to capture more market share. It also can expand its target market geographically and socially both by introducing new products in existing market and existing products in new markets.

Through the innovation in existing products it can attract more customers because at present it is behind the market leadership so to become a leader it has to make innovations to attract potential buyers and retain existing customers.

Threats

As the competitors of LG are more dominant in the market and continuously improving their products so they can take away the existing customers of LG, so it has to work very hard to retain and attract customers.

The condition of economy all around the world is not good and it is affecting the purchasing power and priorities of the customers, people are facing difficulties in satisfying basic and needs so how they can spend on electronics which is considered as luxury items. This situation can affect the sales of the company.

Debate the relative merits of fixed and floating exchange rate regimes from the perspective of an international business what are the most important criteria in a choice between the systems? Which system is the more desirable for an international business?

The case for fixed exchange rates rests on arguments about monetary discipline, speculation, uncertainty, and the lack of connection between the trade balance and exchange rates. In terms of monetary discipline, the need to maintain fixed exchange rate parity ensures that governments do not expand their money supplies at inflationary rates. In terms of speculation, a fixed exchange rate regime precludes the possibility of speculation. In terms of uncertainty, a fixed rate regime introduces a degree of certainty in the international monetary system by reducing volatility in exchange rates. Finally, in terms of trade balance adjustments, critics question the closeness of the link between the exchange rate and the trade balance. The case for floating exchange rates has two main elements: monetary policy autonomy and automatic trade balance adjustments. In terms of the former, it is argued that a floating exchange rate regime gives countries monetary policy autonomy. Under a fixed rate system, a country's ability to expand or contract its money supply as it sees fit is limited by the need to maintain exchange rate parity. In terms of the later, under the Bretton Woods system, if a country developed a permanent deficit in its balance of trade that could not be corrected by domestic policy, the IMF would agree to a currency devaluation. Critics of this system argue that the adjustment mechanism works much more smoothly under a floating exchange rate regime. They argue that if a country is running a trade deficit, the imbalance between the supply and demand of that country's currency in the foreign exchange markets will lead to depreciation in its exchange rate. An exchange rate depreciation should correct the trade deficit by making the country's exports cheaper and its imports more expensive. It is a matter of personal opinion in regard to which system is better for an international business. We do know, however, that a fixed exchange rate regime modeled along the lines of the Bretton Woods system will not work. Nevertheless, a different kind of fixed exchange rate system might be more enduring and might foster the kind of stability that would facilitate more rapid growth in international trade and investment. (cbapp.csudh.edu/depts/finance/hmilgrim/Business%20445/Chap010.PPT)

The role of a Managing director is to manage the whole corporation and direct the organisation to meet the over aims and objectives.

The skills needed:

• effective communication
• excellent leadership and management
• able to interact with anyone
• have critical thinking
• good with problem solving

Education wise;should have a masters or bachelor's degree in business studies or business administration.

The age of the managing director can change in the future, but far more experience and as technology is coming apart of organisations therefore the managing directors will need to have more skills using technology like ICT equipment, camera meetings and better leaderships skills as the managing director will of gained them.