LG Corporate Organization Structure (Ch 12)

LG Is an M-form (Multidivisional) Organization

LG uses a two-dimensional M-form structure, with one dimension being the major functional organizations (i.e., Electronics, HVAC), and the other dimension geographical, where LG subsidiaries operate around the globe.

Figure 1 - LG Functional Organization 

Figure 2 - LG Geographic Organization

LG also uses a corporate organization structure for its core staff:

Figure 3 - LG Corporate Organization 

M-Form is the only logical structure that LG can use as it has numerous divisions that produce a variety of unrelated products. As a global company, it must also create subsidiaries for these companies to operate locally. Despite this independent structure, LG's corporate organization is very strong and is responsible for unifying key processes like supply chain management so that LG can leverage its size and limit the threat of suppliers, for example.