Shin Dong-bin, chairman of Lotte Group, has urged executives to strengthen the company's fundamental competitiveness in the second half of the year. This includes streamlining non-core businesses, enhancing core brand value, and adhering to the basics of management, such as customer focus and profitability.
On July 15, Lotte held its second-half VCM (formerly the executive meeting) at Lotte World Tower in Songpa, Seoul, chaired by Shin. He emphasized that to gain new growth momentum in the group's core businesses, which have entered a mature phase, it is essential to secure fundamental competitiveness by focusing on the basics of the industry.
Shin noted that while the overall performance of the group improved in the first half, external evaluations from the capital market remain cold. He predicted that geopolitical uncertainties would increase in the second half, along with rapid advancements in technology, including artificial intelligence agents.
He urged a comprehensive examination of the management environment from a PEST perspective, which analyzes external factors based on Political, Economic, Social, and Technological elements.
Shin pointed out that the group's business competitiveness has stagnated over the past decade and identified key tasks for strengthening fundamental competitiveness: selection and concentration, continuous improvement and innovation, and adherence to management basics. He called for the streamlining of non-core businesses that do not align with the group's strategy to enhance profitability and competitiveness, while also raising the value of core brands in the global market.
Regarding investments, he stressed the need for thorough verification of feasibility and profitability, as well as consideration of financial soundness before execution.
Shin stated, "Tradition should not be a ceiling that confines us but rather a starting point for new innovation," adding that CEOs must present a clear vision, continuously improve from the customer's perspective, and evolve the organization consistently.
* This article has been translated by AI.
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