Shin Dong-bin, chairman of Lotte Group, has called on the company’s management to strengthen its core competitiveness for the second half of the year. This includes streamlining non-core businesses and enhancing the value of key brands while adhering to fundamental management principles such as customer focus and profitability.
On July 15, Lotte held its second-half VCM (formerly known as the president's meeting) at Lotte World Tower in Songpa, Seoul, chaired by Shin. Approximately 80 attendees, including representatives from Lotte Holdings and major subsidiaries, reviewed the first half's performance and discussed strategies for the upcoming months.
Shin emphasized, "To gain new growth momentum in our core businesses, which have entered a mature phase, we must secure fundamental competitiveness that adheres to the basics of our industry."
While he noted improvements in the group's overall performance during the first half, he assessed that external capital market evaluations remain cautious. He predicted that geopolitical uncertainties would increase in the second half, along with rapid advancements in technology, including AI 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. He identified key tasks for enhancing core competitiveness as selection and concentration, continuous improvement and innovation, and adherence to fundamental management principles. 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 elevating the value of core brands in the global market.
Concluding the meeting, Shin highlighted the need for innovation within the group for sustainable growth, citing examples from traditional industries. He stated, "Tradition should not be a ceiling that confines us but a starting line for new innovation," and urged CEOs to present clear visions, continuously improve from the customer’s perspective, boldly innovate, and evolve their organizations.
The VCM began with a lecture by Doug Stephens, a futurist and global management consultant. Drawing from his experience in global corporate strategy, Stephens provided insights on AI trends and global market outlooks to Lotte's executives. This marked the first time Lotte invited a foreign speaker to the VCM.
Shin is expected to focus the management strategy for the second half on AX, linking it to strengthening the business competitiveness of subsidiaries. Previously, he attended the 'CEO AI Academy' held on June 5-6, where he reviewed the group's AX promotion strategy. At that time, Shin defined AX as a top priority for the group's survival, stating, "We will support all employees in developing AI agent capabilities to drive innovative changes in our work methods." Lotte plans to conduct practical training on AI agents for all employees by the end of the year.
* This article has been translated by AI.
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