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A REPORT ON LG ELECTRONICS COMPANY

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Title Page

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A REPORT ON LG ELECTRONICS COMPANY
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Executive Summary

Technology becomes one importance in the human life. The electronics products such
as televisions, cell phones, air conditions, and so on are not strange with people anymore.
Twenty years ago, television is seen as the luxurious one to Vietnamese people. After twenty
years, in 2012, each family in Vietnam has at least one television in their house. Additionally,
others electronics products, for example refrigerator, washing machine, and so on are also
extremely necessary. The increases of peoples demand makes electronics industry develop
quickly. The electronics companies: Samsung, LG, Panasonic, Sony has their own plan to
grow in the potential market Vietnam.

LG Electronics Vietnam is outstanding with quality of products and service. To have


the solid position in the current market, LG Electronics Vietnam has to have the good quality
management. In the range of paper, researcher chose LG Electronics Vietnam to be the
research objective. Besides, a Quality Management aspect is also selected to researching.

In the study, we do some researchers about the effectiveness of the companys quality
management to achieve customers satisfaction. The study presents some main contents as
follow:

Identify a research question or hypothesis and justify choice


Justify the chosen methodology in terms of the research question
Prepare an action plan with target dates and methods for monitoring and updating
Devise a code of ethics for the conduct of the study

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Table of Contents
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Title Page.. 1

Executive Summary. 2

Table of contents.. 3

Introduction.. 5

I - CHAPTER 1: INTRODUCTION..................................................................................................6

1.1 Research Background:...........................................................................................................6

1.1.1 Background of electronics industry:...............................................................................6

1.1.2 History of LG Electronics:.............................................................................................7

1.1.3 LG Electronics organizational structure:.......................................................................8

1.1.4 Vision, Mission, and Core value of LG Electronics:......................................................9

1.1.5 Products of LG Electronics Vietnam:...........................................................................10

1.2 Problem statements:.............................................................................................................11

1.2.1 The impact of quality management:.............................................................................11

1.2.2 Factors and problems in quality management:.............................................................11

1.3 Research objectives:............................................................................................................17

1.4 Significance of the Study:..........................................................................................................18

1.4.1 For LG Electronics:..........................................................................................................18

1.4.2 For managers of LG Electronics:......................................................................................18

1.4.3 For employees of LG Electronics:....................................................................................19

1.4.4 For the researchers:...........................................................................................................19

1.4.5 For customers:..................................................................................................................19

1.5 Research Questions/Hypotheses:.........................................................................................20

1.5.1 Research Questions:............................................................................................................20

1.5.2 Hypothesis:.........................................................................................................................21

1.6 Action Plan and Target Dates:..............................................................................................23

1.7 Research Limitations:..........................................................................................................26

1.8 Research Ethics:...................................................................................................................27

1.8.1 Definition of Research Ethics:.....................................................................................27

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Table of Contents
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1.8.2 Issues in Research Ethics:............................................................................................27

II - CHAPTER 2: LITERATURE REVIEW...................................................................................29

2.1 Introduction of Literature Review:.............................................................................................29

2.2 Area of research:........................................................................................................................29

2.3 Topic:.........................................................................................................................................30

2.4 Articles about the problems:......................................................................................................31

III CHAPTER 3: RESEARCH METHODOLOGY....................................................................35

3.1 Research Design:.......................................................................................................................35

3.1.1 Sources of data:...................................................................................................................35

3.1.2 Types of Research Design:..................................................................................................36

3.2. Research Sampling:..................................................................................................................36

3.3 Research Instruments:................................................................................................................38

3.4 Methods of Data Analysis:.........................................................................................................41

3.4.1 The Arithmetic mean:..........................................................................................................41

3.4.2 The Frequency Distributions:..............................................................................................42

3.4.3 Correlations:.......................................................................................................................43

Conclusion..........................................................................................................................................45

References..........................................................................................................................................46

Appendix 1: Questionnaires..............................................................................................................53

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Introduction

Nowadays, with the trend of internationalization, globalization of world economy and


the trend of integrative economically nation and the region has created opportunities and
challenges for every business, forcing companies to face with the competition not only
location but also the international market. Competitive price policy will not bring high
economic efficiency when the life of the people increases, then they are willing to pay high
prices to get high quality products. With the changing trend from competitive price to
competitive quality, so the business will apply the form of competition by improving the
quality of products and services is essential in the future. Therefore, if organizations want to
survive and stand firmly on market, they definitely must win in this competition that can only
be achieved when the quality products of enterprise have been increasingly enhanced. Only
inconstantly securing and improving quality product, the product of business have faith in
customers, reputation of the business will been raised.

With the trend of winning the competition by quality products as the current
management of quality products have great importance to the business. Therefore, enterprises
have to pay attention, take the quality matter from the top since properly aware about quality
management, and need to understand how effect the quality management with their business
from which to quality for their business. Because of practical significance and importance of
quality management for the existence of the business that the group goes into the research
topic: A research of the effectiveness of LG Electronics' Quality Management to
achieve Customers' Satisfaction.

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I - CHAPTER 1: INTRODUCTION
1.1 Research Background:
1.1.1 Background of electronics industry:
Recent years have seen the development of technology, which plays an
important role in everyones life especially when people now need to use electronics
products more than in the past. In Vietnam, electronics goods are becoming more
popular with the variety in form, quality, source of origin, prices, etc. to meet
customers strong demands. In addition, in recent years, the majority of peoples
economic lives are significantly improved, making high-tech products are no longer
unfamiliar and expensive goods like before. Besides, people also can approach new
technologies in easier ways with the help of mass media. Most of all, the price of
high-tech products tend to fall quickly leading many customers to have more chances
to own appropriate goods. M.Thoa (Sc tiu th hng Vit tng mnh, 2009) stated
that there was a high growth in the purchasing power of Vietnamese electronics
market because of the fall in the goods prices from 10 to 50 per cent.
With the population of almost 88 million (Thanh Huong, Dn s Vit Nam s
vt ngng 88 triu ngi trong nm 2012, 2011), Vietnam is becoming an
attractive electronics market with high growth rate that many domestic as well as
foreign organizations can invest in. PV (Tiu th hng cng ngh ca Vit Nam tng
28%, 2011) said that GfK - a worldwide market-research corporation stated that in
2010, Vietnam reached the growth rate of 28 per cent in electronics product purchases
which was the highest rate when comparing with other 8 Asian countries.
According to 75/2007/QD-TTg- Decision approving the plan for development
of Vietnam's electronics industry in 2010 and a vision to 2020 (2007), Mr. Nguyen
Tan Dung - Vietnamese Prime Minister approved that the electronics would be one of
the most important industry to motivate the process of industrialization and
modernization in Vietnam. Following this decision, the objective until 2010 the
electronics industry will produce 4-6 billion USD in which exportation accounted for
3-5 billion USD. On 11-1-2007, Vietnam officially joined the World Trade
Organization (WTO), formally joined the global trade playing field. With this
participation, the open markets have a major impact on electronics market in Vietnam.
Hong Anh & Nhu Trang (Nhng thay i t ngy 1/1/2009, 2008) found that the

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foreign retailers have been allowed to enter the Vietnamese market since January 1st of
2009. Therefore, all the limitations applied for those retailers were also removed. The
event was said to make a significant influence on responses of domestic distributors
as they started preparing for activities to gain more market share.
LG Electronics is one of foreign organizations which invest in Vietnam. The
enterprise has been building its strong brand in Vietnamese customers minds.
Entering a potential country, LG Electronics has both advantages and disadvantages in
the companys operation.

1.1.2 History of LG Electronics:


Established in 1958, LG Electronics, Inc. (LG) is known as one of the world
top innovative technology companies specializing in electronics production, mobile
communications and household appliances, with more than 84,000 employees in 112
field including 81 subsidiaries around the world (Overview of LG Electronics, n.d.).
The products of LG Electronics are varied with different designs and features such as
flat-screen TVs, audio and video products, mobile phones, air conditioners and
washing machines. In spite of being a well-known enterprise, LG has always
continued put efforts on their finished goods to strengthen the brand presence globally
and to maximize profitable growth.
According to Overview of LG Electronics (n.d.), LG Electronics, in particular,
will focus on achieving profitability growth and sustainable in mobile
communications and home entertainment to strengthen its leading position in the IT
industry. According to Koo Bon Moo, ngi gy dng thnh cng cho LG (n.d.), in
2004, LG's net profit rose 25% to nearly 1.2 billion USD in total sales of nearly 102
billion USD. Revenue from display and digital music player goods was at nearly
43.72 billion USD, which increased by 11.8% compared to 2003. In addition, the
enterprise has also planned to expand its market segmentation to the field of home
appliances, air conditioners and other business solutions at the same time.
Operating in technology and electronics industry for more than 50 years, LG
Electronics has created some remarkable landmarks in the organizations history. With
the high professional ability in technology, LG Electronics has unveiled many
products continuously applied updated new technologies in the form of mobile
devices and digital TVs in the 21st century in order to affirm its status as a global
company.
There are some important landmarks of LG Electronics: (LG Electronics
history, n.d)

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1958: Founded as GoldStar.


1960's: The first Korean manufacturer of radios, TVs, refrigerators, washing
machines, and air conditioners.
1995: Renamed as LG Electronics acquires US-based Zenith.
1997: -LG produced the first CDMA digital mobile handsets in the world, and
supplied to Ameritech and GTE in U.S.
-The organization achieved UL certification in U.S.
-Develops world's first IC set for DTV.
1998: Developed the world's first 60-inch plasma TV.
1999: Established LG Philips LCD which is a joint venture with Philips.
2000: Launched the world's first Internet refrigerator.
2001: -GSM mobile handsets were exported to Russia, Italy, and Indonesia
-Establishes market leadership in Australian CDMA market
2002: Under LG Holding Company system and separated into LG Electronics and LG
Corporation
2005: Became the fourth biggest mobile phone manufacturer in the world.
2008: Stated the new nature of the world brand: Styled designs and smart
technologies are all in appropriate price products which are suitable for every
customer.

1.1.3 LG Electronics organizational structure:


LG has a large number of levels of management hierarchy with the president
at the top, executive vice president under the president, layers of managers below,
with employees at the bottom. It is reason why LG Electronics Vietnam is seen as the
tall organization. The traditional model is defined with the characteristics: narrow
spans control, centralization, function department.
According LG Electronics corporation information (n.d.), Mister James Park
is said to be the President for LG Electronics Southeast Asia Region Representative.
He is responsible for strategic development and execution of LGs business and
regional expansion strategies across all of the LGs organizations in Southeast Asia
including Vietnam market (2012). Mister Nguyn Trng Bnh is the Vice President of
LG Electronics Vietnam. Besides, Mister Tae Yeon Ko is CEO of LG company (Mai
Anh, 2012).

CEO: Tae Yeon Ko

Vice President: Nguyn Trng Bnh

Layers of managers

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Workers
Chart 1: LG Electronics organizational structure

1.1.4 Vision, Mission, and Core value of LG Electronics:


Vision:
The vision of LG Electronics Vietnam is Pursuing Sustainable growth through
stakeholder value creation (LG Electronics vision, mission and core values, n.d.).
Mission:
The Mission of LG Electronics Vietnam is Creating a leading global company that is
sustainable and respected (LG Electronics vision, mission and core values, n.d.).
Core value:
According to LG Electronics vision, mission and core value (n.d.), the core values of
LG Electronics Vietnam are stated as follows:
- Integration: Connecting management systems and the value chain with
sustainability.
- Innovation: Providing differentiated value with improved technology and product
quality.
- Partnership: Building collaborative relationship between stakeholders and the global
community.
Additionally, LG also set up the ways to achieve Global Top three including
People value, Customer Value, Share Holder Value (LG Electronics values, n.d). To
meet the people value, LG will provide unique experience, develop marketable skills
as well as reward people for their contributions. It makes employees trust company
and always try to work best. To achieve customer value, LG perceives that LGs
products have to be driven by what customers want. Share Holder value will be met if
LG can focuses on right results, and builds capabilities continuously.

1.1.5 Products of LG Electronics Vietnam:


LG Electronics have types of technological goods. In general, products of LG
are divided into two main purposes including for customers demands and for
business demands.
The products for customers consists of Mobiles phones, TV/ Audio/ Video,
Home Appliances such as washing machines, refrigerators, vacuum cleaners,
ovens and, air conditioners, IT products (laptop).

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Picture1: LGs products for customers demands (LG products, n.d.)

The products for business include commercial TV, Digital Signage, VCS, Solar
Power,etc.

Picture 2: LGs products for business demands (LG products, n.d.)

1.2 Problem statements:


The Effectiveness of LGs Quality Management to Achieve Customers Satisfaction
1.2.1 The impact of quality management:
Quality Management plays an essential role in keeping the companys position
and making it even higher. The organization has to manage the quality of not only
their goods but also their service to customers. The purpose of this area is to achieve
the highest customers satisfaction to gain profitability growth. Nevertheless, there are
many factors might affect the quality management of an enterprise if one of them gets
problems. Therefore, to maintain the best quality, the organization has to care about
all aspects from internal to external ones.

1.2.2Factors and problems in quality management:


Research title:
The Effectiveness of LGs Quality Management to Achieve Customers Satisfaction
Factor 1: Supplier quality (Kanagi Kanapathy, n.d.)
According to What is a supplier? (n.d.), the ISO 9000:2000s definition of a supplier
is "an organization or person that provides a Product"

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The lack of available raw materials affects the quantity of products to distribution
network (branches, agencies). Particularly with multinational organization, there
still exist slow methods to attract diverse suppliers.
Material quality:
The group assumes that LG Electronics might face with problems in material quality.
As operating in electronics industry, the material is an important part of production
process. Only with high quality materials, the company can manufacture electronics
products with long life and good features. If the quality of materials is not qualified,
the products will not satisfy customers. Therefore, if LG Electronics does not choose
appropriate supplier for materials, it can possibly lead to a loss in profit of LG
Electronics.

Location supply:
Researchers assume that LG Electronics might cope with problems with the suppliers
location if the distance is not convenient. The point is that LG Electronics is a Korean
based company. Hence, it will be high possible that the company would not find
appropriate suppliers, as LG Electronics might not be familiar with Vietnamese
supply brands. The problem might be that if the location of supplier is too far from the
factory, it will affect strongly or even postpone the working process. Besides, there
might be troubles in the way delivering materials. As there might be some unwanted
troubles incurring on the delivering way, the materials might not be delivered on time
or even be broken.

Competitors:
Another problem that LG Electronics might face with is the strong competitors. The
point is that the electronics industry, nowadays, is very competitive. Different
companies might compete each other by improving product features. However, there
are some suppliers which are popular by their highest quality materials. Hence, most
of organizations would want to have a chance to be the partner of those suppliers. In
addition, if LG Electronics and other companies might want to use the same supplier,
it might lead to the increase in price of materials.

Resources limitation:
Relating to suppliers, the materials are very essential. However, in the situation which
the domestic resources are becoming scarcity, suppliers might not also supply enough
materials to the companies including LG Electronics. Moreover, when the current

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suppliers cannot deliver needed amount of materials, LG Electronics might have to


order from other suppliers which are further or even from foreign countries. Hence, it
would be highly possible that the company would be charged at high price.

Finance:
The group assumes that LG Electronics might face with the financial problems. The
point is that due to the financial crisis, there are many big enterprises affected and LG
Electronics might be one of them. Dealing with financial problems, LG Electronics
might reduce some of the companys investment projects. Therefore, instead of
buying materials from good quality suppliers with high price, LG Electronics might
choose the cheaper ones. Hence, the quality of the companys products would not
remain stable.

Factor 2: Employee qualifications: (Kanagi Kanapathy, n.d.)


The considerable number of human resources has been short-term training only. The
expenses for training employees tend to grow up.
Training environment:
In quality management, high quality of employment is also one of the most
important elements. However, to get qualified employees, LG Electronics also need
to concentrate on training them. Therefore, researchers assume that LG Electronics
might not qualify the professional training environment. LG Electronics might not
recruit qualified teachers to train the companys employees. Besides, if LG cannot
provide the employees opportunities to practice what they have learnt, it will be
hard for the employees to improve their skills. As a result, the employment of LG
Electronics would not help the company carry out good quality management.

Training time:
The group assumes that LG Electronics might not create enough time for
employees training to carry out. The problem might arise from the companys
financial stages. Therefore, it might be difficult for LG Electronics to afford to
maintain the training course to be longer enough. If the training time is not long
enough, the employees might not learn thoroughly and be ready for their real jobs.

Human resources:
As stated, employment plays an important role in getting the best quality
management. LG Electronics might face with a trouble that there would not enough

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employees to carry out work. There are many cases that when the training course
finished, qualified employees who have high skills and knowledge might decide to
leave the company. Therefore, to keep those high quality employments, LG might
have to plan a good treatment for the companys human resources.

Factor 3: Customer orientation: (Hunter Taylor, The Importance of Quality


Management, n.d.)
Philip Holden (1998, p.45) suggested that customer orientation is everything that
an organization does not geared to the total satisfaction of its customers needs

Competitors:
Competing is one of the most common problems that organization will face with,
and LG Electronics will also. LG Electronics products might lose competitive
advantage when competing with other companies products. Customers are more
anticipating about good quality goods with low price. If LG Electronics tries to
gain more customers, the company might have to lower the price which can also
affect the quality.

Picture 3: Customer orientation (10 mistakes in behavior change, n.d.)

Feedback:
Researchers assume that LG Electronics might ignore the feedback of customers.
If the problem happens, the total quality management of LG Electronics will face
with troubles. The point is that the purpose of improving quality management is
to gain customers satisfaction. However, if LGs employees do not show the
friendliness attitude towards customers when receiving feedbacks or even do not
care about customers responses, they might not only stop sending comments, but
also stop purchasing LGs goods because of disatisfaction.

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Factor 4: Top management support: (Kanagi Kanapathy, n.d.)


In Businessdictionary, top management is defined as the highest ranking executives
(with titles such as chairman/chairwoman, chief executive officer, managing director,
president, executive directors, executive vice-presidents, etc.) responsible for the entire
enterprise.

Cooperation:
Each department has own manager and specific missions which ensure its position
in the whole company. Thus, to enhance the importance of personal status, there
exist considerable conflicts among many layers of managers when setting general
companys strategies. Assuming that if managers of LG Electronics do not support
together, the internal environment will be damaged. Because of the both money
and status ambitions, manages of LG may skip the cooperation with the same
level of managers. It will be impossible for LG to control the human resources
and lost competitive advantages in the
market.

Experience:
The international quality criterions are
constantly changing, especially
technology. Assuming that, if managers
of LG Electronics are not agile in
updating, reviewing and applying the latest indicators on product quality, the
products of LG might face with disadvantages. Because when they are lack of
experiences, the innovation in technology cannot be applied immediately to meet
the international quality standard of product. At that time, LG Electronics cannot
keep existing customers as well as approach new customer.
Picture 4: Top management work

(Strategic Energy Plan Development, n.d.)

Controlling:
There is a measurement in comparing power of management levels so the
competition to hold much more power is increasing obviously. Assuming that, this
problem occurs in LG because most of companies have to deal with the power

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competition among managers. Moreover, LG is a multinational organization with


many different kinds of products so this issue has a higher speed happen in LG. At
that time, LG may face to the risk of internal competition for managers power.

Motivating employee :
An organization can apply some theories of motivation by any way. However, the
situation of managers who are unfair in motivating employees will cause the
wrong reward when assessing the employees performances. Assumption that it
happens in LG because the bias in motivating employees happens easily in any
organizations. Another part of employees of LG will feel unfairly and they do not
work as well as their ability. If LG lacks of caring about employee, it will cause
the decrease companys profit and ensure the advantages of internal environment.

Factor 5: Process/product design (Hunter Taylor, The Importance of Quality


Management, n.d.)
According to Gaurav Akrani (n.d.), "Product design is the translation of intellectual
wisdom, requirements of the entrepreneurs, or needs of the consumers, etc. into a
specific product."
Competitor:
In electronic regions, there are a lot of famous brands over the world such as
SONY, SAMSUNG, PANASONIC and so on. Each operation has own personal
product design to make impression in customers mind. Assumption that there
will have much more new competitors in the electronic market, LG may have to
face much more powerful from them to gain customers retention because it
absolutely influences to LGs profit. Furthermore, the competitive advantages of
LG Electronics are not guaranteed because LG needs to focus on more external
factors to have stable position in the market.

Technology:
The group assumes that LG Electronics might face with the disadvantage in
technology. Operating in electronics industry, the product features are required to
non-stop improve in order to gain customers expectations and satisfaction. As the
technology is continuously developing, it might be a disadvantage for LG
Electronics, if the enterprise cannot catch up with the development. The point is
that when brand new technological goods launched, customers will highly focus

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on them. Therefore, LG Electronics might lose a portion of the companys


segmentation. Most of all, it will show that the companys total quality
management still has some drawbacks.

Customer demand:
It can be said that, catching up the various demand of customer is very difficult.
Assumption that, if LG does not understand deeply about customers tastes, its
brand will be forgotten gradually because LG cannot meet all the customers
needs to make them satisfied or in other words, they do not want to buy LGs
product anymore. At that time, the business operation of LG will be destroyed if
without taking a look at the trend of market. Moreover, if the customer demands
declines, the profit of LG also goes down.

1.3 Research objectives:


The research is carried out for some objectives. However, the main purpose is to answer
whether the quality management of LG Electronics is coping with problems or not.
Therefore, researchers will define what the problems are and the reasons as well as
recommendations of those problems.
First of all, researchers aim to evaluate the effectiveness of LG Electronics
quality management. Therefore, the study result will help researchers know
whether the quality management of the company is appropriate or not. The
objective is made by doing analysis on different stakeholders such as employees,
store staffs and especially customers.
The second objective of the study is to assess the satisfaction of customers
towards LG Electronics products as well as the organizations quality
management. Basing on the evaluation of customers on the companys products,
researchers can have an objective view about the total product quality of LG
Electronics. Besides, customers will also state their own opinions on LGs quality
management by their given points on the groups surveys.
The third objective of the research is to assess customer satisfaction with quality
of LG Electronics services provided by the organizations staffs. The service
quality is one of the most important aspects in evaluating the total quality
management of a company. Hence, researchers want to do analysis on the quality
of LG Electronics staffs through the customers opinions.

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Another purpose in carrying out this research is to evaluate the efficiency of LG


Electronics top management towards the organizations employees. The essential
element of good total quality management in a company is to be managed and
supported by efficient top management.
In quality management, suppliers play an important role in maintaining the quality
of a company. Therefore, the study is made to evaluate the relationship between
LG Electronics and the organizations suppliers.
Finally, basing on collected results, researchers will find out the existing problems
of LG Electronics. Hence, the researcher might create some recommendations to
help LG Electronics improve the companys quality management.

1.4 Significance of the Study:


Researching about the quality management, the study might have important benefits
towards many people and the LG Electronics as well.
1.4.1 For LG Electronics:
The research might help the entire company have an overview of its own
quality management system in order to check for whether the system is useful or not.
Therefore, LG will find out the strong points as well as the limitations which need
improvement. In addition, the enterprise will be provided the feedbacks collected
from customers about the quality of not only LG products but also the companys
service. Besides, there are some suggestions from the researchers basing on the
consumers ideas to help LG strengthen its quality. Hence, LG Electronics might
consider improving and strengthening the organizations quality management system
to achieve customers satisfaction.

1.4.2 For managers of LG Electronics:


Through the study, LG Electronics managers will find out the problems
incurring in the companys quality management system. The researchers will help
managers to do research carefully about the factors that might influence LGs total
quality management such as suppliers, products, employees, etc. Hence, LG managers
can improve their products in an efficiency way. Most of all, the top managers will
know whether their management methods are appropriate or not, as it will be shown
in the employees working ways. Therefore, managers might come up with new
solutions to motivate employees more successfully.

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1.4.3 For employees of LG Electronics:


The research will help LG Electronics employees understand more about their
own companys quality management. Understanding the system thoroughly,
employees will work more effectively. Besides, employees especially the frontline
staffs will have opportunities to know how customers evaluate the staffs service
quality. Hence, the employees will correct their problems themselves. Finally, as the
LG Electronics brand is becoming stronger, employees might have chances to gain
many benefits especially promotion.

1.4.4 For the researchers:


Doing the research will help the researchers understand more deeply the
knowledge they have learnt, as they have opportunities to apply it in the real life.
Through the study, researchers will know how LG Electronics and other big
organizations operate and keep their position. Additionally, the importance of
appropriate and efficiency quality management towards the enterprise will also be
found after the research. Moreover, researchers who are students will have chances to
gain more experiences about the research area which is very useful for their future
career.
The study, in addition, can be used for researching and studying purposes for
future researchers. Basing on the researchs result, other researchers will know the
current stage of quality management in LG Electronics, and then they will keep
working to fix the past researchs limitations.

1.4.5 For customers:


The research might be useful for customers especially for ones who like
electronics goods. They will know more about the quality management system of LG
Electronics to gain more experiences about the companys products. Most of all,
customers also play important roles in the research. They will have opportunities to
make their opinions about LGs products and service. Therefore, basing on customers
demand, LG Electronics, the producer will try its best to satisfy the demands. As a
result, customers can buy their suitable goods with the best service.
1.5 Research Questions/Hypotheses:

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In all business operations, quality management is considered one of the most


important keys in achieving the success because of a huge influence to the firm from
internal to external factors. Hence, focusing on improving quality management always
create a powerful competitive advantages for the enterprise. In order to meet all the
requirements of this research project, research questions is an effective tool in
designing, evaluating the situation of quality management recently based on some
questions about the purpose of this particular area. To have an objective view about
the area in LG Electronics case, the research needs opinions of different people who
have internal or external relationships with the company. Therefore, research
questions are made.
In addition, to contribute to the quality of research questions, hypothesis is the
way of performing the relationship between quality management and companys
objective. A hypothesis is a tentative statement about the relationship between two or
more variables, Kendra Cherry (n.d.) suggested.

1.5.1 Research Questions:


Question 1: What do customers profiles relate about?
1.1 Gender
1.2 Age
1.3 Occupation
1.4 Monthly income

Question 2: What is the perception of customer about quality management of LG


Electronic Vietnam?
2.1. Product functions and guide book
2.2. Quality and price
2.4. Sale staffs services
2.5. After sale services and deliver service
2.7. Technology
1.5.2 Hypothesis:

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Gender
Age Evaluation about
quality
Occupation management
Monthly income

Conceptual Framework No.1

Hypothesis 1:
Is there a significant relationship between gender and evaluation about quality
management?

Hypothesis 2:
Is there a significant relationship between age and evaluation about quality
management?

Hypothesis 3:
Is there a significant relationship between occupation and evaluation about
quality management?

Hypothesis 4:
Is there a significant relationship between monthly income and evaluation about
quality management?

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Product Quality
Price
Staffs' Service
Qualitty Customer's
Satisfaction
After sales Quality
Technology Quality

Conceptual Framework No.2

Hypothesis 5:
Is there a significant relationship between product functions and guide book and
customer satisfaction?

Hypothesis 6:
Is there a significant relationship between product quality and price and customer
satisfaction?

Hypothesis 7:
Is there a significant relationship between sale staffs services and customer
satisfaction?

Hypothesis 8:
Is there a significant relationship between after sale services and delivery quality
and customer satisfaction?

Hypothesis 9:
Is there a significant relationship between technology and customer satisfaction?

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1.6 Action Plan and Target Dates:

No Date Activities Purposes/ Results Participants


1 14 Mar Form the group with 4 To carry out the research Nicole, Su,
2012 members: Nicole (leader), more efficiently Obbie, Katie
Su, Obbie, Katie
2 16 Mar 1st Group meeting: -Need 3 titles for the Nicole, Su,
Discussion to choose 3
2012 following weeks Obbie, Katie
appropriate titles for the
presentation
research and the applied -The members considered to
company choose DELL Company.
3 19 Mar Show 3 titles to the lecturer -The lecturer corrected 3 Nicole, Su,
2012
and ask for his advices titles and asked the group Obbie, Katie
members for improvements.
-Lecturer advised the group
to change into another topic
4 20-22 Members individually did Each member found Nicole, Su,
Mar 2012 research on the Internet to information individually to Obbie, Katie
choose appropriate topic create more ideas.
and title.
5 23 March Recapitulate all group To choose better title for the Nicole, Su,
2012 members ideas research, then asked the Obbie, Katie
lecturer again for approval
6 26 March Research title presentation Lecturer approved the title Nicole, Su,
2012
Obbie, Katie
7 27 March Writing proposal letter for To ask for LGs approval in Nicole
2012
LG Electronics order to make the research
carried out
8 28 March Handed in the proposal Got lecturers signature in Nicole
2012 letter to let the lecturer to the proposal
check
9 29 March Ask the Banking Academy -Got a stamp and signature Nicole, Su
2012 for the introduced letter of the Director of Banking
Academy.
-Be ready to ask for LGs
approval
10 30 March The group members went to Got LGs approval Nicole, Su,
2012 the head quarter of LG Obbie, Katie

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Electronics to ask for the


companys approval
11 3-6 April Nicole assigned work for Chapter 1 is divided into Nicole, Su,
2012 other members. small parts. Obbie, Katie
The group started to do -Nicole: 1.2, 1.4, 1.5, 1.6
-Su: 1.2, 1.5, 1.8
chapter 1
-Obbie: 1.1, 1.7
-Katie: 1.1, 1.3
12 6 April Study about how to make The group made the first 4 Nicole, Su,
2012 questionnaires for the questions in the profile part Obbie, Katie
research
13 7 April 2nd Group Meeting: Members found 6 factors Nicole, Su,
Discussion to make the
2012 which might affect the Obbie, Katie
problem statement (1.2) for
quality management system
the next presentation
of LG
14 9 April Presentation about Lecturer approved the Nicole, Su,
2012 researchs problem statement, but he also asked Obbie, Katie
statement the members to fixed some
mistakes
rd
15 11 April 3 Group Meeting: The members came up with Nicole, Su,
Making research
2012 20 questions Obbie, Katie
questionnaires
16 16 April -Fixed the problem Reordered some parts of the Nicole, Su,
2012 statement and gathered problem statements. Obbie, Katie
information relating to the
statement
17 20 April -Fixing and combining -Chapter 1 was fixed Nicole, Su
-Chapter 2 was also
2012 members parts of chapter 1
-Do research on chapter 2: complete with the analysis
literature review of different information
source
18 23 April After fixing the Got the lecturers signature Nicole
2012 questionnaire, VN group as an approval on the main
print it out and ask teacher questionnaire
for approval
19 24-26 -All members sent their -Nicole: Research Design Nicole, Su,
April chapter 3 works to Nicole -Obbie: Research Samplings Obbie, Katie
2012 (leader). -Su: Research Instrument

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-Fixing chapter 3 -Nicole & Katie: Research


Methodology
Chapter 3 was fixed

20 2-4 April -Fixing the presentation of -Katie wrote introduction Nicole, Su,
2012 the report and conclusion, Obbie Obbie, Katie
-Adding other parts into the
wrote executive summary.
report -The report was completed
21 7 May Assignment Submission After fixing and checking Nicole, Su,
2012 all the report parts. Obbie, Katie
The group handed in the
completed assignment.

Gantt Chart: (Gannt Charts were made by using Toms Planner)

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1.7 Research Limitations:


The research concentrates on the matter of quality management of company through
six factors including supplier quality, employee training, customer orientation, top
management support, quality information availability. Researchers have mission to measure
quality of management and then put forward recommendations to improve the existent
weaknesses in the management system of company if necessary.
In the research process, this study has limitations about information as well as
implementing conditions. In other countries, the information is open and updated
continuously. In Vietnam, on the contrary, the essential information for the research seems
not to be easy to find. Additionally, the topic of the study is new, so references as well as
documents are also limited.
The research is carried out in the small scale with one hundred respondents consist of
employees, managers, customers. It is a reason why the conclusions from this study just are
general because the answers of one hundred particular people may not reflect the answer of
most people. Besides, there are four researchers who are students of Banking Academy in
Hanoi. Therefore, the members do not have experiences in research. As a result, the
explanation, analyzing data were not expressed professional and diversely. Moreover, the
study will lack the supporting of modern equipment such as analysis software, questionnaire
software and so on. Hence, the study might not achieve the best result.

1.8 Research Ethics:


1.8.1 Definition of Research Ethics:
According to Peter A. Singer and Adrian M. Viens (2008, p.187) suggested
research ethics is devoted to the systematic analysis of such questions to ensure that
study participants are protected and, ultimately, that clinical research is conducted in a
way that serves the needs of such participants and of society as a whole.

1.8.2 Issues in Research Ethics:


There are some issues incurred in the research ethics such as confidentiality,
safe participation or informed consent.
It may be considered that confidentiality is one of the first factors which
respondents care about. Although, the objective of this research only serves for study
aims, all the information of respondents is secured. It means the researchers guarantee
that their names, ages or any other opinions are revealed for instance, no need for
participants to check in their names. Furthermore, the researcher has ethical
responsibility for not providing any respondents data for other purposes outside of

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studying harming the company, especially its competitors. In other words, it is


impossible for the research to damage the companys values.
Illustrating for safe participation, the respondents are not harmed in any
ways. Researchers do not force them to answer what questions they do not want, even
lack of cooperation. Particularly, researchers have to respect respondents viewpoints.
In addition, they also cannot require participants to follow by any planned answers.

Informed consent:

This research is from International Training Program of Banking Academy in


order to meet all the requirements of Research Project subject with the title
The Effectiveness of LG Electronics' Quality Management to Achieve
Customers Satisfaction.
This research is carried out for the study purpose only. Researchers will not be
gained any cost through the study. Therefore, your opinions will not affect any
other parties in bad way.
Your joining is totally non-compulsory. It means voluntary participation
because you can ignore any question you do not like answering. Your decision
whether or not participate in this research will not affect any of your future
career.
Any information obtained in this study and that can be related with you will
remain confidential and will be disclosed only with your permission or as
required by law.
This survey is anonymous because your information is secured. If you took
part in this research, no one can collect any data which are not identified.
If you have any questions, please feel free to ask us. The researchers for this
study are members from VN group (ITP Banking Academy). We also can be
contacted by telephone number (084)904861892 or email
autumn.cloud0218@gmail.com.

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II - CHAPTER 2: LITERATURE REVIEW

2.1 Introduction of Literature Review:


The literature review is said to be a documentation of comprehensive review of the
publicized and unpublicized work from secondary sources of data in the area of specialist
interest to the researchers (BPP Professional Education, 2004, p.106). Literature review
might not be an easy part to write in a report; however, it is one of the most important parts.
The point is that the literature review will help researchers know whether the study topic is
appropriate and worth for them to carry out the research or not. According to What is a
Literature Review (n.d.), a literature review is a critical and in depth evaluation of previous
research. In addition, the review also summarizes other authors work and allows readers to
find out the previous works results. Therefore, the literature review shows that the current
research is based on knowledge gained through the previous ones. The source, additionally,
stated that a good literature review expands upon the reasons behind selecting a particular
research question.
Writing a literature review, researchers should concern some core points. The topic
that they are about to carry out was studied by whom, and what the previous researchers had
found as well as their limitations. Moreover, researchers need to identify the major problems
and debates incurring in the study. Besides, the key theories and concepts of the topic should
be considered. Hence, researchers can possibly know the knowledge on the topic structured
and organized (Tran Tri Dung, 2007). In addition, they will find out in which area will have
enough space for them to do research, and might not step in other peoples results. Most of
all, the researcher will determine the core area that they will have opportunity to carry out the
research.

2.2 Area of research:


For every company, one of its important goals is to continuously improve the total
operation. Organizations always want to grow their market share, reduce all kinds of costs,
and especially achieve customer satisfaction. To gain these purposes, appropriate quality
management is totally essential. According to Archive for the Total Quality Management
Category (n.d.), quality management is a management approach for an organization,

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centered on quality, based on the participation of all its members and aiming at long-term
success through customer satisfaction, and benefits to all members of the organization and to
society. The basis of quality management is said to decline the problems incurring during
the manufacturing or service process, increase customer satisfaction and streamline supply
chain management. Besides, the equipment is also aimed for modernization. Another factor is
that the system helps organizations ensure that workers have the highest level of training
(LeGroup, Quality Management system, n.d.).
Total quality management is said to gain benefits by using quality management
system. According to Department of Trade and Industry (Quality Management System, n.d.),
quality management system will ensure both customers and organizations requirements.
The source also stated that the quality management system enables the organization to
achieve the goals and objectives set out in its policy and strategy. Moreover, the system
provides consistency and satisfaction in terms of methods, materials, etc. Besides, it also
interacts with all of organizations activities. Therefore, the quality management can ensure
that its process begins with the identification of customers requirements, and ends with
customers satisfaction.

2.3 Topic:
The effectiveness of LGs quality management towards customers satisfaction
The research focuses on the effectiveness of quality management towards customers
satisfaction with LG Electronics case. As stated, all organizations want to maintain or even
improve their operation standards to achieve customer satisfaction which is a key point for
good result businesses. According to Chris Hakes (p.11) also found that a major factor in
Total Quality improvement is monitoring performance in meeting or exceeding customer
requirements. Customers satisfaction is known as the sense of satisfaction that consumers
feel when comparing their preliminary expectations with the actual quality of the acquired
products (Olga, Evaluating Customer Satisfaction as an Aspect of Quality Management,
2009). The author, additionally, stated that quality = customers satisfaction = value/cost.
The definition identifies the close relationship between the product or service and customers
satisfaction. Furthermore, Olga (2009) found that in the current conditions, customers play
the role of arbiter, so failure will result if customers satisfaction is not taken into account.
Therefore, customer satisfaction is also considered as an important role in the success of a
business.

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Nevertheless, the requirements of customers tend to change over periods which might
lead to non-stop changings of companies quality management. According to Department of
Trade and Industry (Quality Management System, n.d.), customers tend to require for the
confidence of organization to deliver the desired product and service consistently meeting
their needs and expectations. Therefore, the expectations of customers are based on not only
the quality of the organizations products, but also the staffs service quality. As a result, to
achieve customer satisfaction, the quality management system will have to qualify both
internal and external factors from top management to frontline staffs as well as the
relationship with suppliers.

2.4 Articles about the problems:


Foreign articles:
1. Supplier Quality:
Supplier quality is an important dimension of quality management as defective
incoming materials lead to process and product quality problems.
Chris Hakes (Total Quality Management: The Key to Business Improvement, p.11)
said that customers are not only the people to whom you sell products or offer
services, but are also the internal staffs. The author also stated that everyone in
the organization has responsibility to contribute to quality by satisfying their
internal customers so that the external customer is satisfied.
Flynn et al.,(A framework for quality management research and associated
measurement instrument, 1994) found that purchased materials and parts often
become the major contributors to quality problems.
Maintaining good supplier relationship is acknowledged as a key factor in
maintaining competitive advantage. Many companies adopt the supplier
partnership perspective to achieve higher quality and faster response to market
needs. (Stevenson, 2007, Operations Management, p.533).

2. Employee Qualifications/ Training:


Training is an efficient way to increase workers ability to perform better, while
fully utilizes the skills of its workers 'ability is on its way to achieving
organizational effectiveness. (George & Jones, 2005, Understanding and
Managing Organizational Behavior, p.60)

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Training employees in quality concepts and tools increases the effectiveness of


quality improvement activities.
Training contributes to successful implementation of quality management systems
in a firm. (Kanagi Kanapathy, Critical Factors of Quality Management, 2011).
The benefits of employees training can be summed up as improves morale of
employees, less supervision, fewer accidents, chances of promotion, increased
productivity. The benefits which employees qualifications bring to company
makes management of training aspect become extremely vital. Overall,
management of employee training is crucial for organizational development and
success. (Training of Employees - Need and Importance of Training, n.d.).

3. Customer Orientation:
The main objective for a product or service design is to satisfy the customer.
As customers expectations are dynamic, an organization needs to survey
customer expectations regularly and modify its operations accordingly (Ahire et
al., Development and validation of TQM implementation constructs,1996).
The availability of customer complaint information to managers and the extent of
the use of customer feedback to improve product quality reveal the level of
customer focus in an organization (Kanagi Kanapathy, 2011).
Customer orientation or the customer is king is a key word of the management
economics, which the dependence of the enterprises on customer points out.
Missing customer orientation can reduce the conversions. The causes for
customer orientation lacking lie frequently in the culture, the structure and the
processes of the enterprise. (Customer orientation, 2011).
V S RAMA RAO (2010) mentioned that A good mission statement reflects the
anticipations of customers. Rather than developing a product and then trying to
find a market, the operating philosophy of organizations should be to identify
customers needs and then provide a product or service to fulfill those needs.
Good mission statements identify the utility of a firms products to its customers

4. Top management support:


Strong commitment from the top management is vital in quality management.
Chris Hakes (Total Quality Management: The Key to Business Improvement,
p.14) found that the quality of any organizations products or services is
determined by the basic of manufacturing process. He followed as it is

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important to identify the process owners. They are all the people who influence
and control the process and who are therefore well qualified to advice and
comment. The effective of their knowledge and abilities is essential to effective
process control which refers to the leadership.
Rao et al.,(A framework for international quality management research,1999)
described this factor as the top managements commitment in providing active
and timely support to build quality awareness, leading to higher quality
performance.
Top management support plays a significant role in encouraging company-wide
culture that is committed to quality improvement. (Black and Porter, 1996).
The CEO is often the driver of responsibility efforts. This means that in the most
sustainability-oriented companies, he or she plays a central and active role with
the top management team in making CSR visible, raising awareness about global
responsibility, and exhibiting personal commitment to this agenda. Some of the
specific practice we see employed by those CEO, chief operating officers, and
other top leader include introducing internal written and spoken communication
channels to demonstrate their commitment and raise employee awareness,
providing special ore targeted resources (money, staff time and expertise) to
projects that create social good either locally or nationwide, and creating or
approving a formal CSR position or group to spearhead or consolidate work in
area and keep a strong focus on these goals.
(Ellen Van Velsor, Cynthia D. McCauley, Marian N. Ruderman, 2010)
A further important factor that influences the chance of the better innovation
realization is the required support by the top management. Because their support
and positive attitude towards the innovation also facilities the allocation of
resources and improve the status of the innovation activities, leaders
consequential have to win their trust. (Andreas Mothes, 2006, p.43)

5. Process/ Product Design:


The aim of product design is to develop a product that meets the demands of the
market with a competitive advantage.
Rao et al.,(1999) stated that, when a product is designed in such a way that it is
unproblematic to manufacture, the manufacturing process variance is reduced.

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Product Design can be a challenging field of study because the discipline touches
on so many subject areas such as materials, manufacturing, idea generation,
CAD, engineering functions, art, market research and product types. (Richard
Morris, 2009).
The design process is the aggregate steps required to define, execute, validate and
ship a design from design organization. The design process includes how you
handle the flow of information as well as the flow of the steps required and any
decisions that must be made (Jorvig, J. R., 2005).
Jorvig (2005) stated that management of process design is very important. It helps
people visualize the breadth of management necessary to ensure a minimal set of
disconnects during design execution.
Frantsvog, J. (2009) stated that focusing on process is vital to every company.
Frantsvog showed many examples about the opinion of managers who were
working in the famous companies such as Pepsi-Cola, Xerox, and so on to
demonstrate for the statement. Weatherup, C. for instance, cited in Frantsvog
(2009) suggested that a managers ability to build and institutionalize the
capabilities, of people, the organization and systems requires a focus on core
process.

III CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research Design:


3.1.1 Sources of data:
Information used in researching includes both primary and secondary data. First of
all, researchers tend to look for secondary data for deeper understanding about the study.

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Secondary data is said as obtained from some other organization than the one
instantaneously interested with current research project. Secondary data was collected and
analyzed by the organization to convene the requirements of various research objectives
(Primary & Secondary Data Whats The Difference, n.d.). Besides, secondary data is related
to the past from previous researches which make its value become unsatisfactory. However,
this type of data has advantages of easily collecting and low costing as well as low time
consuming. The point is that secondary data can be found through the internet, books,
newspaper or magazines which are familiar with everyone. Secondary data can give
researchers an overview of the study through researching of popular organizations and
scientists.
Meanwhile, primary data has some differences with secondary one. Primary
research entails the use of immediate data in determining the survival of the market
(Primary & Secondary Data Whats The Difference, n.d.). There are many ways to collect
primary data such as questionnaires, interviews, focus group interviews, observation, and
case-studies, etc. (Primary data collection methods, n.d.). Although, carrying out primary
research can face some difficulties as it might take a lot of time as well as costing, it is worth
for researchers to do it. Primary data is more accommodating since it shows the latest
information. Therefore, the data will be more valuable. Most of all, the data you collect is
unique to you and your research and, until you publish, no one else has access to it
(Primary data collection methods, n.d.).
In this study, researchers use both primary and secondary data to evaluate the main
topic which is the effectiveness of LG Electronics quality management towards customers
satisfaction. Therefore, the analysis will more detailed and believable.

3.1.2 Types of Research Design:


In research design, there are two main designs which are quantitative and qualitative
one. According to What is Qualitative Research (n.d.), qualitative research concerns with
exploring issues, understanding phenomena, and answering questions. The source also
stated that qualitative research seeks out the why, not the how of its topic through the
analysis of unstructured information such as open ended survey, videos, photos, etc.
Therefore, the research does not always just rely on statistics or numbers.

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In contrast, quantitative researchs aim is to determine the relationship between one


thing (an independent variable) and another (a dependent or outcome variable) in a
population (Will G Hopkins, Quantitative Research Design, 2000). Moreover, this research
design is normally used to evaluate how people feel, think or act in a particular way.
Quantitative research tends to use questionnaires as its main technique. According to DJS
Research Ltd. (n.d.), for this type of research design, structured questionnaires are used
incorporating mainly closed questions - questions with set responses.
In this study, quantitative design is the main research design. Researchers created a
list of questionnaires for the study technique. The questionnaires will be given to 100
respondents to collect their answers. Basing on the results, researchers will have more
detailed information to evaluate the relationship between different factors of LG Electronics
quality management and customers satisfaction. Most of all, this method has many benefits.
First of all, comparing with interviewing, conducting a questionnaire is easier to prepare.
Since, the groups main topic focuses on customers perceptions; using questionnaire method
will have an advantage of quick collecting answers. Therefore, all the surveys will be done in
short time by more respondents than other ways. Most of all, participants will not feel burden
when answering multiple choice questions. As the result, researchers will get valuable data to
do analysis for their study.

3.2. Research Sampling:


The field quality management which researchers are studying in more depth of the
paper is considered as the positivistic study. Hussey and Hussey (1997) as cited in BPP
Professional Education (2004) suggested that sampling is a fundamental element for a
positivistic research (p.179). Additionally, researchers usually cannot make direct
observations of every individual in the population they are studying. The two factors shows
that research sampling is the vital step helping researchers collect data from a subset of
individuals a sample and use those observations to make inferences about the entire
population (Herek, n.d.).
To have the most accurate result for the study, the research needs the large number of
people taking part in answering the questionnaire.
Researchers are studying the views of customers about the effectiveness of LG Companys
quality management. Therefore, the sampling frame would be a list of all customers who

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have the recognition about LG Company. Customers can be divided into two types: internal
customers including employees, management within the company; external customers are
defined as the buyers of a company.
There are three main types of sampling namely random sampling, quasi-random
sampling, non-random sampling (BPP Professional Education, 2004, p.24). Researcher
focuses on two first methods because non-random sampling is not appropriate with the study.
A non-random sampling is a sample which each items of population has not an equal chance
of being chosen at each draw.

Methods of sampling

Random Quasi-random Non-random


Simple random Systematic Quota
Stratified Cluster
Multistage
Fig.1 The different methods of sampling belonging to the three categories (BPP
Professional Education, 2004)
The feature of simple random sampling is that all items of the population must be
listed and there should be no missing items (sampling methods, n.d.). In the research, simple
random sampling is not the appropriate methods because the limited age of respondent has to
be from 18. It is the logical age that helps researchers to collect the correct information for
the study. Researcher perceives that stratified sampling is the good methods for the study
because in this method the population is separated into layers. The advantage of this method
is that the accuracy of sample statistic is increased. Moreover, it ensures proportionate
representation of the different classes of the population (sampling methods, n.d.). A
questionnaire is carried out to investigate about the view of customer about quality
management in Hanoi city. Researcher decides to divides population into classes based on
age.
The quasi-random sampling method (systematic sampling) is the technique that
involves taking the sample at regular intervals from the population (BPP Professional
Education, 2004, p.184). Additionally, it generally provides a good approximation to simple
random sampling, necessitates the existence of a sampling frame (Normalizer, 2011). The

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example about the quasi-random sampling is that the researcher selects 15 people from LG
headquarter, by picking the every third person coming in LG office.
Overall, the research used two types of methods including systematic and stratified
sampling to support for this study. The methods bring the high accuracy in the result of the
study. Although each method also has some drawbacks, the merits of them outweigh the
disadvantages.

3.3 Research Instruments:


Questionnaire (Appendix 1)
Supporting the title the effectiveness of LGs quality management towards
customers satisfaction, the survey questionnaire formulated is to begin demonstrating the
research objectives. This questionnaire is built up with 20 questions and divided into three
separate parts named profile of respondent, respondents behaviors in purchasing electronic
products and respondents perceptual about LGs quality management:
Respondents profile: about gender, age, occupation and monthly income, from
question 1 to question 4
Respondents behaviors in purchasing electronic products: from question 5 to question
7
Respondents perceptual about LGs quality management: from question 8 to question
20
The Likert questions are scales on which the participants register their agreement or
disagreement with the statement Dr Jeffrey B Rubin, PhD,Jeffrey (1994) said. All Likert
questions of this survey are located in the last part concerning to respondents perceptual
about LGs quality management.
More detail information about questionnaires is performed by the list below:
Firstly, the first four questions mention to the general information of
respondents. The purpose of respondents profile is to collect basic information
about their genders, ages, occupations and monthly incomes.
Secondly, three next question about respondents behaviors in purchasing
electronic products. All of them are multi-choice question. Question 5 is related
to places (Markets, Electronics centres and Electronics stores) in the streets for
purchasing electronic products. Researchers want to evaluate generally about

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the scale of retail market of electronic product currently. Question 6 mentioned


to the way that customer usually get information about electronic products (The
internet, Newspaper/ Magazines, TV advertisements, Friends advices or Ask
staffs from electronics store for help). Question 7 has multi-choice answer
mentioned to quality, design, price or other to find out the first factor that
customer cares about
Thirdly, question 8 and 9 talk about the quality of LG Electronicss product.
Question 8 is yes/no question concerning to LGS product durability meanwhile
question 9 (Likert question) is the comment of respondent about the 5 levels
based on quality product of LG (from 0 to 10 point, from terrible to high
quality)
Fourthly, question 10 and 12 are multi-choice questions. Question 10 is about
six main kinds or LG Electronics product called Mobile phones, TV/ Audio/
Video, Kitchen appliances, IT products, Air conditioning and Laundry/ Floor
care appliances. Based on the experiences of customers, they will have different
comment about the highest quality of LGs product. Question 12 is about design
of LG product (Modern, Old-fashioned, Sporty image, Youthful image or
Unique)
Finally, Likert questions are from 11 to 20, except question 12.
Question 11 might help LG consider about price quality management
based on the feedback of respondent. Respondent evaluate followed by
point 0-2 (very cheap), 2-4 (cheap), 4-6 (normal), 6-8 (expensive) and 8-
10 (very expensive). It is one Likert question.
Question 13 asks customers about the development of technology of LG
products. They are Totally disagree (0-2), Somewhat disagree (2-4),
Neutral (4-6), Somewhat agree (6-8) and Totally agree (8-10)
Guide book is one effective way to learn about all the functions of
products. by the evaluation of respondent based on Likert question by 0-
2 (Totally difficult), 2-4 (Difficult), 4-6 (Normal), 6-8 (clear) and 8-10
(very clear), LG can enhance the importance of guide book in helping
customer understand deeply about product.
Question 15 and 16 all related to service staffs quality. The feedback of
customers about staff service is very important in quality management of

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LG. Customer can choose Terrible (0-2), Bad (2-4), Average (4-6), Good
(6-8) and Excellent (8-10).
Delivery service is also very import to satisfy customer. This process
which ensure the total quality of product safety contribute to completely
purchasing. There are 5 areas of point in question 17 for respondent
choose about quality of LGs delivery: Totally dissatisfied (0-2),
Dissatisfied (2-4), Neutral (4-6), satisfied (6-8) and Very satisfied (8-10).
Shopping online is more and more popular with customer. By the
question 18, researchers might have a good suggestion for LG using this
convenient serving for widely customer. From 0 to 10 points, it is the
level of agreement that LG should or should not use online service.
The opinions of respondent about keeping purchasing LG product is
very important because LG can find out the reason why its products do
not meet the customers requirement
In business operations, quality management is a vital tools in not only
implementing company strategy but also ensuring the right direction of
the business. By Likert question form, there are 5 parts of qualitys
importance can be chosen called Very unimportant (0-2), Unimportant
(2-4), Average (4-6), Important (6-8) and Very important (8-10).
This research focuses on evaluating the importance of LG quality management on
customers satisfaction. To associating all the comments of respondent about LG Electronics,
survey method which is an effective tool is used as primary data. The data which are
collected for the first time and are original in nature is known as primary data, Jha (2009,
p.4) suggested. 20 questions are composed to investigate the perceptual of customers about
LGs product as well as the way of LGs quality management satisfying customers. This
survey also is formal because it is unique for researchers and no one can access any
information in this research. In addition, the result of this survey is very reliable and validity.
Besides, this research also uses the second data which are research reports that use
primary data to solve research problems, written for scholarly and professional audiences,
Richard Nordquist (n.d.) claimed. Researcher used second data from the internet, book, and
journal, etc. For example, in own website of LG, there is a huge of information about
product, history, contact etc.

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3.4 Methods of Data Analysis:

3.4.1 The Arithmetic mean:


The arithmetic mean is calculated from the sum of values of items divided by the
number of items (BPP Professional Education Business Decision Making, 2004, p.83).

Formula: =
F(x): the sum of all values of items (Frequencies multiplying with demand)
F: the sum of number of items (Frequencies)

The method will be used to evaluate the Mean of the quality management of LG
Electronics. Using Arithmetic method, researchers can get the accurate assessment about all
aspects of the study area. First of all, basing on respondents marks, researchers can easily
find out their satisfaction rate on LG Electronics products, staffs attitudes, after sales
service. As the Likert questions are created in the order from the lowest satisfaction (0-2) to
the highest satisfaction (8-10), it will be not hard for customers to give their own mark as
well as for researchers to carry out the analysis.
After getting the result, it will be directly seen that in which aspect is LG Electronics
advantages or strengths, and which aspect is in the opposite side. The point is that if the mean
returns with high value, it will also mean that the respondents really satisfy with LG
Electronicss quality management. In contrast, if the mean value is low, LG Electronics
should focus more on the companys quality. As a result, using the method, researchers can
have an overview of LG Electronics quality management and how the factor affects
customers satisfaction.

Advantages:
- Arithmetic mean is easy in both calculating as well as understanding.
- The value of all items is included in the computation of the mean. Therefore, it can be
directly determined with arithmetical precision. Besides, the value also represents the
whole set of data (BPP Business Decision Making, 2004, p.86).
- The method is created basing on mathematic theory. Hence, it can be used in further
statistical analysis.

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Disadvantages:
- Arithmetic mean might not correspond to any actual value (BPP, 2004, p.86).
- The value of arithmetic mean might not correct when calculating extremely high or
low values. However, this situation is not normally incurred in economic data (BPP,
2004, p.86).

3.4.2 The Frequency Distributions:


A Frequency Distribution is said to record the number of times each value occurs
(the frequency) (BPP Professional Education Business Decision Making, 2004, p.70).
Fx
Formula: P = F 100
P: the percentage value of frequency distributions
Fx: the frequency of items
F: the number of answers

The method will be used to record the number of respondents classified by genders,
ages, occupation and monthly income. Frequency Distribution is very useful for researchers
to define directly different groups of respondents. Basing on the calculated percentage,
researchers will find out the basic characteristics of the research survey participants. The
information will be very important when evaluating the research data. The point is that
knowing which characteristic group a respondent belongs to researchers can easily see the
relationship between the characteristic and the respondents behavior. For instance, if the
highest income portion of number of respondents is more than 10 million VND, and most of
respondents agree that LG products are cheap, it means that the income standard really
influences what people can afford to buy for their lives.

Advantages:
- Frequency tables are simple to understand and read. Besides, the Frequency
Distribution is also easy to carry out (John Derrick, 2011).
- In Frequency Distribution, the most frequently occurring scores are easily identified
(Neil J. Salkind, 2010).
- Frequency Distribution has advantage of presenting a completed picture of a set of
data (Gravetter & Forzano, 2009).
- Frequency Distribution permits the use of more complicated statistical techniques
which help reveal certain other obscure and hidden characteristic of the data
(Sharma J. K., 2010).

Disadvantages:

40
Research Project
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- The primary drawback of Frequency Distribution is the loss of detail, especially


when continuous data are grouped into classes and the information for individual
cases is no longer available (Neil J. Salkind, 2010).
- A serious limitation in Frequency Distribution is that there will be too much
clustering of observations in various classes in case of the number of classes is too
small. This will cause some of the important information to remain unexposed
(Sharma J. K., 2010).

3.4.3 Correlations:
Correlation is defined as an inter-relationship or correspondence (BPP Professional
Education Business Decision Making, 2004, p.127).
The coefficient of correlation measures the degree of correlation between two
variables (BPP Professional Education Business Decision Making, 2004, p.130).
x

2
n x [ n y 2( y ) ]
2


Formula:

n xy x y
r=

r: correlation coefficient
x, y: represent pairs of data for two variables x, y
n: the number of pairs of data used in the analysis
r must always fall between [-1;1] (BPP, 2004, p.130):
r = +1 means that the variables are perfectly positively correlated
r = -1 means that the variables are perfectly negatively correlated
r = 0 means that variables are uncorrelated
The correlation method will be used to show the relationship between two variables.
In this research there will be two correlations that will be accounted. First of all, researchers
want to determine the correspondence between LG Electronics product quality and the
companys product price. Basing on the result, it will be directly seen that whether the
customers can gain actual value as what they paid to buy LG Electronics products. Another
relationship that correlation method can help researchers identify will be whether customers
will keep buying LG Electronics products basing on their satisfaction with the quality of the
products.

41
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Advantages:
- The correlation method can help researchers make predictions about relationship
between two variables when knowing about correlations. If two variables are
correlated, it can be easily predicted one based on the other (Correlation, n.d.).
- The correlation method can carry out for a large number of individuals.
Disadvantages:
- A disadvantage of correlation research is that the answers may be biased if a particular
set of people is surveyed (Correlation, n.d.).

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Conclusion

Quality management has been increasingly confirmed its important role in the current
period. It helps businesses have the ability to improve quality products, removal unnecessary
incurred cost, increase competition, and increase the position of business in the market, so
that enterprises can a durable develop. Thanks to the quality management, the benefits of
business, consumers and society are more unified. Quality is intrinsically a strong impact to
the basics of business operations. Therefore, the applications of quality management systems
are becoming pressing issues in the current period, the decision to the sustainable
development of the economy. In addition, one thing can be affirmed that no other way is
quickly apply the quality management system into the production process of their business, if
the businesses want to survive and develop.

Through analysis of the quality management of LG Electronics, we can see the


limitations in the management of quality. Since then the enterprise should have good
measures to more improve the management of quality in order to improve the quality of
products from there improve the business operations of the LG Electronics.

Due to time and conditions are limited, researchers might not go through deeper the
issue and has no practical experience. The research in the future would include contents of
the article inevitable drawbacks need to be further review and comment.

43
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The internet Average (4-6)


1. What is your gender? Newspaper/ Magazines Good (6-8)
Male Female TV advertisements High quality (8-10)
2. What is your age? Friends advices 10. Which kind of LG
Ask staffs from Electronics product do
18-22 23-35
electronics store for help you think that has the
36-50 >50
3. What do you do? highest quality?
Appendix 1: Questionnaires Mobile phones TV/
Students
Audio/ Video
Workers Officers 7. What is the first factor
Kitchen appliances IT
Businessmen Others that you care about
products
4. What is your monthly when purchasing Air conditioning
income? electronic products? Laundry/ Floor care
< 2 million VND Quality Price appliances
2 - 5 million VND Design
>5 10 million VND Maintenance services
>10 million VND Others
5. Where do you often go to 8. Have you ever found any
problems with LG 11. What do you think about
buy electronics
Electronics products the price of LGs
products?
Markets during the first 3 products when
Electronics centres months? comparing with other
Electronics stores in the Yes No brands?
streets 9. What do you think about Very cheap (0-2)
6. How do you often get the quality of LG Cheap (2-4)
information about Electronics products? Normal (4-6)
Terrible (0-2) Expensive (6-8)
electronics products
Bad (2-4) Very expensive (8-10)
before buying them?

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12. What is your perception Excellent (8-10)


of the design of LG 17. How satisfied are you
Electronics products? with the delivery service
Modern of LG Electronics?
Old-fashioned Totally dissatisfied (0-2) Mr.
Sporty image Dissatisfied (2-4) Jubred Ada Peano, MBA
Youthful image Neutral (4-6) ITP Lecturer, Banking
Unique Satisfied (6-8) Academy
13. Do you think that LG Very satisfied (8-10)
Electronics products
catch up with the
development of
technology? 18. What do you think if LG SURVEY ON
Totally disagree (0-2) Electronics uses online
Somewhat disagree (2- THE QUALITY
method for the MANAGEMENT OF LG
4) companys maintenance
Neutral (4-6) ELECTRONICS
service?
Somewhat agree (6-8)
Totally disagree (0-2)
Totally agree (8-10) Dear Sir/Madam,
Somewhat disagree (2-
14. How easy are you to
4)
understand the guide We are students from BTEC
Neutral (4-6)
book of LG Electronics Somewhat agree (6-8) Course of Banking Academy,
products? Totally disagree (8-10) Hanoi. In our second
Totally difficult (0-2) 19. Basing on your semester, there is a subject
Difficult (2-4) experience, will you keep called the Research Project
Normal (4-6) purchasing LG product? which requires us to do
Clear (6-8) More unlikely (0-2) research on the quality
Very clear (8-10) Unlikely (2-4)
15. In which way do sale management of LG
Neutral (4-6)
staffs of LG Electronics Likely (6-8) Electronics to gain customer
help customers in using More likely (8-10) satisfaction. Besides, this
the companys products? 20. In your opinion, how survey is also a part of our
Very listless (0-2) important is quality groups task. Carrying out this
Listless (2-4) management towards a survey will help us have more
Normal (4-6) company in gaining realistic data to fulfil our work
Enthusiastic (6-8) customers satisfaction? successfully.
Very enthusiastic (8-10) Very unimportant (0-2)
16. What do you think about Unimportant (2-4) We hope that you can make
the after sale service of Average (4-6) little time to do this survey for
LG Electronics? Important (6-8)
Terrible (0-2) us. It will be very helpful for
Very important (8-10)
Bad (2-4) our group members.
Average (4-6) Approved by
Good (6-8) VN Group

51