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INTERNAL ASSESSMENT Corporate Culture Amore Pacific corporate cultures are decentralization.

(S) Amore Pacific as flagship with the objective of creating a holistic identify system that merges Eastern and Western inspirations but with Korean accent. (W) Corporate Structure Amore Pacific is Matrix structure. Matrix management is a technique of managing an organization (or, more commonly, part of an organization) through a series of dual-reporting relationships instead of a more traditional linear management structure. In contrast to most other organizational structures, which arrange managers and employees by function or product, matrix management combines functional and product departments in a dual authority system. In its simplest form, a matrix configuration may be known as a cross-functional work team, which brings together individuals who report to different parts of the company in order to complete a particular project or task. The term "matrix" is derived from the representative diagram of a matrix management system, which resembles a rectangular array or grid of functions and product/project groups. (S) Corporate Resources 1. Marketing a. Brand manager system. (S) b. Brand pyramid. (S) c. Leverage the traditional Korean philosophy as one of the products psychological draw, (S) d. Exclusivity (elegant packaging, exclusive and creative advertising and promotion). (S) e. Targeting higher end market. (S) f. Distribution to high-end department store, door-to-door channels. g. Additional lock-in-through program. (S) 2. Operation a. Held domestic selling rights. (S) b. Manufactured all its products itself. (S) c. Vertically integrated backwards embarked on Total cost reduction program, total creative revolution. (S) d. Consolidation of important affiliated suppliers with Amore Pacific. (S) e. Facilitated by generally good labor relationships. (S) f. its horizontal as well as Geographic scope. (W)
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3. Human Resources a. Break with the often-strict hierarchy of Korean. (S) b. Incentive based compensation. (S) c. women-friendliness towards its employee. (S) d. Consulting and hire local expert in international project. (S) e. Promoted corporate transparency.(S) f. Provided with highly skilled and good relationship labored. 4. Research and Development a. Represented the principal focus of corporate R&D. (S) b. The R&D was credited with a lot of domestic and international patent, (S) c. Employed more research than any other cosmetic research in Korea. (S) d. Developed truly innovative product. (S) 5. Information System / Information Technology a. The digization key processes. (S) b. The implementation of an Enterprise Resource Planning System to support all purchasing. (S) c. A 10-year IT outsourcing deal with IBM. (S)

Strength: 1. Amore Pacific corporate cultures are decentralization. (S) 2. Amore Pacific is Matrix structure (S) 3. Brand manager system. (S) 4. Brand pyramid. (S) 5. Leverage the traditional Korean philosophy as one of the products psychological draw, (S) 6. Exclusivity (elegant packaging, exclusive and creative advertising and promotion). (S) 7. Targeting higher end market. (S) 8. Distribution to high-end department store, door-to-door channels. 9. Additional lock-in-through program. (S) 10. Held domestic selling rights. (S) 11. Manufactured all its products itself. (S) 12. Vertically integrated backwards embarked on Total cost reduction program, total creative revolution. (S) 13. Consolidation of important affiliated suppliers with Amore Pacific. (S)
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14. Facilitated by generally good labor relationships. (S) 15. Break with the often-strict hierarchy of Korean. (S) 16. Incentive based compensation. (S) 17. women-friendliness towards its employee. (S) 18. Consulting and hire local expert in international project. (S) 19. Promoted corporate transparency.(S) 20. Provided with highly skilled and good relationship labored. 21. Represented the principal focus of corporate R&D. (S) 22. The R&D was credited with a lot of domestic and international patent, (S) 23. Employed more research than any other cosmetic research in Korea. (S) 24. Developed truly innovative product. (S) 25. The digization key processes. (S) 26. The implementation of an Enterprise Resource Planning System to support all purchasing. (S) 27. A 10-year IT outsourcing deal with IBM. (S)

Weakness 1. Amore Pacific as flagship with the objective of creating a holistic identify system that merges Eastern and Western inspirations but with Korean accent. (W) 2. Broadened its horizontal as well as Geographic scope. (W)

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