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[Sponsored Report] GS works with its affiliates to achieve mutual growth

Oct 31,2017
Workers of GS Caltex and its affiliate Wooju Construction at a construction site. [GS]
With the belief that affiliates are not only business counterparts but partners that can seek mutual growth, GS is trying to run their business in a way that can be beneficial for all.

Depending on characteristics of different industries, GS has worked to achieve growth in diverse sectors: enhancing financial support systems and terms of payment in order to facilitate the flow of funds for affiliate companies; assisting education, training and co-development of new products to give its affiliates a competitive edge; and organizing conferences to encourage cooperative relationships and fair business.

Most significantly, GS Caltex has a policy to make all transaction payments in cash. This system was created to alleviate the burden on the company’s affiliates. Moreover, unless products have flaws, payments are processed within a week. This enables affiliate companies to minimize losses. Furthermore, affiliate companies that have outstanding credit, long-term contracts are offered for 2-3 years, which give them the opportunity to try developing new technologies.

Rather than simply making an environment for the affiliate companies to thrive in, GS is providing a foundation for practical and sustainable mutual growth.

Aiming for growth, the company is providing the “Great Partnership Package” which strengthens management and financial support systems, restructures corporate culture to increase productivity and improves communication to build trust.

GS25, a convenience store run by GS Retail, recognizes the managers of affiliated stores not only as owners of each individual store, but the managers of the business: the starting point of mutual growth.

GS Home Shopping is realizing shared growth globally with small and medium-sized companies through overseas expansion. Based on already-existing markets in Malaysia, China, India, Thailand, Vietnam and Turkey, GS Home shopping is opening up paths for small and medium-sized companies that are having difficulty entering foreign markets independently. Affiliates welcome the relationship because the “export support system” absorbs risks that can take place during the local distribution process and decreases their burdens.

GS E&R, which is focuses on the power plant business, also takes part in mutual growth business in diverse ways: forming organizations to manage safety, providing simulation training in case of accidents, supporting education costs of employees’ children and inspecting energy-related facilities.