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September 2013 SPECIAL EDITION A selection of articles from our team of southeastern European Biznis plus media partners, at your disposal for you along with fresh daily news on our internet portal www.biznis-plus.com.

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T eamwork. Many of us advocate it while realizing that we are often surrounded by numerous individualists. As we can not avoid tem, we must learn how to live

with them and teach them how to live with us. It is a simple fact that successfull teamwork depends on the aims and good rapport of its members.

Which is a fact that we, at Biznis plus, are well aware of, as our regional portal for businesspeople and other inter-ested readers is the result of a joint effort of media from six countries — Bosnia and Herzegovina, Croatia, Serbia, Mon-tenegro, Macedonia and Slovenia. After a years’ work and some two thousand company customers later, I am to ob-serve that there are as many similarities between journalists, editors and media owners as there are differences. The chal-lenge is to find a common denominator. A challenge faced by regional companies as well. But our mission is clear: we want to build a portal to support regional businesspeople and to offer news from the area, as well as useful information which may directly or indirectly impact on your business, such as possible opportunities to expand or start new businesses. There is no shortage of enthusiasm on our side. And we are by far not finished, yet. The Biznis plus team already made its first steps in connecting smart and business oriented people in the region. People smart enough to know that sometimes,

egos must be put aside in view of attaining (a greater) suc-cess. A success worthwhile to others, too. We are keeping up the integrating effort, aiming for the general good of all involved. Thus also aiming for a better business climate in the region.

Back to teamwork. Unawares, we are part of it at nearly every step we take. Let us peek, ultimately, into a small part of business activities: without journalists, there would be no stories; and without stories, our readers would stay bereft of information which may, possibly, impact on their businesses and their lives. Such news could not be assembled without our partners, who recognized the project’s value; while we recognized our role in offering them access to more buyers of their products and services – people looking for the infor-mation that we provide. It is all coming full circle.

Therefore, there is no better feeling than watching your team win. Although there is a long way still ahead of us, we are making good pace. But the only victory that counts is our joint victory. If we increase our numbers, we will get there faster.

Our readers’ opinions on Biznis plus:A Croat and a Slovene are excellent partners, yet both swear to Italian productsA big merchant is the region’s opportunityOpportunities in KosovoThe Serbian Employers Association demands rapid changesMacedonia must stop promotingonly primary productionThe Zagreb Stock Exchange:EU is not a magic wandWho is spending more of his free time thinking of his job?After conquering the region, Violeta marches onOnce trade will bloom, Croatia will bloom, tooRegional economies should cooperate more closelyWhere to buy cheaper fuel & cigarettesIn Serbia, Gorenje still sees potential for growthJoining vacation spendersArgeta, Donat and Cedevita ready for expanding outside the region with the »made in EU«labelAre you a “Northerner” or a “Southerner”?

Contents Editorial

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Director and Editor: Peter Frankl

Brochure Editor: Mladen Miković

Adress: Časnik Finance d.o.o., Bleiweisova 30, Ljubljana

Phone: +386 1 30 91 502 I E- mail: [email protected]

Computer typesetting: Irena Buha Marolt

Front page: Irena Buha Marolt, Maša Marolt Pečjak

Proofreading: Finance

Mladen Mikov i ć I B i zn i s P lus P ro jec t Manager

There is no better feeling than watching your team win.

Biznis plus is a joint effort of the following media partners:

We wish to present to you a choice of contents from the regional portal of media partners from six countries, featuring useful information which (may) impact on business, as well as new business opportunities and regulation updates.

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Business plus is a reliable source of business information from countries of the former

Yugoslavia. It enables me to receive all in one place news of business events in the region, which can often affect business in Montenegro, my place of work. Whether Etihad is buying Jat Airways, or how tourism is performing in Croatia - such events affect the Montenegrin economy.

Edin Seferović, CEO at AmCham, Montenegro

The idea is definitely good, and media partners of this project are your insurance that the information is correct

and timely. Typically, such portals have two functions. The first is to deliver virtually real-time information, especially such that affects short-term business decisions. The second function is to inform on long-term trends and, particularly, on the plans of entrepreneurs and companies, as well as policy makers. I think that more attention could be given to reader friendly information presentation, reducing the necessary time, so include more graphic elements. However, a portal such as this one should not be limited only to the sharing of information, but should eventually become a platform for mutual communication and business deals.

Vladimir Gligorov, economist and an associate of the Viennese Institute for International Economic Studies

Our readers’ opinions on Biznis plus:

All regional

important news in one place … well presented, to the point and primari-ly focused on important and useful information.

Đorđi Petrušev,CEO of Winemakers Association, Macedonia

In comparison, Biznis plus gives me a crisper than average impression. I like

the design of the page. Regarding news, however, it differs from similar portals, as it also delivers forecasts, statistics, analyses and the like.

Igor Gavran, Macroeconomy Analyst, Chamber of foreign trade, Bosnia and Herzegovina

I follow Business plus on a regular basis – the choice of con-tent is good, the news are current, and I am provided with an

overview of the most important events in the region all in one place. A quick glance at the daily newsletter brings me up-to-date with business direction in the region, with a minimum of time to do it.

Ljubo Jurčić, professor at University of economics in Zagreb

The Sava Re Group, with branch companies in most western Balkans countries, considers Biznis

plus with its regional business news coverage a welcome additional source of information. Thus, decisionmakers in our respective companies are up top date with current market activities, enabling us to achieve a comprehensive

overview of economic and political circumstances in this geographic area.

Zvonko Ivanušič, President of the Management Board, Pozavarovalnica Sava

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A Croat and a Slovene are excellent partners, yet both swear to Italian products

Whose products are mostly purchased by an inhabitant of a regional country, and to whom he sells most of his own

It is common knowledge that three quarters of Slovenia's trade is made with the EU, and that Germany is its biggest trade partner. However, if we consider the population of either country, i.e. the number of potential buyers of our and their products, the situation turns around. We were, therefore, interested as to who does the most trade with whom, and what is the importance of markets in former Yugoslavia as related to markets in the EU.

On average, a Slovenian sold 205 EUR worth of his products to an Austrian, and sold almost -305 EUR worth of products - to a Croat, which is a little more than he sold to both an Austrian and an Italian. Incidentally, a Slovenian swears to Italian products, having bought a little bellow two thousand EUR of them in the past year, a few EUR more than he spent on German products. Looking at the region of western Balkan countries (without Albania) or, if you will, at the countries of former Yugoslavia, a Slovenian bought most products from a Croat (for nearly 460 EUR), but considering the small size of the countries, he conducted the highest merchandise trade with a Montenegrin (amounting to 175 EUR).

Who is the most important regional inhabitant to a Montenegrin, and who the least important to a SerbWhile a Montenegrin exports, on average, 68 percent of his to-tal exports to a regional inhabitant, a Serb's export into the re-gion averages only a good 14 percent. The latter exports twice as much to the EU, where the largest Serbian trade partner is Germany, while its absolute largest is Russia. A Slovenian ex-ports 14 percent of his total exports into the region, a Macedoni-an and, respectively, an inhabitant of Kosovo close to a quarter, a Croat 29 percent and a Bosnian 10 percentage points more.

Product reputation reaches the region but fades fast in the direction of the EU

While a Slovenian sold to an inhabitant of the EU a little less than 30 EUR worth of products – on a market in excess of half a milliard people – his trade with one of the 20 million re-gional inhabitants averaged 145 EUR worth of Slovenian prod-

ucts. A Slovenian bought from a person in the EU 8.100 EUR worth of products, which is ten times as much as he bought from a regional inhabitant. A Croat, as a rule, is less fond of EU products, as he buys off a EU inhabitant's hands (Slove-nia excluded) only a little below 2.100 EUR worth of prod-ucts; he buys five times more from a regional inhabitant (in-cluded Slovenia).

To a Croat, a regional inhabitant is more important than an inhabitant of the EU, as he sells 17 times more to the former than to the latter. As it is, Italy is Croatia's largest trade partner, while most of a Croat's merchandise trade is performed with a Slovenian. A Bosnian buys even fewer products from an EU. A Montenegrin and a Kosovan are, considering their trading with inhabitants of the EU, even less fond of their products as is the Bosnian. A Kosovan only bought 13 percent more prod-ucts from a person from the EU than he bought from a region-al inhabitant. The EU inhabitant, however, is even less success-ful selling to a Montenegrin, the latter being the only inhab-itant of the region who, on average, prefers regional to prod-ucts from the EU. A Montenegrin buys mostly from a Serb (29 percent) and only a little more from an EU inhabitant. And the Montenegrin sells nearly 76 times more to a regional than to a person from the EU, while the Kosovan only sells 15 times as much, respectively. But the Macedonian and the Srb are a lit-tle more prone to products sold by an EU inhabitant. The first imports from an EU inhabitant products in the amount that four times exceeds his imports from the regional inhabitant, and the Serb a respective amount of more than five times the value. On the other hand, the Macedionan sells products of 10 times the value to the regional inhabitant, and the Serb 17 times the value which he sells to an EU inhabitant, respectively.

Proportions are expected to changeDue to Croatia's entry into the EU and its exit from CEFTA, some change is expected in the merchandise trade propor-tions. We will publish the exact figures as well as who will benefit from the change as fast as merchandise trade data for 2013 is known.

N.B.: The analysis refers to the EU area and the western Balkans without Albania, i.e. the area of former Yugoslavia. For the purposes of this analysis only, Slovenia was not considered part of the EU, as it was our interest to find out how it is connected with the aforementioned area. Croatia, as well, was not considered a part of the EU, as our data refers to 2012, when Croatia was still part of CEFTA, which it left upon entering the EU. The countries remaining in CEFTA are Bosnia and Herzegovina, Serbia, Montenegro, Kosovo, Macedonia and Albania. The source of a country's fi-gures is its respective Bureau of Statistics, we are therefore allowing for exchange rate differences and / or methodology differences due to tariffs and taxes.

Sources: World bank and Bureaus of Statistics of Slovenia, Croatia, Bosnia and Herzegovina, Koso-vo, Montenegro, Serbia and Macedonia

A Slovene sells to an inhabitant of the western Balkan five times as much as he sells to an EU inhabitant

A Slovene:• last year, his exports amounted to 10.173 EUR, while his imports were higher for 569 EUR • mostly, he bought Italian products (1.974 EUR)• he sold most to a Croat (305 EUR)• his highest merchandise trade was with an Austrian (411 EUR), and in the

western Balkans region (including Slovenia) with a Montenegrin (175 EUR)• he sold to a western Balkans inhabitant five times what he sold to an inhabitant

of the EU, and bought from the latter ten times more than from the former• merchandise trade per capita with western Balkans was three times as high

than with the EU

A Croat:• last year, his exports amounted to 2.182 EUR, while his imports were higher for 1.489 EUR • mostly, he bought Italian products (615 EUR)• he sold most to a Slovene (403 EUR)• his highest merchandise trade was with a Slovenian (275 EUR), and in the

western Balkans region with a Bosnian (220 EUR)• he sold to a western Balkans inhabitant 17 times what he sold to an inhabitant

of the EU, and bought from the latter five times more than from the former• merchandise trade per capita with western Balkans and Slovenia was eight

times as high than with the EU

A Bosnian:• last year, his exports amounted to 1.071 EUR, while his imports were higher for 1.008 EUR• mostly, he bought Croatian products (300 EUR)• he sold most to a Serb (202 EUR)• his highest merchandise trade was with a Croat (211 EUR), and in the EU area

with a Slovene (128 EUR) and with an Austrian (49 EUR)• he sold to a western Balkans inhabitant 22 times what he sold to an inhabitant

of the EU, and bought from the latter 37 percents more than from the former• merchandise trade per capita with western Balkans and Slovenia was 17 times

as high than with the EU

A Serb:• last year, his exports amounted to 1.217 EUR, while his imports were higher for 819 EUR• mostly, he bought German products (132 EUR)• he sold most to a Montenegrin (500 EUR)• his highest merchandise trade was with a Bosnian (57 EUR), and in the EU area

with a Slovene (43 EUR) and with a Hungarian (29 EUR)• he sold to a western Balkans inhabitant 17 times what he sold to an inhabitant

of the EU, and bought from the latter five times more than from the former• merchandise trade per capita with western Balkans and Slovenia was 7 times

the trade with the EU

A Montenegrin:• last year, his exports amounted to 580 EUR, while his imports were larger by 2.299 EUR• mostly, he bought Serbian products (843 EUR)• he sold most to a Croat (19 EUR)• his highest merchandise trade was with a Serb (78 EUR), and in the EU area

with a Slovene (38 EUR) and with a Greek (14 EUR)• he sold to a Western Balkans inhabitant 76 times what he sold to an inhabitant

of the EU, and bought from the latter 28 percent less than from the former• merchandise trade per capita with western Balkans and Slovenia was 39 times

the trade with the EU

A Macedonian:• last year, his exports amounted to 1.509 EUR, while his imports were larger by 944 EUR• mostly, he bought Greek products (304 EUR)• he sold most to a Kosovan (169 EUR)• his highest merchandise trade was with a Kosovan (85 EUR), and in the EU

area with a Greek (58 EUR), a Bolgarian (57 EUR) and with a Slovenian (42 EUR)

• he sold to a western Balkans inhabitant 10 times what he sold to an inhabitant of the EU, and bought from the latter four times more than from the former

• merchandise trade per capita with western Balkans and Slovenia was seven times the trade with the EU

A Kosovan:• last year, his exports amounted to 149 EUR, while his imports were larger by 1.232 EUR• mostly, he bought German products (166 EUR)• he sold most to a Montenegrin (26 EUR)• his highest merchandise trade was with a Macedonian (81 EUR), and in the EU

area with a Slovenian (16 EUR), and a Greek (8 EUR)• he sold to a western Balkans inhabitant 15 times what he sold to an inhabitant

of the EU, and bought from the latter 13 percent more than from the former• merchandise trade per capita with western Balkans and Slovenia was twenty

times the trade with the EU

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A big merchant is the region’s opportunityStanka Pejanović, Member of the Manage-ment Board of Mercator, hopes that the integration of merchants will be followed by an integration of confectioners»Agrokor and Mercator must emerge from the integration process much more stable, with clear concepts and better results, yielding benefits for everyone - employees, countries, partners, and customers« says Stanka Pejanović, member of the Management Board of Mercator Trade in Southeastern Europe, and Director of the Serbian branch of the best neighbour Mercator-S.

Are the fears of discrimination against each country's producers, occuring at the announced merger of Agrokor and Mercator, irrelevant?From the psychological point of view, any change will result in fear in business partners and employees. This is a normal phenomenon. However, it is quite different if we consider the objectives and the possibilities of such a takeover - no matter who the players are. From this point of view, there is no reason for fear. We need to emerge from this process much more stable, with clear concepts and better results, yielding benefits for everyone - employees, countries, partners, and customers. Serious business people do not build their business piholosophy solely on the basis of their own interests. Suppliers need to think about where they stand in terms of quality and capacity, in order not to realize in October that domestic potato farmers are unable to satisfy the needs of the Serbian market ... We must always place customer satisfaction first, because this is what we live off.

Much is heard about the importance of a cooperation agreement among companies during the takeover process. Why?It is important that all involved assist in the process being concluded on as high a level of quality as possible. In this period, therefore, our energy will be focused on achieving positive results at year end. After the purchase price is paid, numerous takeovers fail because they underestimate the so called soft parts. These relate to the degree of compatibility of corporate cultures design and brand development strategy after the takeover. This is where I see the largest challenge. Until we get all antitrust commissions licenses and until all contractual obligations are met, we must not cooperate with Agrokor in the areas pertaining to our work. For duration of the last phase of

sale, Mercator will not change its policy to employees, customers and business partners.

In Serbia, Mercator, Roda and Agrokor each has its own customers. Will they, after the takeover, negatively experience the changes in product diversity that each of those brands offers?Every transaction of this magnitude should result in synergies, otherwise it is not sensible. The most benefit from synergies will go to the consumers. Ever since Mercator took over Roda from the Rodić family, it is a good example of the fact that change in

ownership is not related to surviving, strengthening and de-veloping on a market. Roda has had its own customers contin-uously for 20 years.

Which unknowns could jeopardize this process?While we do not expect surprises, our present problem is time, meaning the moment in time when the commissions release our antitrust licenses. Mercator is simultaneously going through the sale process and through a financial and business restructur-ing. Agreements on loans restructuring have been signed with

banks, and we are continuing along the four pillar strategy: op-timisation, focus, growth and profitability.

One and a half years ago, Agrokor offered 221 EUR for a share of Mercator stock, and offers 120 EUR now. Do you, as a member of both past and present Management Boards, consider that we have been late in selling?The owners have always had the option to freely assess when to sell their shares.

We need to talk rationally, that is, on the basis of facts and a future vision of the region we live in. If you eliminate

emotions, a part of the business folklore in the Balkans, from the stories about which part of the region the purchaser of Mercator is coming from, and if we ask ourselves whether a trade association in the region is necessary, my answer is affirmative. This new trading company could become the locomotive which will establish, all over the region, the same principles of modern trade.

Stanka Pejanović, Member of the Management Board of Mercator Trade in southeastern EuropeNo

vi ma

gazin

>>

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How many »patriots« are shopping at the best neighbourA fifth of those Serbian consumers who prefer local products shop at Mercator. While, respectively, two percentage points less Croatian consumers are shop-ping in Mercator, most of Mercators customers are found in Slovenia. There, 53 percent of consumers who prefer to buy local products buy them at the best neighbour.

The survey was executed in all three countries by Mediana, the Institute for Market and Media Research, and it involved 14.500 respondents.

There were speculations that the previous management, led by Žiga Debeljak, refused to sell.The Companies Act specifies the powers of the Management and Supervisory Boards, as well as the rights of shareholders. The management has no measures on their disposal to prevent a purchase contract between a buyer and a seller.

11 years ago, when Mercator entered the Serbian market, »patriots« ar-gued that there will be no Serbian products on its shelves. Now, they fear that Agrokor will favour Croatian suppliers. What was Mercator's action during all these years?At first, the shelves had more European and regional merchan-dise. Then, circumstances changed and domestic trademarks gained a lot of strength. The acquisition of Roda, which shelved more than 70 percent domestic products, made an important dif-ference. Today, product differentiation is due only to region and target customer. But I would like to introduce another question at this point: how »domestically« loyal is a Serbian customer, what is the perception of Serbian industry, how powerful is »made in Serbia«, and, finally, regardless of country of origin – is price the most important factor?

What is your assessment of the Serbian consumer's loyalty?The crisis caused a decline of both shop and brand name loyalty. This is a big opportunity for Roda, a domestic brand. It is no differ-ent than Smoki or Plazma, which both have other owners, but are nevertheless unmistakably Serbian brand names.

Does Mercator, for its own brand name, have suppliers in Serbia?Approximately 70 percent of our brand name products are pro-duced in Serbia. We have close to 80 domestic manufacturers work-ing for us, not only for the Serbian market, but for the whole region.

Agrokor’s owner Ivica Todorić has announced that Agrokor will withdraw from the Serbian market to be replaced by Mercator. Do you have any de-tails on this and will Mercator then have a monopoly position?We expect that the professionals sitting on the Serbian anti-trust commission will establish a methodology of estimating the mar-ket share, and then give a timely decision. It is in all our interests to receive the regional commissions’ approvals as fast as possible, so I believe in the support of all supervisory bodies. Up to now, we have been monitoring the market shares of our larger competitive merchandisers in Serbia - Idea, Delež, Univereksport, DIS, Metro, Interex. In the fourth quarter of last year, according to the GFK Mercator estimate, Roda and Idea had a total of not more than 12.9 percent of the Serbian market.

It could be heard that the management board of the new regional trading company will consist of two Slovenian representatives and one each from Serbia and Bosnia and Herzegovina. Have you been offered this position?We did not talk about this, but I expect that talks will focus on the team responsible for Serbia and Montenegro, on the future develop-ment, and on the harmonisation of responsibilities and authority.

Could this takeover have an overspill effect into the manufacturing part of regional economy?What I would most like to see is an integration of Serbian confec-tioners, thus strengthening the industry. We have wonderful pro-ducers, but, trying to push the competition out, they all have di-versified their production. I do think it is high time for them to in-tegrate. Looking at the shelves, you can see 25 different kinds of wafers. Then you ask yourself whether it would not be better to only have 6 strong brands. In this way, we could increase produc-tion, gain market strength and achieve EU market quality stand-ards. The surplus assets could be redirected into the production of transfatty acids, an absolute necessity for a healthy diet and a nec-essary condition for placement on the EU market. Thus, producers would be segmented into those which manufacture these brands, and into those which manufacture brands of their own brands.

How do you comment on the accusations of high retail margins?This stereotype can be dealt with easiest if we take a look at the bal-ance sheets of each of the supplier chain and check their profits and costs. We have ended last year with a profitability of 0,9 per-cent, exchange rate differences in the amount of 9 million EUR not taken into account. Competitive retail prices are our absolute ne-cessity. That is why we constantly seek optimisation and respon-sible managing.

Opportunities in KosovoCarefully insure your receivables and collect information on your business partners

By the end of summer or beginning autumn, Slovenia is expected to send to Kosovo a new ambassador, Miljan Majhen, currently chief of economic promotion with the Slovenia's Ministry of foreign affairs. Will he succeed in stimulating business cooperation between the two countries? Where do Slovenian companies in Kosovo have opporunities to expand their business? For now, mostly larger Slovenian companies are present in Kosovo, among them Telekom of Slovenia (TS), who already received a letdown but is – so they say – bailing itself out of trouble.

»In Kosovo, Slovenian companies have some advantage with their knowledge of the business environment, »so the Ministry of Foreign Affairs. Economic cooperation is, for now, dominated by insurance (with Sava Re present), banking (NLB), telecommunications and education.

Where are the opportunities and where are the problemsAccording to the Ministry, the best opportunities are mainly in the fields of education and in participating in projects funded by the international community: »There are some opportunities in real estate development (construction, but unfortunately for us, in a very unfortunate condition, author's note), in agriculture (construction of greenhouses, orchards and vineyards, livestock farming and plantation of medicinal herbs), in information and communication technologies, in tourism, and in energy ...«

The problems faced by our businesspeople are a long judicial backlog of cases resolving commercial disputes. Doing business in Kosovo, one should be aware of the lack of financial discipline. Therefore, advises the Ministry, insure your financial receivables. And get to know your business partners well, advise businesspeople.

TS is the largest Slovenian investorTS, with its Kosovan operator Ipko, has so far invested 230 million EUR, thus being the largest foreign investor in Kosovo. They claim that business is improving, as they have acquired a half million users. In this year's first quarter, Ipko has increased the number of mobile phone users by 27 percent. Last year, their income amounted to 70 million euros (and

86million EUR of merchandise was exported last year from Slovenia to Kosovo

1,6million EUR was last year’s Slovenian import from Kosovo

Kosovo in figures

Kosovo is considered one of the least developed countries in Europe. The unem-ployment rate is approximately 45 percent, gross wages range from 350 to 400 euros per month (undeclared work is a large scale problem, say experts). Last year’s GDP in Kosovo amounted to about 4.8 milliards euros (Slovenia’s GDP was 35 milliardsEUR). It is important, however, that GDP is growing (last year at an approximate rate of 3.8 percent). Kosovo has 1.8 million inhabitants, and a very large diaspora, mainly in Germany, Switzerland and North European countries.

Will Slovenian businespeople channel more investment to Kosovo? Opportunities can be seized in the energy sector, agriculture and construction. Unfortunately, most Slovenian construction companies filed for bankruptcy.

Aleš B

eno

to 66 million two years before). An increase in sales on this market was also reported by Petrol (10.7 million euros, or 26 percent more than the year before last). They say that the laško Brewery is gaining strength on the Kosovan market.

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They propose reforms to increase employ-ment, lower food prices and boost the economy's competitiveness

Had Serbia reformed its labor law and introduced flexible forms of employment before the global economic crisis, 275.299 workers would still hold their jobs, contends the Serbian Employers Association and confronts the authorities with demands for immediate reforms.

In addition, they say that retailers could save up to 107,8 million EUR if the state would reform the existing trade regulations, many of which deserve to be abolished. This would, in their view, contribute to a significant decline in retail as well as wholesale prices of food products. The Association also emphasizes that every third local company would increase employees' wages if only the government reduced the income tax burden from 60 to 40 percent. These are the three main conclusions of their analysis into which regulation reforms are the most urgent. Between March and May this year, the analysis included 202 of local small, medium and large businesses. The conclusions represent a cue for the public debate, which is beginning today, aiming to convince local Ministries and parliament members to implement those reforms as soon as possible. The convincing will be supported and influenced by the Employers' Association, the Serbian part of Italian Confuindustrija, the representatives of the German business community in Serbia, The Serbian Chamber of Commerce and other Serbian economic associations.

Present circumstances cause increase of undeclared work»The main reasons for the rapid decline in employment and the increase in undeclared work are the heavy load imposed on cost of labour, as well as the total cost of income taxes and contributions, and the outdated labour law which does not meet the needs of modern market economy, »says Nebojša Atanacković, President of the Association. The Association's proposal, prepared during the government of Ivica Dačić, suggests, among other, the following:

+ The duration of fixed-term employment should be extended from one to three years,+ The present duration of the mandatory severance payment

for technologically redundant employees should be reduced from the duration of their total working lives to the duration of employment in the place of work wherefrom they were dismissed,+ Introduction of part time (less than eight hours a day) employment opportunities,+ Reduction of present superfluous regulations and deadlines which result in excessive formalities in the hiring and dismissal process, + Permission to impose longer working hours than the present maximum eight hours per week extension, with mandatory employees' agreement+ Distribution of annual leave into two parts,+ Option that women may return to their jobs and work part time also before the expiry of maternity leave, should they so desire+ Introducing the right of employees to rewards and bonuses.

The Association is convinced that such reforms of the labor legislation would decrease operational cost, significantly reduce the number of administrative procedures, enable companies to simplify management of human resources, introduce a new system of employees' stimulative remuneration and create more jobs for young people and for people older than 45 years. The long-term effects indicated by the Association are savings in employment procedures, which could be redirected into investments and the creation of new jobs, reduction of unemployment, and establishing a system of relations between employers, unions and employees based on real economic foundations.

19 thousand less jobs due to inadequate trade regulationsEmployers also demand a reform of trade and inspec-

tion regulations, as they claim that adequate measures will re-duce operational costs in the industry. Such mandatory regu-lation changes relate to:

- Hygienic minimum course for employees- First-aid training of employees- The risk assessment of a workplace for each business unit- Swabbing of work surfaces- Fire protection planning- Periodical checking of microclimate condition for small workspaces- Measurement of lighting adequacy at every 50 square meters

The Serbian Employers Association demands rapid changes

- The cost of redundant and outdated administration.According to the Association, the above requirements are cost-ing companies 107.8 million euros and »devour« at least 19,113 jobs in the trade industry. Simultaneously, they significantly affect the prices of food products, which are among the high-est in the region.

A simple and effective electronic system should be es-tablished for registering complaints concerning the perfor-mance of inspectors.

A reduction of the labor cost burden which presently equals Slovenia's»Any government wishing to overcome the crisis will have to max-imize savings of its own costs as well as public sector cost, while simultaneously bringing relief to economy, » warns Atanacković. Therefore employers demand that regulators reduce the cost of labour by lowering taxes and contributions on wages from 60 to 40 percent of net income. This burden is equally high in Serbia, Slovenia, Denmark, Spain and Croatia, being significantly high-er than in Poland, Slovakia, Macedonia and Albania.

We expect that the leading players on the political scene will, finally, start performing

in accordance with the principles of good corporate governance, and that they will firmly implement the long overdue reforms.

Novi

maga

zin

Nebojša Atanacković, President of the Serbian Employers Association

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Macedonia must stop promoting only primary productionDane Jovanov, director of the Stobi winery, on opportunities that Macedonia should take advantage of, and on his plans for wine growing»We produce high-quality wines, and have increased our investment in promoting our wine assortment, while we continually educate our visitors, through wine tourism, on the sophisticated and civilized enjoyment of wine, “says Dane Jovanov, director of Stobi.

What is your opinion of wine growing in Macedonia?Macedonia produces about 100 to 120 million liters of wine per year, and 80 percent of it is exported. We want to establish ourself as a country of wines, but according to statistics the numbers compiled are anything but encouraging – wine consumption is only seven liters per capita. Compared with Slovenia, a country much like Macedonia in terms of vineyard acreage, wine production and population, we can see that their consumption reaches about 50 liters per capita, which for all practical purposes means that they drink their yearly production themselves. There are quite a few reasons for this situation, one is that Macedonian wines are overvalued or are priced unrealistically high.

How did your company respond to this?We have decided to pursue a policy of fair pricing (best buy), following our goal that wine should, again, be available to all, without having to compromise on quality. We can most definitely do this, as all of our wine production is based exclusively on our own vineyards, where we keep strict control every step of the way - from the field to the glass. We are determined to become the leading company producing and selling quality and premium wines not only in Macedonia, but also in its neighborhood, and wish to gain recognition on the international wine market as well.

Where do you see opportunities for synergies and cooperation with other regional companies? Have you ever worked with some-one for the purpose of a joint ventures on third markets?Particularly in terms of technology, Stobi works with nu-merous regional companies from Serbia, Croatia and Slo-venia, but unfortunately, Jovanov thinks that »in the cur-

rent circumstances of running the business it is too early to talk about a joint appearance on third markets. Well, this is something we have to continue to pay more attention to as one of the possible responses to business globalization«.

In your opinion, which country in the region will make the most of its opportunities in the coming year?In my opinion this will be primarily Croatia due to its entry in-to the EU, thus opening Croatian businesses access to a large European market. In addition, I believe that their foreign cur-rency income from tourism will grow in the future as well. As a runner up I would mention Serbia, where changes implement-ed by its government are visible on all levels, which will certain-ly have a positive impact on economic development.

How does Croatia’s joining the EU impact on your business?Croatia’s entry into the EU will impact favourably also on Mac-edonia, as national quotas are abolished to be replaced with EU quotas, which are higher particularly in the premium wine

segment. Therefore we expect a breakthrough of Macedonian bottled wines on the Croatian market.

Which two industries will, in your opinion, be most promising in the next two years?To boost future GDP growth,Macedonia desperately needs new businesses and new jobs in the real sector. My choice for the first place is therefore agriculture and food production. This area should be developed and should attract investments primarily in-to the secondary production, thus opening new production facil-ities for food processing, such as, for instance, the establishment of a system of contractual production (for a known customer in a predetermined quantity and quality). The agricultural products should be bought, stored, redirected and distributed to the final customer by newly established Macedonian companies. Simul-taneously, we must urgently leave behind the promotion of the primary production model, which only produces primary raw material for large food producers from Serbia, Croatia and Slo-venia. The same raw materials, after being processed by foreign

food conglomerates, return to Macedonia as finished products, thus inducing our country direct damages.

What else?As a second or third area I would mention the bottled water in-dustry, as growing population and industrialization constant-ly increase the demand for bottled water. Then there is definite-ly the renewable energies industry, where I envisage the largest opportunities mainly in the construction of industrial facilities that will make use of clean solar energy through photovoltaic plants on their roofs.

And finally, what is your advice to young entrepreneurs for a success-ful business?I have to admit that the answer to this question is difficult, as only the person concerned knows or should know what is best for him and his business. Otherwise, my general advice is to constantly upgrade their knowledge, as in my opinion this is the key to a pos-itive transformation of both individuals and businesses. Then I would advise that they try to do what they fear most, because to-day it is risky to live without taking on risks on your shoulders, I think, and they should not expect quick success, since success comes as a result of long term dedication.

We wish to establish Macedonia as a land of wines. But according to statistics the numbers compiled are anything but encouraging – wine consumption is only seven liters per capita

Dane Jovanov, Director of Stobi winery

What is Stobi and who is Dane JovanovYearly, the Macedonian winery Stobi produces 4.5 million liters of wine that is classified into four categories - premium, elite, classic and traditional. The emp-hasis is on the vranac, as a third of the 600 hectares of vineyards grows this vine variety. Today, wines from the Stobi winery are exported to the Netherlands, Czech Republic, Slovenia, Serbia and Germany, while they started to focus their attention to the Russian market, as well.

Having opened up shop five years ago, Stobi is one of the newest wineries in Macedonia. The investment in Stobi came from Minče Jordan, a Macedonian businessman whose business interests range from steel, construction, agro-in-dustry and, across, to health services.

Dane Jovanov, direcor of the Stobi winery, belongs to the younger generation of Macedonian enologists and winemakers. The love and the passion for wine is a heritage from his father Đoko Jovanov - Hermes, a legend of Macedonian enology. Jovanov junior is energetically leading the winery towards its goal - to become the leading Macedonian manufacturer ofquality wines, making it possible to more frequently encounter them on foreign tables. He believes that Macedonia should provide final products with a higher value added not only in winemaking, but also in other areas of food industry, instead of serving as the »traditional resource base« of regional food conglomerates.

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The Zagreb Stock Exchange: EU is not a magic wandDid investors on the Zagreb Stock Exchange »miss« the country's accession to the EU?

This year, even with Croatia deep in the throes of crisis, Crobex, the Zagreb Stock Exchange Index, has achieved one of the biggest growth rates both regionally and globally. Also facing the crisis are Croatian companies, struggling with the heavy burden of debt, low competitiveness and low profitability.

Therefore, most analysts attributed this year’s growth of the Zagreb Stock Exchange mainly to the country’s entry into the EU. However, after the “Big bang” nothing much happened at the Zagreb stock exchange, and the CROBEX remained more or less on the same level as by the closing of the Friday trading. “At the moment, the Zagreb Stock Exchange suffers from low liquidity, poor spirit among investors, lack of foreign investors and Croatia’s poor macroeconomic outlook for this year,“ believes Maja Bešević Vlajo, a Croatian analyst from Drava bank. And stresses that poor liquidity is mostly caused by the low prices of individual stocks, a situation which investors could recognize as an opportunity. “Croatia’s accession will impact in the second half of the year, when the Crobex index could reach 1,900 to 1,950 points, “said Bešević Vlajova.

Caution“The European Union is not a magic wand that will change everything, “says Goran Vorkapić, a financial adviser from the Croatian Center Banca . “If we consider the time frame in which other countries joined the EU in the last decade, it is clear that the explosive growth in these markets was due to general optimism on all markets as well as cheap money. “ Vorkapić is convinced that the crisis has changed investor behavior to a much greater caution. “In addition, many companies whose stock traded on the Zagreb exchange have since filed for bankruptcy. First offers on the exchange are also few and far between. There have always been investor opportunities on the Zagreb Stock Exchange, and they will continue to come along, but they are rare and, in addition, companies need a lot more effort to convince investors that they are worthy of their trust, “ explains Vorkapić. “This is not 2004 or 2007. We are in mid-2013 and Croatia has been in recession for five years. We should all realize that times have changed, “ he concludes.

Are better times coming?“According to our analysis, the Crobex index reached bottom last year and there will be more pronounced dips in the near future, “said Croatian analyst Dean Pavličević, not expecting major changes in the next few months due to summer. “I expect growth only after the return of large foreign institutional investors, “says Pavličević, who similarly as Bešević Vlajova, estimates that someZagreb traded stock is undervalued and therefore a good buying opportunity. “Investors should monitor particularly shares with good liquidity and shares of companies in the food and tourism industries. Opportunities come along in industrial companies as well, “ adds Pavličević.

Until year end, I expect that the Zagreb Stock

Exchange’s performance will be highly correlated to general circumstances on global capital markets and regional markets.

Jernej Kozlevčar, Triglav Skladi

The Zagreb Stock Exchange offers investment

opportunites, but they are few and far between. Companies need a lot more effort to convince investors.

Goran Vorkapić, Centar banca

Who is spending more of his free time thinking of his job?How Croats, Serbs, Macedonians and Slo-venians look at their jobs, free time and personal financesAlthough there are significant differences among the nations in the region, there are plenty of similarities, too. We checked the results of Medianas survey of 15.500 respondents from Slovenia, Croatia, Serbia and Macedonia.

Slovenians consider themselves to be the best managers of their money among the four nations in the region. 73 percent of Slovenes agree with this, followed by 65 percent of Croats, 57 percent of Serbs and nearly half of Macedonian respondents. The order is, understandably, repeated at the statement: I don’t like to be indebted. More than nine out of ten Slovenians agree with this, followed by 85 percent of Croats, three quarters of Serbs and 61 per cent of Macedonians.

When spending money, they prefer paying cashAlmost 60 per cent of Serbs and Slovenes prefer to pay for their purchases in cash. So does 53 per cent of Croats and, ten percentage points less, the Macedonians. Possibly, cash is preferred to credit card payments because more money would be spent using the latter. That this is true is the opinion of more than a third of Slovenes, of nearly 30 percent of Croats, of about 15 percent of Serbs and of almost a quarter of Macedonians.

In their free time, Croats are more likely to think about their jobs than SlovenesTheir standard of living pleases more than a half of Slovenes while only a quarter of Serbs and Croats. Only 31 percent of Macedonians are happy with theirs, respectively. 68 percent of Slovenes and three percentage points less Serbs consider that the way they spend their free time is more important than how much money you earn. That view is supported by less than half of Croats and by slightly less (41 percent) Macedonians. On the other hand, only a quarter of Slovenians think of their job during their free time, while there are more Croats to do so - two out of five.

Slovenes are the least ambitious and entrepreneurialOnly 15 percent of Slovenes consider their work to be a career and not just a job. The same is true of nearly two out of five Serbs and Macedonians, while the there are 31 percent of Croats with this opinion. A third of all Croats would also like to reach the peak of their careers as selfemployed entrepreneurs. In this regard, the

Macedonians are more ambitious (36 percent), with the Serbs on the absolute top (two percentage points more). Only 31 percent of Slovenes share this ambition. Also, only a quarter of Slovenes would like to own a company, followed by 36 percent of Croats and even more Macedonians (46 percent).

There are mostly Serbs on the lookout for profitable investment opportunitiesMore than one fifth of Slovenes and Macedonians, or nearly one-fifth of all Croats reads a newspaper’s financial pages. Most of such readers are Serbs, almost 28 percent. On the other hand, every ninth Slovenian and every eighth Croat monitor developments on the stock markets. Slovenes find securities trading riskier than Croats. This is the opinion of two out of five Slovenes and of every fourth Croat. It is the Slovenes and the Croats who are least looking for profitable investment opportunities for their money - only a fifth of Slovenes and less than a quarter of Croats. But nearly a half Macedonians and more than half of Serbs are so inclined.

So similar, yet so different: from out of four nations in the region, Slovenians are the ones who least desire to own a company, Serbs are the ones who wish to reach the peak of their careers as their own bosses, while all nations share a large number of people who prefer to pay cash for their purchases – not least in order to spend less.

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As a private owner who has spent 23 years working in trade, distribution and manufacturing, I can say that I achieve good business results and am conti-nuously among the best in the region.

After conquering the region, Violeta marches onThe owner and director of Violeta, a man-ufacturer of hygienic paper from Bosnia and Herzegovina and one of the largest local companies and exporters, talks about plans, about opportunities for the coun-try and about what they value in new col-leagues

»Croatia's accession in the EU is good for BiH, including our company. We are ready to do business in the EU - no major changes are necessary, we are properly organized and have all the necessary certificates. We see this as a new opportunity, with the door to the EU wide open directly in front of us, » says owner and director of Violeta, the Bosnian paloma (popular brand of toilet paper in Slovenia, interpreter's note), selling its products throughout the region and even in Slovenia.

You are one of the largest exporters in BiH, which products do you export most?We export diapers, toilet paper, paper towels, dry and wet wipes, napkins and sanitary towels. You can find our products in all the countries of the former Yugoslavia, the Netherlands, Bulgaria, Czech Republic, Germany and Australia.

How does the crisis affect your business – are you still planning to expand?Despite the illiquidity in our economy and the region, I can say that, due to the price / quality performance of our products, we are still standing strong. Some of our products have maintained their market share, and some have also increased it. These days we received an order of diapers for a new customer from Great Britain. This means that we are expanding into new markets, where business conditions are less marked by recession, and we are creating good opportunities to increase exports.

What are the chances for a good year end result?We expect to close the year successfully. For us, it is important to maintain stability in the current external and internal eco-nomic conditions, even though they are constantly changing and cannot be predicted.

In the region, Violeta hygienic products are increasingly gaining rec-ognition. What counts as the biggest success of the company?Violeta has developed a recognizable brand. For three years in a row, an independent agency declared us to be the best brand in BiH. Also, for four years in a row a local employmentportal Posao.ba awarded us the title of the most desirable em-ployer. And globally renowned manufacturers such as Ferrero, Barilla, SC Johnson, PIK, Paladin and others have recognizedus as a quality distributor.

Do you feel sorry for any missed opportunities?We approach business conservatively, meaning that we start each project systematically and analytically. Therefore, I be-lieve there were no missed opportunities.

Which industries, in your opinion, are the most promising for the next two years?To overcome the crisis and increase the level of economic activities, I think that the country should place greater emphasis on energy projects which could significantly increase the internal strength of the State for its subsequent progress and development. At the same time, more attention should be paid to public works projects, such as infrastructure construction, highways and the like.

In five years - where you see your company?We will invest in new production capacity. By year end, we plan to complete the construction of the plant in Grude. Our strategy is in job and production growth, as our mission is to expand our product range with the aim of raising hygienic standards of our final consumers.

What is VioletaThe Violeta brand name was launched in 2002. Since, they succeeded in becoming the leading hygienic products manufac-turer in the region. Violeta, based in Grude in the southwestern part of BIH, employs 800 people in 14 branches across BiH, Croatia and Slovenia. They own three plants in Croatia and BiH and are, also, an importer and distributor of food and hygienic products for international companies Ferrero, Barilla, Evian, PIK meat industries, Paladin, Alkaloid, Friko delicatessen cheeses and Johnson SC.

Finally, tell us your advice to young entrepreneurs for achieveing busi-ness success.Prepare for long hours and hard work, achieve quality and keep it up in the long term. There is no such thing as overnight success, and therefore impatience is a bad »business partner«. The key to success is persistence, adaption to change, and an everlasting drive for better quality of work.

This year, will you increase employment? Which qualities are you look-ing for when hiring young people? We are constantly employing new people. Later in the day we have interviews scheduled with designers and technologists, who are very important to us – to offer good quality products, we need cre-ative people. The qualities we like in new employees are respon-sible task completion, initiative, willingness to conquer new skills and, last but not least, willingness to cooperate.

Petar Ćorluka, owner and director of toilet paper manufacturing company Violeta

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too many municipalities and counties, but nobody dares to reduce their number.

So you think that radical political action to change the country’s cir-cumstances is long overdue?It’s hard to explain to a worker who lost his job in a company that it happened because of increasing public spending, while, on top if it, government systems are still hiring. If this trend continues, we will face riots. We need to find people, a govern-

will end up in bankruptcy. We are approaching the Greek sce-nario at high speed. If no equilibrium between the real econo-my and public spending can be reached, we will receive a men-tor to govern us, because we do not know how to do it ourselves.

You are thinking of the International Monetary Fund (IMF)?Yes, already seven years ago I said that we need the IMF. They would do what the government is afraid to do and make cuts where appropriate. For example, we all know that we have

Once trade will bloom, Croatia will bloom, tooThe owner of Orbico on the group's expansion into the East, on their big plans and on what is not good at home

After having expanded his distribution business within the region and the EU, Branko Roglić has expansion plans for Indonesia and China. He is known for refusing to use debt and funds his business solely with his own capital. Sometimes, he considers retirement, but also believes that this day will not come quickly.

What are Orbico’s plans for this year?Our planned revenue for this year is 860 million euro, which surpasses last year’s result for 30 million euro.

You have long ago exceeded the Croation framework, what are your plans for the EU level?We plan to become one of the largest distributors in Europe.

Recently, you visited Indonesia. What are your plans?We are expanding our business. In september, we will establish together with the Indonesian company Global Putra Internation-al Group joint venture companies in Indonesia, Croatia and Chi-na. Through these companies, we will import products and direct them through Orbico’s sales channels into 17 European countries, while simultaneously exporting European and Croatian goods to Indonesia. Plus, we plan to import products such as furniture, tim-ber, tropical fruit and coal to European markets.

What are the plans of opening a company in China?It is a huge market that supports the Indonesian market, one can not do without the other. Linking these two countries and con-necting Europe and Indonesia is a very good idea which can de-velop into a good business. China is the world’s factory, they make everything, and they make it at half the price than elsewhere. La-bor is ten times cheaper than, for instance, in Croatia. So, there, it is easier to increase your capital.

How do you assess the economic and political environment at home?The situation is pretty bad and I understand the Finance Minister Slavko Linić’s commitment to budget stabilization. Public spend-ing in Croatia is at an extreme growth, while the real economy is constantly decreasing. No one is brave enough to announce to the gentlemen in the public sector that there can not be 250 thousand of them, but no more than 100 thousand, as otherwise the country

The world is getting smaller, while the aircrafts are get-ting faster and cheaper.

Branko Roglić, owner of the pan-European distributor Orbico and Honorary Consul of Slovenia in Split

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ment, who will have the courage to lose elections, but before that will make everything that is necessary for the survival of the country.

Who will benefit the most from Croatia’s accession to the EU?Joining the EU is a major challenge and an opportunity, and for some a big problem. For those who restructured their business-es on time, reduced costs and rationalized all parts of the busi-ness, it is an opportunity. Because they will be able to sell their products and services to a large market.

How many Croatian companies, in your estimate, can succeed in the EU market, considering the repeated claims that domestic products and services are rather uncompetitive?There are 300 thousand redundant jobs in Croatia. The solution for them is our countryside. These people should receive fair sev-erances and then begin to cultivate the land. Thus, they would also be able to take care of their families. This would strength-en the country and, through the EU market, knowledge and technology, slowly return it to growth.

The Asian markets, obviously, are part of the solution, as you have turned to them as well?We ensure the exchange of goods. Remember that history al-ways said that a country has developed because of flourishing trade. Once trade will bloom, Croatia will bloom, too. We have a wonderful comparative advantage and I hope that smart peo-ple with non-speculative money, with money earned fairly in Europe, will come to Croatia. Indeed, it is not only about earn-ings or the size of them. It is the knowledge that we acquire while making those earnings that counts just as well. An entrepreneur who has gone through this has acquired experience which he will expand to our Adriatic and put it to use on the white Brač stone, on wood, rivers and waters, on Slavonia and on all our other resources. But for this, necessary conditions need to be created, and a balance between economy and public spend-ing must be achieved.

How do you comment on the absence of investment while simultane-ously, there is so much emphasis on the importance of investments?If you have a country with high taxes and an expensive labor force, then the incoming capital is not multiplying. People who have money are smart and will not put it into an environment where they can not see returns on their capital in five, seven, or eight years. In such circumstances, even those residing here who have the money will be gone and will not return.


To be competitive on the global market, you need to have satisfactory quality,

price and quantity. Therefore, alliances are inevitable. If you do not join, big players will arrive and we will watch the match from the stands.

Miodrag Kostić, President and owner of MK Grupa

Regional economies should cooperate more closelyMiodrag Kostić, Serbia's top entrepreneur and former buyer of Žito believes that the biggest opportunity for the region is agri-culture.»Entrepreneurs should take care of new projects while the government should take care of business environment and provide financial support,« says Miodrag Kostić, president and owner of MK Grupa, Serbia's largest privately owned company.

Being Serbia's top businessman – is this an advantage or a disadvantage?I wonder how advantageous it is to be the largest in a country where average wages are among the lowest in Europe, in a country that still did not cut itself off from self-management, in a country that still spends more than it earns, where idleness and ignorance are appreciated more than success and knowledge, where law is not established and where there is no work.

You have expressed your willingness to manage a state-owned enterprise. Until recently, you were one of possible buyers of Jat Airways, but the project failed. Which company is in the game now?I am not the one to be asked why other domestic companies do not apply my business concept. Presently, 174 Serbian companies with almost 50 thousand employees are undergoing restructuring. Serious attention should be given to every one of them, to find out their potential, and whether it makes sense to invest in them to help them return to the market. To both the past and the present governments I have proposed the idea that successful entrepreneurs with knowledge and experience should help develop state-owned enterprises, increase production and raise them to the level of competitiveness that they deserve. Businessmen are willing to donate some of their time to help public enterprises. Serbia has about 220 thousand entrepreneurs and this energy needs to be revitalized. If I could choose who to help and who to offer free advice, my choice would be JAT, Railways of Serbia or JP TEU Resavica. I have always been challenged with business ventures that require management, as well as the implementation of systemic structural reforms.

According to the criteria of the Ministry for finance, some com-panies from the MK Grupa were found to be among the best and most profitable companies for two or three years in a row. How do you achieve this?In business, I always think in terms of strategy. This enabled me to create business circumstances and tools. I turned hard times to opportunities, opportunities to results and the re-sult is a leading company in the field of food production in Serbia and the region of southeastern Europe. I expect that the best results are yet to come. Far be it from saying that I am not happy with the achievement, but we still have a lot to say in this business. You know, achieving a result is hard

work, but keeping it up and maintaining it is even more dif-ficult. It can only be achieved through work, strategy and with the support of a professional team.

What is your experience in doing business in Ukraine?It was relatively simple to enter the Ukrainian market, but surviving on this challenging market is quite difficult. Cur-rently, the MK Grupa cultivates 40 thousand hectares. This year, our rental payment for the leased land in Ukraine is approximately 60 EUR per hectare, and in Serbia from 300 to 500 euros. Certainly, Serbia is a better organized coun-try than Ukraine. Although it has great potential in agricul-

tural production, this country utilizes far less. The good part about Ukraine is the partial privatization carried out by the state. We must not forget that this is a market of 50 million people and that it has 42 million acres of high-qual-ity arable land, while Vojvodina's population is slightly less than two million.

Agrokor's owner Ivica Todorić has created the largest company in the region. Was he the first to come? And was this the reason for your prop-osition of connecting and integrating agriculture and food industry?To be competitive on the global market, you need to have satisfactory quality, price and quantity. Therefore, alliances

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Srbski kralj sladkorjaMK Grupa is Serbia's leading company in food production, while they them-selves say that they are the largest in southeastern Europe as well. The group integrates 36 companies in Serbia and Ukraine, and besides agriculture they are also active in trade, information technology, real estate management and tourism. Of these, a major business is sugar industry, as in Serbia, the group owns four sugar factories, thus being the major manufacturer and exporter in the region. This being the reason why the owner and director of MK Grupa, Mio-drag Kostić, has been – some years ago – nicknamed the king of sugar. Kostić, who showed interest to acquire Žito two years ago, is, according to Forbes's estimate, the third richest person in the Balkans. His wealth was estimated to reach 234 million EUR, and is preceeded by Agrokor owner Ivica Todorić and Studio Moderna owner Sandi Češko.

are inevitable. If you do not join, big players will arrive and we will watch the match from the stands. I believe that agriculture is one of the most important industries for future economic development and the greatest opportunity for the entire region. The economies of all regional countries definitely need closer business cooperation. Integration of regionally strong business is essential, especially if we have in mind the next big market, and here I think first and foremost of the EU countries and of Russia.

When Todorić and Agrokor conquered the region, it seems that they were backed by the Croatian government, and that this, somehow, was a state project. Why does Serbia not do something similar with another project?I believe in the potential of the domestic economy, because Serbia did not yet fully exploit its potential capacities. There is room for improvement, particularly in energy industry and in food production. The dynamics of the progress depends on the cooperation between economy and the state and I truly believe that we will all contribute to this goal.

In accordance with the Agreement on stabilization and association, on January 1st, 2014, the Serbian market will become open for EU prod-ucts. Do you consider Serbia not prepared for market liberalization?It is not expected that only the state will bear the »burden« of association, but each and every individual must make an effort to be ready for the positive changes that await us in the near fu-ture. The state should take direct measures to support entre-preneurs, beginning with the shortening of procedures, with the elimination of administrative barriers, with the verification

of customs protection as well as with increasing export quotas. It is a fact that in the process of integration, the best in the field will prevail, while those offering poorer quality will gradually disappear from the market. Simply because a large market such as Europe will not tolerate a noncompetitive business. Howev-er, I do not think that this should be seen as a threat, but, on the contrary, as an opportunity for development.

What do you suggest to the government to do about the state-owned land?There is not enough land in Serbia, or it is not put to proper use, but our opportunity is in food and agriculture. Almost everywhere in the world, owning fallow agricultural land is a luxury and will soon be considered as such in Serbia, where each year, 900 thousand hectares of soil remain partially or inappropriately cultivated, and where the income from leasing the land contributed only about 14 million to the budget in 2011. Even if only wheat was sown on this soil, we could reap 3.5 million tonnes in a year. Because agricultural land is a public good, the state must treat it as a prudent owner, meaning that you adequately manage what you own. There are two solutions: either the state begins to utilize the land or leaves it to those who know what to do and are capable of doing it. It is in the state’s own best interest to return the land to its function as soon as possible, taking into account that there is no effective governance and accountability without private ownership. Land and agriculture are Serbia’s major development opportunity. Land is a wealth that belongs to all of us and nobody has the right to abuse it.

Where to buy cheap-er fuel & cigarettesWe fulfilled the wishes of numerous entre-preneurs and checked for price differences in the region

Within the region, gasoline and cigarettes are most expensive in Slovenia. If you are embarking on a journey and your prevalent purchasing criterion is price, you will be able to buy gasoline at half price in some places, and cigarettes for less than half the price in other places.

A more detailed search would certainly have discovered even more significant differences in the price ranges of gasoline and cigarettes in the region. But we were interested in finding out approximate savings. For fuel prices, which in many countries depend on the location or on the provider, we included the most frequent prices of the provider with most fuel stations in the area.

15 euros less for 50 liters of fuelAt the moment, Serbia is the only country in the region where diesel is more expensive than 95-octane fuel. However, for 50 liters of diesel in Serbia you will pay a good three euro less than in Slovenia, in Croatia and Montenegro you will save ap-proximately six euro and in Macedonia you will pay 14 euro less than the 69 you would cash out in Slovenia. The ratio with 95 octane fuel is somewhat different. In Croatia, 50 liters will cost you over eight euro less than the 75 euro that you would pay in Slovenia. You will make even better savings in Serbia or Macedonia, where you will spend more than 10 euro less than in Slovenia.. Fuel is cheapest in BiH, where, for 50 liters, you will save 15 euro compared to Slovenia.

One carton of cigarettes at home, two abroadFor many smokers who travel South, it goes without saying that

they will pay significantly less for their most adored brand. But only for those who only look at the price and disregard a potentially slightly different flavor. If you’re among them, you can spend up to 20 euro less for a carton or 10 packs of cigarettes, such being the dif-ference between the Sloveni-an and Macedonian prices of

some cigarette brands. You will save least in Croatia – about 5 euro for ten packs.

Do not ignore the exchange rates differencesThe differences between the prices of products and services in the region, of course, depend on how favorably you exchange eu-ros for the local currency, or the rate which you are charged by the dealer or a local bank. It may not be redundant to refresh your memory that you may cross the EU border with no more than one carton of cigarettes per person, while a maximum of four cartons per person may be carried between EU countries. In the coming days, we will publish articles on both subjects.Note: in the conversion of currencies,NLB exchange rate per July 15th,2013 was used, one day prior to publication of this article; prices of petrol and diesel fuel in most countries differ from seller to seller, therefore we took into account the price at those stations which are most frequent in the country, while simultaneously choosing the most expensive version of any of both fuels. In Serbia, we considered indicative prices of Nisa in Belgrade, and in Bosnia and Herzego-vina the prices of Energopetrol.

For many smokers who travel South, it goes without saying that they will pay significantly less for their most adored brand.

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In Serbia, Gorenje still sees potential for growthFranjo Bobinac, CEO of Gorenje, on expanding production in the region, on the company’s future, on hiring wishes and what advice he offers to the younger generationA few weeks ago,Gorenje, manufacturer of household appliances, has signed a long-term strategic partnerships with Panasonic, the manufacturer of electronic devices, which should result, inter alia, in Velenje’s 80 million of additional revenue, and in the Japanese’ 13 percent ownership of the Slovenian company. At the same time, they opened a new refrigerator manufacturing plant in Serbia and reached an agreement with Serbia to coinvest 15 million into Serbian factories.

A few weeks ago, you officially opened a third factory in Serbia. Are you interested in expanding to other countries of the former Yugoslavia as well?We don’t plan manufacturing in other countries of the former Yugoslavia, but we still see unused potential for growth in Serbia, especially in Zaječar, where we have an assembling plant for washing machines. By 2015, we plan to expand and modernize the Zaječar plant, and will also produce those washing machines that will have been developed together with Panasonic in our strategic partnership.

How is the relocation of ASKO manufacturing to Slovenia and Slovenian manufacturing to Serbija progressing? When will both phases be completed and what will be the next step?Activities are carried out as planned and will be completed by autumn. At the end of March, we already started the production of ASKO washing and drying machines in Velenje, while the relocation of ASKO dishwasher production is progressing as we speak and will be completed with the commencement of production in Velenje by September. Gorenje has never before manufactured dishwashers in Velenje. Therefore, introducing an entirely new product lines is a truly important step for this location.

What is the effect of the sale of the kitchen and interiour design seg-ment?We will be better able to measure the sales effects of the furni-ture manufacturing segment at the end of the year, when some months will have elapsed from the exclusion of this part of the Gorenje Group.

How does Croatia’s accession to the EU impact on your business?Croatia’s accession to the EU allows us to merge certain busi-ness operations, for example in the field of logistics, and thus enables cost rationalization, yet we are maintaining a superi-our sales team in both countries.

Before long, you have reached an agreement of cooperation with Panasonic, who will by autumn have a 13-percent stake in the com-pany. Who do you prefer as an owner or, which owner would be the best for Gorenje?It is very important that the ownership structure is such that

it allows further implementation of the company’s strategy, which, on the other hand, must create added value both for the shareholder and other interested parties.

And when do you expect the state to withdraw from the company?I believe that the state will gradually decrease its holding in companies such as Gorenje, and I believe that the withdraw-al from ownership will be taking place in a manner which will not jeopardize the development strategy of the company. At the second capital increase, planned for this year, we will offer new shares to existing shareholders first, and thus also to the Capital Company.

Where do you see Gorenje in five years?I believe that in five years, Gorenje will have developed into a solid international corporation with a widespread sales net all over Europe, and will have increased its presence in some oth-er target countries outside Europe. But even after five years, the majority of revenue will be generated by our own brands, and we will have strong regional sales centers, yet most pro-duction will take place in Slovenia and Serbia.

Where are you hiring and what are the main features that you are looking for with new colleagues?We mostly hire engineers, developers, salespeople. In our col-leagues, we seek and appreciate focus on development, read-iness for teamwork and change, dedication to work and the company, a respectful attitude. Key skills can also be obtained during work performance, but the new employee should bring along the right personality traits.

Even after five years, the majority of revenue will be generated by our own brands,

we will have strong regional sales centers, yet most production will take place in Slovenia and Serbia.

Franjo Bobinac, CEO of Gorenje

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Until his first singing gig payment, his idol was Magic What is your biggest business mistake or the biggest missed opportunity?Every experience counts and we learn from each single one. The economic crisis that began a few years ago has turned many things upside down, and I believe that everybody, richer for the experiences we gained since the crisis hit, would have acted differently.

How did you earn your first money?When I was young, with singing on the popular scene, and later, as a stu-dent, in the chamber choir of RTV

Who was your idol in younger years and who is your idol now?When I was young – my idols were top athletes, mostly basketball players, like Erwin magic Johnson, and my idol of today is everyone who is a top performer at what he does, and who is best in his field, be it businesspeople, scientists, artists, athletes,…

What is your favorite free time occupation?There is not much free time, but what there is I try to use for hiking in nature or meeting friends, doing sports, music, traveling.

How long is your longest vacation and where do you spend it?My longest vacation lasts from 10 to 14 days and I best like to spend it on the seaside.

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Besides price and quality, what are you looking for in new potential partners or suppliers?Factors that are important to us are delivery reliability, supplier flexibility, willingness to change and a correct business attitude.

And if someone gave you a hundred thousand euro, where would you invest them, besides into Gorenje and its products?Maybe into a new and fresh project with a young entrepreneur, who, of course, would first have to convince me to do so.

What is your advice to young entrepreneurs for their business?To be persistent and innovative, and, if they believe in their idea, to overcome all obstacles and convince the company owners and business partners, but first and foremost, their colleagues.


Joining vacation spendersAre vacation destinations of average people different than those of the more affluent?Let us take a look at which destinations are popular with Slovenes as compared to Croats, Serbs and Macedonians.

It is common knowledge that most Slovenians choose Croatia for their holiday destination. With Mediana, the Institute for market and media research, however, we discovered that there are no differences in destination choice between the tenth of the Slovenian population that are called superspenders, and the rest of Slovenians.

From among the 15.000 respondents in four countries, most Slovenian superspenders reported that their favorite holiday destination is the Croatian Istria and the Gulf of Kvarner (13,8 percent), followed by Dalmatia (11,5 percent) and Slovenia (a good seven percent). The holiday destination choice is the same with the rest of Slovenia's population, with the only difference being that the listed destinations are visited by a third of the »normal« inhabitants, which is three percentage points more than holds for the tenth that is more spendthrifty.

Croats prefer their own countryThe Croats, our southern neighbours and new EU members, also do not choose different holiday destinations, whether they are spendthriftier or a part of the rest of the population. A little less than a quarter of the big spenders enjoy their vaca-tion in their homecountry, while this is the choice of less than a fifth of the others. The most significant split between these two population groups is the second top destination – Slove-nia. While every eighth Croat who is a member of the more spendthrifty group, spends his holidays in Slovenia, this is the chosen holiday destination for only every twentieth Cro-at from the »normal« spending group. Still fewer Croats spend their vacation in the third most popular destination, BiH – on-ly five percent of the population and a little more than seven percent of the superspenders.

The Serbian and Macedonian spendthrifty vacationers are less in line with the rest of the populationWhile the largest part of Serbian superspenders spends their vacation in Greece (15,6 percent), the rest of the population prefers their homecountry (7,29 percent). Both populations decided to put Montenegro in second place (12,7 percent of su-

perspenders or a little less than seven percent of the other pop-ulation). The third holiday destination of the spendthrifters' choice is the home country (11,6 percent), while every twen-tieth Serb who is not a member of the spendthriftiest 10 per-cent takes off for Greece.

Macedonians prefer Turkey to CroatiaIn spite of the long dispute on the official name of the most southern part of former Yugoslavia, Greece is the Macedoni-ans’ most popular holiday – and long weekend – destination. This is where every seventh Macodonian superspender goes for a summer vacation, as well as every tenth Macedonian, member of the rest of the Macedonian population. Turkey is second on the superspenders’ list of most popular vacation destinations (5,4 percent), and the neighbouring Albania in third rank (a little less than five percent). The rest of the Mace-donian population which is not part of the tenth that compris-es superspenders reported Macedonia as their summer vaca-tion destination (7,5 percent), and Turkey is coming in third with a little more than four percent.

There is no difference in the choice of holiday destination between the Slovenian and the Croatian superspenders, while Serbians and Macedonians are less aligned.

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Argeta, Donat and Cedevita ready for expanding outside the region with the »made in EU«labelBy 2017, Emil Tedeschi, head od Atlantic Group, plans to achieve a third of his reve-nues outside the region by expanding to the EU, Switzerland and the CIS countries.»In my opinion, Agrokor's takeover of Mercator is a very logical business move. Industry consolidation, both on the production side as well as in retail, is an inevitable process that happens everywhere in the world. In general, the last word remains with consumers or customers and as long as we place their benefits first, which, in business, is the only logical thing to do, all shareholders will be happy,« says Emil Tedeschi, majority owner and CEO of the Atlantic grupa.

How does Croatia's entry into the EU and its exit from CEFTA impact on your business?Through our German company Atlantic Multipower, we have been operating in the EU since 2005, and our experiences with our Slovenian colleagues from Droga Kolinska have proved useful, as well. Some of our brands, such as Cedevita GO!, Argeta and Donat Mg, are a serious opportunity for international success that we definitely want to take advantage of, while putting to good use the »Made in EU« label, which, to some customers in the old Europe, has a special meaning. When considering Croatia's exit from CEFTA, I can say that our production facilities are very strategically spread both across EU countries as outside the EU, thus allowing us to supply all regional and European markets, irrespective of trade arrangements. Argeta, for example, is manufactured in Izola and in Hadžići to exactly the same standards, Cockta is filled in Slovenia, Croatia and Serbia, and it is similar with other products.

Where are Cockta's sales?Cockta is an outstanding regional brand in the segment of carbonated beverages, and occupies a strong second place right after Coca-Cola. During the last ten years, we performed a very successful rebranding strategy, which placed Cockta from the old-fashioned-drink mindset to its rightful place as a drink for all generations, not only for those who remember it from way back, but also for the young and modern trend observing consumer, a place that Cockta, because of its quality and added value, rightly deserves. We rounded off the product range with new flavors and are readily monitoring the season.

Will there be synergies in the brands Grand Kafa and Barcaffe Se-lection?Today, the Atlantic grupa is the regions's largest producer of cof-fee, we sold almost 25 thousand tons in 2012. The coffee mar-ket, especially in the category of Turkish coffee, is extremely traditional and brand attached. We are achieving excellent re-sults and market positions both with our Barcaffe brand – pres-ent on the Slovenian and Croation markets, as with the Grand Kafa brand in Serbia, Bosnia and Herzegovina, Montenegro and Macedonia, therefore we have no intention to change matters. We have, however, introduced the Barcaffe brand in the seg-ment of HoReCa (hotels, restaurants, catering) on the region-al level. It was our assessment that in this segment, we can in-troduce the unique brand with a successful regional strategy.

How are the sales of Soko Štark and products from other companies that you acquired in Serbia?We are very pleased with the results and the development of the Soko Štark program, a strategic business area of sweet and salty foods. Examining business areas as part of a whole, and putting aside the sports nutrition that is more focused on western Europe, the highest growth (nearly eight percent) was achieved by none other than the Soko Štark assortment, with its chocolate program »Best wishes« growing at an incredi-ble double digit rate, mostly on the markets of Serbia, Bosnia and Montenegro.

The Czech Kofola is interested in buying Radenska, and is looking for regional distribution partners. Is the Atlantic ready to play this game?So far, we have had no significant contacts with our colleagues from Kofola. The Czech and Slovak context includes a business genesis much like the development of Cockta in southeastern Europe. We very much appreciate the work of our Kofola col-leagues and are always open to dialogue, but there was no con-tact with regard to cooperation.

Which regional brands would you want in your portfolio?There are definitely excellent brands outside our portfolio, but as we are not planning any timely mergers it would be very ungrateful to speculate on other brands, as this, on principle, only provokes a series of unjustified calculations.

Which markets are you then planning to expand to?There is great potential on the markets of the Commonwealth of Independent States (CIS) and we are planning to increase our present investment of 40 million with additional invest-

ments, aiming to grow to one hundred million over the next three years. Through our brands Multipower, Argeta, Donat Mg and Cedevita GO, which have the greatest potential for in-ternational success, we also expect significant growth in West-ern Europe, especially on the markets in Austria, Germany and Switzerland. Today, the Atlantic grupa is making 21 percent of total revenue outside our region, and our goal is to increase nonregional revenue to 35 percent of total revenues by 2017.

How do you comment on the initiative of MK grupa’s owner Miodrag Kostić to create a mega regional company, which would also be en-tered by the Atlantic group?This statement has provoked considerable media attention, al-though it seems to be quite clear even to the less familiar ob-server that it is not a serious initiative, but more of a provoca-tion to question corporate governance and ownership rela-tions. Kostić wanted to say that most entrepreneurs prefer a one hundred percent ownership of a small system to owning 20 percent of a large company. However, it is a fact that com-panies in this region, however important and large they may appear in the regional framework, are only small players in large overseas markets, and to increase the performance on these markets, some successful formula for a joint approach will have to be found.

Which would you qualify as the business move of your career, and which the greatest mistake?I’m not ashamed of business failures as they are a part of the path to development. I suppose that at the beginning of my entrepreneurial career, I was not fully aware of the possibil-ity of building your own brand without owning its produc-tion, too. However, I can not say that I’m sorry. It is equally dif-ficult to choose the best move, as there were several turning points. If I really have to choose, then I can say that I am very proud of all our team and the expansion in which we bought Droga Kolinska, having beaten many international industrial and financial competitors in the process. At a time of the most strained relations between Croatia and Slovenia, it was com-pleted without political interference from either Croatia, Slo-venia, Serbia or the EU. For us, this was indeed a very signifi-cant achievement, as is the fact that after almost three years we feel like one company.

In Croatia, every other young person is unemployed, what is your message to these young people?Young people should put to good use the potential of their big-gest advantage - not carrying a burden and youthful enthusi-asm, they must take risks and try to work already during their studies, to gain experience and better understand their inter-ests and what they do best. It seems to me that the majority of young people want jobs with prominent titles, such as market-ing, or those which give the appearance that wealth can be ac-cumulated fastest, such as finances. I always recommend that they should, however briefly, test their performance in sales, which is an important and undervalued skill. They will bene-fit from it in whatever later occupation they will choose, even though they might not select sales for their career.

And when can we expect better times?Croatia is heavily dependent on circumstances in the euro zone as well as on the economies of neighboring countries, who are our largest economic partners. In this sense, I do not foresee some spectacular turnaround to the better anytime soon. Croatia’s government certainly has the means and re-sources to stop the long-term downward trend and embark on a path of gradual recovery. The way up will not be quick, but it is very important both for our society and the state to slow-ly beginthe climb.

Emil Tedeschi, majority owner and CEO of Atlantic grupa

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The Zagreb Stock Exchange offers investment

opportunites, but they are few and far between. Companies need a lot more effort to convince investors.


Differences in the regional businesspeople’s attitudes and their approach to partners

While we observe a fair share of differences between regional businesspeople, there are many ways in which they are quite similar.

Psychotherapist Zoran Milivojević believes that regional businesspeople are aware that they belong to small systems, to countries where, currently, it is all but easy to operate, but also that they feel less worthy when talking to foreign partners. On the other hand, adds Milivojević, a good combination of flexibility, creativity and enthusiasm can be noticed, as well.

The Slovenes are systematic, and the Montenegrins are great charmersThe Serbian businesspeople aim to impress their counterpart, and this applies even more for the Montenegrin, says our interviewee. To the Slovenian businesspeople he attributes a thorough and systematic approach to business, based on a good business plan, and for Croatian businesspeople he believes that they treat business partners from other countries in a slightly aristocratic manner.

Separating or integrating business and private relationships“It seems to me that there are two different business mindsets – the Southern and the Northern. The first mindset includes executives from Slovenia and Croatia, and the other includes the executives from Serbia, Montenegro, Bosnia and Herzegovina and Macedonia, “ explains the psychotherapist Zoran Milivojević. Among other differences, he says, on the one hand they differ in their relation to persons who are business partners, and on the other hand in their relation to business itself. “Managers of the southern business mindset are increasingly appearing as personalities rather than as persons with a name and surname. They establish with their business partners a personal, almost friendly relationship, while expecting, at the same time, for their counterpart to accept the same code of behaviour. This means that they stand apart from their role as a business person and present themselves as they are in their private life,” he says. If they are satisfied with how their partner accepts them on a personal

level, the satisfaction spills over to the business level. At which time, they may, so he explains, concede to “friendship” discounts and grant their partner slightly better business conditions.

“On the other hand, in the northern mentality there is a clear difference between private and business relations. Thus, business partners remain in their roles and feel uncomfortable if someone calls upon them to present themselves as they are

privately”says Milivojević. The second dimension he considers important is the degree of improvisation or ingenuity. While the northern business mindset is characterized to adhere to rules and procedures, it is typical for the southern mindset to happily avoid some rules, if it reflects favorably on business, he adds.

Properties that apply to the Serbs, but also to many others in the regionWhen asked to comment on the characteristics of businesspeo-ple in the region, Zoran Ristić, a professor at the College for en-trepreneurship in Belgrade, turns to explaining using the exam-ple of Serbian businessmen: “In search of business success, en-trepreneurs basicaly rely on political connections, which is one of the biggest problems we are facing. Few entrepreneurs actu-ally think and have managerial qualities. Those who do were formed by enthusiasts who quickly confront difficulties, or by large foreign companies. Mostly, our entrepreneurs are peo-ple who have created their business during the transition peri-od, but their entrepreneurial spirit is largely underdeveloped. At the same time they are not sufficiently educated to appropri-ately manage a company. As it is, the environment in which we work enables that such people achieve success, though mainly thanks to their good connections.“

Blame it on the transition“It is all about the transition,” said Milan Kovačević, advi-

sor for foreign investments in Serbia. He adds that it is hard to for-get the habits from the old system, as well as the principles and rules of that time. “People who became rich and important busi-nesspersonas during transition need to learn and adapt to the new situation. Some are adapting better and some worse. This is es-pecially obvious during crisis situations, in which some of them drowned, while others reached the shore, “says Kovačević. How-ever, there are some positive characteristics of transition, too.

“One of the more important positive features of our busi-nesspeople is that they lived through several turbulent periods, and are consequently more resourceful when trouble strikes “says Kovačević. Concluding, he goes on to explain that there are also Western businesspeople in Serbia, who admit that west-ern corporate governance can be of lower quality than the man-agement of the local businesses.

Psychotherapist Zoran Milivojević attributes the northern mind-set to Croatians and Slovenians, and the southern mindset to all others in the region.

Psychotherapist Zoran Milivojević attributes Croatians and Slovenians »nor-hern« business mindsets, to the other nations in the region he attributes the »southern« business mindsets.

Aleš B

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Small but potentially important differences

SlovenesThey keep a somewhat reserved demeanor but melt if foreign partners show even a small amount of knowledge on the Slovenian culture, or if they make the effort to le-arn a few Slovene words. They are very cautious businesspeople, and they need to be given specific offers which are then thoroughly pondered on.

CroatsIn a business meeting, the man waits for the woman to offer him her hand, first. In negotiations, price is spoken of directly and without much hesitation. Doing business and concluding deals often takes place in bars or restaurants.

BosniansThey have a 42-hour working week and work every first Saturday of the month. When arranging for a meeting, keep in mind that afternoon appointments are not very po-pular. Meetings are often conducted in an informal environment, which they believe to contribute to a better business relationship.

SerbsA personal recommendation is the most efficient form of making business conta-cts. Informal business meetings at lunch or dinner are of utmost importance. Hands are shaken at the beginning as well as at the end of the meeting, first with women.

MontenegrinsDuring possible complications, genuine and reliable relationships, which have to be carefully tended, are of utmost importance. Cooperation on a personal basis is much more successful than long distance negotiation. In the small Montenegrin business world, ample attention should also be paid to rumors.

MacedoniansDecisions are taken only by top management, most often by the CEO. Managers often rely on their intuition and experience. At the beginning, common features are distrust, and resistance both to the expansion into foreign markets and to the purchase of fo-reign companies.

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“Northerner” or a “Southerner”?

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All of this and more from BiH, Montenegro, Croatia, Macedonia, Slovenia and Serbia

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