Executive Newswire - Stanton Chase Belgrade


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Executive Newswire - Stanton Chase Belgrade

  1. 1. Executive NewswireStanton Chase Belgrade September 2012 EDITOR’S LETTER In this issue: Milos Tucakovic Managing Director Stanton Chase Belgrade Dear readers, Serbian businessmen Pg.2 We have established this electronic – Vaso Lekic – journal without great pretensions, but Banking sector in Serbia Pg.4 with the desire to promote Serbian econom y an d business w orld. Recycling of electrical Pg.6 Cooperation with our friends and new tendencies in the market will help us to and electronic waste introduce something fresh and interesting Executive Coaching Pg.8 quarterly. Your suggestions and ideas are welcome. E-mail us, call us to share impressions and work together on Professional networking Pg.10 creating our NEWSWIRE. – LinkedIn – I wish you an interesting reading! Stanton Chase Belgrade Pg.11 belgrade@stantonchase.com Editions
  2. 2. Executive Newswire SERBIAN BUSINESSMEN – VASO LEKIC, Owner of Foodland Company Interviewed by Milos Tucakovic Company Foodland was founded in 1998. with central office in Belgrade and it employs more than 190 people. Today Foodland presents stable and flexible company, which is consumer oriented and with tendency of steady growth (puts consumer in center of its activities). During the years, Foodland became Serbian brand which is well-known to consumers in more than 25 countries ( ex YU, Hungary, Ukraine, Moldova, Russia, Sweden, Holland, Germany, France, Austria, Great Britain, Japan, Hong Kong, Australia, USA, Canada ) and it offers blend of contemporary and traditional food products to its demanding customers. Company is a synonym for top quality – with the slogan “Best from Vaso Lekic the nature”. We talked with the owner of the company, Mr. Vaso Lekic.Where is Serbia in the production of healthy food compared to the EU?First of all, we should bear in mind the characteristics of Serbia in the agricultural terms. 45% of thepopulation lives in rural areas, the average farm size is about 3 acres, 50% of the land is rough, and the siteis not damaged by pesticides and fertilizers and it is very good in quality, so the potential for production ofhealthy food is great. Unfortunately we have very few manufacturers. According to some studies in the EU,30% of the population in Serbia has the perception that they eat organic food, but unfortunately Serbianpeople do not distinguish between healthy and organic food. The concept of organic food in our country is notclearly defined. Serbian peasant, agriculturist, stock farmer, fruit grower or winegrower, should focus more onhealthy food of higher quality, primarily due to favorable natural and climatic characteristics. In this situationwe have an advantage from the begging because the quality of such raw materials is greater, compared tothe raw materials from other countries, in which era of industrialization is present and affects badly foodquality. Also, such raw material base is an excellent basis for cooperation with manufacturers of food thatwould offer great quality of products in the international market. It is inevitable that in such circumstances,price of land increases in our country. This raises the question of strategy, which has a goal to prevent peoplefrom leaving the villages, especially nowadays when unemployment is high and opportunities for work in thecountryside are many. It is necessary to work on the branding of the quality of our country, which also meansbranding products that are produced in Serbia. Serbia is now exporting raw materials, but is clear that weshould focus on exporting finished products. The state should stimulate the export of the finished productsfrom Serbia, because it is clear that one dinar invested comes back into the budget as three. Production offood and renewable energy is the future. Nature has provided us great potential, over 20% of GDP comesfrom the agricultural economy, but on the other side, state invests only 2% in agriculture. As a country wehave a surplus only in this area, but the imbalance is obvious. Solid agricultural strategy that will show whichfactors make profit for agriculture, is inevitable. For example, in Austria, Germany and Switzerland, 10-15% ofrevenues in the production of food comes from organic food, and in Serbia it is below one percent.What is the strategy of companies involved in food production in Serbia?There is no strategy. With a clear agriculture policy and constant support of primary agricultural producers,processors and exporters of finished products Serbia may become competitive. By food production wesupport the primary agricultural producer and create connected chain that guarantees prosperity for all.Serbia can and must produce high quality food, because it has the potential to do so.Pg.2
  3. 3. Stanton Chase BelgradeWhat is the Serbia ability to export and comparative advantages, if any, in relation to foreignproducers?This is again a question of strategy, which wasn’t encouraged enough by our country. Our competitiveness islow compared to other countries such as Poland, Turkey, Bulgaria. We have no access to significant fundsand developed agricultural policies. Entering a new foreign market costs company about half a million. That isa great investment. Also, the state needs to encourage primary producers to build large warehouses, whichenables selling goods when it reaches the highest price. The best example is the regulation from 2007. whichencouraged agricultural holdings by giving them 40% of the grant for the purchase of equipment andconstruction of storages. Due to this regulation, Serbia became a major exporter of apples, because thesefunds were invested in construction of ultra low oxygen refrigerators that allow the storage of applesthroughout the year and export when the best price is achieved. Unfortunately, this regulation is no longer in force. This is an example which should be followed for other agricultures. Just wise public regulations will promote Serbia in the world. It must be a constant process that does not change depending on who is in power. If we are talking about products GRANNY’S SECRET , these are premium quality products for which there is a great demand overseas. We are trying in every way to improve the quality of our productsand we have recently introduced a system of cooking at low temperatures, which enables significant increasein the nutritional value of products. Our raw material base, due to climatic conditions, is excellent. We areadaptable to global trends and have the "know-how".How did you decide to start the project Foodland?I have lived in Greece for few years. When I came back, as I studied healthy eating the whole life, I wasthinking about benefits of the Mediterranean diet. I realized that there is space for such thing in Serbia. Westarted with the import of olives and other raw materials, and then in 1999.we launched our own production ofthe brand Amffisa. We imported raw materials and processed them. Realizing that were going in the rightdirection, we started with the development of raw materials from Serbia. Our area offers an excellentcombination of organic acids in fruits. In 2003. we began with brand GRANNY’S SECRET and now it is our biggest asset and export potential. What is the secret of GRANNY’S SECRET ? GRANNY’S SECRET found its place, an empty space on the world market. We have understood "red ocean" scenario with many sharks, small margins, just to spare, overproduction, and then we developed the "blue ocean" strategy and found calm seas and good water in which we now sail. We have a premium product with high quality, authentic traditional recipes with exceptional nutritional value. GRANNY’SSECRET does not contain additives and preservatives. We have invested our spirit, our raw material, thetradition, but we all adjusted to global trends. We used Serbian know-how and the great design. 2008. inBarcelona, we received the award „World best inovation juice“ for the worlds best juice (nectar of wildstrawberries) from Foodnews from England. This year we received the award for best packaging design in thefood industry in the region. All this forces us to further improve and constant challenges us to create newproducts and to further advance the existing. There are always challenges if you put them in front of you. Pg.3
  4. 4. Executive NewswireBANKS CONTINUE TO LEAD IN THE FINANCIAL INDUSTRY SECTOR IN SERBIA By Jasmina Milosevic, Principal Consultant, Stanton Chase Belgrade Banking sector in Serbia has driven the development of the overall economy in past years and, although highly regulated, it remains the most dynamic and liquid sector, still showing rates of growth. Despite the crisis, financial situation of the banks is not worrying as it might have been expected. It seems that the strict regulation of the National Bank of Serbia has contributed to sustaining a sound system which surpasses the crisis without any great difficulties. Serbia is one of the few countries in the world that provided no financial aid to thebanking sector during the downturn. Owing to a restrictive monetary policy in the pre-crisis periodand prudent supervision, banks in Serbia are now highly capitalized.CHANGE OF FOCUSNonetheless, it is obvious that the banks will have to change slightly the way of doing business inorder to keep the increase rate. One of the ways could be participating in various Governmentprograms organized to stimulate activity of the economy, like Government subsidized loans andmoreover, loans for agriculture. It is also expected that the banks will have to offer in the " Serbia is one of the few countries in future more sophisticated service and tailor-made products in the world that provided no financial aid order to attract and maintain clients. The escalation of the to the banking sector during the financial crisis have proven that the over production of the downturn " banking loans with very shallow insight in the clients’ business and its needs, with nothing but the will to sell,cannot sustain as banking business policy in the long-run. Therefore, the know-how combined withdeep understanding of clients’ needs will have to provide future guidelines for all the banks on howto run their business.BANKING FOR WOMENFollowing the international trends banks in Serbia have also shown some creativity and decided toinclude for the first time special credit offers for unemployed women and women entrepreneurs.Credits for financing acquisition of the equipment are intended for entrepreneurs and womenfounders of the small business being active less than three years. Credits for startup programs areintended for unemployed women and represent credits for acquisition of equipment and operatingcapital for following activities: production and processing, tourism, trades and old crafts (inaccordance with the Regulations which define crafts as old and artistic) and production services.Pg.4
  5. 5. Stanton Chase BelgradeSerbia has also seen the opening of the first Lady Branch of one commercial bank, which fully meetsthe needs, expectations and the sensibilities of a modern woman.FIGURESAt the end of last year, the Serbian banking sector comprised33 banks and six representative offices of foreign banks. Thesectors total assets amounted to EUR 25.3 billion, “Total assets of banking sectorrepresenting an increase by 4.47 percent in real terms amounted to EUR 25.3 billion,compared to the same period in 2010. As in previous years, representing an increase by 4.47the top three banks accounted for more than 30 percent of percent in real terms ”total banking sector assets. Business loans represented thelargest share of bank lending, amounting to 54.1 percent ofthe total (EUR 9.3 billion), while loans to private households and to the public sector stood at EUR5.1 billion and EUR 2.1 billion, respectively. Although foreign currency loans still accounted for 67percent of the loan portfolio, their share was down from over 70 percent in 2010.OTHER STAKEHOLDERSThe other stakeholders in the market of financing services in Serbia are commercial insuranceagencies (27), leasing companies (17), stock markets (1), and broker companies (44). In addition,there are 6 companies managing 9 voluntary pension fundsas well as 9 companies dealing with the investment funds(they manage 21 investment funds). "Banks have 92 percent share in total balance sum, followed by insuranceDespite the rising business of other stakeholders, banks with 4 percent, as much as it is thecontinue to play the dominant role in the financial system in share of all other stakeholders on thisSerbia with the share of 92 percent in total balance sum. It is market "followed then by the insurance sector with the share of 4percent, as much as it is the share of all other stakeholderson this market. Pg.5
  6. 6. Executive Newswire KEEPING SENCE FOR TENDENCIES: Recycling of electrical and electronic waste Vladimir Zivaljevic, Co-owner/GM, E-Recycling Interviewed by Milos Petrovic, Partner, Stanton Chase Belgrade In 2009, when I left IT industry, I believed that in the next 15 years, 4 branches of economy will be on an upward spiral: healthy food, luxury sales, recycling and internet based services. Because of poorly developed consciousness and absence of legislative procedures, which led to the absence of importantstakeholders on the market, recycling is a great challenge, but at the same time, a great potential.In 2009 we started gathering and recycling PET packaging. The business was growing slowly andthere were many challenges, but after three years of work we became the leader on the market,with 40% share. The law that was introduced in may 2009 regulated managing of waste and alignedour law with the European legislation. This law allowed us to further invest in the recycling industry -we started recycling electronic waste. The experience we had with the PET packaging and contactsachieved during 15 years of working in IT industry, allowed us to initiate the start-up in a very shortperiod of time.Unlike the PET packaging, the recycling of electronic waste had grown much quicker. From January2011 till December 2011 the quantity of recycled waste hadgrown from 50 tons a month to 300 tons a month, while thenumber of employees had grown from 10 to 50. But evengrowing this fast, cheap work force and working in three shiftswasn’t enough to recycle all the waste that was gathered. Thequantity of the waste was in a constant growth and the onlysolution for us was to choose technology that could recycle 50tons of waste a day - the quantity that was recycled amonth, 18 months ago. Even though 15 different companieshave license, with 50% of a total amount of recycled waste in the Republic of Serbia in 2012 -we canfreely say that we are the leader in the business of recycling electric and electronic waste.In 11 months, we achieved to invest in new facilities that have the capacity to recycle 20 tons a day.The process of choosing a strategic partner demanded that we visit the existing facilities in theregion and attend a number of fairs, as well. Ultimately, we decided to go with the solution of aGerman company Mewa.Pg.6
  7. 7. Stanton Chase BelgradeBy implementing the system we are able to recycle 1000 refrigerators a day, which is the biggestinstalled capacity on the Balkans. The facility has a hall that is 12 000 m2 big and has 2 ha ofsurrounding space, where we store the waste. Currently, we have 140 employees and we aresuccessfully recycling:1. Refrigerators2. Small and big house appliances3. Television sets and cathode Ray tubesThis project, worth 8M Euros, with ROI period of 7 years will hire 250 employees. We wouldn’t makeit without the synergy of all the stakeholders. • 500.000 € of irreversible incentives from a state agency to support the export • 15.000 tons of electric and electronic waste is gathered • 50.000.000 € long-term credit from domestic AIK bank, that recognized the opportunity for • In total, there are 15 companies with the development of the city and a great flexibility license to recycle and 44 to gather the waste in understanding the special needs of a start • 20.000 tons of new waste is gathered a year -up • In total, there are 4000 people employed in • 1.000.000 short-term commercial credits the recycling industry • 1.000.000 € of our own recoursesFinally, the most important thing for the success of the recycling industry in Serbia is thedevelopment of consciousness of citizens through education, public campaigns and local activities.That would not be possible without the cooperation with NGOs, the media and the local government. Pg.7
  8. 8. Executive Newswire EXECUTIVE COACHING – WHAT IT IS AND WHY IS BENEFICIAL By Marina Petrusevski, Managing Director, Wilson Learning Serbia Most corporate career paths lead to a role in management. However, being prepared for that step up in responsibility can be tough; the move from player to a leader is not a natural transition for most people. In fact, it can be slightly traumatizing, particularly when one is elevated to having responsibility over their longtime peers. Also, we can almost recognize the standard in corporate world that people arepromoted for being good at what they do, as opposed to having the requisite skills for leading othersin doing what is required. Companies are hoping to ease this transition by hiring executive coachesto work with newly-promoted managers at the top management roles.So, this begs the question: What exactly is executive coaching?When it comes to defining coaching, the International Coach Federation (ICF) states that coaching isabout “partnering with clients in a thought-provoking and creative process that inspires them tomaximize their personal and professional potential.”So, an executive coach may serve as trusted advisor, learning guide, personal skills trainer and / orexpert consultant.Through being a trustworthy advisor or, so to say, a thought partner, an executive coach typicallyfocuses on the issues that come with managing/relating to people.New skills required of managers including defining goals or expectations of others, conducting toughdialogues, dealing with conflict and motivating teams, influencing key stake holders, being politicallysavvy or leading cross-cultural teams, are not necessarily skills that come naturally.Nadler, executive coach and author of “Leading with Emotional Intelligence”, believes that coachingis about “bringing more depth and focus to particular challenges.”He also says that those in leadership roles often need “a thought partner for support and guidance”when dealing with complex issues.The idea behind working with an executive coach is to bring clarity to the issue and develop a planof action for tackling it.Pg.8
  9. 9. Stanton Chase BelgradeExecutive coaching starts with identification of top business needs and developing a prioritizedaction plan. The process has a focus on practical skills development and immediate application.Usually, the expected outcomes are establishing positive relationships with key stakeholders,building a strong, cohesive team and managing the stress and pressures related to the demands ofthe executive new role or responsibilities.There is no doubt that executive coaching has become mainstream in major internationalcompanies. These coaches review the plays, provide feedback, and jointly develop action plans forimprovement with their clients.We are all victims of living in our own heads and at times we all need help getting perspective. It’snot easy to evaluate ourselves, which is why there is so much value in having that thought partnerbring perspective to our internal conversations. • Wilson Learning company is specialized for training in management i.e. training aimed at developing managerial skills as well as programs aimed at sales representatives (all sales levels, from beginner to managerial positions). • Wilson Learning mission is providing help to employees and organizations to achieve better work results • Work of Wilson Learning is based on belief that employees will make better work performances if they are satisfied with work and they will be more motivated if they achieve higher level of work performances • Wilson Learning, with more then 3.000 accredited trainers in 38 countries, is now the world’s biggest global executive development provider.Source: Michael “Dr. Woody” Woodward, PhD, a CEC certified professional coach who holds a PhDin organizational psychology. Pg.9
  10. 10. Executive Newswire SIGNIFICANCE OF LINKEDIN IN THE BUSINESS NETWORKING Maja Manojlovic, Researcher, Stanton Chase Belgrade In 2007, just before the expansion of Facebook and other social networks, a friend sent me the request for joining LinkedIn network. I accepted, totally unaware that in the future LinkedIn will become a very useful business tool. Step by step I have been discovering what it is for and the importance of connecting through it.In short, LinkedIn is the "Business Facebook" - network that offers unlimited possibilities forsearching and connecting by various criteria - education, business, interests, etc. It appeared in May2003 and became the largest social network for business people and companies with more than 175million members in over 200 countries worldwide. Every second at least two people open newaccount on LinkedIn and more than 2 million companies have their own profiles.Today, employment through social networks is very popular and LinkedIn certainly leads amongthem. According to research conducted at the site Jobvite (www.jobvite.com) 89% of U.S.companies use social networks for recruitment, of which 87% use LinkedIn, 55% Facebook, 47%Twitter. 95% of participants in the survey, who were successful in finding candidates through socialnetworks, used LinkedIn as a source. The importance of LinkedIn is that it offers businessnetworking specialisation. At the same time it allows searching information by various parameterssuch as title of the position, company, industry or level of experience.Besides individuals, companies can create profiles on LinkedIn too, and there is also possibility ofcreating groups. Groups enable discussions about various topics, and through them you can findvery useful and interesting things and hear what people around the world think about certain topic.Due to the large number of business and marketing possibilities, LinkedIn is becoming veryimportant tool in promoting individuals and companies, so it’s the right time to think about it if youhave not already.Pg.10
  11. 11. Stanton Chase Belgrade STANTON CHASE BELGRADE EDITIONS In 2008 Stanton Chase Belgrade decided to conduct a CEO survey in order to find out theopinion of the executives within companies in Serbia, having in mind that the majority of surveys arerelated to evaluating the satisfaction of employees and their line managers, very rarely inquiring theopinion and satisfaction of CEOs as well. With this survey we wanted to make the difference andhear the opinion of the executives. This survey has left a good impression on the market and hasbecome a traditional issue of Stanton Chase, edited once a year, in January. The number ofrespondents, both domestic and foreign executives, increases with each new issue, giving us thusmore realistic picture of business trends. Stanton Chase International Belgrade conducted for the first time this year a survey among its candidates with the aim to hear their impressions and comments about the cooperation and suggestions on how to improve this cooperation. All editions by Stanton Chase Belgrade you can read on: http://stantonchasebelgrade.wordpress.com/ Pg.11
  12. 12. Stanton Chase International Belgrade Office Blvd. oslobodjenja 75 11000 Belgrade, Serbia Phone: +381 11 3973 676belgrade@stantonchase.com