Executive Newswire - Stanton Chase Belgrade

September 2012 Stanton Chase Belgrade

Executive Newswire

Serbian businessmen

– Vaso Lekic –

Pg.2

Banking sector in Serbia Pg.4

Recycling of electrical

and electronic waste

Pg.6

Executive Coaching Pg.8

Professional networking

– LinkedIn –

Pg.10

Stanton Chase Belgrade

Editions

Pg.11

In this issue:

EDITOR’S LETTER

Dear readers,

We have established this electronic

journal without great pretensions, but

with the desire to promote Serbian

economy and business world.

Cooperation with our friends and new

tendencies in the market will help us to

introduce something fresh and interesting

quarterly. Your suggestions and ideas are

welcome. E-mail us, call us to share

impressions and work together on

creating our NEWSWIRE.

I wish you an interesting reading!

[email protected]

Milos Tucakovic

Managing Director


Executive Newswire

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 3) 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 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 the

population lives in rural areas, the average farm size is about 3 acres, 50% of the land is rough, and the site

is not damaged by pesticides and fertilizers and it is very good in quality, so the potential for production of

healthy 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 Serbian

people do not distinguish between healthy and organic food. The concept of organic food in our country is not

clearly defined. Serbian peasant, agriculturist, stock farmer, fruit grower or winegrower, should focus more on

healthy food of higher quality, primarily due to favorable natural and climatic characteristics. In this situation

we have an advantage from the begging because the quality of such raw materials is greater, compared to

the raw materials from other countries, in which era of industrialization is present and affects badly food

quality. Also, such raw material base is an excellent basis for cooperation with manufacturers of food that

would 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 people

from leaving the villages, especially nowadays when unemployment is high and opportunities for work in the

countryside are many. It is necessary to work on the branding of the quality of our country, which also means

branding products that are produced in Serbia. Serbia is now exporting raw materials, but is clear that we

should focus on exporting finished products. The state should stimulate the export of the finished products

from Serbia, because it is clear that one dinar invested comes back into the budget as three. Production of

food and renewable energy is the future. Nature has provided us great potential, over 20% of GDP comes

from the agricultural economy, but on the other side, state invests only 2% in agriculture. As a country we

have a surplus only in this area, but the imbalance is obvious. Solid agricultural strategy that will show which

factors make profit for agriculture, is inevitable. For example, in Austria, Germany and Switzerland, 10-15% of

revenues 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 we

support 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.

SERBIAN BUSINESSMEN – VASO LEKIC, Owner of Foodland Company

Interviewed by Milos Tucakovic

Pg.2

Vaso Lekic

What is the Serbia ability to export and comparative advantages, if any, in relation to foreign

producers?

This is again a question of strategy, which wasn’t encouraged enough by our country. Our competitiveness is

low compared to other countries such as Poland, Turkey, Bulgaria. We have no access to significant funds

and developed agricultural policies. Entering a new foreign market costs company about half a million. That is

a great investment. Also, the state needs to encourage primary producers to build large warehouses, which

enables selling goods when it reaches the highest price. The best example is the regulation from 2007. which

encouraged agricultural holdings by giving them 40% of the grant for the purchase of equipment and

construction of storages. Due to this regulation, Serbia became a major exporter of apples, because these

funds were invested in construction of ultra low oxygen refrigerators that allow the storage of apples

throughout 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 products

and we have recently introduced a system of cooking at low temperatures, which enables significant increase

in the nutritional value of products. Our raw material base, due to climatic conditions, is excellent. We are

adaptable 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 was

thinking about benefits of the Mediterranean diet. I realized that there is space for such thing in Serbia. We

started with the import of olives and other raw materials, and then in 1999.we launched our own production of

the brand Amffisa. We imported raw materials and processed them. Realizing that we're going in the right

direction, we started with the development of raw materials from Serbia. Our area offers an excellent

combination 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’S

SECRET does not contain additives and preservatives. We have invested our spirit, our raw material, the

tradition, but we all adjusted to global trends. We used Serbian know-how and the great design. 2008. in

Barcelona, we received the award „World best inovation juice“ for the world's best juice (nectar of wild

strawberries) from Foodnews from England. This year we received the award for best packaging design in the

food industry in the region. All this forces us to further improve and constant challenges us to create new

products and to further advance the existing. There are always challenges if you put them in front of you.

Pg.3


Executive Newswire

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 the

banking sector during the downturn. Owing to a restrictive monetary policy in the pre-crisis period

and prudent supervision, banks in Serbia are now highly capitalized.

CHANGE OF FOCUS

Nonetheless, it is obvious that the banks will have to change slightly the way of doing business in

order to keep the increase rate. One of the ways could be participating in various Government

programs organized to stimulate activity of the economy, like Government subsidized loans and

moreover, loans for agriculture.

It is also expected that the banks will have to offer in the

future more sophisticated service and tailor-made products in

order to attract and maintain clients. The escalation of the

financial crisis have proven that the over production of the

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 with

deep understanding of clients’ needs will have to provide future guidelines for all the banks on how

to run their business.

BANKING FOR WOMEN

Following the international trends banks in Serbia have also shown some creativity and decided to

include 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 women

founders of the small business being active less than three years. Credits for startup programs are

intended for unemployed women and represent credits for acquisition of equipment and operating

capital for following activities: production and processing, tourism, trades and old crafts (in

accordance with the Regulations which define crafts as old and artistic) and production services.

BANKS CONTINUE TO LEAD IN THE FINANCIAL INDUSTRY SECTOR IN SERBIA

By Jasmina Milosevic, Principal Consultant, Stanton Chase Belgrade

Pg.4

" Serbia is one of the few countries in

the world that provided no financial aid

to the banking sector during the

downturn "

Serbia has also seen the opening of the first Lady Branch of one commercial bank, which fully meets

the needs, expectations and the sensibilities of a modern woman.

FIGURES

At the end of last year, the Serbian banking sector comprised

33 banks and six representative offices of foreign banks. The

sector's total assets amounted to EUR 25.3 billion,

representing an increase by 4.47 percent in real terms

compared to the same period in 2010. As in previous years,

the top three banks accounted for more than 30 percent of

total banking sector assets. Business loans represented the

largest share of bank lending, amounting to 54.1 percent of

the total (EUR 9.3 billion), while loans to private households and to the public sector stood at EUR

5.1 billion and EUR 2.1 billion, respectively. Although foreign currency loans still accounted for 67

percent of the loan portfolio, their share was down from over 70 percent in 2010.

OTHER STAKEHOLDERS

The other stakeholders in the market of financing services in Serbia are commercial insurance

agencies (27), leasing companies (17), stock markets (1), and broker companies (44). In addition,

there are 6 companies managing 9 voluntary pension funds

as well as 9 companies dealing with the investment funds

(they manage 21 investment funds).

Despite the rising business of other stakeholders, banks

continue to play the dominant role in the financial system in

Serbia with the share of 92 percent in total balance sum. It is

followed then by the insurance sector with the share of 4

percent, as much as it is the share of all other stakeholders

on this market.

Pg.5


“Total assets of banking sector

amounted to EUR 25.3 billion,

representing an increase by 4.47

percent in real terms ”

"Banks have 92 percent share in total

balance sum, followed by insurance

with 4 percent, as much as it is the

share of all other stakeholders on this

market "

Executive Newswire

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 important

stakeholders 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 and

there 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 aligned

our 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 contacts

achieved during 15 years of working in IT industry, allowed us to initiate the start-up in a very short

period of time.

Unlike the PET packaging, the recycling of electronic waste had grown much quicker. From January

2011 till December 2011 the quantity of recycled waste had

grown from 50 tons a month to 300 tons a month, while the

number of employees had grown from 10 to 50. But even

growing this fast, cheap work force and working in three shifts

wasn’t enough to recycle all the waste that was gathered. The

quantity of the waste was in a constant growth and the only

solution for us was to choose technology that could recycle 50

tons of waste a day - the quantity that was recycled a

month, 18 months ago. Even though 15 different companies

have license, with 50% of a total amount of recycled waste in the Republic of Serbia in 2012 -we can

freely 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 the

region and attend a number of fairs, as well. Ultimately, we decided to go with the solution of a

German company Mewa.

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

Pg.6

By implementing the system we are able to recycle 1000 refrigerators a day, which is the biggest

installed capacity on the Balkans. The facility has a hall that is 12 000 m2 big and has 2 ha of

surrounding space, where we store the waste. Currently, we have 140 employees and we are

successfully recycling:

1. Refrigerators

2. Small and big house appliances

3. Television sets and cathode Ray tubes

This project, worth 8M Euros, with ROI period of 7 years will hire 250 employees. We wouldn’t make

it without the synergy of all the stakeholders.

Finally, the most important thing for the success of the recycling industry in Serbia is the

development 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


• 500.000 € of irreversible incentives from a

state agency to support the export

• 50.000.000 € long-term credit from domestic

AIK bank, that recognized the opportunity for

development of the city and a great flexibility

in understanding the special needs of a start

-up

• 1.000.000 short-term commercial credits

• 1.000.000 € of our own recourses

• 15.000 tons of electric and electronic waste

is gathered

• In total, there are 15 companies with the

license to recycle and 44 to gather the waste

• 20.000 tons of new waste is gathered a year

• In total, there are 4000 people employed in

the recycling industry

Executive Newswire

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 are

promoted for being good at what they do, as opposed to having the requisite skills for leading others

in doing what is required. Companies are hoping to ease this transition by hiring executive coaches

to 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 is

about “partnering with clients in a thought-provoking and creative process that inspires them to

maximize their personal and professional potential.”

So, an executive coach may serve as trusted advisor, learning guide, personal skills trainer and / or

expert consultant.

Through being a trustworthy advisor or, so to say, a thought partner, an executive coach typically

focuses on the issues that come with managing/relating to people.

New skills required of managers including defining goals or expectations of others, conducting tough

dialogues, dealing with conflict and motivating teams, influencing key stake holders, being politically

savvy or leading cross-cultural teams, are not necessarily skills that come naturally.

Nadler, executive coach and author of “Leading with Emotional Intelligence”, believes that coaching

is 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 plan

of action for tackling it.

EXECUTIVE COACHING – WHAT IT IS AND WHY IS BENEFICIAL

By Marina Petrusevski, Managing Director, Wilson Learning Serbia

Pg.8

Executive coaching starts with identification of top business needs and developing a prioritized

action 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 of

the executive new role or responsibilities.

There is no doubt that executive coaching has become mainstream in major international

companies. These coaches review the plays, provide feedback, and jointly develop action plans for

improvement with their clients.

We are all victims of living in our own heads and at times we all need help getting perspective. It’s

not easy to evaluate ourselves, which is why there is so much value in having that thought partner

bring perspective to our internal conversations.

Source: Michael “Dr. Woody” Woodward, PhD, a CEC certified professional coach who holds a PhD

in organizational psychology.

Pg.9


• 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.

Executive Newswire

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 for

searching and connecting by various criteria - education, business, interests, etc. It appeared in May

2003 and became the largest social network for business people and companies with more than 175

million members in over 200 countries worldwide. Every second at least two people open new

account on LinkedIn and more than 2 million companies have their own profiles.

Today, employment through social networks is very popular and LinkedIn certainly leads among

them. 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 social

networks, used LinkedIn as a source. The importance of LinkedIn is that it offers business

networking specialisation. At the same time it allows searching information by various parameters

such 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 of

creating groups. Groups enable discussions about various topics, and through them you can find

very 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 very

important tool in promoting individuals and companies, so it’s the right time to think about it if you

have not already.

SIGNIFICANCE OF LINKEDIN IN THE BUSINESS NETWORKING

Maja Manojlovic, Researcher, Stanton Chase Belgrade

Pg.10

In 2008 Stanton Chase Belgrade decided to conduct a CEO survey in order to find out the

opinion of the executives within companies in Serbia, having in mind that the majority of surveys are

related to evaluating the satisfaction of employees and their line managers, very rarely inquiring the

opinion and satisfaction of CEOs as well. With this survey we wanted to make the difference and

hear the opinion of the executives. This survey has left a good impression on the market and has

become a traditional issue of Stanton Chase, edited once a year, in January. The number of

respondents, both domestic and foreign executives, increases with each new issue, giving us thus

more realistic picture of business trends.

All editions by Stanton Chase Belgrade you can read on:

http://stantonchasebelgrade.wordpress.com/

Pg.11


STANTON CHASE BELGRADE EDITIONS

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.

Stanton Chase International

Belgrade Office

Blvd. oslobodjenja 75

11000 Belgrade, Serbia

Phone: +381 11 3973 676

[email protected]

Executive Newswire - Stanton Chase Belgrade

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