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Weekend Media FestivalRovinj, 18. - 21. 09. 2014.

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Business restructuring is a necessity, but also a big opportunity

Merging of Konzum and Mercator will create a great synergy, even though Konzum will have to sell a hundred stores in Croatia and about thirty stores in Serbia. Hrvatski Telekom is also in need of restructuring because it has become very slow in a fast industry, and competitors like Viber and WhatsApp are knocking on the door. Croatia osiguranje has managed to retain the top position in spite of the competitors, but it has poor management, transferring employees from administration to sales. Even though restructuring is most often associated with layoffs, it is a complicated process which opens a lot of new opportunities, said the participants of the panel “Major restructuring of Croatian business”.

HT’s President of the Management Board Davor Tomašković pointed out that HT has to stay competitive and profitable, not only because of the majority owner Deutsche Telekom, but because of Croatian citizens who own 49% of shares. Through restructuring, HT will become a more cost effective and agile company, something which its users are expecting. Competitiveness is essential in the struggle for resources within Deutsche Telekom, and HT has managed to secure a base position for certain highly sophisticated technologies. 

After the merger with Mercator, Konzum aims to optimize its logistics and range, and CEO Darko Knez said the wages in Konzum are slightly above the average in the industry. Knez believes the merger will encourage a wave of new investments into logistics and IT infrastructure, and a piece of the pie should go to Croatian companies as well. After acquiring Mercator, Agrokor has become a company worth more than six billion euro, but it is still small compared to Lidl, with an income of 70 billion euro. Konzum aims to be an exporter of the retail concept, like Lidl or Tesco, and take a lot of small businesses down that road as well.

When Sanel Volarić became the head of Croatia osiguranje, he found 2800 employees, but only 700 worked in sales. After the restructuring process, Volarić expects that CO will have even more employees, but differently distributed. Croatia osiguranje is a sleeping beauty, says Volarić, pointing out that most of the new positions have been filled with people from the company.

19.09.2014.