REvoLUTIoNARY IQcook • BOšTJAN PEčNIK, STEERING ... - Gorenje

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fOCuS REmAInS On DEVELOPmEnT AnD InnOVATIOn
Given the persistently uncertain economic conditions, this year can
hardly be viewed as a regular one. Gorenje is tackling the challenges
the year has brought about with yet more development and innovation.
ELIZABETA BILuš GOREnJE ARCHIVES
for the home appliance industry,
the defining aspects of 2011
are the historical highs in raw- and
processed material prices which
have sky-rocketed as a result of
climate conditions, political turmoil in
northern Africa and the middle East,
speculation in the commodity markets
and similar. In the first three months of
the year alone, the price of oil soared
by over 16%; the price of steel sheet
metal by 21%; and the price of plastics
by 15%. Costs of raw and processed
materials are the largest single item in
the composition of the cost of home
12 GORENJE LIfE STYLE MAGAZINE
appliances. Therefore, neutralizing
their further rise is among the key
tasks for all players in the industry.
However, raw material price shocks
are not the only predicament affecting
home appliance manufacturers.
Demand in mature economies remains
low due to high unemployment (in
Europe, the rate broke the 10% mark,
with some countries peaking even
higher) and uncertainty introduced by
volatile global economic conditions,
including major problems in the public
finance of some countries.
Last year, Gorenje achieved its key
results as planned and entered the
year stronger and more stable than
at the onset of the crisis. As stressed
by Gorenje President and CEO franjo
Bobinac, "The markets are far from
being euphoric and we could say that
the battle is still being fought. we
seek to counter the detrimental trends
perceived in the markets by innovative
development and introduction of new
products and services in the existing
markets."