CRO TNTTHE FUTURE OF WORK“MALCOLM IN THE MIDDLE”

•Eastern Europe Countries (Croatia)

•Team leader: Domagoj Vukojević

•Team members: Domagoj Vugrin, Iva Zorić

•Country: Croatia

• School: University of Zagreb, Faculty of Economics & Business

ADVANTAGES

DISADVANTAGES

• Highly capable intellectual capital

• Natural potentials

• Strategic location

• ICT infrastructure

• Cheap labour

• Low turnover

•Underdeveloped infrastructure

•An incomplete transition from central planning -has led to an insufficiently integrated economy and disparities in wealth distribution, geographically and demographically

•Corruption

•Unefficient bureaucracy

• Lack of transparency & regulation

•Low production efficiency

•Weak judicial and law system

SOURCES:

http://www.buyusainfo.net/body2.cfm?srow1=25&id=0&dbf=ccg1&secondline=1&fontsize1=2&fontsize2=1&fontface=1&logic=and&loadnav=no&a

var=19919;https://www.cia.gov/library/publications/the-world-factbook/geos/lh.html; http://iab.worldbank.org/;http://www.liaa.gov.lv/invest-

latvia/competitive-advantages/skilled-and-motivated-workforce; http://www.investlithuania.com/en/why-invest/talent-pool

Characteristics of Eastern Europe

Agriculture

-spare land is plentiful in parts of Eastern Europe and Russia, and the scope for increasing productivity by reducing losses and raising yields is high

Renewable energy technologies

-expansion of EU to the Eastern European countries, will require from a new members affirmation of a “Green paper”

IT industry

-estimated average growth per year of IT industry in Eastern Europe is 6,8%

SOURCES:http://www.fao.org/docrep/004/y3557e/y3557e08.htm;

http://ec.europa.eu/energy/strategies/2006/2006_03_green_paper_energy_en.htm; Buchan David: EE energy challenge: meeting its EU

climate commitments; http://www.poslovni.hr/tehnologija/idc-u-2013-ocekuje-rast-it-trzista-24-posto-a-u-2014-godini-od-85-posto-220715

Plan is to increase the

share of renewable

energy to 20% and to

make a 20%

improvement in energy

efficiency till 2020.

Western perception

Interviews with our international colleagues (Finland, Sweden, Germany, France) gave us some frame to judge their perception of Eastern Europe. Some of our findings are:

Corruption is moderate

Labor force is less skilled than Western

They expect cheap products

Macrostability is dependant on EU stability

Average problems with bureacracy are expected

Conclusion from interviews

Eastern Europe has poor perception

Well known fact is that consumers rely heavily on emotions and perception

Because all of that our opinion is that Eastern Europe countriesshould shift their focus from producing consumer goods to producing intermediate products

IT industry in Croatia

SOURCE: http://globalindex11.bsa.org/country-table/; http://www.moj-posao.net/Vijest/71274/Hrvatskoj-nedostaje-kvalitetnih-ICT-strucnjaka/2/;

http://www.datapult.info/en/content/quality-math-and-science-education-wef-globalcompetitivenessreport-2010-11;

http://www.nacional.hr/clanak/107354/ict-industrija-hrvatska-biljezi-izuzetne-rezultate-ali-mogla-bi-i-puno-bolje;

http://www.profitiraj.hr/edukacija/it-kompanije-zaposljavati-ce-preko-32000-hrvata-do-2013-godine/

Croatia ranks 40th

in the latest IT

Industry

Competitiveness

index

Highly educated human

resources

Estimated growth of

IT industry in future

years in Croatia will

be around 8.5% per

year

39 000

workers in IT

sector

Development of Croatian IT sector

is enhanced by introduction of

Investment initiation and investment

surroundings improvement Law

56% of IT companies

in Croatia will

continue to hire

experts in this field

Future growth

Quality of math

and science

education (WEF

Global

Competitivenes

s Report)-grade

5 out of 7

leaving behind

countries like

GER, USA, RUS,

GBR and

beating all EE

countries

Organizational structure

• Shallow and flexible

• Decentralization with centralized control allows development of IT

• Shorter chains of command

Size

• Small enterprises

• Medium enterprises

Ownership structure

• General Partnership

• Limited Partnership

• Limited Liability Company

SOURCE:Drucker, P. F.: Management challenges for the 21st century, Butterworth-Heinemann, Oxford,1999.; Sikavica, P.,

Bahtijarević-Šiber, F., Pološki Vokić, N.: Temelji menadžmenta, Školska knjiga, Zagreb, 2008.

SECTORS IN THE COMPANY THAT WILL BE MOST IMPORTANT

R&D

IT

Controlling

It will help to ensure that objectives and

accomplishments are consistent with one another throughout an organization.It leads to preventing

unnecessary costs

The task of product

research and development

will be to come up with

the goods and services

that meet the needs of

tomorrow's customers

Goal: maximize

productivity as well as

profit

TIMELINE

“MALCOLM IN THE MIDDLE”

We say, REFOCUSING!!... Eastern Europe should produce more complex products than Far East and more cheaper products than West.

"An investment in knowledge pays the best interest." - Benjamin Franklin