Measures for Performance Improvements

Gorenje has faced four basic problems that arise partly from the characteristics of the business environment and the line of business of their basic operation, namely the production and sale of home appliances and partly from their process structure: (1) low profitability, (2) poor management of net working capital, (3) unforeseeable movements in free cash flow and (4) relatively high levels of indebtedness.

The response to these problems can be directly summarised from the key strategic objectives of the Gorenje Group whose achievement is in scope of groups of measures in the field of

• an increase in the volume of business activities and changes in their structure (geographic and product/service),
• strengthening of capability of generating value,
• strengthening of financial resistance and
• implementation of the strategic plan with functional strategies.