ࡱ> '`؎bjbjLULU 3.?.?0W B\\\r    !!!8""D^6$"##:B#B#i(i(i(5555555$7h":h5Q S.G("i(S.S.5HHB#B#P6222S.HB# B#52S.5224P h 5B#" 0Uֈ!/45f6064,:0: 5: 5i(*&2++,<i(i(i(552"i(i(i(6S.S.S.S.^^^D!D^^^! tL J tJDHHH Neven `eri, Ph. D., Ivana }ili, MBA, Stjepan Kalini, THE TESTING OF STRATEGIC MODEL OF POSITIONING OF A NEW PRODUCT FROM THE COUNTRY IN TRANSITION ON THE GLOBAL MARKET Abstract Globalization and contemporary communication standards on the global market present a particular challenge for a small enterprise of a country in transition. The possibility of continuity of growth in sale of original and competitive products account for the efforts exerted in making a strategic model of a new product positioning in the aimed niche on the global market. What are the key variables to which a small enterprise needs to pay attention in order to position itself in an acceptable niche of the global market? The problem in the practice of commercialization is also national administrative barriers. Even these barriers are indirectly imposed by international corporations by conditions that economic integrations stimulate to future members. The aim of these regulations is to weaken the potential new competition on the global market. Small enterprises are also faced with offensive aggressive strategies of prolongation of life expectancy of more inferior products of similar purpose ruled by multinational corporations through the economy of volume. Even in a situation where big corporations are not present on the national market, they effectuate their operation by political lobbying or through the chosen national firms. The development of new products for the sake of commercialization on profit-limited, national markets of the countries in transition is rarely economically justified. The development and commercialization of new products on the global scale are necessity, because of the narrowing of potential for sales on the national market. The alternative in recession is the decrease in employment and production. The authors have predicted the testing of suggested strategic model of positioning of a particular new product (home-made lasting cake- souvenir) of a small enterprise from the Republic of Croatia on the global market. It is a high quality product which has a limited number of competitors in the price class on the global market. Several market tests shows that the relation between the price and the quality of the product is especially competitive, while there is the demand. Branding system for creating a recognizable, in this case, exclusive brand, presupposes the continuity of activities and investing in the brand in order to develop it to the appropriate level when the sale of the product from the phase of introduction to the market passes to the phase of growth. The expected scientific contribution of the works consists in accepting or rejecting the basic hypothesis: Strategically model of exclusive sub segmentation of the new product of a small enterprise of a country in transition on the global market is effectively realizable on the tactical platform: logistics for providing materials, E-marketing- E-commerce Branding- Elimination of organization incongruity. Key words: logistics, E-marketing, E-commerce, Branding, Elimination of organization incongruity Introductory remarks Globalization and modern communication standards represent a constraint, but also the possibility for survival and growth of small business enterprises in transition countries. The potential continuity of sale growth of the original, national, competitive and globally recognized products will justify all marketing efforts and funds invested. Partial experience represents a research challenge, aimed to design widely applicable strategic model of new product positioning in the targeted niche in the global market. In such a scientific approach it is possible to identify and evaluate key variables on which a small company from a country in transition needs to pay special attention to be positioned in the targeted niche on the global market. Croatia is an example of a country in transition which has valuable indigenous agricultural products utilizable for the production of original, specific, food products for the global market. Taking into account the trends of those products in the context of the prices they achieve, this resource should be given more attention. As at the institutional level as on the local, especially considering the untapped potential and complexity of economic problems conditioned by recession in the recent years. The purpose of this paper is to point out this possibility for many small enterprises in the transition countries. The Republic of Croatia is a way behind in implementing the protection of indigenous species of agricultural varieties of olives, grapes, carob, ect. These, and other, indigenous species have potential for the design of new food products of recognizable national brands. The core of this problem is the lack of partial protection of indigenous crops. This is a potential platform of organic production development, which would have all the necessary prerequisites for the creation of new food products of globally recognized brand. Setting up the production of such products under national surveillance would allow, at the final, realization of the complex market prices due to high standards of product quality. This would encourage the growth of production of indigenous crops, and additional investments in agriculture. Considering that in the Republic of Croatia still does not happen, the idea of implementation branding of indigenous agricultural products through the national image of Croatia is yet absent. Only at the fall of 2010 at the initiative of the Community of olive oil mills and olive planters of Republic Croatia brand of Zlatna Oblica is protected , brand that cover 90% of the total olive growing in the Croatian coastal region. Olive oil produced from those olive varieties in the chemical composition is superior to other olive oils due to specific microclimate conditions of climate, limestone formations and the evaporation of sea water into the atmosphere. Just that olive oil, produced from the Zlatna Oblica, is the foundation of authentic and original product, homemade cakes Diocletians Wreath whose market potential was the subject of research in this paper. Product Diocletians Wreath is an example of creative marketing story about use of indigenous agricultural products in the creation of long-lasting cookies that meets the criteria of national souvenirs. That story is a marketing and branding platform for high-quality range of ecological agriculture. Finally, in this case study, through research is recognized the potential of creating an improved model of the strategic positioning of new products of small enterprises in the country in transition to the demanding global market. Explication of the research problem Preliminary research conducted in-depth interviews with company representatives of indigenous domestic cakes Diocletians Wreath pointed to inconsistencies in organizational marketing and managerial terms. Possible justification for these omissions is the fact that their core business is processing olive oil, and the idea of creating this new product was created by accident. Commercialization of this product was not preceded by any market analysis and during the product development of Diocletians Wreath, many important stages of that process were ignored. The consequence is the inability to meet the expressed demand for new product on global market. Moreover, carrying out a pre-test, for the purposes of this study, showed that customers rated the product very attractive considering the originality and the relationship between price and quality (retail price per kilogram of cake Diocletians Wreath is about $ 200). Competitive benchmarking cannot be executed, given that at the global level there cant be found indigenous products of similar price and quality (they are much more expensive.), and the proposed innovated strategic model is based partly on a generic benchmarking. Complexity of the business case and market and marketing potential is further indicated by the fact realized during the in-depth interviews with representatives of manufactures. All potential B2B customers in foreign markets that are contacted in various ways by the manufacturer, or otherwise obtain information about product, were buying the product impulsively, and they later claimed additional amounts. Unfortunately, this was often not possible due to the lack of an efficient system of procurement of required raw materials. A separate research showed lack of high quality raw materials on the local market on which the manufacturer of cake is directed. Ecologically-grown citrus, required for continued production of Diocletians Wreath at the local market supply is inadequate. On the broader Dalmatian market production of indigenous agricultural products (for this purpose) is fractionalized into many small producers. Research has found that there are no organized channels of their delivery. Recognizing the weakness identified in a particular business case we evaluated the necessity of improving the existing models of product management Diocletians Wreath to ensure conditions of growth of production and sales of the product. The basic hypothesis of the research The basic hypothesis; H0, of the research states: Considering previous business experience with new native food products, the existing model of product management cannot ensure the growth of production and sales, and existence of that product on the market is questioned. Auxiliary hypotheses are as follows: H 1: without creating innovated logistics system of high quality raw material supply, future production of indigenous food products is uncertain; H 2: E-marketing is appropriate and economically valid platform for promotion and increase of sales of new food products for small business with limited marketing budgets; H 3: E-commerce platform is an efficient distribution of new food products on global markets; H 4: Effective brand management of new food product is a precondition for achieving higher selling prices at the global marketplace; H 5: Organizational alignment and balancing of all business function of a small company by the standards of the global market is an assumption of production continuity of new food products; Research problem explication The research included testing of the existing model of a specific new product positioning, Diocletians Wreath, on the global market. The study was conducted in-depth interviews with representatives of manufacturers and with relevant random sample of previous customers, and potentional buyers of Diocletians Wreath. Potentional buyers included in the sample are the subjects that in carried-out pre-testing clearly voted affirmatively on the issue of purchase interest, no matter what their sample was not delivered, but the product is presented in story board model. Today's economic reality on the global market has obvious repercussions on the commercialization of new products of the majority of small business from the countries in transition. These companies are focused on the global market due to the limitations of national markets in transition countries. Total potential sales of new products in small national markets can rarely justify the necessary investment in the development of these products. This fact was the reason why the company that manufactures Diocletians Wreath skipped certain phases during the product development. The consequences are the negative repercussions related to the growth of manufacturing and selling of the product. Based on the identified weaknesses, improvements of the product management models have been offered. Same are a platform to create an effective commercialization strategy and positioning of new food products of small enterprises on the global market. Problems of operational nature, which were confirmed in the study, are evident. Same result in an imbalance of the business functions of a small business. For all these problems the owners of small business are in a dilemma of continuing withdrawal of the global commercialization of Diocletians Wreath. Research results The main findings of this research resulted in order to resolve dilemma which is connected to the existing operational management of the new food product: 1. The existing experience is based on the distribution system, which shows some obvious weaknesses. The former consumers expressed some skepticism, because of the discontinuity in supplying the product through the year. Inadequate effective supply chain system of the product components is the main problem of the growing sales of Diocletians Wreath, but also maintaining the customer satisfaction in despite and determining value of product for additional price. In that context it is necessary to make total logistic system which will assure continuous production of the Diocletians Wreath all year around, but also the efficient distribution of total product which is aligned with purchase inquires. 2. Modest marketing which is based on the national publicity is insufficient for effective global commercialization of new food product. In this regard E-marketing is effective communication platform for targeted segments on the global market. E-marketing allows co-branding of new product with original indigenous and specificity of its country such as indigenous ecological agricultural products components of new food product. 3. E-commerce, for the small enterprise, is acceptable as distribution model of a new food product, according to synergistically efficiency of E-marketing, and the fact that the Diocletians Wreath production is not in core business of the small enterprise. Such trading model is recommended because of many potential segments where they can become permanent customers on the global market, such as catering companies wider range, businesses for representation, the representative bodies for business gifts etc. 4. The indigenous branding of the national food product should be based on the co-branding elements that produces final product indigenous food product with ecological stamp. 5. The organizational system of the small enterprise should be improved, so all business functions must be aligned, connected, and together contributes to efficient business and core business. The recommendation for improving the management model of the new food product On what should be based improved strategic management model and the positioning of indigenous food products? Nowadays, innovative solutions, user friendly characteristics, distribution, and consolidation of recognized product and its origin country, represents imperative for efficient management model of the new product on the global market. (Aaker, 2001) However, small enterprises are fraught with the problems and barriers that occur in the commercialization of specific product in competitive environment. The corporative behavioral regulations are also present on the markets in transitional countries. A large chain store focuses on the economy of scale, and highly valued indigenous products are competitive. These products sometimes indicate unacceptable food product quality, and which are massively wanted on the market in transition. Therefore, large, financially strong companies see the problem in branding the components of such products. The linkage between corporate capital and government structures, in this proven research, is still worrisome state of corruption, which is fundamental problem on the markets of the transitional countries. Branding of the indigenous agricultural sorts and products is still just consequence of individual efforts of small producers and community produces in these markets. On the global market, multinational corporations attempt to maintain control of commercialization activities of successful products of small enterprises in transitional countries, so in that way it wont discomfit price and quality ratio, and established standards. These premises clearly illustrate the problem of global commercialization of new indigenous agricultural products of exceptional quality, which are originated from transitional countries. Administrative barriers of economical affiliations are also problems. On the example of the Republic of Croatia, this problem should be solved by joining the European Union. (eri, 2003) Small enterprises are faced with offensive and aggressive strategies that are extending lifetime with quality of inferior products with similar usage of multinational corporations who manages the economy of scale. However, new imperative for the future sales growth will be the effective strategic management model of new products on the global market.  SHAPE \* MERGEFORMAT  Figure 1: The recommendation of innovative model Source: authors, on the basis of the conducted research, spring 2011. Conclusion The global market in the spite of exceptional receptive capacity of the original new products in price and quality ratio is not assured for the efficient positioning, in acceptable niche. The main characteristics of such product which differentiated it in comparison with similar products which are distributed by the multinational companies, represents a base for designing a new management model of the product. Nowadays, the corporate regulation models are present on the partial markets in transitional countries, and may have a negative repercussion on the logistical system of the small enterprises. If the same system works as the improvisation, which is unfortunately very often in small enterprises in transitional countries, it could lead to market failure in despite of the competitive characteristics of the new product. The strategic model by exclusively sub-segmentation of the new food product of a small enterprise from a country in transition on the global market is effectively implemented on a tactical platform consisted of raw material logistic assurance for branded product, promotion based on E-marketing, distribution based on E-commerce, and feedback in order to eliminate organizational inconsistency. For the logistical system it is necessary to assure the continuum of supplying raw materials indigenous eco-agricultural products, and establish an efficient flow distribution channel of the targeted market segments in the global market. For this food product it is important to comply with criteria and conditions on the markets of the European Union and United States of America. In that case our food product could be easily traded on such markets. Partially, problem could be related to national determinants and its regulations whose are regulating distribution of food products. The attitude of the national government legislation is unadoptable to encourage the export of the Croatian products, and is obvious for the new Croatian food product. Small enterprises in transitional countries do not have sufficient funds for market budgeting, so for proper communication on target global market segments are required. Due to these facts a conservative promotional model cannot lead to success. The acceptable marketing solution is E-marketing. Originality and developing of a new efficient concept and an excellent CEO imply a successful realization of such communication system on targeted market in despite of the lower costs of such communication system. An attractive visual solutions and multimedia applications, such as E-marketing, could assure qualitative information about specifics and originality of food product. E- Marketing application which quality level is nor appropriated, could not assure success. For such inappropriate developed E-Marketing system, it makes sense to develop an E-commerce system. So, in this case the exclusive food product could be qualified as national souvenir. According to market testing of its organoleptic characteristics and its exceptional quality it incorporates and strengths the image of such product. For this product it is appropriate sub-segmentation strategy in first phase of the global commercialization. E-commerce is good solution for sub-segmentation strategy, in case of small enterprises, until it reaches a stage of rapid sales growth. In that case should be invested, parallel, in brand strengthening and in targeting exclusive distributors on the targeted national markets. For this phase it is necessary to execute and redesign total logistic system, according to specific market cognitions. The branding system, in order to create recognizable, exclusive brand of the indigenous food product, assumes activity ant its continuity and investments in such brand. So, in that way brand could be developed by the level which will assure the continuity of sales growth on the global market. Finally, the lack of organizational system that could resolve existing discrepancies and imbalances business functions of the small enterprises, according to standards of the global markets, was the pattern food product, and also matter of this research. The rejection of the system determinants, regarding to their economic justification, or unjustifiable does not resolve the problem, from the aspect of the business owner, it just prolong it. Market testing that had been conducted indicates on the justifiability of the commercialization of new food product on the global market. Delaying and aligning standards presents a potential risk of subsisted market of new food product on the global market. References Aaker, D. (2001). Strategic Market Management. 6th Ed. John Wiley & Sons, Inc. New York Aaker, D. (1991). Managing Brand Equity. The free Press. New York Chaffey, D. Mayer, R., Johnston, K., Ellis Chadwick, F. (2003). Internet Marketing Strategy, Implementation and Practice. Prentice Hall. New Jersey Peter, J.P. Donnelly, J.H. (2004). Marketing Management: Knowledge and Skills. 7th Ed. Irwin. Burr Ridge Piercy, N.F. (2002). Market-led Strategic Change: A Guide To Transforming the Process of Going To Market. 3rd Ed. Butterworth-Heinemann. Oxford `eri, N. (2003). Importance of remodeling of marketing strategies for the market in the countries in transition. 5th International Conference Enterprise in transition. Ekonomski fakultet Split. 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Matice hrvatske 31, 21 000 Split, HYPERLINK "mailto:nevseric@inet.hr" nevseric@inet.hr  Senior Lecturer, College of ibenik, Trg Andrije Hebranga 11, 22 000 ibenik , HYPERLINK "mailto:ivana082@yahoo.com" ivana082@yahoo.com  Student on Faculty of Economy;Matice hrvatske 31, 21 000 Split,  HYPERLINK "mailto:stjepan.kalinic@gmail.com" stjepan.kalinic@gmail.com     Logistic system Continuity of assuring raw materials Global distribution of the final product The system balancing of companies with business functions Branding the new autochthon food product Multimedia web Co - Branding through autochthon agricultural products raw materials E - Commerce E - Marketing Uefghiߌ:;iʽsbZK;hvhv>*CJOJQJaJhvhvCJOJQJaJhvCJaJ!jhvhv0JCJUaJ1hvhv0JB*CJOJQJaJmH phsH -jhvhvCJOJQJUaJmH sH $hvhvCJOJQJaJmH sH  hvhvjhvhv0JUhvhvCJaJ(jhvhv>*CJOJQJUaJ)hvhv0JB*CJOJQJaJphijk͍̍345^_noŎƎǎՎ֎׎Ӿӳyyqyyyqyqymh h9CJaJh9h9CJaJmH sH hh9h9CJaJmH sH h9CJaJhjhUhvhOhvCJaJ)hvhv0JB*CJOJQJaJph(jhvhv>*CJOJQJUaJ.jWhvhv>*CJOJQJUaJ%͍̍345^_no$a$gd9 $da$gd9 dgdOŎƎǎՎ֎׎؎$d1$7$8$H$a$gd9gd9 dgd9 ׎؎$h9haCJOJQJaJmH sH 10:pa/ =!"#$% Dd(#D  3 @@"?DyK nevseric@inet.hryK 0mailto:nevseric@inet.hrDyK stjepan.kalinic@gmail.comyK Bmailto:stjepan.kalinic@gmail.com666666666vvvvvvvvv666666>666666666666666666666666666666666666666666666666hH666666666666666666666666666666666666666666666666666666666666666666J@J aNormal dCJ_HaJmHsHtHDA@D Default Paragraph FontRiR 0 Table Normal4 l4a (k( 0No List Z@Z 90 Balloon Text dCJOJQJaJmHsHtHBB 90 Char Char4CJOJQJ^JaJ@O@ 0 List Paragraph ^m$6U@!6  Hyperlink >*B*ph<+2< O0 Endnote TextCJaJ.A. 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