Orodjarstvo Gorjak d.o.o.

Abroad, family businesses are appreciated more than here in Slovenia

The origins of the company date back to 1980, when Franjo Gorjak and his father, who among other things worked as an entrepreneur in Germany, founded the first Gorjak family-run business after his father’s repatriation. At that time, they printed brand names on items such as sunglasses and pencils and were present across the market of the entire former Yugoslavia. In 1989, they switched to plastic injection moulding and  manufacture of tools. Subsequent years proved turbulent and they began to look for other opportunities, focusing primarily on exports to what was then West Germany. Marko, Deputy Director, in charge of sales, thinks family values are cherished more abroad than here in Slovenia. “In foreign countries they know that the family stands to lose the most if things go wrong, so they place more confidence and trust in a family business. This very fact has earned us a number of business deals.” They offer complete solutions to their customers, from an initial 3D model to the final manufactured product, which allows for shorter delivery times and greater flexibility. This has helped the company develop into a successful Slovenian exporter.

Raised in a workshop

The Gorjak brothers agree that their decision to work in the family-run business was completely of their own will. “It’s simple, really. We used to walk through the workshop, discovering for ourselves what it is all about, we grew up with the company and lived with it, but we were never forced to remain in the family business. Who knows where our professional  careers might have led us had we decided otherwise..., but we decided to stay to live the family story and to take it forward into the future.” They feel a sense of great responsibility to the company and sometime in the future they want to transfer it into the hands of future generations. “We were born into the workshop when there were only five employees; now there are 65. The family business is growing and I see no reason to leave. Quite the opposite, I intend to work for the benefit of the company, as will my brother and the whole family, even though this may at times result in certain conflicts. Ultimately, it is the family business that is the most important,” adds Miha, Head of production and son of the Company Founder Franjo Gorjak.

Father Franjo adds that it has always been his secret wish that one day he might transfer the business to his sons and he was happy and proud when they both decided to devote their education and career to the company. “You cannot force someone to take on a family business, and to sell it, after all the hard work and effort we put in, seemed pointless.” 

Currently, Franjo owns a 100% stake in the company and is not planning his retirement. He intends to stand alongside his sons, providing them support for as long as possible and the transfer of ownership will be gradual. He and his wife Aida like to joke that despite the fact that Franjo is eight years her senior, they will both retire at the same time. Being  together at home and in the family business is not easy as it creates conflicts; however, over time they have both learned how to overcome them. The company is a way of life for the entire family. Yes, they bring their work home but a family business also brings many advantages, such as having the freedom to schedule working hours to suit everyone.

The surname is not a prerequisite for success

Although theirs is a family business, knowledge is their priority. The family members have complete confidence and trust in the heads of design and production, both of whom have worked in the business for 25 years. The same is true for the Quality Manager, whose high level of professionalism and career advancement in Orodjarstvo Gorjak show that the latter is not conditional on a family connection. “My brother and I believe it is  necessary to demonstrate to other employees that we have the relevant expertise and knowledge and that not everything was given to us on a plate just because we are members of the Gorjak family.” Asserts Marko, adding that they both continue to invest most of their time and energy in the business. 

The whole family is involved in the recruitment process, although human resources are mostly managed by Franjo’s wife Aida, who has a remarkable instinct for personnel matters. The family Gorjak doors are always open to their employees: everyone is welcome to make suggestions, ask for advice on how to solve a potential issue, or just to have a chat. This principle was introduced by Franjo, who has always been present in the workshop. He has instilled in his sons a business culture which supports teamwork. They both believe that the bottom line is completely irrelevant if you fail to establish good and trusting relationships. While business meetings are held regularly, they are seldom attended by all members of the family and the management. Often decisions are adopted while enjoying a cup of morning coffee, whilst “serious” matters are resolved at lunches held outside the company premises. The rewards system is also based on trust, and decisions are, with rare exceptions, completely left to the heads of  individual departments, who also take into account employees’ comments. As Marko asserts, the entire Gorjak family believes that trust is “one of the most important values, because a company can grow and reach new dimensions only if it is based on solid foundations.”

They were noticed by BMW

It was at the end of 2014 when the letter arrived. Whilst it was no surprise to them, as they were not short of customers, after reading it, they looked at each other in silence. They had been approached by BMW, requesting a brief company presentation. They gathered some material and sent it to BMW, without really expecting a response. Six months passed with no reply until one day, out of the blue, the representatives of the automotive  giant literally appeared at the doors of their production facility. The Gorjak family showed them around and soon afterwards, enquiries followed from Germany. Delivery terms for the casting trimming tool were extremely tight, but the company from Rače was up for the challenge. They put their heads together, worked day and night and finally reaped great success. BMW was very pleased with the product and today, they have 10 smaller projects for BMW, with enquiries about an additional four.

Perhaps BMW put trust in the company due to their continuous efforts for improvement and progress. Each year they add three or four new machines to their existing range. Last year’s investment of one million euros in a new production hall has ensured that they keep in step with the global  competition.In 2015, Orodjarstvo Gorjak recorded €3.9 million in sales revenues, up more than 20% on the previous year. This year, they expect over €4.3 million revenue and an even greater investment is planned in the future. This will  enable them to attract larger clients and deepen existing relationships, ensuring a sharp rise in profits. Profits are not distributed; instead, they are invested in the development of the company. Marko perceives lack of human resources as one of the major challenges for the future: “There is a shortage of good professional staff, especially with skills that we desperately need. Thus, we are constantly educating students and pupils, as this is the only way to teach and develop new personnel. Throughout the year we publish job vacancies, and we have noticed an appalling labor shortage, which is the greatest challenge for further expansion of the company.”

Along with highly-skilled and professional staff, dedication and support to customers are most important in a family business. Their aim is to remain an environmentally-friendly company that takes care of its employees and is an example to society. “We are not driven by megalomania, striving to achieve enormous profits so we can live in a grand style; our aim is to give something back to the environment we live and work in, so that together we can grow and move forward into the future.”