Case Analysis Pan Europa Essay - 943 Words

Case Study PAN EUROPA FOODS S.A C. Opitz and R.F. Bruner By Your Name Table of Contents 1. 2. 3. 4. 5. 6. Executive Summary: The report is to provide the shareholders with the firm’s capital budget for the new year, 1993. 11 projects will be examined and discussed. Projects will be chosen based on the most needed and urgent projects and based on budget. Exhibit3 of the case analysis provides the free cash flow and analysis of the proposed projects. Problem Statement: The problem with Pan Europa Foods, according to the case, is that the company is beginning to lose market share due†¦show more content†¦Analysis of the data provided shows that 3 years of financial results were provided which included the Gross sales, net income, earnings per share, total assets, shareholder’s equity (both book and market values) and dividends. Alternatives Analysis: The decision as to what project to fund should be one that will benefit the company. I would suggest that the company needs to consider the projects that will benefit its employees as well as the general public that they serve. I will also suggest that new products should be designed and the possibility of new plants should be considered so that the company can start regaining some of its lost market share. Key Decision Criteria: The decisions that the shareholders will be making should be the one that will improve the company’s efficiency thereby decreasing cost and increasing revenue. The decisions should also increase the company’s sales, increase its market share, and increase its return on investment. Pan Europa should also consider projects that will improve its employees’ morale, minimize negative environmental impact, reduce pollution, improve its corporate image and maintain customer satisfaction. Recommendations Replacement and expansion of Truck fleet: This project will improveShow MoreRelatedPan-Europa Foods Case Analysis1071 Words   |  5 PagesPan-Europa Foods Case Analysis Executive Summary Pan Europa foods is a European producer of yogurt, ice cream, bottled water, and fruit juice. With stagnant gross sales and decreasing stock value, the company needs to increase its net income and increase confidence in its shareholders to avoid a takeover. With this in mind, the company decides to allocate $80 million Euros out of its $656 million asset base to capital spending in investment projects. There are currently 11 proposals on theRead MorePan Europa Case Analysis1479 Words   |  6 Pages1. Using the company s cost of capital, the  net present value (NPV)  is the sum of the discounted cash flows minus the original investment.  One of the major problems with Pan-Europa is their existing low stock price. In order to increase their value, they must take up projects that increase their stock values, including those that would allow them to increase gross sales that have been stagnant over the years. The values presented in Exhibit 3 allow us to compare these projects based on various factorsRead MorePan Europa s Main Issues1602 Words   |  7 PagesII. Issue Identification Pan-Europa’s main issues can be divided into three parts, the first and most important being their financial struggle. Due to a recent price war, Pan-Europa’s profitability has suffered greatly. Their debt-equity ratio of 1.25 and price to earnings ratio of 8 times has resulted in a below average stock price. Currently, their stock is being traded below book value and well below its competition. This can have a disastrous effect on the company as many major security brokersRead MorePan Europa2191 Words   |  9 PagesPan Europa Foods S.A.* Autum Black Alan shaw Matt dawn Purdue University Introduction to Project Management Dr. Peter desouza Executive Summary Case Diagnosis Pan Europa management heavily relied on debt financing to sustain firms capital spending dividends. Their share values in the market were low and not competitive. Moreover the shareholders lost confidence in the company’s performance resulting in decreased share value and low profitability. The company is struggling in itsRead MoreProject Management Pan Europa Foods Case Study2063 Words   |  9 Pagesï » ¿Case Study PAN EUROPA FOODS S.A C. Opitz and R.F. Bruner Table of Contents 1. Executive Summary 2. Problem Statement 3. Data Analysis 4. Alternative Analysis 5. Key Decisions Criteria 6. Recommendation 7. Action Implementation Plan Executive Summary: The report summarizes Pan-Euorpa Food’s capital resource allocation budget for 1993 to present to stockholders. The board has presented 11 projects providing different needs and opportunities to grow the business. ExhibitRead MoreProject Portfolio Selection - Case Study1809 Words   |  8 PagesStrategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? What rows/categories in Exhibit 2 will become critically important in 1993? What should Pan-Europa do now that they have won the price war? Who should lead the way for Pan-Europa? Pan-Europa’s ball and chain is its debt. With a debt-to-equity ratio of 125%, the company is leveraged more than its competitors. Pan-Europa’s bankers have become unwilling to provide additional credit, which is unfavorable ifRead MoreEu Integration Theories-Neofunctionalism3441 Words   |  14 Pageslearned to do routine business with each other every day. A problem which they experienced was a common problem. †¦ first comes the traumatic lesson, then comes the institution for learning to deal with each other† (Haas, 2000: 16 in Risse, 2004:1). The case of European Coal and Steel Community (ECSC) was the example that Haas took to exemplify this cooperation to integration process. The ECSC was the first organisation based on supranational integration, with the states that composed them pooling a wholeRead MoreProject Management Project2025 Words   |  9 Pagesthe materials and to facilitate discussion during the lecture. This will help students to interact with the lecturer on other matters related to the subject before and after the lecture. The sessions for presentations and discussions comprise company case studies as well as answering some theoretical and conceptual questions, which help the students to see how the concepts are applied in reality. 3. COURSE AIMS AND OUTCOMES 3.1 Course Aims The aim of this course is to provide the students withRead MoreThe roles of the main EU institutions (Council, Commission and Parliament) in the management of the continuing/financial crisis6725 Words   |  27 Pagesrepresents governments, the European Parliament which represents citizens and the European Commission (EC) which represents the European interest (Europa, 2012a). Essentially, the Council, Parliament or another party place a request for legislation to the Commission. The Commission then drafts this and presents it to the Parliament and Council, where in most cases both must give their assent. Although the exact nature of this depends upon the legislative procedure in use, once it is approved and signedRead MoreMcdonalds Strategic Audit6196 Words   |  25 Pagesin support of child welfare. 1989 McDonald s is listed on the Frankfurt, Munich, Paris and Tokyo stock exchanges. 1990 McDonald s opens in Pushkin Square and Gorky Street, Moscow. 1993 The first McDonald s at sea opens aboard the Silja Europa, the world s largest ferry sailing between Stockholm and Helsinki. 1994 Restaurants open in Bahrain, Bulgaria, Egypt, Kuwait, Latvia, Oman, New Caledonia, Trinidad and United Arab Emirates, bringing the opens in Philadelphia. The Happy Meal is