Pan Europa
Pan 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 its objectives to diversify in its products and expand within and geographically.
Case Analysis
Question 1)
Strategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? What rows/categories in Exhibit 2 will thus 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?
Analysis-
Pan Europa must be able to retain its current shareholders satisfied with the company’s achievements. The company must prove that they are aggressive in their strategy and approach. This can be achieved through a) Product Expansion. b) Efficiency Improvements. c) Modest Market Expansion.
By doing so the shareholders would be able to retain their shares and can thereby increase the market value.
We feel that Wilhelmina Verdin would be the best candidate to lead the company. Ms. Verdin has expertise in brand management and marketing. He has escalated the company’s success by introducing low-fat yoghurt and ice-cream.
Question 2
Using NPV, conduct a straight financial analysis of the investment alternatives and rank the projects. Which NPV of the three should be used? Why? Suggest a way to evaluate the effluent project?
Analysis)
In order to rank the projects based on NPV calculations, the preferred metric will be the NPV at minimum Rate of Return. A sliding scale of Internal Rate of Return (IRR) that understands the differences in risk associated with various
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 its objectives to diversify in its products and expand within and geographically.
Case Analysis
Question 1)
Strategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? What rows/categories in Exhibit 2 will thus 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?
Analysis-
Pan Europa must be able to retain its current shareholders satisfied with the company’s achievements. The company must prove that they are aggressive in their strategy and approach. This can be achieved through a) Product Expansion. b) Efficiency Improvements. c) Modest Market Expansion.
By doing so the shareholders would be able to retain their shares and can thereby increase the market value.
We feel that Wilhelmina Verdin would be the best candidate to lead the company. Ms. Verdin has expertise in brand management and marketing. He has escalated the company’s success by introducing low-fat yoghurt and ice-cream.
Question 2
Using NPV, conduct a straight financial analysis of the investment alternatives and rank the projects. Which NPV of the three should be used? Why? Suggest a way to evaluate the effluent project?
Analysis)
In order to rank the projects based on NPV calculations, the preferred metric will be the NPV at minimum Rate of Return. A sliding scale of Internal Rate of Return (IRR) that understands the differences in risk associated with various