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Pan Europa

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Pan Europa
Answer 1: In order to avoid takeover Pan-Europa should develop and maintain faith and loyalty of their customers towards products. Company should also satisfy its stakeholders by expansion and improvement in their market and product. At given time EPS and Shareholders’ Equity plays a vital role. Company should increase its market share by same “low price and high volume” and expand its production for more efficiency. Maarten Leyden from Production should be leading the way for Pan-Europa.
Answer 3: Part 1 of the question relates to Question 2
Various study techniques can be used for correction of different factors that affect project. The investment’s time value of money and unequal lifetime can be corrected by using net present value method (NPV). Risk can be reduced by “Optimization” that is finding good balance between advantages and negative risk.
Answer 4:
• “Must Do” project according to me are Project 3 Expansion of a plant & Project 6 Effluent water treatment at four plants. Company southeastern region plant in Germany had reached full its full capacity. With the expansion capacity was expected to result in additional production of up to €1.5 million per year, yielding an IRR of 11.2%. Water treatment is regulatory requirement and it’s just matter of time before it has to be done. It might cost company 2.5 times more in coming 4 years than today.
• Higher risk projects include Development and introduction of new artificially sweetened yogurt and ice cream and Development and roll-out of snack foods. Customers has tendency like monkey and can easily jump from one branch to another and customer just easily switch to another product. Lower risk project is Replacement and expansion of the truck fleet.
• Combined effort between new plant and expansion of plant alongside with market expansion would be beneficial to the company.
• Effluent water treatment has nonquantitative benefit because it is environmental compliance.
Answer 5: The most desirable

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