Pan europa foods case study answers

Once you have reviewed Pan-Europa Case Study, prepare a minimum of 600 words in length defending your response to the following questions:

Strategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? What should Pan-Europa do now that they have won the price war? Who should lead the way for Pan-Europa?
Using net present value (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.
What aspects of the projects might invalidate the ranking you just derived? How should we correct for each investments time, value of money, unequal lifetimes, riskiness, and size? Lastly, reflect on the assignment and come up with a view on the screens and criteria to be used for the project selection process. Apply the criteria and make a project selection.
Case Study must be be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA 6th Ed. format.PAN-EUROPA FOODS S.A. C. Opitz and R. F. Bruner - Darden Business School In early January 1993, the senior-management committee of Pan-Europa Foods was to meet to draw up the firm’s capital budget for the new year. Up for consideration were 11 major projects that totaled over 208 million euros (EUR). Unfortunately, the board of directors had imposed a spending limit of only 80 million; even so, investment at that rate would represent a major increase in the firm’s asset base of EUR 656 million. Thus the challenge for the senior managers of Pan-Europa was to allocate funds among a range of compelling projects: new product introduction, acquisition, market expansion, efficiency improvements, preventive maintenance, safety, and pollution control. The Company Pan-Europa Foods, headquartered in Brussels, Belgium, was a multinational producer of high-quality ice cream, yogurt, bottled water, and fruit juices. Its products were sold throughout Scandinavia, Britain, Belgium, the Netherlands, Luxembourg, western Germany, and northern France. (See Exhibit 1 for a map of the company’s marketing region.) The company was founded in 1924 by Theo Verdin, a Belgian farmer, as an offshoot of his dairy business. Through keen attention to product development, and shrewd marketing, the business grew steadily over the years. The company went public in 1979 and by 1993 was listed for trading on the London, Frankfurt, and Brussels exchanges. In 1992, Pan-Europa had sales of almost EUR 1.1 billion. Ice cream accounted for 60 percent of the company’s revenues; yogurt, which was introduced in 1982, contributed about 20 percent. The remaining 20 percent of sales was divided equally between bottled water and fruit juices. Pan-Europa’s flagship brand name was “Rolly,” which was represented by a fat, dancing bear in farmers’ clothing. Ice cream, the company’s leading product, had a loyal base of customers who sought out its high butterfat content, large chunks of chocolate, fruit, nuts, and wide range of original flavors. Pan-Europa sales had been static since 1990 (see Exhibit 2), which management attributed to low population growth in northern Europe and market saturation in some areas. Outside observers, however, faulted recent failures in new product introductions. Most members of management wanted to expand the company’s The Company revenues; yogurt, which was introduced in 1982, conPan-Europa Foods, headquartered in Brussels, Belgium, tributed about 20 percent. The remaining 20 percent of was a multinational producer of high-quality ice cream, sales was divided equally between bottled water and yogurt, bottled water, and fruit juices. Its products were fruit juices. Pan-Europa’s flagship brand name was sold throughout Scandinavia, Britain, Belgium, the “Rolly,” which was represented by a fat, dancing bear Netherlands, Luxembourg, western Germany, and northin farmers’ clothing. Ice cream, the company’s leading ern France.