Project Management a Managerial Approach Pan Europa Case
Pan-Europa Case Study
Q1:
In order to avoid a potential hostile takeover, Pan-Europa must keep current shareholders satisfied with company performance. The company must prove it is competitive and able to meet the short-term and long-term demands of the consumer through innovative product expansions, efficiency improvements, and modest market expansions. By doing so, the shareholders will retain their shares and not make them available to raiders like Carlo de Bendetti or the Flick brothers.
Earnings per share, dividends, and shareholders’ equity (market value) will, therefore, become critically important in 1993. Earnings per share refers to the portion of a company's profit allocated to each outstanding share of common stock and serves as an indicator of a company's profitability. Dividends refer to the share of a company's profits passed on to the shareholders on a periodic basis. Dividends have been consistent in recent years and maintaining or increasing these payments is an indication of confidence in the future of the company. Lastly, shareholder’s equity (market value) refers to the total dollar market value of the amount by which a company is financed through common and preferred shares. When market confidence in a company remains strong and stock prices remain high, there is a decreased likelihood of an outside investor accumulating stock at low prices (for a potential hostile takeover).
Beyond just financial considerations, there are also strategic decisions that the company must make. Whereas ranking projects based solely on the IRR and NPV sets a short term course, a long term strategy must be considered. The company must decide if it wants to claim the strong hold won in the recent price wars through continued low prices and volume or if they would like to diversify further and capture unchartered markets. Rather than launching a group of disparate projects set for pure monetary growth, the company should be aware that an overall
Q1:
In order to avoid a potential hostile takeover, Pan-Europa must keep current shareholders satisfied with company performance. The company must prove it is competitive and able to meet the short-term and long-term demands of the consumer through innovative product expansions, efficiency improvements, and modest market expansions. By doing so, the shareholders will retain their shares and not make them available to raiders like Carlo de Bendetti or the Flick brothers.
Earnings per share, dividends, and shareholders’ equity (market value) will, therefore, become critically important in 1993. Earnings per share refers to the portion of a company's profit allocated to each outstanding share of common stock and serves as an indicator of a company's profitability. Dividends refer to the share of a company's profits passed on to the shareholders on a periodic basis. Dividends have been consistent in recent years and maintaining or increasing these payments is an indication of confidence in the future of the company. Lastly, shareholder’s equity (market value) refers to the total dollar market value of the amount by which a company is financed through common and preferred shares. When market confidence in a company remains strong and stock prices remain high, there is a decreased likelihood of an outside investor accumulating stock at low prices (for a potential hostile takeover).
Beyond just financial considerations, there are also strategic decisions that the company must make. Whereas ranking projects based solely on the IRR and NPV sets a short term course, a long term strategy must be considered. The company must decide if it wants to claim the strong hold won in the recent price wars through continued low prices and volume or if they would like to diversify further and capture unchartered markets. Rather than launching a group of disparate projects set for pure monetary growth, the company should be aware that an overall