Case Analysis Pan Europa

Topics: Stock, Stock market, Internal rate of return Pages: 4 (928 words) Published: August 28, 2013
Case Study


C. Opitz and R.F. Bruner


Your Name

Table of Contents







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 to static sale, which is due to low population growth in Northern Europe. The company is also losing money due to market saturation in some areas of Europe. The board of directors are now considering 11 new projects with a budget of ECU80 million. Funds need to be allocated amongst a range of compelling projects; projects proposed include new product introduction, acquisition, market expansions, efficiency, improvements, preventive maintenance, safety and pollution control. The problem that the company is having is beginning to affect the company’s stock which is now priced below the average multiples of peer companies and the average multiple of all companies on the exchanges where Pan Europa traded. The decision for the new projects needs to be made in a timely manner by the board of directors so that Pan Europa can begin to regain its strength in the marketplace.

Data Analysis:

The problems that Pan Europa is facing arouse, according to the case study, because of its inability to produce new product and also because of static sale due to low population in its area, and because of market saturation. The company is also facing delivery of goods problem, not enough presence in some part of Europe, inadequate plant...
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