Pan Europa’s Case Study Question 1: Given the current climate of Pan Europa’s corporation‚ the company must seek out invest opportunities to grow the company’s capital and revenue. For the past three years the net income has been tracking at a $2M-$12M loss. Fiscally Pan Europa’s financial decline has been in large of failure to brand and invest in a competitive market. Pan Europa’s future of remaining a viable business depends of taking on strategic projects that would restore strength in the company
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Case Study PAN EUROPA FOODS S.A C. Opitz and R.F. Bruner Table of Contents 1. Executive Summary 2. Problem Statement 3. Data Analysis 4. Alternative Analysis 5. Key Decisions Criteria 6. Recommendation 7. Action & Implementation Plan Executive Summary: The report summarizes Pan-Euorpa Food’s capital resource allocation budget for 1993 to present to stockholders. The board has presented 11 projects providing different needs and opportunities to grow the business. Exhibit
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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
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Case Study 1 – Pan Europa Foods S.A. 1. Pan Europa Foods S.A. needs to increase their market value. Rows 2‚ Net income‚ 3‚ Earnings per share‚ and 6‚ Shareholders equity (market value). Pan-Europa needs to evaluate the proposed projects and select a subset that best ties into the organizations goals and objectives. In order to accomplish this‚ upper management at Pan Europa must first develop a list of the company’s objectives which should be weighted according to their contribution in accomplishing
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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
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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? 2. Using NPV‚ conduct a straight fi nancial analysis of the investment alternatives and rank the projects. Which NPV of the three should be used? Why? Suggest a way to evaluate the effl uent project. 3. What aspects
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Case Study PAN EUROPA FOODS S.A C. Opitz and R.F. Bruner By Your Name Table of Contents 1. 2. 3. 4. 5. 6. 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
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1. Using the company ’s cost of capital‚ the net present value (NPV) is the sum of the discounted cash flows minus the original investment. One of the major problems with Pan-Europa is their existing low stock price. In order to increase their value‚ they must take up projects that increase their stock values‚ including those that would allow them to increase gross sales that have been stagnant over the years. The values presented in Exhibit 3 allow us to compare these projects based on various factors
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Pan Europa Foods * Question 1 * a. Strategically‚ what must Pan-Europa do to keep from becoming the victim of a hostile takeover? Answer: Pan Europa should not decrease the dividends of the shareholders to not devalue the stock price of the company. Instead should just decrease capital spending as what they board of directors have decided. In short‚ they should adopt strategies that should increase stock price not push it down to discourage buyout. b. What rows categories in Exhibit 2
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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.
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