...Question 1: Pan-Europa must strengthen the right hand side of the balance sheet now that the price war is over. Summary of the financial figures in Table Exhibit 2 show that the gross sales are almost stagnant over the 3-year period, earnings per share have steadily declined during the same time period, and the market value of shareholder’s equity is at the moment lower than its actual book value. Furthermore, the net income is also down over this 3-year period, and this is where Pan-Europa needs to focus its efforts (capital projects should assist in this effort). Earnings per share, dividends, and shareholders’ equity all fuelled by increase in net income will become critically important to the company and its shareholders in this coming year. Increase in net income would in turn strengthen the shareholders’ equity, earnings per share and dividends, and this would discourage buying shares by those considering a hostile takeover. Trudi Lauf as a proponent of reducing leverage on the balance sheet and understanding the shareholders anxiety should lead the way of Pan-Europa. ___________________________________________________________________________ Question 2: There are three NPV – NPV at Corp WACC (10,5%), NPV at minimum ROR and equivalent annuity. Ranking all projects against each of this category provides slightly different results. However, I used NPV at Corp WACC (10,5%) as this includes the most recent estimated weighted-average cost of capital for Pan-Europa. The results...
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...| Pan-Europa Foods Corporate Strategy Analysis Prathibha Vemulapalli Cleary University 1. Pan-Europa should not cut the dividends as it might signal a lack of faith in future to its investors and shareholders. Selling new stocks at the current low price to raise the capital is also a bad idea that can potentially put the shareholders in dilemma. They must improve the performance to make the investors come forward to invest in the business. They should concentrate in decreasing the capital spending and increasing the stock price and should decrease their debt by avoiding over spending. They should not increase their assets by debt financing as their debt –to-equity ratio is extremely high after the price war thus making them highly leveraged. Fabienne Morin and Nigel Humbolt should be leading these strategic improvement projects since they encouraged growth and increased market share. 2. While we have three different ways to calculate NPV from the exhibit, NPV at the minimum accepted Rate of Return includes a risk premium so it stays constant even with varying project durations. WACC on the other hand has difficulties in maintaining the capital structure therefore Equivalent Annuity should be used in this case. The order of the projects would be 1. Strategic Acquisition 2. Eastward Expansion 3. Snack Foods 4. Southward Expansion 5. Inventory Control System 6. Artificial Sweeteners 7. New Plant 8. Expanded Plant 9. Automation and Conveyor System 10...
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...Pan-Europa Foods Case Analysis Executive Summary Pan Europa foods is a European producer of yogurt, ice cream, bottled water, and fruit juice. With stagnant gross sales and decreasing stock value, the company needs to increase its net income and increase confidence in its shareholders to avoid a takeover. With this in mind, the company decides to allocate $80 million Euros out of its $656 million asset base to capital spending in investment projects. There are currently 11 proposals on the table totaling $208 million from which the Senior Management Committee must choose from. Currently the company has two financial measures to determine if projects are economically sufficient for the firm, minimum acceptable IRR and maximum acceptable payback years. Considering these and other non-quantitative tools, the management committee will decide between these 11 projects proposed by various upper level managers within the firm. 1.) Strategically, in order for Pan Europa foods to not become victim of a hostile takeover, it must take steps to increase their stock price. In order to do so, they have to focus on becoming more profitable, which would mean increasing their sales and gaining more market share. Critically Important Categories in Exhibit 2: * Net Income * Earnings per Share * Market Value of Shareholder’s Equity After winning the price war, Pan Europa foods made serious gains in their market share. After doing so, it should now be time...
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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 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? Pan-Europa’s ball and chain is its debt. With a debt-to-equity ratio of 125%, the company is leveraged more than its competitors. Pan-Europa’s bankers have become unwilling to provide additional credit, which is unfavorable if conditions call for the purchase of a large block of common stock to prevent a hostile takeover. As a preventative measure, Pan-Europa must bolster shareholder confidence by continuing to pay the dividend and driving up earnings, which should drive stock price up. Showing annual revenue growth through wise capital investment is crucial in 1993. Exhibit 2 below shows the company’s flat trend in gross sales, declining net income and earnings per share. Clearly these are signs of an overleveraged organization. Investment firms are already recommending selling Pan-Europa stock, driving the market price down. Fiscal Year Ending December 31 | | 1990 | 1991 | 1992 | Gross sales | 1,076 | 1,072 | 1,074 | Net income | 51 | 49 | 37 | Earnings per share | 0.75 | 0.72 | 0.54 | Dividends | 20 | 20 | 20 | Total assets | 477 | 580 | 656 | Shareholders' equity (book value) | 182 | 206 | 235 | Shareholders' equity (market value) | 453 | 400 | 229 | To remedy this situation, Pan-Europa must leverage...
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...Answer #1: Pan-Europa must strategically plan projects that can reduce its debt, improve its price-to-earnings ratio, increase profitability and regain its significant market share. In reference to Exhibit #2, the financial results that are important for the coming year are (Net income, Earnings per share, and Shareholder’s equity – market value). The price war has concluded and it is time for the members of the senior management committee to use the approved capital spending amount to implement strategically planned projects and to rally around a leader. Based on his experience, leadership traits, and vision in expanding the company’s core business, Nigel Humbolt should be considered the top candidate to lead Pan-Europa. Answer #2: After reviewing Exhibit #3 and the data that is represented, NPV was calculated using a 10.5% estimated weighted average cost of capital for Pan-Europa’s proposed projects. Taking this data into consideration, the ‘Strategic Acquisition’ project scored the highest ranking above all other projects due to its 47.97 WACC rating, NPV at minimum rate of return of 41.43 and an IRR of 28.7%. Project No. 11 7 8 9 4 10 2 3 5 1 6 Project Name Strategic Acquisition Eastward Expansion Southward Expansion Snack Foods Artificial Sweetener Inventory Control System New Plant Expanded Plant Automation & Conveyor System Expand Truck Fleet Effluent Treatment Program NPV at Corp. WACC (10.5%) 47.97 11.99 9.00 8.95 5.21 1.16 0.99 0.28 -0.87 -1.92 NPV not given Rank 1...
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...No textnswer #1: Pan-Europa must strategically plan projects that can reduce its debt, improve its price-to-earnings ratio, increase profitability and regain its significant market share. In reference to Exhibit #2, the financial results that are important for the coming year are (Net income, Earnings per share, and Shareholder’s equity – market value). The price war has concluded and it is time for the members of the senior management committee to use the approved capital spending amount to implement strategically planned projects and to rally around a leader. Based on his experience, leadership traits, and vision in expanding the company’s core business, Nigel Humbolt should be considered the top candidate to lead Pan-Europa. Answer #2: After reviewing Exhibit #3 and the data that is represented, NPV was calculated using a 10.5% estimated weighted average cost of capital for Pan-Europa’s proposed projects. Taking this data into consideration, the ‘Strategic Acquisition’ project scored the highest ranking above all other projects due to its 47.97 WACC rating, NPV at minimum rate of return of 41.43 and an IRR of 28.7%. Project No. 11 7 8 9 4 10 2 3 5 1 6 Project Name Strategic Acquisition Eastward Expansion Southward Expansion Snack Foods Artificial Sweetener Inventory Control System New Plant Expanded Plant Automation & Conveyor System Expand Truck Fleet Effluent Treatment Program NPV at Corp. WACC (10.5%) 47.97 11.99 9.00 8.95 5.21 1.16 0.99 0.28 -0.87 -1.92 NPV not given...
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...IS 7060: PROJECT MANAGEMENT Assignment 2 Pan-Europa Case Bharath Sivaraman Noel Anson Rohit Sivadas Sriram Ravisankar Considering the market foothold of PanEuropa Foods, a multinational producer of high-quality ice cream, yogurt, bottled water, and fruit juices, compelling projects had to be chosen from a range of project proposals to help the firm reach its capital budget for the new year. The budget available for investing was limited to ECU80 million but the 11 major projects up for consideration totaled over (European Currency Unit) ECU208 million. Out of the 11 proposals, we decided to go consider only 10, excluding the Effluent Treatment Program, an environmentally oriented project with no returns and addition to the existing plant. But, if the budget permits, after considering the other projects, we could include it later after weighing its merits. Firstly, we identified some projects, which strategically seem like a good fit for the company’s goals: a. Market expansion towards eastward Sales b. Strategic acquisition Strategic Planning c. Inventory control Distribution d. Snack foods Marketing e. Artificial sweetener Marketing f. Automation and conveyor system Production The idea behind the selection of these projects was the diversity of the fields they cover. For example, even if the distribution does not produce the desired results, the sales and marketing might still improve and compensate. Market expansion towards eastward- The eastern market has a great appetite...
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...A PROJECT REPORT ONSUBMITTED BY: Name: Taniya Jain Enroll No.: 12BSPHH011119 Course: Marketing Manegement Seat No.: 76 Sec: F Acknowledgements “Thanks giving seem to be the most Pleasant of all jobs, but it is difficult when one tries to put into words.” I owe a great many thanks to a great many people who helped and supported me during my research for the project. My deep sense of gratitude, to Prof. K.C. Prakash for his continued support and guidance. He has always lent a helping hand and been there when needed. I also appreciate and would like to thank the helpful people at IBS Hyderabad who helped me knowingly and unknowingly in one way or the other. At the end I would also like to thank ICFAI BUSINESS SCHOOL and my friends without whom this Project would have been a distant reality. INDEX S.NO. | TOPIC | PAGE NO. | 1 | Introduction | 4 | 2 | Major Competitors | 5 | 3 | Market Share | 6 | 44.14.24.3 | Comparative Study ON SCALE OF 7 P’sPVRBig CinemasINOX | 71113 | 55.15.25.3 | Competitive AdvantagePVRBig CinemasINOX | 141515 | 6 | Recommendations | 15 | 1. INTORODUCTION Priya Exhibitors Pvt. Ltd is a part of the diversified Bijli Group, which has interests in transport, finance and construction sectors all over India. After a downturn in the industry in late 80s when the onslaught of video wars as at its peak cinema rejuvenated with the latest international trends in cinema exhibition reached India’s shores swiftly with the arrival...
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...Lahore University of Management Sciences DISC-331 – Project Management Fall 2013 Instructor Room No. Office Hours Email Telephone Secretary/TA TA Office Hours Course URL (if any) Zehra Waheed 214 SDSB Building By appointment zehra.waheed@lums.edu.pk 8426 Course Basics Credit Hours Lecture(s) Recitation/Lab (per week) Tutorial (per week) Course Distribution Core Elective Open for Student Category Close for Student Category 3 Nbr of Lec(s) Per Week Nbr of Lec(s) Per Week Nbr of Lec(s) Per Week 2 3 lab sessions as per schedule N/A Duration Duration Duration 75 minutes N/A N/A Yes Sophomores, juniors, seniors None COURSE DESCRIPTION Project management is increasingly used both in public sector and the private sector organizations worldwide. They are undertaken in a variety of industries, some of which, for example, software development and construction, relying almost entirely on projects. Examples of projects include the installation of new IT systems, introducing new internal processes or procedures, managing organizational wider change or innovation, orchestrating office moves, opening new branches, disaster management, launching a new product or service, launching of an advertising campaign, or bidding for a major customer contract. Consultancy sometimes also takes the project form. Given the nature of the corporate world these days, students undertaking this course can be expected to be involved in projects during some part of their careers. The course...
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...Index: |Sr. No. |Topics |Page No.s | | |CRM and CRM in Service Industry |02 | |McDonald’s: | | |Introduction |03 | | |Mcdonald’s in India |04 | | |Values and Principles |05 | | |History |06 | | |Products |09 | | |Background – The McDonald’s Story |11 | | |Organizational structures ...
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...February 2013 US Airways and American Airlines announced their plans to merge the airlines creating the largest airline in the world. US Airways was founded in 1937 as All American Aviation and in 1996 commenced operations as US Airways with its parent company being US Airways group. The headquarters is located in Tempe Arizona. US Airways operates an intensive international and domestic network and has 198 destinations throughout North and South America, Middle East and Europe. Us Airways is a member of Star Alliance Network with a fleet of 346 mainline jet aircrafts and 256 regional jet and turbo prop aircrafts. Us Airways has a shuttle that provides hourly service between Boston, New York, and Washington, D.C. that is known as US Airways Express that is operated by contract and subsidiary airline companies. As of January 2013 US Airways employed 32,213 individuals worldwide and operated 3,028 daily flights. American Airlines, Inc. is owned by the AMR Corporation headquartered in Fort Worth, Texas. It operates and extensive international and domestic network as US Airways. American Airlines has scheduled flights throughout North America, South America, Europe, the Caribbean, and Asia/Pacific. The Dallas/Fort Worth International Airport is the airlines largest hub with American Airlines accounting for about 85% of the traffic and 83% of landing fees and travel to more destinations than any other hub. American Airlines operates maintenance bases at Tulsa, and Fort...
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...Aphrodite (Ἀφροδίτη, Aphroditē) Goddess of love, beauty and desire. She was married to Hephaestus, but she had many lovers, including Ares, Adonis and Anchises. She was depicted as a beautiful woman and often naked. Her symbols include roses and other flowers, the scallop shell, and myrtlewreath. Her sacred animals are doves and sparrows. The Roman version of Aphrodite was Venus. Apollo (Ἀπόλλων, Apóllōn) God of light, healing, music, poetry, plague, prophecy, and more. He is the son of Zeus and Leto, and the twin brother of Artemis. Apollo was associated with the Sun; while Artemis was the Moon. Both use a bow and arrow. In the earliest myths, Apollo fights with his half-brother Hermes. In sculpture, Apollo was depicted as a handsome young man with long hair and a perfect physique. His attributes include the laurel wreath and lyre. He often appears in the company of the Muses. Animals sacred to Apollo include roe deer, swans, cicadas, hawks, ravens, crows, foxes, mice and snakes. Ares (Ἄρης, Árēs) God of war and bloodshed. He was the son of Zeus and Hera. He was depicted as a young man, either naked with a helmet and spear or sword, or as an armed warrior. Ares generally represents the chaos of war in contrast to Athena, who represented strategy and skill. Ares' sacred animals are the vulture, venomous snakes, dogs and boars. The Roman version of Ares is Mars. Artemis (Ἄρτεμις, Ártemis) Goddess of hunting, wilderness, animals and childbirth. In later times she became...
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...CLASS 1.1 Important concepts Entities – tax versus legal • Tax entities o People, partnerships, joint venture, companies … are considered to be entities for the purposes of calculating income tax. • Legal entities o Companies, which have separate legal personalities, are legal entities. Income flows • Income should be considered as a cash flow stream, where timing is important. • The question is, when the income recognised as earned or deducted (because tax delayed is tax denied)? CLASS 1.2 Patterns of taxation Income tax • Income tax is a progressive system. • Income tax is mainly a rich person’s tax once franking credits are taken into account to produce an “effective tax rate”. • Wealthy people pay less tax overall by reducing their tax burden through using the lower rate paid on capital gains and other tax minimisation schemes. • Total tax as a percentage of GDP is lower in Australia compared to many other countries across the world. However, these results must be considered in light of the high level of income (where it may not be as much of a burden to pay high taxes where there is high income) and quality of public goods provided in counties such as Sweden (which has the highest total tax rate as a percentage of GDP). Justifications for taxation Why do we need taxes? • Public goods argument: the government can provide some benefits to society better than anyone else. Examples include defence, and law and order. • Market failure...
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...Instituto Tecnológico y de Estudios Superiores de Monterrey Campus Ciudad de México MARKET PROFILE Inteligencia de Mercados II Profa. Alexandra Solano Montserrat Cepeda Arce A01214694 Ximena Salazar Olmos A01124805 Diego Montoya Lozoya A01211464 Omar Eduardo Rodríguez Jilwan A01331655 Juan de Dios Bustamante Nikoniuk A01127162 17/Octubre/2013 Análisis cuantitativo 3 Mercado global 3 Estructura 3 Tendencias 7 Intercambio 9 Áreas del mercado 10 Participación de mercado 11 Mercado destino 12 Estructura 12 Intercambio 18 Áreas de mercado 21 Participación de mercado 25 Consumo aparente 27 Análisis cualitativo 32 Características del mercado 32 Estándares de mercado 32 Producto 33 Plaza (Canales) 35 Precio 37 Promoción Anual 37 Competidores 38 Referencias 39 Análisis cuantitativo Mercado global Fracción arancelaria 04.05.10 04.05 Mantequilla (manteca) y demás materias grasas de la leche; pastas lácteas para untar. 10.00.00 -Mantequilla (manteca) Se entiende por mantequilla (manteca), la mantequilla (manteca) natural, la mantequilla (manteca) del lactosuero o la mantequilla (manteca) «recombinada» (fresca, salada o rancia, incluso en recipientes herméticamente cerrados) que provengan exclusivamente de la leche, con un contenido de materias grasas de la leche que sea superior o igual al 80% pero inferior o igual al 95% en peso, de materias sólidas de la leche, inferior o igual al 2% en peso...
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...SEVENTH EDITION PROJECT MANAGEMENT A Managerial Approach SEVENTH EDITION PROJECT MANAGEMENT A Managerial Approach Jack R. Meredith Broyhill Distinguished Scholar and Chair in Operations Wake Forest University Samuel J. Mantel, Jr. Joseph S. Stern Professor Emeritus of Operations Management University of Cincinnati John Wiley & Sons, Inc. DeDication To Avery and Mitchell, from “papajack.” J. R. M. To Maggie and Patty for their help, support, and affection. S. J. M. VICE PRESIDENT & EXECUTIVE PUBLISHER Don Fowley EXECUTIVE EDITOR Beth Golub ASSOCIATE EDITOR Jen Devine MARKETING MANAGER Carly DeCandia DESIGN DIRECTOR Harry Nolan SENIOR DESIGNER Kevin Murphy SENIOR PRODUCTION EDITOR Patricia McFadden SENIOR MEDIA EDITOR Lauren Sapira PRODUCTION MANAGEMENT SERVICES Ingrao Associates This book was set in by GGS Book Services PMG and printed and bound by RRD/Willard. The cover was printed by RRD/Willard. This book is printed on acid free paper. Copyright © 2009 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc...
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