Case Study 1

(1) Using Exhibit 3 (pg. 86) analyze and rank the proposed projects. Explain and defend your rankings. 

Policy is put in place and should be followed for a reason. I would rate the projects based upon the standards that Pan-Europa Foods agreed upon. Those standards are listed below;

My rankings are;

1. Effluent water treatment at four plants: I feel this is a safety issue

2. Strategic Acquisition: This is by far the most profitable and meets all of the standards

3. Eastward Expansion: Profitable and meets all standards

4. Southward Expansion: Profitable and meets all standards

5. Snack Foods: Profitable and meets standards

6. Inventory Control System: Profitable and meets standards

7. Expand Truck Fleet: Meets IRR

8. New Plant: Doesn’t meet any standards, but is the more profitable than those listed after

9. Artificial Sweetener: Doesn’t meet any standards, but is the more profitable than those listed after

10. Expand Plant: Doesn’t meet any standards, but is the more profitable than those listed after

11. Automation and Conveyer Systems: Doesn’t meet any standards, but is the least profitable

I would only do the first three projects in the first year though because that would account for all 80 million Euros. I would save the rest for the following years.

(2) Based on your initial rankings, reconsider each of the projects in terms of "must do", riskiness, synergies/conflicts between projects and other non-quantitative costs or benefits. Discuss any changes or adjustments you made to your initial rankings. 

In terms of must do, riskiness, synergies/conflicts, and non-quantitative cost or benefits;

1. Effluent water treatment at four plants: Safety Issue

2. New Plant: I feel that this is a must do to keep your customers happy and supply up

3. Expansion of a plant: I feel that this is a must do to keep your customers happy and supply up

4. Strategic Acquisition: Low risk

5. Eastward Expansion:...