Pan Europa Foods

Case Study 1:

Pan Europa Foods

Global Program & Project Management

Songbo Qiao

900143

Summary of the case

Pan Europa Foods is a multinational company and headquartered in Brussels, founded at 1924. The main products of company are the ice cream, yogurt, botteled water and fruit juice. Ice cream occupy 60% of the revenues, yogurt (20%),bottled water and fruit juice take 10% each.

Recently, the sales of Pan Europa Foods company had been static. This was attributable to several reasons:1. The low population growth in northern Europe. The factor is that majority of the products of Pan Europa Foods Company were sold to north part of Europe, if the population of north part Europe grows very slow, thus the demands of the products will not be incresed. 2.Market saturation in some areas 3.The recent failures in new product introductions. Company introduced a new line of mineral water which was unsuccussful.

Some managers hope to introduce more new products. However, there is a huge obstacle that those managers should encounter. There are 11 major projects which should be invested over 208 million. Somehow, the board of directors had given a spending limit of just 80 million euros. Therefore, the challange for the senior managers was to allocate funds among a range of compelling projects; new product introduction, acquisition, market expansion, efficiency improvements, preventive maintenance, safety and pollution control.

Pan Europa management heavily relied on debt financing to sustain firms capital spending dividends. Their share values in the market were low and not compatible with other companies. This is the reason that the shareholders lost confidence in the company’s performance. The company should figure it out which method will lead the way of Pan Europa Foods.

Questions

1.Strategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? What rows/categories in...