Euroland Foods S.A. Case Analysis

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Euroland Foods S.A. Case Analysis

I. Introduction

Theo Verdin who was a farmer in Belgium. He founded the Euroland Foods company in 1924 in order to develop branch of his dairy business. Euroland Foods Company went public in Brussels, Belgium, in 1979. It was a multinational producer. The company had four high-quality products of ice cream, yogurt, bottled water, and fruit juices. Ice cream accounted for 60% of the company's revenue. Yogurt accounted for 20% of total revenue. Bottled water and fruit juices contributed 10% of the company’s revenue, respectively. Ice cream was its main product because it had a loyal base of customers, high content of butterfat and a wide range of original flavors. Since the company was founded, the operating revenue grew steadily. The company accomplished this success by relying on Theo Verdin still paying great attention to develop of product and subtle marketing.

II. Background

The company went public in 1979. It was trading on the London, Frankfurt, and Brussels exchanges by 1993. The company used “Rolly” as the flagship brand name. In 2000, Euroland Foods had sales more than EUR 1.6 billion. In 1998, the company's sales had not increased. The company management thought that this situation was because of low population growth and market saturation. Other people think the new-product introductions led to failures.

Euroland Foods’ capital budget was prepared by a committee of senior managers and submit it to the board of directions every year. The committee of senior managers include five managing directors, the president directeur-general (PDG), and the finance director. When the PDG wanted to develop proposals, it should solicit the managing director. The proposals included a concise project description, a financial analysis, and a discussion of strategy or other qualitative consideration. Euroland Foods has a 12-member board of direction. Three members of Verdin family, four members from the management,...