Pan Europa

Pan-Europa case

1) 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 this coming year? 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 effluent project.

3) What aspects of the projects might invalidate the ranking you just derived? How should we correct for each investment’s time value of money, unequal lifetimes, riskiness, and size?

4) Reconsider the projects in terms of:

* Are any “must do” projects of the nonnumeric type?

* What elements of the projects might imply greater or lesser riskiness?

* Might there be any synergies or conflicts between the projects?

* Do any of the projects have non-quantitative benefits or costs that should be considered in an evaluation?

5) Considering all the above, what screens/factors might you suggest to narrow down the set of most desirable projects? What criteria would you use to evaluate the projects on these various factors? Do any of the projects fail to pass these screens due to their extreme values on some of the factors?

6) Divide the projects into the four Project Profile Process categories of incremental, platform, breakthrough, and R&D. Draw an aggregate project plan and array the projects on the chart.

7) Based on all the above, which projects should the management committee recommend to the Board of Directors?