Euroland Foods S.A. The Market Value by each segment

Euroland Foods
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Euroland Foods
Euroland Foods S.A. has its Headquartered in Belgium. As one of the leading European supplier of yogurt, ice-creams, fruit juice, and bottled water, it supplied its products throughout Belgium Scandinavia, Netherlands, Britain, etc. The organization was established in 1924 by Theo Verdin, from the dairy business (Bruner, 2006). With his attention on developing the product and expertise in marketing, the business developed steadily through the years. The business went public in 1979 and listed for trading by 1993. In 2000 the company accumulated sales of EUR 1.6 Billion. The company's brand name was “Rolly.” The Board of Directors discussed The Capital Budget considering 11 main projects that totaled to EUR 316 million. Nevertheless, they set the limit at EUR 120 million. The challenge for top management was to apportion funds between a varieties of convincing projects.
The Market Value by each segment
* Ice cream (60% of the firm’s revenue)
* Yogurt (20% of the company’s revenue)
* Bottle water (10% of the firm’s revenue)
* Fruit Juices (10% of the firm’s revenue)
The Company’s Investment Proposal subject of two financial tests concerning the type of project
* Payback
* Internal rate of return (IRR)
Ownership
Members of the board of directors include:
* Verdin family (three people)
* Members of management (four people)
* Outside directors (five individuals)
The issue statement
* Static sales since 1998 because of the following:
* Europe’s Low population growth
* Some regions had Market saturation
* New product introductions failures
* Elven main projects exceeded EUR 316 million
* Board of directors enacted expenditure maximum of EUR 120 million
* Funds to be allocated among a variety of convincing projects: market expansion, pollution control, the introduction of a new product, acquisition, improvements on productivity, safety and preventive maintenance.
SWOT Analysis
Strength
* The business was a multinational manufacturer of high-quality products
* Ten plants located in many parts of Europe They had 10 plants in the different parts of Europe such as France, Denmark, Belgium, Germany and Sweden England
Weaknesses:
* Unstable sales consistent with its financial outcomes on a the successive years 1998-2000
* Some plants lacked conveyer and not automated
* Their stock was below book value as compared to other corporations, hence little cost to their brand
Opportunities
* The firm received high revenue on ice cream production
* The business has a product line such as Fruit juices and ice-cream
Threats
* If the rivals take an artificial sweetened line the brand of the company will suffer
* Excess calories in the products
* The business has a pollution record that will damage its reputation if they do not observe an environment focused project
Possible solutions
To increase the sales, the company have to operate under EUR 120 million financial plan constraint, minimum IRR, and maximum payback period constraint. The Net present value, Internal ROR and payback perio...