Case Study of Euroland Foods S.A.

The case of Euroland Foods S.A. is about a multinational company that produces high-quality ice cream, yogurt, bottled water, and fruit juices. Euroland Foods was founded in 1924 by Theo Verdin. The performance of the company was steady over the years, but since 1998 to 2000 the company had no growth. The management team thought that was because of the low population growth in northern Europe and market saturation in some areas. The management team hoped that increase in market share and sales would help company growth.

Eurplamd food has a senior management committee meeting at every beginning of the year. The meeting will help company’s board director to decide the new capital budget in this year. …show more content…

hibit 1

Exhibit 2 Purely Financial Consideration | Rank | Projects | IRR | Payback(years) | NPV at Corp.WACC (10.6%)Million | 1 | Strategic Acquisition | 27.50% | 5 | 69.45 | 2 | Southward Expansion | 21.40% | 5 | 17.99 | 3 | Artificial Sweetener | 20.50% | 5 | 13.43 | 4 | Eastward Expansion | 18.80% | 5 | 13.49 | 5 | Snack Foods | 13.40% | 7 | 3.74 | 6 | Inventory-Control System | 16.20% | 3 | 1.75 | 7 | New Plant( Dijon,France) | 11.30% | 6 | 1.49 | 8 | Expanded Plant(Nuremberg,Germany) | 11.20% | 6 | 0.41 | 9 | Automation and Conveyer Systems | 8.70% | 6 | -1.31 | 10 | Expand Truck Fleet | 7.80% | 6 | -2.88 |

Exhibit 3 Projects Spending | Rank | Projects | Expenditrure (EUR Million) | 1 | Strategic Acquisition | 55 | 2 | New Plant( Dijon,France) | 45 | 3 | Southward Expansion | 30 | 4 | Eastward Expansion | 30 | 5 | Expand Truck Fleet | 28.95 | 6 | Artificial Sweetener | 27 | 7 | Snack Foods | 27 | 8 | Automation and Conveyer Systems | 21 | 9 | Inventory-Control System | 18 | 10 | Expanded Plant(Nuremberg,Germany) | 15 |

Exhibit 4 Projects Net Cash Flow | Rank | Projects | Net Cash Flow (EUR Million) | 1 | Strategic Acquisition | 198.5 | 2 | Southward Expansion | 56.25 | 3 | Eastward Expansion | 48.75 | 4 | Artificial Sweetener | 42.75 | 5 | New Plant( Dijon,France) | 35.63 | 6 | Snack Foods | 29.25 | 7 | Expand Truck Fleet | 11.55 | 8 | Expanded Plant(Nuremberg,Germany) | 10.88 | 9 |