Pan Europa Case Study

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Ryan Young Project Management Professor Sietins July 14th, 2013 Pan-Europa Case Study 1. Strategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? What rows/categories in Exhibit 2 will become critically important in 1993? What should Pan-Europa do now that they have won the price war? Who should lead the way for Pan-Europa? One of the biggest issues Pan-Europa is facing is their debt to equity ratio and the unwillingness of their creditors to supply additional credit. Debt is not always a bad thing but when it becomes too large, something needs to be done. Pan Europa needs to choose one of the proposed projects and run with it to gain revenue and lower their debt to equity ratio. In doing…show more content…
- Do any of the projects have nonquantitative benefits or costs that should be considered in an evaluation? I believe the number one “must do” project is the water treatment project. From the case study it states that the water treatment project would cost 4 million today as opposed to a projected cost of 10 million four years from today. This is a huge increase in price and if it expected to really take action then it must be down now for the shear benefit of cost savings and reputation. The elements of the projects that imply a greater risk are the projects with longer payback periods. This is because a longer payback period implies that the company could have trouble generating cash flows and with so much debt that is a huge issue to creditors and investors alike. There are synergies and conflicts among the projects and are important in determining if some could be completed simultaneously. The projects that are interested in expansion and increasing market demand correlate with each other and depend on if they can generate enough sales and resources to make it worthwhile. The efficiency projects all have some level or synergy and conflicts among them as…show more content…
By practicing social responsibility the company is making it more attractive to customers and can even help gain more sales because of this. Social responsibility is expected of companies but so many do not practice it enough. I think by acting before it is required of them is a good way to stand out from competitors. 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

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