Pan Europa Essay

My recommendation is for the company to stay focused on its main competitive advantage of supplying a

The income over the last three years has been fluctuating.. This tells us the company has an initial growth period. Sales also drop between years 7 and 8 and the gross profit margin decreased as well. This may be due to operating expenses. This leads to the prospect of stable future sales. The stakeholders are continuing to back the company and the company does predict sales will remain stable. The modest increase in sales does not show enough to recover without making adjustments to free capital.

Mature company, has been around for more than 15 years, simple business structure – manufacturing and merchandising, heavily based on inventory sales, however it is highly prone to competition in this industry. The intensity of rivalry is very high in this industry.

2. What is the business reason(s) for completing this project? How are they compelling for the improvement team and the management team? How are they tied to strategy?

I feel that involving the board in devising a new strategic plan and allowing them to communicate with the

Considering all the above, what screens/factors might you suggest to narrow down the set of most desirable projects?

1.) What are the recommended percentages of each project that HVC should fund and the net present value of the total investment?

2. Determine the project benefits, organizational readiness, and risk culture of the company in the case study. Provide justification for your response.

In today’s business world, competition is a big concern for nearly every corporation. The competition on the market is getting stronger and more difficult to overcome, in many situations corporations terminate their products, production, or their services, just because it is impossible to continue; the cost is too high to focus on gathering development projects in marketing, production, market research, and product innovation, to fight against the competitors.

     After the tragedies of World War II, European leaders have made striving efforts to prevent such a catastrophic event from occurring on their continent again. The best solution seemed to be highly mechanized cooperation among the highest European powers to assure that future conflict, and perhaps war, could not arise between them. If all the states ran themselves in a manner cooperating with their neighbors, conflict could be avoided. To prevent other nations from not cooperating, treaties and institutions would have to be designed for each area of international interest such as trade, communications, security, and so forth. As the century progressed, more organizations, institutions and associations were

- The financial statements for the past three years show a decline trend in both the operation and return on shareholder of the company, so a closer look at the factors contributing to this decline is needed.

Our choices led to a constant increase in net income over the three years. Short term debt increase by approximately 100% percent but steadily reduced over the next three years. We were happy with the positive growth of the company and the fact that we were able to pay off most of the initial short term funding required by the increase in working capital requirement. Overall the current situation of the company in 2018 is good, although the total value created is less than 20% of that created in phase 1. From this we learned that the value of the firm can be significantly increased more through a reduction in working capital requirement than through increasing the firm’s sales and net income.

1. Decide on a set of appropriate actions (minimum of 2 per stakeholder group) that you can take to maximise the chances of the following stakeholder groups actively participating in your project: Divisional Finance staff, HQ Finance staff and the I.T. team. For each action that you suggest ensure that you consider both the potential positive and negative sides of your approach. (6 marks)

5. The project is assumed to end in year 4. Do you think that this is realistic? Can you estimate the value of the project’s operating cash flows beyond year 4? State any assumptions you made.

The following paper analyzes a project from financial perspectives using the capital budgeting techniques like Net Present Value (NPV) and Internal Rate of Return (IRR).