Project Management Pan Europa Foods Case Study

2063 Words Jun 12th, 2015 9 Pages
Case Study

C. Opitz and R.F. Bruner

Table of Contents

1. Executive Summary
2. Problem Statement
3. Data Analysis
4. Alternative Analysis
5. Key Decisions Criteria
6. Recommendation
7. Action & Implementation Plan

Executive Summary:
The report summarizes Pan-Euorpa Food’s capital resource allocation budget for 1993 to present to stockholders. The board has presented 11 projects providing different needs and opportunities to grow the business. Exhibit 3 of the case analysis presents the project proposed, free cash flow, and statistical analysis of the projects.

Problem Statement:

Pan Europa Foods is facing a number of issues to be addressed. The company’s sales remain flat while net
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This presents a low cost, high reward opportunity.
Replacement and expansion of Truck fleet for $20M is necessary to increase operational efficiency while lowering overall distribution expenses. This is a 2 year running change significantly affecting output capacity, inventory management, customer delivery and would support long term growth overall.
Next, to add new & innovative products, Pan Europa should consider the research & introduction of artificial sweeteners for 15M. Market research proves it is a viable product and will fit nicely in with current production and distribution strategies. It will be a complementary product line which will provide a new competitive advantage above our competition. It will provide a good return on investment and grow revenue.
Finally, we must enact the water treatment projects at four plants for $4M. They currently violate environmental codes and are a mandatory upgrade to comply with European Community regulators. While there is a 4 year window to comply, cost estimations only grow over time, so this decision is in the best interest of both Pan Europa, its investors, employees, and its surrounding environment.
Action and Implementation Plan
The stated step by step implementation plan is weighted in importance and urgency. Each board member heading one of these projects will work closely to ensure successful progress. Each step will be closely monitored and controlled to ensure success and shareholder value. The

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