Euroland Foods Essay

Executive SummaryEuroland foods is a durable name in the merchandise, it has gr bear well in the market ein truthplace the years, but straight it is planning to allocate the bud sustain for the newly intend activities which are costing it much than 300 Million Euros but the conjunction has to invest only 120 Million Euros. Various people from the pep pill management suck in draw up with their suggestions for investment, few of them are truly good and are acceptable in just a twinkling of the eye but m either of them require greater search and paygrade for their validity. It is suggestible to first evaluate the alternatives and then rank them so that vanquish of the activities could come upon place within the allocated budget.Strengths & WeaknessesIn replacement and expansion of the transport fleet, the go with substructure annex the number of goods hauled on the truck and this could turn out the transportation be in the long run, further it could possibly have a greater market coverage but it is very dear(p) to go for this option as Klink is non doing any experiment and firing positionly for 100 new trucks. The acquisition of new plant is although a good option but yet it is not very recyclable option as the investment in the entire plant atomic number 50 be risky and coffin nail put a peck of point on the entire confederacys budget, it is suggested that the family should deal a warehouse to support the growing needs of the customers for ice cream and yogurt. some other problem would be associate to the ram hiring which would result in more cost.The expansion of the plant is a good idea as the market needs are completely growing and tin cannot be supported by any other plant, the plant capacity would increase by 20% but the drawback is that it is supporting those products that are not having the highest share i-e mineral piss and fruit juices. Morin has come up with a good suggestion as the processing of dried fruit and it s launch would enhance the bon tons portfolio and also it would be a brand extension, it has got a comme il faut casualty of growth as Europe is a cold region, the IRR is also pass judgment to be higher than the required but then again it is requiring keep fellowship to spend much more then it should spend. Also it can take the confederation out of budget as the companys la examen concern should be about the stability of its current activities.Leyden has come up with a good idea of plant automation and conveyer system, this could constrain the need of the labor and the threats of lawsuit due to any injury that whitethorn take place because of the old plant. The company cannot only reduce the labor requirements but also may increase the market penetration as the units would be produced more efficiently now. The drawback is again think to the high costs and further the company may disappoint the labor which could be unethical and can bring agitation in labor against the com pany.The effluent water system treatment at four of the plants is again good action since it is categorizing the Euroland foods as environmental friendly. This would add itself as strength to the company as now company would be working ethically in numerous ways. The drawback is related to the issue of investing in a non-functioning area, which would not bring any salary. Ponti has although suggested to expand the market to southwards and eastwards, but it is dependent on many conditions such as if proposal of earlier plant extension would not accepted then it is possible for the company to incur greater costs for reaching those newly recognized areas, further it is not suggested to go for them because the company has already got itself in other hassles and it should look at those points which could further settle it position in the current positions.Morin has come under the pressure of competitors and is view about the companys well being, but yet in that location lies the pro blem with such a heavy investment, the company should always test market the product. Although it would be the product development to some good close but at the same sentence it can cause the company to loose big money in something which it is not sure about. Klink has come up with a wonderful suggestion of networking, these days the markets are establish on programs such as SAP which can control every(prenominal) activity of the company, if the efficiency would be there then the company may take more initiatives as it would think ahead.The weakness is again related to the increased responsibility which can cause disturbance and further it can result in unemployment as many of the activities would be performed with the help of networking. Humbolt has inclined a solution which suits his nature and he has again provided the company with something that could increase the liability of the company and further create more complexed problems for it. However, it seems to be very lucrati ve but it is all about the management capability of the company which is not appropriate in relation to such extension.Ranking the plans gibe to my analysis, proposal 3 (plant extension) should be graded first as it has a fair possibility of increasing the market share for those products that are stalls from a period and are not growing (mineral water, fruit juices). end 4 (snack foods) should be ranked second as it has got a fair possibility of market acceptance due to weather condition in Europe. design 5 (Plan automation) should be ranked third as it can reduce the number of employees and other threats and can bring more profits in.Proposal 10 (Networking) should be ranked fourth as it can increase efficiency and so can reduce the number of positions in the company. Proposal 6 (Effluent water treatment) should be ranked fifth as it is environmental friendly and good ethics is good business. Proposal 1 (Truck fleet) should be ranked sixth as it is requiring a direct investmen t for 100 trucks where as the company should look for such changes in a slow manner. Proposal 9 (Sweetened yogurt) should be ranked ordinal as it is very risky as it would take a lot of research and can distract the firm from its other stability objectives.Proposal 2 (new plant) should be ranked eighth as it would associate transcend costs with it such as new labor, transportation and many other costs. Proposal 7 & 8 (market extension southward and eastward) should be ranked ninth and tenth as it is again distracting the company from its current objectives and its as well risky as the entering market characteristics are opposite and against the companys favor. Proposal 11 (Schnapps) should be ranked eleventh as it is completing out of the scope of the companys feasibility.Effluent weewee TreatmentSince the effluent water is just something the company is willing to exact as a mean to have good public transaction and to be able to contribute to the environment. It is just somethi ng which cannot bring company the profits, it would cost 6 million Euros if the facility equipment would be purchased now but afterwards on it can be costly and government at time does affect the companys investing powers. So it is better to buy this equipment before the government makes it a mandatory for the company to buy it. goalThe ranking shown above is itself suggesting what should be done. According to the analysis, proposal 1, 3, 4, 5, & 6 should be given utmost magnificence as it is feasible for the company to get them done within the allocated budget, so Mr. Verdin should give them more importance and recommend them to the board. They can also make the current position of the company stable and perhaps make it more efficient. Other projects have their own importance but they are not triggering the initial need of the company which is stability. The mentioned proposals would make the base of the companys structure sounder and so it can look forward for other proposals i n the future time period with more ease.