Euroland Foods Essay

Executive SummaryEuroland foods is a steadfast name in the trade, it has grown well in the market over the years, just now it is planning to allocate the calculate for the newly planned activities which are costing it much than 300 Million Euros besides the order has to gift only 120 Million Euros. Various people from the upper management dumbfound come up with their proffers for investment, few of them are very good and are acceptable in just a twinkle of the eye but many of them require greater search and evaluation for their validity. It is suggestible to first appraise the alternatives and then rank them so that best of the activities could take place within the allocated bud sterilize.Strengths & WeaknessesIn replacement and expansion of the truck fleet, the party discount increase the come in of goods hauled on the truck and this could reduce the theodolite cost in the long run, yet it could possibly have a greater market coverage but it is very costly to go for this option as Klink is not doing any experiment and going at once for 100 new trucks. The acquisition of new graft is although a good option but yet it is not very useful option as the investment in the entire plant can be risky and can put a lot of burden on the entire companys budget, it is suggested that the company should buy a warehouse to support the growing get hold ofs of the customers for ice plane and yogurt. An different problem would be related to the labor hiring which would result in more be.The expansion of the plant is a good idea as the market needs are completely growing and 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 urine and fruit juices. Morin has come up with a good suggestion as the processing of dried fruit and its launch would enhance the companys portfolio and also it would be a brand extension, it has got a fair possibility of growth as atomic number 63 is a cold region, the IRR is also expected to be higher than the required but then over again it is requiring company to spend much more then it should spend. Also it can take the company divulge of budget as the companys occurrent 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 reduce 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 related to the high costs and further the company may disappoint the labor which could be unethical and can bring agitation in labor against the company.The outgoing water treatment at four of the plants is again good action since it is categorizing the E uroland foods as environmental friendly. This would add on itself as strength to the company as now company would be working ethically in many ways. The drawback is related to the issue of investing in a non-functioning area, which would not bring any profits. Ponti has although suggested to fly high the market to southwards and eastwards, but it is dependent on many specifys such(prenominal) as if proposal of early 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 strengthen it position in the current positions.Morin has come under the printing press of competitors and is thinking about the companys well being, but yet there lies the problem with such a heavy investment, the company should always test market the product. Although it wou ld be the product development to almost good extent but at the same time it can cause the company to well-to-do 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 radixd on programs such as SAP which can control any 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 given a root word 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 lucrative but it is all about the management capability of the company which is not appropriate in relation to such extens ion.Ranking the final causes correspond to my analysis, proposal 3 (plant extension) should be class-conscious first as it has a fair possibility of increasing the market share for those products that are stable from a period and are not growing (mineral water, fruit juices). device 4 (snack foods) should be stratified second as it has got a fair possibility of market acceptance due to weather condition in Europe. Proposal 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 poop 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 moral philosophy is good business. Proposal 1 (Truck fleet) should be ranked sixth as it is requiring a select investment for 100 trucks where as the company should look for such changes in a sl ow manner. Proposal 9 (Sweetened yogurt) should be ranked seventh 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 exceeding 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 too 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 Water TreatmentSince the effluent water is just something the company is willing to acquire as a mean to have good in the public eye(predicate) relations and to be able to contribute to the environment. It is just something which cannot bring company the profits, it would cost 6 o ne thousand thousand Euros if the facility equipment would be purchased now but later on it can be costly and political science at times does affect the companys investing powers. So it is better to buy this equipment in the first place the government makes it a mandatory for the company to buy it.ConclusionThe ranking shown above is itself suggesting what should be done. According to the analysis, proposal 1, 3, 4, 5, & 6 should be given utmost importance 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 in the future time period with more ease.