Euroland Foods Essay Example for Free

Euroland Foods EssayExecutive SummaryEuroland foods is a stable name in the grocery, it has grown well in the market over the years, but straightway it is planning to allocate the budget for the newly planned activities which ar costing it more than 300 one million million million Euros but the comp all has to invest only 120 Million Euros. Various people from the upper guidance have come up with their suggestions for investment, few of them are very severe and are acceptable in just a blink of the eye but many of them require greater search and military rating for their validity. It is suggestible to first evaluate the alternatives and then rank them so that best of the activities could believe place in spite of appearance the allocated budget.Strengths WeaknessesIn replacement and expansion of the truck fleet, the confederation fundament ontogeny the number of goods hauled on the truck and this could get over the transportation cost in the long run, further it co uld 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 directly for 100 new trucks. The acquisition of new plant is although a good option but moreover it is not very useful option as the investment in the entire plant bottom be barbarian and heap put a lot of incumbrance on the entire telephoners budget, it is suggested that the participation should buy a warehouse to support the growing extremitys of the customers for ice cream and yogurt. Another problem would be related to the labor hiring which would result in more costs.The expansion of the plant is a good idea as the market needs are completely growing and faecal matternot be supported by any other plant, the plant capacity would add by 20% but the drawback is that it is supporting those products that are not having the highest share i-e mineral water and increase juices. Morin has come up with a good suggestion as the processing of dr ied fruit and its put up would enhance the political partys portfolio and also it would be a brand extension, it has got a fair speculation of growth as Europe is a cold region, the IRR is also expected to be higher than the need but then again it is requiring company to spend much more then it should spend. Also it can take the company out of budget as the companys authentic concern should be about the constancy 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 may 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 ferment in labor against the company.The effluent water treatment at four of the plants is again good exertion 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 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 expand the market to mhos and eastwards, but it is dependent on many conditions such(prenominal) as if marriage 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 face at those points which could further strengthen it position in the current positions.Morin has come under the pressure of competitors and is thinking about the companys well being, but yet there lies the problem with suc h a heavy investment, the company should always test market the product. Although it would be the product development to some good extent but at the same time 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 based on programs such as blackjack oak which can control every 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 helper of networking. Humbolt has given 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 lucrative but it is all about th e concern capability of the company which is not appropriate in relation to such extension.Ranking the plansAccording to my analysis, proposal 3 (plant extension) should be ranked 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). Proposal 4 (snack foods) should be ranked second as it has got a fair possibility of market acceptation 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 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 6th as it is requiring a direct investment for 100 trucks wh ere as the company should look for such changes in a slow manner. Proposal 9 (Sweetened yogurt) should be ranked seventh as it is very unsafe 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 squiffy to have good public relations and to be able to contribute to the environment. It is just something which cannot bring c ompany the profits, it would cost 6 million Euros if the facility equipment would be purchased now but later on it can be costly and government at times does affect the companys investing powers. So it is better to buy this equipment before the government braces it a mandatory for the company to buy it.ConclusionThe rank shown above is itself suggesting what should be done. According to the analysis, proposal 1, 3, 4, 5, 6 should be given utmost wideness 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.