Euroland Foods H. A.


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In early January 2001, the senior management panel of Euroland Foods was to meet to draw up the firm’s capital budget for the new year. Up for concern were 14 major assignments that totaled more than (euro) EUR316 , 000, 000. Unfortunately, the board of directors experienced imposed a spending limit on capital projects of only EUR120 million; nevertheless, investment at that rate might represent a significant increase in the firm’s current asset base of EUR965 million. As a result, the challenge to get the elderly managers of Euroland Food was to spend funds amongst a range of compelling projects: new-product advantages, acquisition, market expansion, effectiveness improvements, preventative maintenance, safety, and polluting of the environment control. The business

Euroland Food, headquartered in Brussels, Athens, was a multinational producer of high-quality goodies, yogurt, bottled water, and fruit juices. Its products had been sold through Scandinavia, Britain, Belgium, the Netherlands, Luxembourg, traditional western Germany, and northern France. (See Show 1 for the map of the company’s advertising region. ) The company was founded in 1924 by Theo Verdin, a Belgian character, as a great offshoot of his milk business. Through his keen attention to application and shrewd marketing, the organization grew steadily over the years. The corporation went community in 1979, and, by 93, was shown for trading on the London, Frankfurt, and Brussels exchanges. In 2150, Euroland Food had revenue of almost EUR1. 6 billion dollars.

Ice cream made up 60% in the company’s income; yogurt, which was introduced more than 20 years ago, contributed regarding 20%. The 20% of sales was divided equally between water in bottles and fresh fruit juices. Euroland Foods’s flagship brand was “Rolly, ” that has been represented by a fat dancing bear in farmer’s clothing. Your favorite ice cream, the company’s...