Euroland Foods Aca

Time Context

The meeting of the directors, the board voted a limit capital spending to EUR120 million in 2001 for the allocation of the funds among a range compelling projects: market expansion and efficiency improvements.

View Point

We believed on the remarkable comment of the President of the Company by restoring the right-hand side of the balance sheet as its priority. When the company's financial status is on the brink of slowly going down or decreasing caused by poor sales and marketing strategies it's proper for the President of the Company to call for a board meeting to find solutions to the problem presently encountered by the company.

A good manager or the chief operation manager should give all his best to monitor the condition of the company. He must be focused, dedicated and determined to find solution to the problems.

Like in this assigned business problems, we strongly believe that the problem encountered can be given absolute solution. It is clear that the President knows and sees what's happening to the company. Like for example, he recommended and considered all aspects of the business, he knew what he is doing, like in any expansion of asset utilizes the cash flow or used what the company has or limits allocation until such time the company's amortization has almost finished. Maximize the utilization of asset what the company has, and even come to. The point to sacrifice the dividends. This concept is really great recommendation of head of the company who for sure will contribute to fix and give solution to the problem.

Foremost, what we really admire was the move of the President to form a seven senior management committee who will oversee and will handle the business problem. It was the right move because as we read the seven members of the management have their own field of expertise. With their combined field of specialization, we know they will be cautious to give their recommendations because it's their company at stake and for sure failure was everyone last to think. Positive attitude is everybody's concerned as we think it's everyone's loyalty to the company that will be their best weapon to succeed.

VII. Alternative Courses of Actions

a. ACA 1

-A new plant 45

-Expansion of a plant 15

-Acquisition of a leading schnapps brand and associated facilities 60

b. ACA 2

-Market expansion southward 30

-Market expansion eastward 30

-Networked, computer-based inventory control system for warehouses and field representatives. 22.5