Euroland Foods Company was founded in 1924 by Theo Verdin. Euroland Foods Company was an embranchment of those dairy businesses. The company was successful because Theo Verdin was good at marketing and developing product. Euroland Foods Company went public in 1979. The products were traded to London, Frankfurt, and Brussels exchanges until 1993. Sales of Euroland Foods were nearly EUR 1.6 million. The headquarters of Euroland Foods was located in Brussels, Belgium. The flagship brand name of the company is "Rolly"." A fat dancing bear in farmer's clothing was the representation of the "Rolly ". .
Euroland Foods was a multinational producer, and it had four products which were high-quality ice cream, yogurt, and bottled water, and fruit juices. Ice cream accounted for 60% of the company's revenue. Yogurt accounted for 20% of the company's revenue. Bottled water accounted for 10% of the company's revenue. Fruit juices accounted for 10% of the company's revenue. Ice cream was the leading product of the company because it had a loyal base of customers. Various flavors of the company's ice cream attracted customers. These flavors included the high levels of butterfat, large chunks of chocolate, fruit, nuts and wide range of original.
A committee of senior managers prepared the capital budget at Euroland Foods annually. The committee of senior managers was comprised of five managing directors, the president directeur-general, and the finance director. Investment proposals from the managing directors were asked for by the president directeur-general. The proposals included a brief project description, a financial analysis, and a discussion of strategic or other qualitative considerations. As a matter of policy, the committee of senior managers subjected investment proposals to two financial tests, payback and internal rate of return. The management committee had founded the two tests in 1999. The two tests were changed according to the type of project as shown in Table 1.