Business Report for Pecan Peanuts 2020

Read the business report for Pecan Peanuts in 2020, including analysis of the Australian pecan industry, linear forecast of export productions, health issues in the nut market, quality assurance conditions for machine working, costs of a new machine, hypothesis testing for the difference in two machines, pros and cons analysis for buying a new machine, and customer satisfaction.

Pecan Peanuts
Business Report

Date: May 2020

Business Report for Pecan Peanuts 2020
Introduction
Pecan Peanuts offers a selection of packaged nut products from its main production line in
the UK. There are two main bundle sizes available, one smaller for appetizer offers and a
larger one for home preparation offers. Walnut Peanuts also sells other products (cashews
and pistachios) but both walnuts and walnuts have a big impact.
The operations have been going well since the company created it in 2017. Certainly, since its
inception, there has been a huge increase in net benefits each year. Recently, the company
has seen a number of models among customers, recalling a growing commitment to hard
bites. One of the most seasoned tools in the creation line works with all accounts and splits
more consistently today.
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Business Report for Pecan Peanuts 2020
1. Analysis of Issues for Pecan Peanuts
1.1 An Overview of the Australian Pecan Industry
Pecans (Carya illinoinensis) are other bearer trees, pollinated by the wind and self-pollinating.
A mix of cultivars is needed inside a nut house to ensure fertile fertility. Wind fertilization
occurs in September and walnuts develop until May when they are harvested. Walnuts can
grow from 20 to 40 m in height with stems up to 2 m in transverse distance. The large
exchange leaves of the walnut tree form up to 15 small pinnate petals and is deciduous. As
walnuts grow, pruning is critical to stimulating light capture (the amount of daylight that
enters a tree) and yield. Knowledge of the medical benefits of nuts, including nuts, has led to
a worldwide interest in the growing interest in delicate and nutritious products. Walnuts are
located in the central and south-eastern regions of the United States and Mexico. The main
nut plantation began in the United States in the 1880s, today walnuts are developed similarly
in various locations including Mexico, South Africa, Israel, Argentina and Australia.
Most Pecan businesses in Australia are located in northern New South Wales (NSW) and
southeast Queensland (QLD). The Stahmann Farw Trawalla farms near Moree in northern
New South Wales are the largest nut business in the southern half of the globe. There are
over 100 nut growers in Australia with over 180,000 trees planted. Residents who have a
place at the Australian Pecan Growers Association (APGA) produce around 95% of the nuts in
Australia (APGA, 2011). Australian walnut production has declined to around 3,000 tons (in
shell) since 2006 (ANIC, 2015). There is a strong commitment to industrial expansion and
production is expected to increase to around 9,500 tons in shell by 2025. The identification of
reasonable areas for pecan creation is a key factor in the growth of the sector.
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Business Report for Pecan Peanuts 2020
1.2 Linear Forecast of Export Productions for 2021 and 2022
2013 2014 2015 2016 2017 2018 2019 2020 2021
0
5
10
15
20
25
30
Export
Linear (Export )
Local use
Interpretation: Based on the data given for local use and export from 2014 to 2015; the linear
forecasted trend line shows increasing in growth of export in 2021 and 2022. It is estimated
that the export will cross 30 metric tonnes in the year 2021 to 2022. There’s huge gap
between export and local use that indicates that major production of Pecans exported to UK
by Australia and also indicates trade surplus. Pecans prove to be mode of generating more
dollars for Australia through exporting it outside the country.
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Business Report for Pecan Peanuts 2020
1.3Health Issues in the Pecan, Peanut, Cashew and Pistachio Market
{Insert chart and summarise healthiness approx. 200 words}
Pistachios Cashew Pecan Peanut
0
5
10
15
20
25
Health Issues
Fat content (grams)
Based on the above table it can be concluded that Pecan has very high saturated fat than any
other nut types and hence, healthier among all. On the second place comes Peanut with 17%
saturated fat and Cashew and Pistachios have nearby fat level.
Peanuts can also improve coronary heart disease risk factors. Women who ate unhealthy nuts
more than five times a week had a slower rate of type 2 diabetes. In addition, levels of
asthma and unfavorable diseases may be lower in children than mothers who ate peanuts
one or more times a week. week during pregnancy.
Pecans can lower the "terrible" LDL cholesterol in people with normal cholesterol levels; like
different nuts, the nuts contain polyphenols, which are worse than they are cancer
prevention agents.
A diet containing 20% cashews improved circulatory tension in people with metabolic
conditions; cashews have expanded the cellular strengthening capacity of the diet; eating
fewer calories than cashews can increase glucose in people with a metabolic disorder. A diet
rich in cashew nuts lowers blood pressure and increases "good" HDL cholesterol levels. In any
case, it did not significantly affect body weight or glucose levels.
Pistachios can increase cholesterol levels: the daily intake of 56-84 grams of pistachios can
help increase the "big" HDL cholesterol. Pistachios can help improve other risk factors for
coronary heart disease, including circulatory exercise, stress and oxidative status. Oxidative
status refers to blood levels of oxidative synthesis concentrations, which can contribute to
coronary heart disease.
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Business Report for Pecan Peanuts 2020
1.4Quality Assurance Conditions for Machine Working
Quality assurance (QA) and quality control (QC) are the two most commonly used terms.
Although apparently, there are unique differences between the two ideas. This page will
clarify the differences between quality control and quality management and provide
explanations and examples of each.
Quality control (QA) is defined by a move to ensure that an association provides the best
customer service or management. Quality control focuses on developing methods for
delivering quality products to the customer. An association must ensure that the procedures
are feasible and successful in accordance with the quality guidelines identified by the
programming elements. Quality testing is called quality testing.
Probability of new machine failure = P (A) = 20% = 0.2
Probability of failure of old machine = P (B) = 80% = 0.8
Probability that both machines fail together = P (A ∩B) = P (A) × P( B) = 0.2 × 0.8 = 0.16
Probability that atleast one machine working = 1 - P (A∩B)
= 1 – 0.16 = 0.84
The given quality measure is to achieve at least 99.999% one machine should be working at all
times. But the result shows that there is only 84% chance that at least one machine is working
all times and hence the condition is not being satisfied.
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Business Report for Pecan Peanuts 2020
1.5Costs of a New Machine
EMI = [P x R x (1+R)^N]/[(1+R)^ (N) -1],
In this formula the variables stand for:
EMI is the equated monthly instalment
P is the principal or the amount that is borrowed as a loan
R is the rate of interest that is levied on the loan amount (the interest rate should be a
monthly rate)
N is the tenure of repayment of the loan or the number of monthly instalments (tenure
should be in months)
This is the same formula an EMI calculator uses to provide you with the correct EMI payable
within seconds.
Here;
P = £ 96,000
R = 9%/12 = 0.75% per month
N = 60 months (this figure has been get through trial and error method to get an EMI less
than £ 2000 per month)
Putting the value in given formulae:
EMI = [96,000 * 0.0075 * (1 + 0.0075) ^ 60] / [(1 + 0.0075) ^ (60) - 1]
= [720 * 1.5657] / [1.5657 - 1]
= 1127.304 / 0.5657 = £1992.76 which is near to £2000
If taking 59 months then monthly instalment become £2019; which exceeds the monthly
budget of £2000.
Hence; the range of months recommended is 60 months or 5years for that the loan should be
taken over to keep within Pecan Peanut’s budget.
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Business Report for Pecan Peanuts 2020
1.6Hypothesis Testing for the Possible Difference in Two Machines
Step 1: State the Null Hypothesis
Null hypothesis supports there’s no difference or error in data collected or two variables don’t
have any significance difference. Hence, in this case the null hypothesis could be:
H0 = There’s no significance difference between amount in two samples.
Step 2: State the Alternative Hypothesis
Alternative hypothesis always gives statement opposite to null hypothesis. If null hypothesis
accepted then simultaneously Alternative Hypothesis will be rejected and vice verse. Thus,
the alternative hypothesis statement could be:
H1 = There’s significance difference between amount in both the samples.
Step 3: Set alpha value
In Reality
Decision H0 is True H0 is False
Accept H0 Ok Type II Error
β = Probability of Type II
Error
Reject H0 Type I Error
α = Probability of Type I Error
Ok
Here, the assumed alpha value is 0.05 or 95% significance level; upto which error will be
ignored and result will be accepted.
Step 4: Data collection
The data is collected through observational design of weight and size of Peanut packets.
Step 5: Calculation of test statistic
The program first calculates the pooled standard deviation s:
The standard error se of the difference between the two means is calculated as:
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Business Report for Pecan Peanuts 2020
The significance level, or P-value, is calculated using the t-test, with the value t calculated as:
Difference -10.000
Standard error 6.569
95% CI -23.1079 to 3.1079
t-statistic -1.522
DF 68
Significance level P = 0.1326
Step 6: Construction of acceptance and rejection regions
The value of P in step number 5 is greater than 0.05 and hence, null hypothesis will be
accepted and alternative hypothesis will be rejected.
Step 7: Conclusion
Thus based on above result the p > 0.05 (0.1326 > 0.05); this indicates that there’s no
significance difference between amount of packets in different samples; also the two
machines are not comparable in terms of putting same amount in packets.
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Business Report for Pecan Peanuts 2020
1.7Pros & Cons Analysis “Should we buy a new machine?”
Should we buy a new machine?
Pros Score/10 Cons Score/10
The probability of 99.99%
for quality assurance will be
achieved
9 Financial debt has to be
taken 7
Decline in cost of repairing 8 Cost will be increased 8
Increase in efficiency 8
Increase in capacity 9
Total Pros 34 Total Cons 15
Average Pros 8.5 Average Cons 7.5
Based on pros and cons analysis through table for deciding whether to buy new machine or
not; the average pros and cons scores clearly shows that pros average has been exceed cons
average and hence, it is safe and profitable to the business to by a new machine. Additional to
this it could also used old machine as a reserve and considered at the time of backing up the
process.
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Business Report for Pecan Peanuts 2020
1.8 Customer Satisfaction
Customer satisfaction is a motivational term that specifies how the items or administrations
provided by an organization satisfy or satisfy a customer's desire. Customer loyalty is defined
as an estimate that determines customer satisfaction with an organization's articles,
administrations, and capabilities. Customer loyalty data, including reviews and ratings, can
allow an organization to decide the best way to improve and modify its products and
administrations.
Customer satisfaction is important because it provides advertisers and entrepreneurs with a
metric that they can use to track their organizations and their development.
Customer satisfaction (CSAT) is a measure used to evaluate the extent to which a customer is
satisfied with an object, management or experience. This measure is generally determined by
providing a customer loyalty review that asks on a five or seven point scale how a customer
feels in helping, buying or collaborating. in the general messaging experience, with responses
ranging from "extremely dissatisfied" to "highly achieved" overlooked.
Freshne
ss
Tastine
ss
Recommendati
on
pistachi
os 3.11 3.09 2.84
peanuts 3.09 2.98 2.67
pecans 3.10 3.07 2.84
cashews 3.08 3.09 2.86
pistachios peanuts pecans cashews
2.40
2.50
2.60
2.70
2.80
2.90
3.00
3.10
3.20
Freshness
Tastiness
Recommendation
The above table shows the customer satisfaction report of Pistachios, peanuts, pecans and
cashews based on the metrics of freshness, tastiness and recommendation by customers.
Response was collected from 86 random people by fulfilling questionnaire. The outcome
shows that all nuts categories were found fresh by people but in tastiness Pistachios and
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Business Report for Pecan Peanuts 2020
cashews got higher rating. Cashews are highly recommended by the people while after that
Pistachios are the nuts prefer by interviewers.
1.9 Initial SWOT Analysis about Possible Expansion
In the business cycle, development needs to expand. It's an important cookie that needs
careful organization from choosing the right kind of stuff to performing right methods. The
latter is prone to problems and requires sensitive will in fast-paced situations. This does not
make the previous strategy simpler than an invisible reversal of events; the main routine
events the owner, company and employees are all educated and in charge of actions for
future situations.
S.W.O.T. ANALYSIS
S.W.O.T. it is an abbreviation that represents strengths, weaknesses, opportunities and
threats. A SWOT test is a unique collection of the most important attributes, shortcomings,
openings and risks in your company.
There are the strengths and weaknesses within your organization, things that have a certain
power and that you can change. The models cover who you are in your organization, your
licenses and protected innovation and your area.
There are opportunities and threats on the outside: things that are happening outside the
organization, in the larger market. You can make the most of the opportunities and insure
yourself about the risks, but you can't transform them. Models include competitors, raw
material costs and futures purchase models.
A SWOT test makes up the best features, shortcomings, openings and risks of a bad solution
and is usually integrated into a simple pair network.
Below is the SWOT analysis of product line expansion:
Strengths
 Low start up costs
 Low maintenance
 Flexible loan repayment
Weakness
 Seasonal demand
 Lack of public awareness
Opportunities
 Joint ventures
 Possible expansion
 Online orders
Threats
 Competition during the holiday
season
 Competitors copying ideas
 Indirect competition by grocery stores
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Business Report for Pecan Peanuts 2020
1.10 Summary
Initially the organization may not have many advertising plans, usually as flyers for post letters
at the entrance and at various festivals and times. At these shows they plan to get a name for
the market and also present something like a kind of "blessing". These presentations will also
be a good source of income for the organization.
The reference market for the walnut business in the community is usually at any level, a
young and medium-high one, who essentially lives a "hasty" lifestyle but who still has
concerns about maintaining a strict food habit without basically negotiating the taste.
Australians are skipping suppers all the more than ever and eating has become a lifestyle for
some individuals, particularly for youngsters. With development increments in the nibble
business, and the wellbeing fragment repositioning itself and advancing "great" and "solid"
fats, nuts have gotten progressively become increasingly popular.
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Business Report for Pecan Peanuts 2020
{Body text wordcount, excluding diagrams/captions, etc approx. 2000 words. Suggested
words for each section are approximate – use your own judgement to make a good balanced
business report.}
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Business Report for Pecan Peanuts 2020
2. References
Kurttila, M., Pesonen, M., Kangas, J. and Kajanus, M., 2000. Utilizing the analytic hierarchy
process (AHP) in SWOT analysis—a hybrid method and its application to a forest-
certification case. Forest policy and economics, 1(1), pp.41-52.
Valentin, E.K., 2001. SWOT analysis from a resource-based view. Journal of marketing theory
and practice, 9(2), pp.54-69.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Kellert, S.R. and Wilson, E.O. eds., 1993. The biophilia hypothesis. Island Press.
Crick, F. and Clark, J., 1994. The astonishing hypothesis. Journal of Consciousness Studies, 1(1),
pp.10-16.
Lo, A.W., 2004. The adaptive markets hypothesis. The Journal of Portfolio Management, 30(5),
pp.15-29.
Hall, A.P., Moore, J.G., Gunning, B. and Cook, B.B., 1958. Nutrients in Nuts, The Nutritive
Value of Fresh and Roasted California Grown Nonpareil Almonds. Journal of Agricultural
and Food Chemistry, 6(5), pp.377-382.
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Business Report for Pecan Peanuts 2020
3. Appendices
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