Pecan Peanuts Summative Assessment

This assessment covers the several strategies which are taken by the organizations for its expansion and before implementation they need to evaluate every aspect.

Pecan Peanuts Summative
Assessment

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
Overview of Pecan Industry of Australia....................................................................................1
TASK 2............................................................................................................................................2
Produce scatter diagram and make a linear forecast of export productions for 2021 and 2022..2
TASK 3............................................................................................................................................3
Healthiness from Pecan, Peanuts, Cashews and Pistachio..........................................................3
TASK 4............................................................................................................................................3
Quality assurance conditions in machine working......................................................................3
TASK 5............................................................................................................................................4
Machinery cost.............................................................................................................................4
TASK 6............................................................................................................................................5
Hypothesis testing........................................................................................................................5
TASK 7............................................................................................................................................6
Pros and cons analysis.................................................................................................................6
TASK 8............................................................................................................................................6
Customer satisfaction...................................................................................................................6
TASK 9............................................................................................................................................7
SWOT analysis............................................................................................................................7

TASK 10..........................................................................................................................................8
Findings.......................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Appendix........................................................................................................................................10

INTRODUCTION
Peanuts are not nuts but legumes that are pods and beans. In other foods and in other
variants, such as peanut grain, peanut butter, peanut oil, peanut products, and peanut by-products
are included (Brar, Strawn and Danyluk, 2016). This report based on Australian Pecan industry
and further they wanted to expand their business into new market. This assessment covers the
several strategies which are taken by the organizations for its expansion and before
implementation they need to evaluate every aspect.
MAIN BODY
TASK 1
Overview of Pecan Industry of Australia
Overview of pecan:
The packaged nuts product manufactured in the main factory that is situated in the UK.
Pecan and other nuts also consider as snack but best-selling items are pecans and peanuts. This
imports all of the shell-on nuts through Australia (Brar and Danyluk, 2019). It began its
manufacturing in 2017, but after the settlement of company the operating earnings for all of the
years are steadily rising for it.
Presently more and more people are focused towards healthy snacks and its demand
also increases. A few of the old organizations appears to be falling down lately, and the company
wants to purchase a new one so the company can boom.
Australian pecan industry:
Almost all of the pecan industry in Australia is situated in northern New South Wales
(NSW) and south eastern Queensland (QLD). Australia has over 100 pecan farmers and more
than 180,000 fruiting trees. Organic farmers belonging to the Australian Pecan Growers
Association (APGA) in Australia generate around 95 per cent of nuts. The Australian Pecan
Industry is rising significantly and in 2018/19 exports were reported at about $104.5 million.
There are many different types of nuts which are exported in multiple nations such as chestnuts
almonds, walnuts, hazelnuts etc.
Since 2006 Australian pecan manufacturer has been on a decline of about 3,000 tons. There
has been great deal of interest in the growth of the business, and demand is projected to grow by
1

2025 to about 9,500 tons in shell. A significant element in expanding the industry is the
identification of regions appropriate for pecan manufacturing.
TASK 2
Produce scatter diagram and make a linear forecast of export productions for 2021 and 2022
Data mentioned in appndix:
Scatter diagram:
Formula: FORECAST.LINEAR (Year of estimation, preceding year data, all the years)
The quantity of Australian Suppliers for the years 2021 and 2022 will be estimated based on
the data given. Linear forecasting model can be used for this purpose. It is clearly mentioned that
export production of the country will increasers. In 2021 export production will be 25.9 and in
2022 it will be 28.1.
With the help of linear forecasting method organizations is able to predict their future sales
and trends (Bolling, 2017). It is beneficial for manufactures to maximise their production as well
as profit margin. Table of export production for the period of 2014 to 2022 is mentioned in the
appendix which shows the increasing value.
2

TASK 3
Healthiness from Pecan, Peanuts, Cashews and Pistachio
Below mention stacked column chart provide the clear understanding of saturated fat
which identified in the different types of nuts. Saturated fat table mentioned in the appendix and
chart placed below:
Depending on the data, saturated fat in the Pistachios is very low in comparison to other
nuts and on the other side, maximum saturated fat is identified in Cashews. The chart reveals that
cashew’s wellbeing is poor relative to nuts remaining (Cunha, Sa and Fernandes, 2018). The fats
Gm per pound are 2, 1.9, 2.2 and 1.6 respectively as pecans, peanuts, cashews and pistachios.
When the consumption of cashews is high than a maximum people face the issue of obesity
in humans may be induced. But other hand, harper-focused individuals consume Pistachios
because it allows them remain fit and provide enough nutrients to keep happy and fit the healthy
lifestyle. The figure displays the measurements of all nuts intake in grams per ounce.
TASK 4
Quality assurance conditions in machine working
Profanity of failure:
New machinery = 0.20%
Old Machinery = 0.80%
Among Old or New, one machine working all the time = 0.9999%
3

Following calculations are as follow:
New machinery = 0.9999 % - 0.20 %
= 0.7999 %
Old machinery = 0.9999 % - 0.80 %
= 0.1999 %
From the overall analysis of above calculation, it has been observed that new machinery
provide more accuracy in comparison to other one. New machinery provides 0.79% accuracy or
old machinery performance is 0.19%. According to the probability of quality assurance
department, only single machinery has chances of working that is 99 % and that will be new
machinery. As per the quality assurance department, new machinery has lower chances of failure
and high chances of working.
TASK 5
Machinery cost
Forecaster of profit for the next 6 years = 2000 (Per Month)
Interest rate = 9 %
Amount of Loan = 96,000
Annual estimated for pecan industry = 12 * 2000 = 24,000
Below mention table provide overall determinates of profit:
Year Payment Yearly Payment
Year 1 24,000 24,000
Year 2 24,000 48,000
Year 3 24,000 72,000
Year 4 24,000 96,000
Year 5 24,000 120,000
Year 6 24,000 144,000
Loan amount 96000
Interest rate 9%
4

Period terms in months 72
Compounding period per month 12
₹ 1,730.45
Company will earn profit according to the estimation than organization will be able to re-
pay their loan amount in 6 years (Cheng, Dharmasena and Capps, 2017). It will be highly
recommended that, organization should take loan for the production for 72 months which helps
them to fulfil their financial needs and allow them to repay in 6 years. For remaining periods,
company earn money for themselves and they need to spend on new machinery to the expansion
of their business. It is beneficial as well as profitable project for the organization to invest into
new machinery through taking loan for the period of 6 years.
TASK 6
Hypothesis testing
For the replacement of old machinery, there are two other options of new machinery for
pecan peanuts and some required information mentioned below:
Requirement Machinery A Machinery B
Sample package 30 40
Mean 180 gm 170 gm
Standard deviation 40 gm 10 gm
Correlation 0.972058
Testing is based on two types of equation:
Above investigation based on the different mean value of Machinery A or B which is based
on the size of population such as size of sample packages which is 30 or 40 respectively.
Comparison will be done on the basis of sample size and its mean value that is 180gm or
170 gm respectively.
5

If the six-point method of hypothesis testing was tested to verify if both machineries should
be used in order to place the same quantity in the envelope, the coefficient methodology is not
being used. For this the correlation is about 0.972058. It indicates that now the machineries are
extremely similar and that each should be used to bring the very same amount of nuts into
separate packets. If the coefficient of correlation is much more than 0.70, it demonstrates that the
reliability level of the factors is greater and if it is less than 0.70, the connectivity level of the
factors is very low (Dean, 2018). Correlation among the two sample packages which contain 30
and 40 is 0.972058 that is very near to 1 it indicates that the comparability of both of them is
very strong.
If a person has two separate options to choose from, the study among them and the
association between them will be undertaken. It can be analyzed with the aid of this that both
alternatives are compatible for the organization or not with each other. When they are not
compatible therefore the higher mean and standard deviation method will be used by the
individual because it should produce good outcomes. The connection is very strong in the case of
Pecan Peanuts which indicates reliability of the devices. Company must go with the first
alternative which is lower than 0.70 and it will be beneficial for the organizations as well.
TASK 7
Pros and cons analysis
Table for buying new machinery or not:
Pros Score Cons Score
Increase the overall production 8 Machinery cost is high 8
Increased the overall quality 7 Need to provide training to
operate new machine
8
Save production time 8 Interest of loan 7
Improve revenues 7 Competitors 8
Increase profit margin 8 Increase transportation cost 7
High demand of healthy snacks 9
Total 47 Total 23
Average Pros = 47 / 6 = 7.83
6

Average Cons = 38 / 5 = 7.3
Above mentioned table shows that average pros is 7.83 and average cons is 7.6 which is
lower than the pros. It means company should invest into new machinery which is beneficial as
well a profitable for pecan peanuts. On the basis of this analysis, it will be recommended that
pecan peanuts should purchase new machinery which helps in maximising overall production,
revenue, demand etc.
TASK 8
Customer satisfaction
On the basis of questionnaire which was asked to the 86 responded and they gave their
valuable response which help the pecan peanuts company to identify that customers are satisfied
or not (Sealey-Voyksner, Zweigenbaum and Voyksner, 2016). Most of the used product is
pecans that’s average value was 3, freshness and tastiness of produced get the 3 rating which
means good. In addition, customers are likely to recommend this product with others. Overall
product overview was good it means customers are satisfied with the products which introduced
and it further helps in maximising its overall demand.
*Table mentioned in the appendix.
TASK 9
SWOT analysis
SWOT analysis is the strategic tool which is used by the organizations in order to evaluate
its operations performances through identifying company's strengths, weakness, opportunities
and threats. Since Pecan Peanuts is prepared to expand their market in various product lines
in Macadamia and Almond Snacks, it has agreed to perform SWOT analysis. The thorough
description is as followed in respect of organizations.
Strengths Weaknesses
 Expansion strategy helps the
organization to improve their product
demand in the market. New machinery
increases the productivity and takes less
time for manufacturing goods.
 Expansion strategy is very costly
because purchase of new machinery is
costly.
 While purchasing new machinery, it is
essential to provide necessary training
to their staff members regarding how to
7

 Producing more goods in the product
line will helps in increasing customers
and their demand for goods through
offering quality of nuts.
operate it. Basically expansion
required huge investment for
implementation of their plans.
Opportunities Threats
New product range helps in targeting people
who prefer healthy snacks (Jiang, Wang and
Sun, 2017).
 Expansion helps in generating demand
all over the market or increase market
share of the company.
 Competitors are the biggest threats for
the company, so they need to maintain
uniqueness.
 Expansion can also lead the failure
because it will be possible that people
does not like new range of nuts.
TASK 10
Findings
It has been observed that pecan industry of Australia is very popular for the production of
different nuts. For the expansion in the product range and purchasing new machinery help the
organization to maximise their demand and customer base as well who wishes to consume
healthy snacks. It is also recommended that entity should purchase new machinery for the better
results.
CONCLUSION
On the basis of above discussion it has been learned that Pecan Peanuts is an organization
that sells various kinds of nuts around the world. There are pecans, cashews, almonds and
pistachios. Attributed to high need of pecans around the world, the Australian Pecan Industry has
been rising for the last few years. Pecan Peanuts' old machine is operating well, and still has no
remaining interest, so the company agreed to purchase new machinery. This should help boost
productive capacity, profits, income etc. Besides this, with the aid of it, the processing time by
the old system to generate the nuts packages would also be reduced. Pecan Peanuts expected to
grow into new product line to reach larger business space. SWOT analysis is performed to assess
the probability of success and loss. For the expansion of entity, purchase of new machinery is
very essential and it also plays important role in the success of expansion.
8

9

REFERENCES
Books & Journals
Brar, P. K., Strawn, L. K. and Danyluk, M. D., 2016. Prevalence, level, and types of Salmonella
isolated from North American in-shell pecans over four harvest years. Journal of food
protection. 79(3). pp.352-360.
Brar, P. K. and Danyluk, M. D., 2019. Validation of Enterococcus faecium as a surrogate for
Salmonella under different processing conditions for peanuts and pecans. Food
microbiology. 80. pp.9-17.
Bolling, B. W., 2017. Almond polyphenols: methods of analysis, contribution to food quality,
and health promotion. Comprehensive Reviews in Food Science and Food Safety. 16(3).
pp.346-368.
Cunha, S. C., Sa, S. V. and Fernandes, J. O., 2018. Multiple mycotoxin analysis in nut products:
Occurrence and risk characterization. Food and Chemical Toxicology. 114. pp.260-269.
Cheng, G., Dharmasena, S. and Capps Jr, O., 2017. The Taste for Variety: Demand Analysis for
Nut Products in the United States (No. 1377-2016-109921).
Dean, L. L., 2018. Targeted and Non‐Targeted Analyses of Secondary Metabolites in Nut and
Seed Processing. European Journal of Lipid Science and Technology. 120(11).
p.1700479.
Sealey-Voyksner, J., Zweigenbaum, J. and Voyksner, R., 2016. Discovery of highly conserved
unique peanut and tree nut peptides by LC–MS/MS for multi-allergen detection. Food
chemistry. 194. pp.201-211.
Jiang, S., Wang, J. and Sun, Y., 2017. Qualitative and quantitative analysis of fatty acid profiles
of Chinese pecans (Carya cathayensis) during storage using an electronic nose
combined with chemometric methods. RSC advances. 7(73). pp.46461-46471.
10

Appendix
TASK 2:
Year Export
2014 11.9
2015 11.8
2016 15.8
2017 15.5
2018 20.3
2019 19.7
2020 25.5
2021 25.9
2022 28.1
TASK 3:
Nuts Saturated fat (Per Pounce)
Pecans 2 Gm
Peanuts 1.9 Gm
Cashews 2.2 Gm
Pistachios 1.6 Gm
Task 6:
TASK 8:
ID Q1 Q2a Q2b Q3
001 1 4 4 3
002 4 2 4 3
003 1 4 2 3
004 3 4 4 4
11

005 2 4 4 3
006 2 3 2 3
007 1 3 4 4
008 4 2 2 3
009 1 4 3 2
010 3 4 2 2
011 2 4 2 2
012 2 3 4 1
013 3 3 3 4
014 4 2 2 2
015 1 4 2 1
016 3 4 4 1
017 2 4 2 4
018 2 3 4 2
019 1 3 3 4
020 4 2 4 2
021 1 1 2 3
022 3 4 4 3
023 2 4 2 3
024 2 4 4 2
025 1 3 2 3
026 4 2 2 3
027 3 1 4 4
028 3 4 4 3
029 2 4 3 2
030 2 3 2 2
031 1 3 2 2
032 4 2 4 3
033 1 4 4 4
034 3 4 2 2
035 3 3 2 1
036 4 2 4 2
037 1 3 2 2
038 4 4 4 2
039 2 4 3 1
040 2 3 4 2
041 4 3 2 3
042 4 2 4 3
043 1 4 2 3
044 3 4 4 2
045 3 3 2 3
046 4 2 2 3
047 3 3 4 4
12

048 4 2 2 3
049 2 4 3 2
050 2 3 2 4
051 4 3 2 4
052 4 2 4 4
053 1 4 3 4
054 3 4 2 2
055 1 3 2 1
056 4 2 4 2
057 3 3 2 2
058 4 2 4 2
059 1 4 3 4
060 2 3 4 2
061 3 3 4 3
062 4 2 4 3
063 1 4 4 3
064 3 4 4 2
065 3 3 2 3
066 4 2 2 3
067 2 3 4 3
068 4 2 4 3
069 1 4 3 4
070 2 3 2 3
071 3 3 2 4
072 4 2 1 3
073 1 4 3 4
074 3 4 4 3
075 1 3 4 3
076 4 2 4 4
077 1 3 2 4
078 4 2 4 4
079 1 4 4 4
080 4 3 4 4
081 4 3 4 3
082 4 2 4 1
083 1 4 4 5
084 3 4 4 4
085 1 3 4 2
086 4 2 4 5
Average 3 3 3 3
13