Pecan Peanuts Business Report: A Comprehensive Analysis of Operations

This business report for Pecan Peanuts provides a comprehensive analysis of various aspects of the company's operations. It begins with an overview of the Australian pecan industry and the company's position within it, followed by a linear forecast of export production for 2021 and 2022. The report then delves into health issues associated with different types of nuts, including cashews, pistachios, pecans, and peanuts, focusing on saturated fat content. It assesses the quality assurance conditions for machine working, comparing the performance of old and new machines. Furthermore, the report calculates the cost of a new machine, performs hypothesis testing for potential differences between two machines, and conducts a pros and cons analysis to determine whether a new machine should be purchased. Customer satisfaction is analyzed based on a questionnaire, and an initial SWOT analysis is presented to explore potential expansion opportunities. The report concludes with a summary of the findings and recommendations for Pecan Peanuts' future strategies.

DATA ANALYSIS
PEACAN PEANUTS
REPORT

INTRODUCTION
Pecan Peanuts is an organisation which is producing different types of snacking items
that are made from various nuts. It is carrying out its business in various countries and it imports
goods from Australia so that requirements of customers could be fulfilled (Brar and Danyluk,
2018). Present report focuses upon different elements. These are overview of the pecan industry
as well as the organisation, use of linear forecasting model, analysis of health issues related to
the nut market and quality assurance analysis of machines. Additionally, the assessment of cost
of new machine, testing of hypothesis, satisfaction of clients along with SWOT and pros and
cons analysis are also discussed in this report.
TASK 1
Overview of Australian Pecan Industry
Overview of organisation: Pecan Peanuts is a large organisation which is carrying out
operational activities in multiple nations. All the items that are sold by it in the market are
manufactured in its factory which is in UK. The best-selling items of the organisation are pecans
and peanuts and apar from this it also sells cashew and pistachios. It is highly focused with
meeting expectation of customers. One of the machines of it is seems to be broken so it is willing
to replace it so that business could be boosted.
Overview of Australian Pecan Industry: The export of Australian Pecan Industry is
around 104.5 for year 2018 and 19 which reflects that it is growing massively. Different varieties
of nuts are exported by Australia to different countries around the world. Some of them are chest
nut, macadamia, almond, walnut, pistachios, hazelnut, pecans etc. On the basis of report of HTW
the area of the orchards where pecan is produced is currently producing almost 3000 tonnes shell
(Overview of Australian Pecan Industry, 2019).
TASK 2
Linear forecast of export production for 2021 and 2022
Data for export in Australia is as follows:
Years
Export
(Australian
Dollar)
2014… 11.90
1

2015… 11.80
2016… 15.80
2017… 15.50
2018… 20.30
2019… 19.70
2020… 25.50
The chart on the basis of linear forecast is as follows:
The above chart reflects that in 2021 the export in Australia will be 25.90 and in 2022 it will
be 28.10. In order to calculate it the linear forecast model is used in excel. The formula is
FORECAST.LINEAR (The year for which estimation is required to be made, information of
last years, total duration). The details that are created with the help of the formula are listed
in table below:
Year Export
2014… 11.90
2015… 11.80
2016… 15.80
2017… 15.50
2018… 20.30
2019… 19.70
2

2020… 25.50
2021… 25.90
2022… 28.10
With the help of the model which was used in excel spread sheet it has been determined
that the export of peanuts in year 2021 will be around 25.90 and for 2022 it the export will be
28.10. It shows that export in upcoming years will be increased by a huge percentage (Cheng,
2019).
TASK 3
Different types of health issues in the market of cashew, pistachio, pecan and peanut
The content of saturated fat in different types of nuts such as cashew, pistachio, pecans and
peanuts are listed in table below:
Nuts Saturated fat (Per ounce in grams)
Pistachios 1.6 Gm
Cashews 2.2 Gm
Pecans 2 Gm
Peanuts 1.9 Gm
3

The chart above reflects that the level of saturated fat in cashew is very high as compared
to all the other nuts which means it may result in various health issues for the consumers of it.
The higher content of saturated fat after cashew is in pecan which is also having very high
percentage of saturated fat. Apart from this peanuts and pistachios are having 1.9 and 1.6 gm of
saturated fat.
As the level of saturated fat in cashew is very high so it may result in health issues for the
individuals. The main health issue which may leave impact upon health of people will be obesity
which will affect their daily routine and result in increment in weight. The people who are
paying attention towards fitness they eat pistachio as the level of saturated fat in it is very low
(Cheng, 2017).
TASK 4
All the quality assurance conditions for machine working
Possibility of chances of failure of the old machine is 0.80% and the for the new machine it
will be 0.20%. These facts are drawn on the basis of recent monitoring which was conducted by
the enterprise so that the requirements of machine changing could be determined. Apart from this
the department of quality assurance mentioned that working on one machine will be almost
99.99%.
In order to determine the quality assurance conditions following calculations are made so
that condition could be satisfied:
Formula for working: Possibility of working of the machine – possibility of failure of
the machine
New machine = 0.9999 – 0.20
= 0.7999
Old machine = 0.9999 – 0.80
= 0.1999
Comparison of both the machines: The above calculations are showing that if the
machine will be replaced then the probability of high level of working will be around 0.79% and
if it will not be replaced the high working of old machine will be 0.19% (Dean, 2018). The
quality assurance department of the organisation should buy the new machine as its probability
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of high level of working is very high. Apart from this, the percentage of failure of the new
machine is very low as compared to the old one.
TASK 5
Cost of the new machine which will be bought by the enterprise
The profit will be earned for next six years on monthly basis = $2000
Loan which will be taken by the organisation = 96000
Percentage of interest on loan = 9%
The forecasted income for whole year = 12 * 2000
= 24000
The income for upcoming six years will be as follows:
Years Income Net income at year end Total income
1.. 24000.. 24000.. 24000..
2.. 24000.. 24000+24000 48000..
3.. 24000.. 48000+24000 72000..
4.. 24000.. 72000+24000 96000..
5.. 24000.. 96000+24000 120000..
6.. 24000.. 120000+24000 144000..
The calculation of the monthly instalment for the loan if it will be taken for 6 years or 72
months is done on the basis of PMT formula in excel. The calculations are as follows:
Particulars Details
Amount of loan 96000..
Rate of interest 9%
Total months 72..
Compounding period per
month 12..
PMT 1,730.45
When the loan amount of 96000 will be taken for 72 months then the instalment will be
around 1730.45. The total income at the end of 6th year will be around 144000 and the interest
will be on compound basis which will be paid on the remaining amount of the loan. 72 months
will be enough for the organisation to repay the loan (Jiang, Wang and Sun, 2017).
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TASK 6
Hypothesis testing for possible differences in two machines
The organisation is planning to replace the old machine with the new one and for this
purpose two different options are selected by the enterprise. The detailed information of both of
them is mentioned below:
Alternative one (Machine A)
Sample packets = 30packets
Mean weight = 180 gm
S. D. = 40 gm
Alternative two (Machine B)
Sample packets = 40 packets
Mean weight = 170 gm
S. D. = 10 gm
In order to determine that both the new machines could be used to put same amount in
the packets of pecans six-point procedure for hypothesis testing will be used. For this purpose,
correlation of coefficient technique will be used. The value of it will be around 0.9793 and it
reflects that the alternatives are compatible at high level because the value of correlation is very
high. When it is more than 0.70 then the comparability for the variables will be high and if it will
be less than 0.70 then the compatibility of the variables will be low.
The value of correlation of the Machine A and B which are two different alternatives is
0.9793 which is close to 1 so it shows that the compatibility in these variables is high. In the
situation of selecting one option from two variables it is very important for entities like Pecan
Peanuts to use coefficient of correlation technique. It can help to analyse the level of
compatibility of the machines so that it could be analysed that both are best options or not. As
the correlation for Pecan Peanuts was 0.9793 which is very high which will create difficulty for
the enterprise to choose best one from them (Kluczkovski, 2019).
TASK 7
Pros and cons analysis to make the decision that the new machine should be bought or not
Pros Score Cons Score
Enhanced productivity 8 Interest on loan 7
6

Reduced time in production 8 Training and development programs
for employees
7
Increased sales 6 Higher cost of replacement 8
Improved quality of packaging 7
Higher profitability 6
Production of the snacking items that
are preferred by targeted clients
8
Total score 43 Total score 22
The above reflects that the score pf pros of replacing the old machine with the new one is
very high as compared to the score of cons. It shows that the organisation should buy the new
machine as it will be beneficial for the business. It will result in higher profitability, sales and
productivity.
TASK 8
Analysis of customer satisfaction
The questionnaire for analysing satisfaction of the clients was filled by 86 individuals. All
of them have tried all the nuts such as cashews, pecans, pistachios and peanuts. In order to rate
them on the basis of their freshness and tastiness most of the respondents rated them between 3
to 4 which shows that the level of both the elements is high. The third question was related to
recommendation of the nuts to others and the respondents said that they will likely and neutral
about the recommendation (Morsy, Hussein and El-Fadl, 2020).
TASK 9
Initial SWOT analysis for the possible expansion
SWOT analysis is a type of tool which is used by the entities for the purpose of analysing
all the strengths, weaknesses, opportunities and threats of business so that decisions for future
could be formulated. Pecan Peanuts is planning o expand itself in various product lines such as
Almond Snacks and Macadamia. In order to determine the possibility of attaining success SWOT
analysis is conducted by the organisation. It is as follows:
Strengths Weaknesses
 If business will be expanded then it will  While expanding the business
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increase the number of customers.
 When new product lines will be
introduced then it will result in higher
profits for the enterprise.
enterprise may have to bear very high
costs.
 While introducing the new product the
organisation will have to recruit new
staff who can handle all the activities of
business to generate higher revenues.
The cots of it will also be high.
Opportunities Threats
 When the new items will be introduced
by the organisation then it will help to
target all the clients who are preferring
healthy eatables.
 With the help of business expansion,
the organisation can attain growth for
business (Robbins, Greenspan and
Pegg, 2016).
 The level of competition may affect the
expansion of business.
 When the product line will be expanded
then it can affect the old taste of clients.
CONCLUSION
From the above project report it has been concluded that Pecan Peanuts is one of the
largest organisations selling snacking items that are made from nuts. All of them are pistachios,
peanuts, pecan and cashew. The organisation is willing to replace its old machine with a new one
for which comparative analysis is conducted which helps to make proper changes in the
business. While performing different activities different elements of replacing the machines are
required to be focused. These are pros and cons and if it will be replaced then it will result in
various benefits such as higher profitability, productivity and revenues.
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REFERENCES
Books and Journal:
Brar, P. K. and Danyluk, M. D., 2018. Nuts and grains: microbiology and preharvest
contamination risks. Preharvest Food Safety. pp.105-121.
Cheng, G., 2019. The Peanuts and Tree Nuts Market in the United States: Demand Analysis,
Variety Seeking, Household Choices, and Consumer Profiling (Doctoral dissertation).
Cheng, S., 2017. Optimization of sensor array of electronic nose for aging time detection of
pecan. Transactions of the Chinese Society of Agricultural Engineering. 33(3). pp.281-
287.
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.
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.
Kluczkovski, A. M., 2019. Fungal and mycotoxin problems in the nut industry. Current Opinion
in Food Science. 29. pp.56-63.
Morsy, G. M., Hussein, R. H. and El-Fadl, H. M. I. A., 2020. The chondroprotective role of
pecans (carya illinoinensis) and pistachio (pistacia vera) against experimentally induced
animal model of knee osteoarthritis. Eurasian Journal of Biosciences. 14(1). pp.1221-
1231.
Robbins, K. S., Greenspan, P. and Pegg, R. B., 2016. Effect of pecan phenolics on the release of
nitric oxide from murine RAW 264.7 macrophage cells. Food Chemistry. 212. pp.681-
687.
Online
Overview of Australian Pecan Industry. 2019. [Online]. Available through:
< https://www.propertyobserver.com.au/finding/location/rural/105030-australian-pecan-
industry-finally-reaping-rewards.html>
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APPENDIX
Task 8: Customer satisfaction data of questionnaire:
DATA KEY:
Q1 type 4,3,2,1 (4 = cashews; 3 = pecans; 2 = peanuts; 1 = pistachios)
Q2 freshness: 4,3,2,1 (4 = high; 1 = low)
Q2 tastiness: 4,3,2,1 (4 = high; 1 = low)
Q3 recommendation: 5,4,3,2,1 (5 = high; 1 = low)
ID Q1 Q2a
Q2
b Q3
001 1 4 4 3
002 4 2 4 3
003 1 4 2 3
004 3 4 4 4
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
10

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
11

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
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
12

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
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