Pecan Peanuts: Business Report on Industry Expansion and Analysis

This report provides a comprehensive analysis of the pecan and peanut industry, focusing on the operations of Pecan Peanuts, a UK-based nut product manufacturer. The report begins with an overview of the Australian pecan industry, including production and market trends, followed by a linear forecast of export production for 2021 and 2022. It then delves into the health aspects of various nuts, a quality assurance analysis of new machinery, and a cost-benefit analysis of investing in new equipment. The report also includes a hypothesis test comparing two machines, a pros and cons analysis, and an assessment of customer satisfaction. An initial SWOT analysis for potential expansion into new product lines like macadamia and almond snacks concludes the report, which recommends the purchase of new machinery to improve production and profitability.

Pecan Report

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
Overview of Australian Pecan Industry...................................................................................................3
TASK 2..........................................................................................................................................................3
Linear forecast of export production for 2021 and 2022..........................................................................3
TASK 3..........................................................................................................................................................5
Health issues in Pecan, Peanuts, Cashews and Pistachio.........................................................................5
TASK 4..........................................................................................................................................................6
Quality assurance conditions in machine working...................................................................................6
TASK 5..........................................................................................................................................................6
Cost of new machine...............................................................................................................................6
TASK 6..........................................................................................................................................................7
Hypothesis testing for possible difference in two machines....................................................................7
TASK 7..........................................................................................................................................................8
Pros and cons analysis.............................................................................................................................8
TASK 8..........................................................................................................................................................9
Customer satisfaction..............................................................................................................................9
TASK 9..........................................................................................................................................................9
Initial SWOT analysis for possible expansion.........................................................................................9
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Pecan Peanuts produces a range of packaged nut products from its largest UK factory. 2 key
package options are available, one shorter for dessert-size selling and one bigger for domestic
cooking purchases. Pecan Peanuts also offers other quick nut items however the biggest sellers
are pecans and peanut hands down. Because the industry started development in 2017, market
has done well (Bock and et.al, 2017). Yes, annual revenue has gradually increasing per year
since start-up. The Organization soon discovered numerous patterns between consumers, such as
a rising demand for healthy treats. One of the older computers seems to be laboring in the
manufacturing line and is collapsing more frequently lately.
TASK 1
Overview of Australian Pecan Industry
Overview of pecan peanuts: International recognition of nuts' medical benefits, like pecans, is
pushing up competition for nut jobs and nut items. Pecans are indigenous to the US and Mexico's
Central South and South Eastern areas. A first industrial pecan plantation started in the US in the
1880s, nowadays pecans are also widely cultivated in those other areas, namely Mexico, South
Africa, Israel, Argentina and Australia. Pecans are an alternative treatment-bearing, air-
pollinated tree which is soul-incompatible. Within just a pecan field a range of varieties are
needed to make sure cross breeding.
Overview of Australian peanuts industry: Most pecan production in Australia is based in
northern New South Wales (NSW) and southeastern Queensland (QLD). Stahmann growers
Trawalla rural property Moree in northwest England is the south island's biggest pecan
operation. Australia has over 100 pecan producers. It had cultivated upwards of 180,000 plants.
Farmers affiliated to the Australian Pecan Growers Association (APGA) in Australia generate
around 95 per cent of nuts. Until 2006 Australian pecan growth has been on a plateau of about
3,000 tons (in casing). There is great interest in the growth of this sector, and output is projected
to grow by 2025 to about 9,500 tons in shell. There are already numerous bilateral agreements
that are in derivation which might lift exports by a significant proportion in the near future once
it's been concluded. As per HTW, the field under Australia's pecan gardens mainly makes about
3000 tons of shell and the kernel would be around 1650 tons for it.

TASK 2
Linear forecast of export production for 2021 and 2022
Data of Australian Supplier volume:
Year Export
2014 11.9
2015 11.8
2016 15.8
2017 15.5
2018 20.3
2019 19.7
2020 25.5
201320142015201620172018201920202021
0
5
10
15
20
25
30
11.9 11.8
15.8 15.5
20.3 19.7
25.5
Data of Australian Supplier volume:
Export
Data of Australian Supplier
volume: Export
The number of Australian providers for the years 2021 and 2022 is calculated based on
the graph described. Linear prediction algorithm should be used for this reason. The equation
used during excel is predict Linear (Year of estimate, prior year results, all weeks).

The findings created following use of the equation in excel spreadsheet are as wants to follow:
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
The local consumption for 2021 and 2022 will be 2.8 and 3.0 accordingly, as per the
longitudinal prediction. From the other side, the exports both for periods will be about 25.9 and
28.1
TASK 3
Health issues in Pecan, Peanuts, Cashews and Pistachio
Nuts Saturated fat (Per ounce)
Pecans 2.7 Gm
Peanuts 7 Gm
Cashews 8 Gm

Pistachios 6 Gm
Pecans
Peanuts
Cashews
Pistachios
0 1 2 3 4 5 6 7 8
2.7
7
8
6
Saturated fat (Per ounce)
Saturated fat (Per ounce)
Depending from the above table, the saturated fat in cashew is very strong, and it is quite small
in Pistachios. The chart reveals that cashew's wellbeing is poor relative to nuts remaining. The
fats are 2.7, 7, 8 and 6 overall, in pecans, almonds, cashews and pistachios.
When cashews are eaten further than a cap then the issue of overweight in humanity may well be
induced. From the other side, collins-focused peoples eat Pistachios as it makes them remain fit
and provide enough nutrients to remain rich and active the comfortable life. The figure illustrates
all of the measurements in gram each unit of all the nuts consumed (Insch and Cuthbert, 2018).
TASK 4
Quality assurance conditions in machine working
New machine's chance of occurrence = 0.20 per cent
New machine's chance of loss = 0.80 per cent
Possibility of one device always functioning = 0.9999 percent

It has been evaluated that perhaps the older and newer systems have a chances of default of 0.20
percent and 0.80 percentage points, as per the latest analysis of all the devices. From the other
side, the organizations of product quality state that one tool operates 99.99 percent.
Following concepts are determined on the basis of it to meet the requirements:
Formula: Probability of working – probability of failure
Old machine new machine:
= 0.9999% - 0.20% = 0.9999% - 0.80%
= 0.7999% = 0.1999%
Based from the above estimate, the computer that will operate with good precision in the
potential is a new machine since its likelihood is 0.79% and the likelihood for the old machine is
about 0.19%. Using measurements, it was evaluated that the device that will function with
consistency as per the division of quality management is the new machine due to its high work
ability and lower bit probability.
TASK 5
Cost of new machine
Current earning forecast for upcoming six years = 2000 per month
Interest on the loan = 9%
Loan amount = 96000
Yearly estimated income for Pecan Peanuts = 2000 * 12
= 24000
Profits for all the years could be determined with the help of following table:
Year Income Income at the end of the
year
Total profits
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
Total interest on the loan on yearly basis = 8640
When the loan is taken over for 4 years or 48 month therefore the loan balance will be effectively
paid out. By the completion of year 4, the profit would be 96000, so it was suggested to take out
a loan for 48 months to the company. This time period would suffice for the company to
continue in the expenditure and transfer the mortgage to both the new machine.
TASK 6
Hypothesis testing for possible difference in two machines
Pecan Peanuts is choosing two new substitutes to replace existing unit. Any of the knowledge
related to them is as wants to follow:
Machine A:
Sample packets = 30
Mean weight = 180gm
Standard deviation = 40gm
Machine B:
Sample packets = 40
Mean weight = 170gm
Standard deviation = 10gm

When the six-point method for statistical analysis was evaluated to verify if both devices must be
used in time to incorporate this very same sum in the envelope, the function strategy comparison
is not being used. For this the association is somewhere around 0.9793. This indicates that now
the machines are extremely equivalent so that each will be used to bring the very same numbers
of peanuts into separate packages. Unless the relationship between the 2 aspects is greater than
0.70, it shows that the functionality rate of the quantities is greater and if it is only about 0.70,
the consistency rate of the quantities is quite small. Even as comparison here between two 30 and
40 packet equivalents is 0.9793 that is very similar to 1 it demonstrates that perhaps the
comparison of either of these is quite strong.
If an person has 2 distinct choices from which to select, the study of them as well the association
with them would be performed. It could be evaluated with the aid of this that both choices are
not really consistent with one another and. If they are not consistent therefore the higher mean
and median method should be used by the organization because it will meet specific objectives.
The connection is very strong in the situation of Pecan Peanuts that suggests efficiency of the
machines. Whether it is less than 0.70 then the business would go with the Next Option
(Stoneman, 2018).
TASK 7
Pros and cons analysis
One will buy the latest computer or not:
Pros Score Cons Score
Use of lack of oil 8 Large initial cost 8
Improved efficiency of Nuts 9 Training to staff to operate the
new machine
6
Time Saver 6 Maintenance cost 8
Increased profitability 6
Improve capabilities 7

Heavy and delicate work 8
Total 44 Total 22
Any such tables suggests that the success of acquiring a new machine are very high
compared to the drawbacks, and it is suggested that Pecan Peanuts purchase the latest machine
because it would be successful. When the earnings, sales, efficiency etc. are obtained, they will
be increased and the period especially in manufacturing operations would be cut (Stukus and
Mikhail, 2016).
TASK 8
Customer satisfaction
With the help of questionnaires, it would evaluate that mostly people considered it due
to quality and safety benefits of pecan and peanuts. Its ranking is very high for the flavour and
deliciousness of all the nuts including pistachios, pecans, cashews and peanuts. They were given
the highest ranking by most participants that are four. This also indicates that their customers
would preferably encourage someone to enjoy the nuts, because they are very healthy for
wellness. Any kind of nut is quite likely to be recognized for others for the consumption. Overall
rating for the pecan peanuts products is good which encourage organization to expand and
maximise overall demand (Yin and Bostick, 2019).
TASK 9
Initial SWOT analysis for possible expansion
The organisations use this method to define the organizational capabilities, limitations, risks and
opportunities that are necessary for defining and formulating growth strategies accordingly. They
decided to extend their product range when it comes to pecan peanuts by adding Macadamia and
Almond Snacks. SWOT will be done below for better analysis and further help the organization to make
effective decsions:
Strengths Weaknesses

 It aims to boost total consumer
demand and increase the industry
client base.
 Macadamia and Almond Snacks help
to improve the profitability overall.
 Organization should provide employee training
when implementing new product line, and
gain more skills for efficient implementation.
New personnel also need to be trained for this.
 The expansion costs are high and affect the
company financially.
Opportunities Threats
 Product line extension encourages
reaching those customers who enjoy
healthy snacks.
 It offers tremendous increase and
makes it famous among the
consumers in the market (Lake,
2017).
 The Macadamia and Almond Snacks rivals
affect Pecan Peanuts market.
 The launch of a new product range will also
end in disappointment, as consumers may not
appreciate this new product range.
CONCLUSION
From the overall analysis it has been observed that pecan and peanuts has demand in the
market, company expand their product line which required new machinery for production. With
the help of overall estimation, it has been recommended that company need to purchase new
machinery because it helps in producing quality product, maximise production, demand, and
customer base and improve profitability as well. Company introduce new products such as
Macadamia and Almond Snacks and they make sure to attract those people who prefer healthy
snacks. With help of pros and cons analysis, they evaluate the scores and analyse that
organization should expand their product line or not. Pros are higher than the cons, so
management decided to start production with new machinery and with the help of SWOT
analysis they evaluate what are the strengths, weakness, threats and opportunities. On the basis
of it, organization formulates several strategies and makes sure that expansion maximise demand
as well as profit margin which provide the huge growth to pecan and peanut industry.

REFERENCES
Books and Journals
Bock, C. H. and et.al, 2017. Population genetic structure of Venturia effusa, cause of pecan scab,
in the southeastern United States. Phytopathology. 107(5). pp.607-619.
Insch, A. and Cuthbert, R., 2018. Why country of origin still matters in food retailing:
Implications for promotion management research. Journal of Promotion
Management. 24(3). pp.363-375.
Stoneman, S. C., 2018. Food Allergen Awareness Training for the Food Service Industry.
Stukus, D. R. and Mikhail, I., 2016. Pearls and pitfalls in diagnosing IgE-mediated food
allergy. Current allergy and asthma reports. 16(5). p.34.
Yin, X. and Bostick, R. M., 2019. Associations of Nut Intakes with Incident Sporadic Colorectal
Adenoma: A Pooled Case-Control Study. Nutrition and cancer. 71(5). pp.731-738.
Lake, L., 2017. Pilot Study: Evaluating the Risk of Allergen Cross-Contact in Ice Cream Scoop
Shop Dipper Wells.
Jafari Azad, B., Daneshzad, E. and Azadbakht, L., 2020. Peanut and cardiovascular disease risk
factors: A systematic review and meta-analysis. Critical reviews in food science and
nutrition. 60(7). pp.1123-1140.
Giacalone, D. and Jaeger, S. R., 2019. Consumer ratings of situational (‘item-by-use’)
appropriateness predict food choice responses obtained in central location tests. Food
Quality and Preference. 78. p.103745.