Pecan Peanuts: Business Report Analysis for Summative Assessment 2020

This comprehensive business report analyzes the Pecan Peanuts Corporation, a UK-based company producing nut-based snacks. The report begins with an overview of the Australian pecan industry and the company's operations, followed by a linear forecast of export production for 2021 and 2022. It then delves into the health issues associated with pecans, peanuts, cashews, and pistachios, along with a quality assurance review of two machines. The report includes a cost analysis of a new machine, hypothesis testing for machine performance differences, a pros and cons analysis of purchasing a new machine, and an analysis of customer satisfaction. Finally, it concludes with an initial SWOT analysis for potential expansion into new product lines. The report provides detailed calculations, data analysis, and strategic recommendations for the company's future growth and operational improvements.

Pecan Peanuts

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..........................................................................................................................................................7
Cost of new machine...............................................................................................................................7
TASK 6..........................................................................................................................................................9
Hypothesis testing for possible differences in two machines...................................................................9
TASK 7........................................................................................................................................................10
Pros and cons analysis to make the decision that the new machine should be bought or not.................10
TASK 8........................................................................................................................................................10
Analysis of customer satisfaction..........................................................................................................10
TASK 9........................................................................................................................................................11
Initial SWOT analysis for the possible expansion.................................................................................11
SUMMARY.................................................................................................................................................11
REFERENCES..............................................................................................................................................13

INTRODUCTION
The entire research project is based on the Pecan Peanuts Corporation that is a company that
produces a variety of snacking products manufactured from various nuts. This company operates
in many locations and sources materials from Australia to meet customer demands. The current
research examines a variety of factors (Castillo and et.al, 2019). This report includes an overview
of the pecan industry sector and the company, as well as the implementation of linear forecasting
methods, an assessment of health issues related to the nut industry, and a quality improvement
review of two devices. In addition, this study-report covers the calculation of new machinery
costs, design evaluation, customer experience with the SWOT, and an advantages and
disadvantages analysis.
TASK 1
Overview of Australian Pecan Industry
Overview of pecan peanuts: Pecan Peanuts is a multinational company with operations in many
countries. Its UK-based plant produces all of the goods it offers on the supermarket. Pecans and
peanuts are the company's best-selling brands, but they also market cashews and pistachios. The
business's primary focus is on meeting the expectations of its consumers. One of the computers
happens to be broken to the point that the organization will repair it and thereby reinforce the
company.
Overview of Australian peanuts industry: Exports of Australian pecans increased by around
104.5 percent between 2018 and 2019, indicating a significant increase in economic growth.
Australia exports a variety of nuts to countries all over the world. Chestnuts, macadamias,
almonds, walnuts, pistachio, hazelnuts, pecans, and other nuts are commonly used. According to
an HTW report, the area of orchards where even the majority of pecans are grown currently
produces 3000 tonnes of shells (Salehi, Yarali and Ebadi Amooghin, 2020).
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
Scatter diagram:
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
0
5
10
15
20
25
30
11.9 11.8
15.8 15.5
20.3 19.7
25.5 25.9428571428562
28.1249999999991
Export
According to the graph above, Australia's exports will be 25.90 in 2021 and 28.10 in 2022. To
determine it, a linear prediction methodology is used, which is performed in an excel sheet.
PROJECTIONS. LINEAR is a formula (the year/period at which evaluations are needed,
previous year's data, accumulated lifespan). The following table shows the specifications that are
created with the help of formulation:

The results that are generated after using the formula in excel spreadsheet are as follows:
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
Based on the current linear projection, local usage will be 2.8 and 3.0 in 2021 and 2022,
overall. Exports, is from the other direction, will be about 25.9 and 28.1 for both decades.
TASK 3
Health issues in Pecan, Peanuts, Cashews and Pistachio
The content of saturated fats in different types of nuts, such as cashews, pistachios, pecans,
and peanuts, is shown in the table elsewhere here:
Nuts Saturated fat (Per ounce)
Pecans 2.7 Gm
Peanuts 7 Gm
Cashews 8 Gm
Pistachios 6 Gm

Saturated fat
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2
1.9
2.2
1.6
Saturated fat
Pecans Peanuts Cashews Pistachios
The graph above indicates that the volume of fat content in cashews is very high in
comparison to all other nuts, implying that it can affect a variety of health issues for consumers.
Regarding cashews, pecan has the highest saturated fat content and a substantial percentage of
saturated fat as well. Apart from these peanuts, which have pistachios, they contain between 1.9
and 1.6 grammes of total saturated fat (Gomez and Marks, 2020).
Cashews have a high number of saturated fats, which can cause health problems in
certain individuals. As seen in the graph, walnuts contain up to 72 percent polyunsaturated fat,
while pecans contain 57 percent and almonds contain 64 percent monounsaturated fat. Obesity is
the most serious health issue that can have an emphasis on people's health, as it will interfere
with their daily lives and lead to weight gain. Pistachios are consumed those who need fitness
because the amount of saturated fats in them is low.
TASK 4
Quality assurance conditions in machine working
The likelihood of collapse of old machinery is about 80%, while the likelihood of defeat
of new machinery is about 20%. These conclusions are focused on the organization's most recent
tracking in analysis to define the conditions for framework change. In addition, the quality

assurance department reported that running on a single machine would be almost 99.99 percent
efficient (Han and et.al, 2019).
Further to assessments may be made in an effort to satisfy the aforementioned quality assurance
requirements in order to determine the parameters for quality assurance. Formula for
functioning: probability of machine operating – probability of machine's failure
New machinery = 0.9999-0.20
0.7999 = 0.7999 * 100 = 79.99%
Old machinery = 0.9999 – 0.8099
= 0.1999 * 100 = 19.99%
Comparative analysis of the two machines reveals that if the computer is updated, the
probability of a stronger running frequency is about 0.79 percent, however if the machine is not
substituted, the existing machine's generally high performance is 0.19 percent. The corporation's
quality management section has to buy new equipment so it has a good chance of increasing
production. Aside from that, the percentage of modern equipment that is lost is very low when
compared to outdated machinery.
TASK 5
Cost of new machine
Current profit 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 Total profits

year
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
The yearly repayments for the loan must be calculated using the PMT calculation in an
excel document, if the loan is for six years or about 72 months. The following are the
estimations:
Whenever a loan of about 96000 is taken out for 72 months, the monthly payments will
be around 1730.45. The overall income at the end of the 6th year will be approximately 144000,
and payment will be paid on the total amount of the debt at a cumulative rate. The corporation
will be able to repay the loan after 72 months (Senaga, 2020).

TASK 6
Hypothesis testing for possible differences in two machines
In order to replace the old machine two new alternatives are being selected by Pecan
Peanuts. Some of the specific information relate to them is as follows:
Machine A:
Sample packets = 30
Mean weight = 180gm
Standard deviation = 40gm
Machine B:
Sample packets = 40
Mean weight = 170gm
Standard deviation = 10gm
The six-point methodology is being used to test the theory that all new devices should be
used to place the same amount of pecans in each box. For this function, the combination of
coefficient methods will be used. The significance should be about 0.9793, indicating that the
alternatives are compatible at a better elevation, indicating a strong statistical significance.
Variable validity will be better if it is stronger than about 0.70, and variable accuracy will be
limited whether it is somewhere around 0.70.
The similarities between Machinery A and B, that are otherwise two different
alternatives, are about 0.9793, that is greater than 0.1 since it means that both factors are
compatible. Individuals such as Pecan Peanuts must use correlation coefficient methods when
making a decision two basic categories. It would assist in determining the degree of functionality
of computers in order to determine whether or not they are the best options. Pecan Peanuts
correlation was 0.9793, that is very high, making it hard for a person to choose the best one of
them.

TASK 7
Pros and cons analysis to make the decision that the new machine should be bought or not
Pros Score Cons Score
Enhanced volume productivity 8 Interests on the loan 7
Reduced timing of production 8 Trainings and developments
programs for employees/personnel
7
Increased sales/revenues 6 Higher/increased costs of
replacements
8
Improved qualities of packaging-task 7
Higher/greater profitability 6
Productions of snacking-items which
are more preferred by targeted-clients
8
Total scores 7.17 Total scores 7.33
As can be shown, the pf pros rating of replacing existing machinery with new machinery is
very higher compared to the cons ranking. It implies that the firm should invest in new
equipment because it would be beneficial to the business. This will result in increased
productivity, sales, and development (Miller and et.al, 2019).
TASK 8
Analysis of customer satisfaction
A total of 86 people responded to the Consumer Satisfactions Survey. Pistachios,
cashews, pecans, and peanuts were among the nuts they tried. Some of these participants
answered them a three to four on a scale of one to four for freshness and flavour, indicating that
when both aspects are of top standard (Yan and et.al, 2019). The third question asked whether
people would recommend nuts toward others, and the majority of people answered no.

TASK 9
Initial SWOT analysis for the possible expansion
SWOT analysis is a method of analysis used by companies to evaluate all of an industry's
strengths, weaknesses, prospects, and threats in order to formulate strategic planning. Pecan
Peanuts has plans to expand in a variety of food lines, namely Almond Snacks and Macadamia.
The company conducts a SWOT analysis in order to determine the chance of success (Arenas
and et.al, 2021). The following are some of them:
Strengths Weaknesses
• Whenever new product products are
introduced, they will result in higher
sales for the organization.
• As the organization is expanded, the
number of customers will increase.
• • In contrast, the development of the
business entity would incur significant
expenses.
• In order to reach better profits, the
company would need to recruit
additional staff who could oversee all
operating activities before selling a new
brand. It's also going to be huge.
Opportunities Threats
 • The company has achieved market
development by launching unique
ideas, which will continue to approach
all consumers who want healthy eating.
• The organization will improve market
development by expanding its sector.
 Even as product selection is expanded,
buyers' old tastes can be affected, and
the degree of competition will have an
impact on corporate growth.
SUMMARY
According to the findings of the above project report, Pecan-Peanuts is the global leader
selling nuts-based snacks. Pistachios, almonds, pecans, and cashews are the most popular. The
corporation should substitute an old machine with a new one after conducting a proper
assessment, with the goal of facilitating proper business reforms. It's vital to reflect on different

elements of repairing equipment while doing numerous tasks. There are benefits and drawbacks,
and if they are swapped out, they will result in a variety of benefits, such as high revenues,
productivity, and profits. Aside from that, the study includes an outline of the Australian pecan
industry, a Linear Forecast of Export Output for 2021 and 2022, and information on health
complications. Aside from that, practical issues are answered in the report's later sections in line
with the details provided.