Running head: BUSINESS REPORT FOR PECAN PEANUTS 2020 1

Pecan Peanuts: Business Report

Name

Institution

Course

Instructor

Date: July 2020

Introduction

Pretty much every human being is hurrying to eat well bites. The Pecan Peanuts

Company, based in the United Kingdom, specializes in the production of different kinds of

nuts. Lately, the organization's central concern development has been consistent upward every

year. To look after development, the organization needs to follow 'Absolute Quality

Assessment.' Further, to keep up the organization manufacturing plant design, different choices

regarding equipment and manufacturing line need to be designed. Organization need to equip

themselves with a suitable option by doing a cost advantage analysis. The best technique with a

negative and positive advantage for pecan peanuts has to be identified (Pecangrowers.org.au,

2020). Moreover, knowing the client’s needs and the different options available for improving

the product ensures product improvement is done and tailored according to the customer’s

needs.

Source: https://www.freepik.com/premium-photo/assorted-mixed-nuts-peanuts-almonds-

walnuts-pistachios-pecan-cashew-hazelnuts_6905835.htm

1
1. Analysis

1.1 Overview of Pecan Industry

This pecan peanut offers variety from the family of nuts known as Juglandaceae. It is an

enormous tree that grows up to 44 meters and can exist to 400 years. As per the report of

Createhealthfitness.com.au. (2020), fertilization is the most critical aspect of these trees since

they have different male and female parts. The pecan industry in Australia indicates growth

since the showcase was done with an increase in output. The output has increased to 3000 tons

in the shell with a planned objective to accomplish 9500 tonnes in the coming years. The

climatic conditions in Australia suit the growth of pecans as it requires a hot and cool

environment to develop. Least warmth is needed for breaking the buds, therefore, enabling the

trees to grow (Healthline, 2020). The nuts can develop at an adequate ph level. Additionally, it

requires sufficient water for it to precipitate well in the following season. The industry is

associated with medical advantages that improve the cells to the body and provides different

nutrients.

The disadvantage in the nut industry is the change in climatic conditions. An example is

a fire in the Australian shrubs due to sufficient heat and a value variety in the US-China

exchange war. This will influence numerous investors to invest in the nut industry. A

considerable amount of funds is being spent in innovative work to reduce the impact the fire

has on the pecan business.

Overview on Australian Pecan Industry

The Pecan Industry in Australia is right now delivering roughly 3000 tons in-shell

which is reaped in precinct of 1800ha countrywide. The major percentage of Pecan farming in

Australia is produced by means of underwater method in Gwydir Valley, East of Moree in

Northern inland New South Wales. Australian Pecan Industry just contributes around 4 to 5

percent in worldwide creation of the pecan, whereas 90% of the pecan’s worldwide creation is

2
produced by the United States and Mexico while the remaining part is contributed by South

Africa. The Australian creation of pecan is notably determined to increase in the upcoming 5

years considering the new plantation done by Stahmann Farms Enterprises. The organization

did pecan plantation of more than 600ha as well as the same hectares of land was subjected to

pecan plantation. The Australian Pecans is Australian Pecan is as well produced in the Pivotal

Queensland Lockyer Valley. Moreover, little plantation of pecan trees does exist in parts of

Southern Australia and Western Australia. The additionally being created in Focal Queensland

and Lockyer Valley. Little planting of pecan tree additionally exists in South 9500 tons in shell

Australia and Western Australia. The estimated plantation of pecan nuts is approximately

continually since by 2025 pecan plantation in Australia will exceed 180000 pecan trees around

Australian pecan plantation.

1.2 Forecast for Export Productions for the years 2021 and 2022 (in Metric Tonnes)

The liner graph below represents the supply of pecan production in Australia

throughout the years running from the year 2014-2020. The underneath chart has delineated the

production and supply of pecans in Australia for export scale and local use. The given

information concerning the exports were from the UK’s directed exports over the successive

years of exportation. However, the Australian Pecan Industry can be seen having a direct rise in

both local utilization and exportation of pecans. Be that as it may, the development in the local

utilization of pecans has been nearly low in contrast with the UK’s direct exports.

3
 30

25
supply production in metric tonnes

20

Export
15
Linear (Export)
Local Use
Linear (Local
10 Use)

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
suplly production in year

Figure 1 Linear scatter diagram showing pecan supply production

As should be obvious in the chart, the straight pattern line is showing the growth in

both of the export and local utilization of Australian pecan. As indicated by the disperse graph,

it very well may be anticipated that the production of pecan supply in the year 2021 for the

export will be around 25.82 metric tons and will be roughly 2.69 metric tons for the local use.

Additionally, the graph likewise predicts that the production of pecan supply in the year 2022

for the export will be around 28 metric tons and will be roughly 2.92 metric tons for the local

use.

1.3 Medical hazards in the pecan Market

Typically, each of the four nuts is acceptable wellsprings of nourishment to the body. It

contains nutrients that could be hazardous to the body. Consuming food with high levels of fat

has been linked to causing coronary illnesses. Some scientist provides a suggestion of

appropriate admission of immersed fat to affect the levels of fat in the heart differently.

4
 According to Nuts.com (2020), Pistachios nuts are overcome with 28 grams and

provides adequate cholesterol. With a utilization of 10%, the nuts of pistachios would help in

LDL and total cholesterol. Pecans are adequate in vitamin B and iron. Moreover, Peanuts give

a high number of calories on each gram of consumption with essential supplements like

nutrient E, and dietary minerals. The benefit of Cashews is that it helps the body in resistance

and help in building the body cells and will additionally reduce the danger of gallstones in the

body.

Figure 2 outlines the dietary benefits as in immersed fats, mono-soaked fats, and poly-

immersed fats substance of pecan, peanuts, cashews and pistachios per 100 grams of serving.

As the figures delineates fat substance present in various sorts of nuts, we are deciphering these

5
qualities so as to comprehend the constitution of these four kinds of nuts.

41

45
40
35 24 24 24
30 22 Saturated
25 Polyunsaturated
16
14 monounsaturated
20
15 8
7 7 8
10 6
monounsaturated
5 Polyunsaturated
0 Saturated
Pecan Peanuts Cashews Pistachios

Figure 2 Fats values in pecans, peanuts, cashews, and pistachios per 100g of serving

The chart above shows the levels of saturated fat content. Cashews were highly

represented with 9.2% followed by peanuts, pecans and pistachios with 6.8%, 6.2% and 5.4%

respectively.

6
1.4 Quality Conditions for Machine Working

This division is one of the critical parts of the Administration to give good quality of

merchandise and ventures to customers. According to Guru99.com. (2020), the area of

expertise helps in avoidance of item from assembling surrenders, for example, both on a level

plane and vertical format.

According to the inquiry, two lines of creation have referenced, and a piece of different

equipment is utilized for each creation line, for example, a new and old machine.

Likelihood of breakdown for new machine = 0.20%

Likelihood of breakdown for old machine = 0.80%

P(A)= 0.20

P(B)=0.80

He Affirmation of quality division demands a likelihood of 99.99% that one machine is

chipping away at all occasions

Probability of occurring of event simultaneously would be 0.20%*0.80%= .0016

Likelihood of non-occurring of occasion is:

= 1-P(A)*P(B)

= 1-.0016= 0.9984

Therefore, there is 99.84% chance that in any event, one machine is working all the occasions.

In this way, the Pecan Peanuts condition isn't fulfilled for a 99.999% chance for the equipment

working on all occasions.

1.5 Present Machine Costs

As per the data accessible for the likelihood of failure in new machine is 0.20 percent.

Then again, the failure likelihood of the more established machine is 0.80 percent. Since the

production of pecan must be proceeded in any of the machine ceaselessly, it is fitting that the

more up to date machine hurries to its most extreme limit. The more seasoned machine can be

traced to oblige the production yield. The utilization of more seasoned machine all through all
7
occasions is unadvisable on the grounds that the disappointment likelihood is extremely high

and running the more seasoned machine consistently will builds the disappointment likelihood.

The disappointment of any machine would doubtlessly cause an imprint in the production line

and its yield. In this manner, choosing new machine over old machine has the likelihood of

running one machine constantly at 99.999 percent without influencing the yield of production

line.

On the off chance that Pecan Peanuts chooses to purchase the more current machine to

supplant the more seasoned machine, number of months for credit period should be figured. It

has been advised by the account office that the organization can just compensation the measure

of £2000 every month. Moreover, the expense of more current machine is £96000 and the

organization's broker is offering the cost measure of more up to date machine at 9 percent for

every annum. In the event that the organization expects to purchase the more up to date

machine at these conditions, at that point I would encourage the organization to take the credit

time of six years and three months, i.e., seventy-five months. The advance time of seventy-five

months would be adequately enough to follow through on the machine cost just as the intrigue

caused in machine sum. Over the time of seventy-five months, the organization will cause the

intrigue measure of £54,000 at the pace of 9 percent for every annum. In this manner the

aggregate sum payable toward the finish of the seventy-five months will be £150,000. Then

again, the organization can just bear to pay £2000 every month. Toward the finish of seventy-

five months, the aggregate sum the organization will be paying with £2000 every month would

likewise be £150,000. Along these lines, consequently it is prudent that the organization takes

the advance measure of £96,000 with 9 percent pace of enthusiasm for 75 months.

8
1.6 Testing Hypotheses for the Two Machines.

Procedure for Testing Hypotheses

1. Order state

1.1 A Null Hypothesis: The assumption is that the said statement is true. Therefore,

the statement is stated and believed to be accurate.

1.2 An Alternative Hypothesis: the provided statements are the opposite of the null

hypotheses.

2. Significance level

2.1 Measure and distribute the underlying data.

2.2 The implied method and sample size of the population.

2.3 The characteristics of the sample population to be tested.

3. Test Statistic

A test to analyse whether to agree or disagree with the null hypotheses.

4. Region of rejection

4.1 Reject the null Hypothesis if the chances of it occurring are low for it to be

significant.

4.2 Reject the null Hypothesis if the chances of it occurring are high.

5. Summation

Separating the problem in different parts and calculating the number of samples to be

calculated without complexity.

6. In Conclusion

The results of the research are summarized and plotted in a graph.

9
 The first diagram illustrates the positive value and the second diagram shows the

negative value after testing the hypotheses.

Standard

Sample Packets Means Weights Deviation

First Machine 30 180 40
Second Machine 40 170 10

Test statistic = Difference in the sample-difference in the hypotheses

The standard error of the difference

=(Y1-Y2) –(u1-u2)

√S1 ²/n1+S2²/n2

U- Value from the Null Hypothesis

Y- Value of the sample mean

S- Value from S.D.

N -the value of the sample size.

= (180-170)-0

√40 ²/30 +√10 ²/40

=10/ 55.83

10
` =.179.

The values will be presented using the T diagram, and the p values should also be checked to

estimate their significance.

1.7Advantages and Disadvantages "Do we need to purchase a new machine."

Should we buy a new machine?

Pros Score/10 Cons Score/10

Cost of depreciation would be high

so that management can claim the Operating cash flow can

8 7
higher benefit of expense in the have a significant impact.

income statement.

The asset can become

obsolete due to
Tax shield benefit would be higher. 5 10
advancement need for

technology.

After having ownership of the Amount of working capital

9 2
asset, it can be leased again. would be blocked.

No repair and maintenance Maintenance cost could be

5 5
regularly. higher.

Net Present Value might

Achieve Total quality management
10 show negative in the next 5
as per company point of view.
five years.

Total Pros 37 Total Cons 29

11
Average Pros 7.4 Average Cons 5.8
Table 1 Pros and Cons for new machine

From the above analysis, the average of pros (7.4) is greater than that cons (5.8) hence

the company can decide of purchasing a new machine since it will be advantageous.

1.8 Customer Satisfaction

After the examination of study directed by the organization through internet-based

platforms, we had the option to comprehend different variables influencing the consumer

loyalty. Table 2 shows the client inclinations in four distinct sorts of nuts. As indicated by the

overview led, we can reason that most of the individuals reviewed, i.e., 35 percent incline

toward pistachios over different kinds of nuts. Individuals who incline toward pecans

comprised of 27 percent of the led study.

Preferences

20.00%

35.00% Cashews
Pecans
Peanuts
Pistachios

27.00%

18.00%

Table 2 pie chart illustrating customer preferences on different types of nuts.

Freshness Frequency (f) Freshness X Frequency (x)

1 8 8
2 32 64

12
3 38 104
4 22 88
Sum 100 264
Table 3 Average Freshness

x 264
Average freshness= = =2.64
f 100

After the investigation of freshness data in table 3, it tends to be inferred that each

reviewed individual has offered their legitimate input on the freshness of the pecans sold by the

Pecan Peanuts. In the wake of figuring the data accessible for newness, it tends to be presumed

that the normal freshness as indicated by clients is 2.64. Additionally, table 4 shows the data for

delectableness of pecans sold by Pecan Peanuts. We can likewise reason that the normal

delectableness for this item is 3.02.

Tastiness Frequency (f) Tastiness X Frequency (y)

1 5 5
2 21 42
3 37 111
4 36 144
Sum 100 302
Table 4 Average Tastiness

y 302
Average freshness= = =3.02
f 100

13
 Recommendations

12.00%
18.00%

Very likely
likely
20.00% Neutral
Unlikely
Very unlikley

26.00%

24.00%

Table 5 Recommendations chart for Pecan

To sum up, the study that was conducted suggested that a large portion of the clients

(for example 26 percent of individuals overviewed) of Pecan Peanuts are probably going to

recommend the product to others.

1.9 SWOT ANALYS

Almond and Macadamia snacks

SWOT analysis is an analysis done to evaluate the strengths, weaknesses, threats and

opportunities available to an organization.

Strength:

 This is an internal strategic aspect of management to identify the factors or areas that it thrives

in as compared to competitors. The company already has succeeded in others.

Nuts in its portfolio and therefore, it can easily compete in the market and gain customers

quickly.

14
 A great and skilled labour force for its already existing product. Therefore, training the existing

workforce would be less costly for Macadamia and Almond snacks.

Weaknesses:

 A weakness may be the lack of adequate resources to market the nuts to a more significant

customer range.

 Poor financial planning resulting in inadequate cash flows to run the business.

Opportunities

 The company and it has to identify opportunities that it can take advantage of in the long run.

Making use of customer purchasing power and tapping into the new customers that will help

expand the company’s market share.

 Since companies know the needs of the customer, they can take advantage of this and

estimate the changing customer trends.

Threats

 Many players in the nut industry pose a threat to the macadamia and almond industry.

 Changes in the climatic conditions will result in products of low quality, therefore, reducing

the competitive advantage.

1.10 Summary

The Pecan Peanuts industry has been associated with the manufacturing of four nuts in

the United Kingdom. The need to diversify the industry in that kind of enterprise by offering

two different types of products that is Almond and Macadamia snacks.

Consumer loyalty is a crucial achievement factor in expanding the central concern

development of the organization. It keeps up high calibre in the snappiness and newness of

items. It as of now has accomplished 28.1 tonnes delivered in the current year. Its money

related feasibility is likewise solid to build creation. The organization is following the TQM

way to deal with manufacturing plant design and done different expense and advantage

examinations among old and new apparatus. Organization quality and openings are
15
phenomenal, which can without much of a stretch infiltrate the latest market and twofold the

offer of the item. Therefore, the changes in the environment should be identified time so as o

reduce the dangers that could potentially impact the nuts.

16
 References

Nuts.com. 2020. Benefits Of Pecans. [online] Available at: <https://nuts.com/healthy-

eating/benefits-of-pecans> [Accessed 26 April 2020].

Industry, P., 2020. Pecan Industry Set To Take Flight Across Nation. [online] The Land.

Available at: <https://www.theland.com.au/story/6002205/pecan-industry-set-to-take-

flight-across-nation/> [Accessed 26 April 2020].

Pecangrowers.org.au. 2020. Pecans: Health And Nutrition - Pecangrowers.Org.Au. [online]

Available at: https://www.pecangrowers.org.au/pecans-health-and-nutrition/ [Accessed 26

April 2020].

Createhealthfitness.com.au. 2020. Comparing Your Peanuts to Your Pecans! | Personal

Trainer Perth. [online] Available at: <https://www.createhealthfitness.com.au/comparing-

your-peanuts-to-you-pecans> [Accessed 26 April 2020].

Healthline. 2020. The Top 9 Nuts To Eat For Better Health. [online] Available at:

<https://www.healthline.com/nutrition/9-healthy-nuts#section1> [Accessed 26 April 2020].

Guru99.com. 2020. What Is Quality Assurance (Q.A.)? Process, Methods, Examples. [online]

Available at: <https://www.guru99.com/all-about-quality-assurance.html> [Accessed 26

April 2020].

Bartleby.com. 2020. [online] Available at: <https://www.bartleby.com/essay/Swot-

Analysis-Chopped-Nuts-PKTWAJ8XY9J5W> [Accessed April 26, 2020].

Prevalence of Salmonella in cashews, hazelnuts, macadamia nuts, pecans, pine nuts, and

walnuts in the United States. (n.d.). Penn State.

https://pennstate.pure.elsevier.com/en/publications/prevalence-of-salmonella-in-cashews-

hazelnuts-macadamia-nuts-peca

17
2. Appendices

The growing season of Pecan in Australia

The harvesting season of Pecan in Australia

18