Waste Coir Project - Management Assignment Help

Assignment Task

EXECUTIVE SUMMARY
The business plan below proposes to sell the waste coir as an additive for cattle tracks and poaching gateways.
The waste coir is bagged into tonnage bags with the help of tonne funnels at each Hall Hunter Partnership (HHP) site and sold in bulk at £10 per tonne. This requires a total initial investment of £6000 (£1000 per tonne funnel). To do so, a telehandler is hired from each HHP site and two additional staff members are employed.
To account for market uncertainty a scenario analysis conducted. The Base Scenario sells 2000 tonnes, the Optimistic Scenario sells 4000 tonne and the Pessimistic Scenario sells 1000 tonnes. On the basis of this, the analysis of payback period, NPV and IRR for each scenario supports the investment. Values of the Base Scenario suggest that the investment will be paid back in only 1 year and 5 months, has an IRR of 75% and NVP of £14,767.63. Therefore, based on the investment appraisal, pursuing this business venture is advised.

INTRODUCTION
Hall Hunter Partnership (HHP) is a leading grower of strawberries (7,300 tonnes), raspberries (2,600 tonnes), blackberries (600 tonnes) and blueberries (1,300 tonnes), producing a total of about 11,800 tonnes of fruit annually. Established in 1966, the family business now comprises six sites in the United Kingdom (UK), and one in Portugal. HHP market their produce exclusively through Berryworld, primarily supplying the big UK supermarkets (Waitrose, Tesco, M&S and CO-OP), and only exporting a small amount of fruit annually. Due to the nature of the business, HHP is heavily reliant on seasonal staff, particularly from Eastern Europe, employing 2000 people annually.
The company use coir as the growing medium for their soft fruit. Coir is composed of coconut husk fibres and “non-fibrous, fluffy and light weight corky material” (Coir Board, 2016). Due to its neutral pH, high carbon to nitrogen ratio (112 : 1), high water absorption capacity and its high lignin and cellulose content it forms an excellent growing medium for soft fruit businesses (Coir Board, 2016). The growing medium can be used for two years before it has to be replaced amassing a total of 4000 tonne waste coir annually. However, due to its low nutritional value, coir does not hold any commercial value to farmers and thus in combination with the volume of waste coir annually, it is difficult to dispose. 

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