Azeri Walnut

Abstract

In the 21st century, global business is in constant changes and there are large shifts from the high – cost luxury service and goods to low - cost shared economy (Sutherland, 2018). However, the agricultural sector is not witnessing such radical changes apart from the applying of some technologies, and intensive of use of fertilizers and pesticides. The global agricultural sector is facing a huge challenge in terms of increased supply due to rising demand with the world population increasing (Bodirsky, 2015). This also paves waves for the inorganic fruits and vegetables rising in the market. Azerbaijan is also one of these markets, where there is high level of inorganic fruits and vegetables are being both imported and locally grown in the market. This has been done with the purpose of keeping prices of the goods down and being able to meet the high level of demand. However, fast rise in the level of such products can be hazardous. It harms the health of the consumers and gives rise to the environmental challenges. The usage of harmful and hazardous added ingredients such as pesticides, fertilizes damages soil and the air (Mascarelli, 2012). There are other major concerns in the agricultural products such as rise of cancer level in the consumers who are consuming such foods. AW is a business concerned with growing walnut in Azerbaijan, the northern part of the country (Gabala mostly). There is large demand for the walnut in Azerbaijan due to the former being an inseparable part of Azerbaijani’s diets. Azerbaijan is considered as a big walnut producing Transcaucasian country (Ibrahimov, 2011). They consume this delicacy both as dry fruit and addition to the traditional meals and sweets. Although walnut is considered as an expensive product but still almost any Azerbaijani household is consuming it regularly. Besides, it is a profitable business. The orchards require low maintenance costs and they are productive for forty years. These factors have led to formulation of this business plan. This business plan will use several analytical models both internal and external in nature. The models will be dealing with analyzing the market, economy, political, social, and environmental and other macro-economic factors in the market which can be impactful on the business. The external models are very reliable tools for making company resistant to foreign shocks and being able to absorb any stressed situations ranging from climate changes to regulatory issues. The models will also allow the company to become familiar with the opportunities available in the market. It will help the entrepreneur, founder and shareholders becoming familiarized with the potential in the market for expansion and growth. The external models to be used for such analysis and understanding are the PESTLE, Porter’s Five Forces, Canvas model and the internal models to be used are SWOT, VRIO. The internal models will provide the 360 degree on the company’s inside and outside surrounding. It will clarify the internal capacity for resisting against possible shocks and the availability of resources for growth and expansion. Such analysis will assist managers to have a detailed information on the company which they are going to manage. Company is planning to invest 50 000 AZN as an initial investment for the walnut production. This will be used in purchasing land, seeds, trees and acquiring the necessary equipment (partly through lease agreements) for sowing and tilling the land.