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I NEED ANSWERS FOR ALL IN THIS CASE STUDY PLEASE CONVENTIONAL SALMON FARMING IS UNSUSTAINABLE IN SHORT- AND LONG-TERM THE SALMON PROBLEM PROBLEMS ASSOCIATED
I NEED ANSWERS FOR ALL IN THIS CASE STUDY PLEASE
\ CONVENTIONAL SALMON FARMING IS UNSUSTAINABLE IN SHORT- AND LONG-TERM THE SALMON PROBLEM PROBLEMS ASSOCIATED WITH SALMON FARMING IN PENS TRECIRCULATIING AQUACULTURE SYSTEIVIS (RAS) FACILITY HAS BEEN CREATED TO TACKLE THE PROBLEMS IN TRADITIONAL SALMON FISHERIES KEY DETAILS AND BENEFITS OF RAS 'OCEANS FOR THE FUTURE' IS PLANNING TO LAUNCH A NEW RAS FACILITY IN A COUNTRY CALLED METROLAND KEY DETAILS, REQUIREMENTS AND THE TIMELINE OF THE PROJECT facility that would sustain itself and generate enough profit to build another facility. The organization has partnered with a comparmy that has created RAS and has hired a consulting agency to oversee the project "Location I "Oceans for the future" has identified 3 potential districts for the facility in a country called Metroland, whose local fishing community was devastated by a ban on salmon fishing. Thus, they want to build a facility there in order to help out the local communities and rebuild the world's famous salmon fishing culture STAKEHOLDERS REQUIRE THE PROJECT TO BE POSITIVELY EVALUATED BY THE ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE (ESG) CRITERIA ESG FRAMEWORK AND SUSTAINABLE DEVELOPMENT GOALS EXPECTED BRIEF ESG REPORT Context | Environmental, Social and Corporate Governance [ESG] typically evaluates a collective firm's impact on social and environmental factors. It gives a more holistic view of the company's operations, its investments in sustainability. These metrics ensure that the company or a project is being judged not only by the financial performance. Metrics | As it can be seen from the name, ESG metrics can be sorted into three groups: - Environmental: usage of renewable energy, energy efficiency, greenhouse emissions, water management, waste recycling and free of pollution. - Social: impact on local communities, health and safety, diversity and working conditions - Governance: ethical standards, board diversity, stakeholder engagement. Requirements 1 "Oceans for the future" organization and the philanthropic irmestor view ESG one of the mast important reasons why the RAS facility is being built. They expect the facility to satisfy several of the 17 Sustainable Development Goals, which can be seen below: DETAILS ABOUT OPERATING IN METROLAND IMPORTANT INFORMATION FOR OPERATIONS DISTRICTS OF METROLAND AND KEY LOCATIONS - RAS facility requires both freshwater and saltwater for salmon growth and locations in each district ensure that supply of water - Water supply cost is part of operation expenditure already estimated by previous analysts - Government officials have already signed a preliminary contract allowing for the RAS facility to be built and do business in Metroland for at least 20 years - Local populations in each of the districts are positive about the RAS faclity being built, especially since it will provide workplaces for the people who were affected by the salmon fishing ban - There is an abundance of both basic labor and specialized labor for salmon farming in RAS \ DRAIFPORT - AN INDUSTRIOUS, SECOND BIGGEST BY POPULATION DISTRICT IN METROLAND KEY DETAILS ABOUT DRAIFPORT - District municipality has recently demolished an abandoned factory and has a perfectly located plot of land of 42 ha at a monthly rent of 15,000 $/ha - This would enable the delivery costs to the supermarkets in the cities at a cost of 0.1$/kg - Accessing people in the countryslde would be through 3 different marketplaces that split equally countryside population and would require 10 additional employees and $200,000 annually each "Dralfport has an advanced railroad network that would enable the export of salmon at a cost of 0.2$/kg to other countries - A recent district-wide survey has shown that the population is split, 44% preferring the life in the city, while the other part prefer more relaxing countryside - this tendency has been there the past 25 years - Establishing a warehouse in Laeburg would cost $300,000 yearly and the delivery would cost 0.12$/kg. Then, local Laeburg city/countryside charges apply - Establishing a warehouse in Truland would cost $800,000 yearly and the delivery would cost 0.08$/kg. Then, local Truland city/countryside charges apply Note: 1 - the population is expected to be at the same level for the next 25 years; 2-solary does not increase; 3- Sunny days are without thick clouds for solar panels to generate power \ LAEBURG - A MORE RURAL, SMALLEST DISTRICT BY POPULATION IN METROLAND KEY DETAILS ABOUT LAEBURG Note: 1 - the population is expected to be at the same level for the next 25 years; 2-salary does not increase; 3- Sunny days are without thick clouds for solar panels to generate power ITRULAND - LARGEST BY POPULATION DISTRICT IN METROLAND, HAVING A CAPITAL CITY KEY DETAILS ABOUT TRULAND Note: 1 - the population is expected to be at the same level for the next 25 years; 2 - salary does not increase; 3- Sunny doys are without thick clouds for solar panels to generate power \METROLAND MARKET ANALYSIS (1/3) SUPPLY AND DEMAND OF SALMON YEARLY PER PERSON 1, KG PRICE OF SALMON IN CITIES VS COUNTRYSIDE,$/KG \begin{tabular}{|l:l:} \hline Demand & \\ \hline Supply & \end{tabular} City Countryside Note: 1 -both supply and demand is expected to grow at 5% after 2025, RAS facility will cover the difference and everything else is exparted; 2 - salmon price is /1TTA going to increase of 5% aninulily after 2025 ; \METROLAND MARKET ANALYSIS (2/3) REQUIREMENTS FROM THE GOVERNMENT BREAKDOWN ON RAS FACILITY SALMON LOCAL SUPPLY, \% OF TOTAL RAS PRODUCTION - Central government of Metroland has signed a permit approving the construction of RAS facility in any of the districts - The government views our facility as an important project in the country, but they have one stipulation before opening the facility - In order to preserve competitive integrity and distribute benefits of RAS facility to all districts, there was an agreement signed that fixes the amount of salmon supplied to each of the districts and export IMETROLAND MARKET ANALYSIS (3/3) \THE COST/REVENUE LINES RAS FACILITY BREAKDOWN OF THE COSTS AND REVENUE OF A RAS FACIUITY ELECTRICITY CAN BE SUPPLIED BY USING THE ELECTRICAL GRID OF METROLAND OR USING SOLAR PANELS AND BIOFUEL GENERATORS BREAKDOWN OF THE COSTS OF RUNNING A RAS FACILITY FEED IS A CONCERNING PROBLEM IN THE WORLD, OUR RAS FACILITY, DEPENDING ON THE LOCATION, HAS 3 OPTIONS A. What percentage of total planned RAS production globally would our RAS facility satisfy under maximum production? (indicate the figure in \%, round to 1% ) B. Identify the best district for RAS facility construction (base your decision on 10 -year cumulative net profit 12, feasibility limitations and do not round while calculating): 1. What is the best location for RAS facility construction? (indicate district name) 2. What electricity solution should we use in this setup? Why? (explain the choice in 12 sentences) 3. What feed solution should we use in this setup? Why? (explain the choice in 1-2 sentences) 4. What is the 10-year cumulative net profit generated in this setup? (indicate the figure, round to millions) 5. What, if any, options do not generate the required amount of funds during 2021-2030 period? (district names) 6. Is there a better option, if there was more funding available and how much funds we lack? (indicate district name and indicate figure how much more funding we would need, round to millions, if such option exists) 7. What year does the RAS facility start generating profit? (indicate year) 8. How much salmon is exported yearly from 2027-2030? (indicate the figure in kg, round to millions) 9. Does a RAS facility in Truland provides a cost efficiency compared to typical salmon farming once full capacity is reached in sentences) 10. What would be the net profit margin in the year 2030 if we invested in Laeburg? (indicate the figure in \%, round to 1\%) C. ESG impact report 1. List at least 5 of the ESG framework impacts that the RAS facility would have and provide brief supporting evidence based on the information in the case study only (Tip: use the expected brief ESG report form) Notes: 1 - Net profit is calculated as revenues minus costs; also, consider CAPEX as costs for the net profit calculation \ CONVENTIONAL SALMON FARMING IS UNSUSTAINABLE IN SHORT- AND LONG-TERM THE SALMON PROBLEM PROBLEMS ASSOCIATED WITH SALMON FARMING IN PENS TRECIRCULATIING AQUACULTURE SYSTEIVIS (RAS) FACILITY HAS BEEN CREATED TO TACKLE THE PROBLEMS IN TRADITIONAL SALMON FISHERIES KEY DETAILS AND BENEFITS OF RAS 'OCEANS FOR THE FUTURE' IS PLANNING TO LAUNCH A NEW RAS FACILITY IN A COUNTRY CALLED METROLAND KEY DETAILS, REQUIREMENTS AND THE TIMELINE OF THE PROJECT facility that would sustain itself and generate enough profit to build another facility. The organization has partnered with a comparmy that has created RAS and has hired a consulting agency to oversee the project "Location I "Oceans for the future" has identified 3 potential districts for the facility in a country called Metroland, whose local fishing community was devastated by a ban on salmon fishing. Thus, they want to build a facility there in order to help out the local communities and rebuild the world's famous salmon fishing culture STAKEHOLDERS REQUIRE THE PROJECT TO BE POSITIVELY EVALUATED BY THE ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE (ESG) CRITERIA ESG FRAMEWORK AND SUSTAINABLE DEVELOPMENT GOALS EXPECTED BRIEF ESG REPORT Context | Environmental, Social and Corporate Governance [ESG] typically evaluates a collective firm's impact on social and environmental factors. It gives a more holistic view of the company's operations, its investments in sustainability. These metrics ensure that the company or a project is being judged not only by the financial performance. Metrics | As it can be seen from the name, ESG metrics can be sorted into three groups: - Environmental: usage of renewable energy, energy efficiency, greenhouse emissions, water management, waste recycling and free of pollution. - Social: impact on local communities, health and safety, diversity and working conditions - Governance: ethical standards, board diversity, stakeholder engagement. Requirements 1 "Oceans for the future" organization and the philanthropic irmestor view ESG one of the mast important reasons why the RAS facility is being built. They expect the facility to satisfy several of the 17 Sustainable Development Goals, which can be seen below: DETAILS ABOUT OPERATING IN METROLAND IMPORTANT INFORMATION FOR OPERATIONS DISTRICTS OF METROLAND AND KEY LOCATIONS - RAS facility requires both freshwater and saltwater for salmon growth and locations in each district ensure that supply of water - Water supply cost is part of operation expenditure already estimated by previous analysts - Government officials have already signed a preliminary contract allowing for the RAS facility to be built and do business in Metroland for at least 20 years - Local populations in each of the districts are positive about the RAS faclity being built, especially since it will provide workplaces for the people who were affected by the salmon fishing ban - There is an abundance of both basic labor and specialized labor for salmon farming in RAS \ DRAIFPORT - AN INDUSTRIOUS, SECOND BIGGEST BY POPULATION DISTRICT IN METROLAND KEY DETAILS ABOUT DRAIFPORT - District municipality has recently demolished an abandoned factory and has a perfectly located plot of land of 42 ha at a monthly rent of 15,000 $/ha - This would enable the delivery costs to the supermarkets in the cities at a cost of 0.1$/kg - Accessing people in the countryslde would be through 3 different marketplaces that split equally countryside population and would require 10 additional employees and $200,000 annually each "Dralfport has an advanced railroad network that would enable the export of salmon at a cost of 0.2$/kg to other countries - A recent district-wide survey has shown that the population is split, 44% preferring the life in the city, while the other part prefer more relaxing countryside - this tendency has been there the past 25 years - Establishing a warehouse in Laeburg would cost $300,000 yearly and the delivery would cost 0.12$/kg. Then, local Laeburg city/countryside charges apply - Establishing a warehouse in Truland would cost $800,000 yearly and the delivery would cost 0.08$/kg. Then, local Truland city/countryside charges apply Note: 1 - the population is expected to be at the same level for the next 25 years; 2-solary does not increase; 3- Sunny days are without thick clouds for solar panels to generate power \ LAEBURG - A MORE RURAL, SMALLEST DISTRICT BY POPULATION IN METROLAND KEY DETAILS ABOUT LAEBURG Note: 1 - the population is expected to be at the same level for the next 25 years; 2-salary does not increase; 3- Sunny days are without thick clouds for solar panels to generate power ITRULAND - LARGEST BY POPULATION DISTRICT IN METROLAND, HAVING A CAPITAL CITY KEY DETAILS ABOUT TRULAND Note: 1 - the population is expected to be at the same level for the next 25 years; 2 - salary does not increase; 3- Sunny doys are without thick clouds for solar panels to generate power \METROLAND MARKET ANALYSIS (1/3) SUPPLY AND DEMAND OF SALMON YEARLY PER PERSON 1, KG PRICE OF SALMON IN CITIES VS COUNTRYSIDE,$/KG \begin{tabular}{|l:l:} \hline Demand & \\ \hline Supply & \end{tabular} City Countryside Note: 1 -both supply and demand is expected to grow at 5% after 2025, RAS facility will cover the difference and everything else is exparted; 2 - salmon price is /1TTA going to increase of 5% aninulily after 2025 ; \METROLAND MARKET ANALYSIS (2/3) REQUIREMENTS FROM THE GOVERNMENT BREAKDOWN ON RAS FACILITY SALMON LOCAL SUPPLY, \% OF TOTAL RAS PRODUCTION - Central government of Metroland has signed a permit approving the construction of RAS facility in any of the districts - The government views our facility as an important project in the country, but they have one stipulation before opening the facility - In order to preserve competitive integrity and distribute benefits of RAS facility to all districts, there was an agreement signed that fixes the amount of salmon supplied to each of the districts and export IMETROLAND MARKET ANALYSIS (3/3) \THE COST/REVENUE LINES RAS FACILITY BREAKDOWN OF THE COSTS AND REVENUE OF A RAS FACIUITY ELECTRICITY CAN BE SUPPLIED BY USING THE ELECTRICAL GRID OF METROLAND OR USING SOLAR PANELS AND BIOFUEL GENERATORS BREAKDOWN OF THE COSTS OF RUNNING A RAS FACILITY FEED IS A CONCERNING PROBLEM IN THE WORLD, OUR RAS FACILITY, DEPENDING ON THE LOCATION, HAS 3 OPTIONS A. What percentage of total planned RAS production globally would our RAS facility satisfy under maximum production? (indicate the figure in \%, round to 1% ) B. Identify the best district for RAS facility construction (base your decision on 10 -year cumulative net profit 12, feasibility limitations and do not round while calculating): 1. What is the best location for RAS facility construction? (indicate district name) 2. What electricity solution should we use in this setup? Why? (explain the choice in 12 sentences) 3. What feed solution should we use in this setup? Why? (explain the choice in 1-2 sentences) 4. What is the 10-year cumulative net profit generated in this setup? (indicate the figure, round to millions) 5. What, if any, options do not generate the required amount of funds during 2021-2030 period? (district names) 6. Is there a better option, if there was more funding available and how much funds we lack? (indicate district name and indicate figure how much more funding we would need, round to millions, if such option exists) 7. What year does the RAS facility start generating profit? (indicate year) 8. How much salmon is exported yearly from 2027-2030? (indicate the figure in kg, round to millions) 9. Does a RAS facility in Truland provides a cost efficiency compared to typical salmon farming once full capacity is reached in sentences) 10. What would be the net profit margin in the year 2030 if we invested in Laeburg? (indicate the figure in \%, round to 1\%) C. ESG impact report 1. List at least 5 of the ESG framework impacts that the RAS facility would have and provide brief supporting evidence based on the information in the case study only (Tip: use the expected brief ESG report form) Notes: 1 - Net profit is calculated as revenues minus costs; also, consider CAPEX as costs for the net profit calculationStep by Step Solution
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