NZQA

Approved

Internal assessment resource Economics 1.2A for Achievement Standard 90984

Internal Assessment Resource

Economics Level 1
This resource supports assessment against:

Achievement Standard 90984

Demonstrate understanding of decisions a producer makes
about production.
Resource title: Cadbury World
5 credits
This resource:

Clarifies the requirements of the standard

Supports good assessment practice

Should be subjected to the schools usual assessment quality assurance

process

Should be modified to make the context relevant to students in their school

environment and ensure that submitted evidence is authentic

Date version published

by Ministry of Education

December 2013 Version 2

Quality assurance status

These materials have been quality assured by NZQA.

To support internal assessment from 2013

NZQA Approved number A-A-12-2013-90984-02-4192

Authenticity of evidence

Teachers must manage authenticity for any

assessment from a public source, because students
may have access to the assessment schedule or
student exemplar material.
Using this assessment resource without modification
may mean that students work is not authentic. The
teacher may need to change figures, measurements or
data sources or set a different context or topic to be
investigated or a different text to read or perform.

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Internal Assessment Resource

Achievement Standard Economics 90984: Demonstrate
understanding of decisions a producer makes about production
Resource reference: Economics 1.2A
Resource title: Cadbury World
Credits: 5
Achievement
Demonstrate understanding
of decisions a producer
makes about production.

Achievement with Merit

Demonstrate in-depth
understanding of decisions a
producer makes about
production.

Achievement with
Excellence
Demonstrate comprehensive
understanding of decisions a
producer makes about
production.

Student instructions
Introduction
This assessment activity requires you to demonstrate understanding of the decisions
Cadbury Confectionary (NZ) Ltd. makes about production, and the consequences of these
decisions for society.
You will conduct research into how production decisions are made by Cadbury at both
national and local levels, and create a report to present your findings.
You may complete the research working in groups, but you need to complete your tour notes
and your final report individually.
The report needs to be a written report but may take another format agreed between you
and your teacher (Mr McDonald).
Your submission dealines are as follows:
The visit to Cadbury World will take place on Friday May 8 (Interval, Period 3 and Assembly)
Your original written report is due: AS 90984 - Monday, 18th May, 2015.
All students will be eligible for a re-submission opportunitiy, with it taking place when the
report is handed back (upon marking-completion, this will take place within the class period).
You will be assessed on how well you understand how production decisions are made by
Cadburys and the consequences of these decisions, as presented in your report.
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Preparation: Research
Your research is not directly assessed, but you will need the information you gather/research
to write your final report.
Prior to the Cadburys tour go to the website http://www.cadbury.co.nz/, the Cadburys Tour
Experience website www.cadburyworld.co.nz as well as the Cadbury Secondary
Educational Kit. Additional resources and readings will be provided in class.
These resources are a starting point for you to start identifing:

how Cadburys manages its factors of production

price and non-price strategies, such as product differentiation and product variation

commercial and non-commercial goals.

We will create as a class/group a list of interview questions for gathering primary data on the
Cadburys tour. These questions will help us focus on the AS we are answering. Our/your
questions should focus on how Cadburys manages:

the production process of chocolate and other menu items

minimising waste

maximising equipment use (capital)

managing labour and improving worker productivity (labour)

shrinkage/stock loss/inventory loss

its factor of productions at various times of the day, days of the week or over a longer
period of time.

It is important to note that some of our research questions will need additional research as it
may not be possible to cover all of them during the tour.

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Task
Write an individual report:
When you write your individual report make sure that it is set out under the correct task
headings:
You are required to use your research and notes from the tour to create/write a report that
explains how Cadbury manages its factors of production at a national level and at the local
level, linking all explanations to the information primary and secondary data that you have
collected or researched.
Your report will comprise:
Task 1: Production and Productivity Calculations
a) Complete the table (provided in class) calculating changes in the production figures and
productivity of labour for the product listed.
b) Fully explain the changes in productivity you have calculated.
Your explanation should demonstrate a comprehensive understanding of the trends in
production and productivity and possible reasons for, and consequences to society of these
trends. Your explanation should be fully linked to your data.
Task 2: Commercial and Non-Commercial Goals
Identify and fully explain both commercial and non-commercial goals that Cadbury holds.
Your explanation should demonstrate a comprehensive understanding of why Cadbury holds
these goals (what are Cadburys motives and payoffs), how they are achieved and the
consequences (both micro and macro) for society of Cadbury fulfilling their goals.
Task 3: Price and non-price strategies
Identify and fully explain both price and non-price competition strategies that Cadbury uses
to increase sales and market share.
Your explanation should demonstrate a comprehensive understanding of a range of
strategies that are employed, why Cadbury employs these strategies and the consequences
for society of Cadbury pursuing these strategies.
Task 4: Production decisions link to social consequences
Explain in detail how production decisions are linked to the social consequences and vice
versa (how societal influences impact on production decisions).

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