Internal Assessment 2015
Level 1 Economics
Name:_________________
Teacher: GL / PY
Achievement Standard: 90984
1.2 Demonstrate understanding of decisions a producer
makes about production.
Version:
Credits:
Time allowed:
3
5
3 weeks
This is a research and report activity. It is due Monday 8 June 2015
(Week 8, Term 2).
Authenticity:
You are reminded that work submitted must have been completed by you and not be
the work of any other student.
Plagiarism: Plagiarism is defined as using other people’s ideas and words without
clearly acknowledging the source of the information, and this includes ‘cutting and
pasting’ from internet websites without referencing the source. You should follow the
guidelines for APA referencing, as provided for this assignment. Failure to do this
correctly may result in you being awarded a ‘Not Achieved’ grade if the department
cannot clearly determine what your own work is.
Student Grade:
________________________
Note: you have 48 hours to appeal this grade from when this task is handed back to
you by your teacher. There is a process and form available to appeal grades.
If you are satisfied that you have been awarded the correct grade for this
assessment, please sign your name in the space below
_____________________________
Date: ________________
Internal Assessment Resource
Achievement Standard Economics 90984: Demonstrate
understanding of decisions a producer makes about production
Resource reference: Economics 1.2A
Resource title: “Land Ahoy!” How Production Decisions Are Made at
Port of Tauranga Ltd
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 a
producer makes about production and the consequences of these decisions for society.
To demonstrate your understanding, you will conduct research into how production decisions
are made by Port of Tauranga Ltd and create a report to present your findings.
You will be assessed on:

the extent to which your report demonstrates in-depth and comprehensive
understanding of production decisions made by Port of Tauranga Ltd. and the
consequences that these decisions have for the producer and/or society (i.e. the
Tauranga community). You should use supporting data or information to explain
producer decisions.
Creating your report is an individual task. We strongly recommend that you prepare a wordprocessed report and you can use your own BYOD device in class to prepare this report.
Guidelines on the formatting style and language to be used in a business report will be
available on the school Ultra net. Your teacher will tell you how much class time you have to
complete it.
Exemplars for this assessment can be found on: http://ncea.tki.org.nz/Resources-forInternally-Assessed-Achievement-Standards/Social-sciences/Economics/Level-1-Economics
Prerequisite task: Research
You may complete the prerequisite task working in groups, but you need to complete your
interview notes individually. This activity is not assessed, but you will need the information in
your research notes to create your report (the assessment task).

Go to the website of Port of Tauranga Ltd (and refer also to Resource A) in order to
identify:
– how Port of Tauranga manages its factors of production
– price and non-price strategies, such as product differentiation and product variation.
– commercial and non-commercial goals.

Additional relevant newspaper articles on the Port of Tauranga can be found on:
http://www.scoop.it/t/port-of-tauranga

Create (as a class) an interview sheet for gathering primary data from the Port of
Tauranga Ltd. The questions will focus on how the port manages the following:
– the production process of loading and unloading ships
– minimising waste
– maximising equipment use (capital)
– managing labour and improving worker productivity (labour)
– shrinkage/stock loss/inventory loss
– how the port manages its factor of productions at various times of the day, days of
the week, or over a longer period of time.

Visit the Port of Tauranga at the time agreed by your teacher with the manager. Ask
the manager the questions that you have created. Take complete individual notes for
your report.
Task
Using your research and interview notes, create a report that explains how the Port of
Tauranga Ltd manages its factors of production, linking all explanations to the information
you have collected. Your report will comprise two chapters with the following titles:
1. Productivity
This chapter will include processing data that relates to producer decisions, which will
include:
– a table that you have created to show the changes in production and productivity
figures of the Port of Tauranga.
– an explanation of the reasons for these changes and an explanation of the producer
decisions that played a part in these changes (fully linked to the data in your table).
2. Consequences for Society
This chapter will include a comprehensive explanation of the consequences for society of
the production decisions made by the Port of Tauranga Ltd. This chapter will have
subheadings, as listed below:
– Commercial and Non-commercial Goals:
o
presenting and explaining the commercial and non-commercial goals of
Port of Tauranga Ltd
– Price and Non-price Strategies
o
presenting and explaining the price and non-price strategies used by the
Port of Tauranga Ltd to increase sales and market share
– Consequences for Society
o
explaining the consequences for society of these goals and strategies
and showing how production decisions are linked to the social
consequences of those decisions.
Resource A
Some starting information for you…
Q: How many ships visit per year?
A: 1,612 vessels called at Port of Tauranga for the year ended 30 June 2014.
Q: How much cargo moves through the Port?
A: For the year ended 30 June 2014 Port of Tauranga had 19,736,902 tonnes of cargo moved
across the wharf. Included in that were 759,587 TEUs.
Q: What are the major types of cargo?
A: Forestry, kiwifruit and dairy exports account for approximately 75% of the Port’s exports
throughput. More Info >>
Q: What is the largest vessel Port of Tauranga could accommodate?
A: The largest cargo vessel to call was the Messologi operated by MSC, it is 294m. The
largest cruise ship to call was the Celebrity Solstice, which was 317m.
Q: How many berths are there?
A: Port of Tauranga has 15 berths. More Info >>
Q: What is the maximum draught?
A: All vessels over 110m LOA are handled at slack tide high or low water.
Maximum draught high water: 13.0m
Maximum draught low water: 11.7m More Info >>
Q: How many tugs does Port of Tauranga have?
A: Port of Tauranga owns three tugs - Sir Robert, Te Matua and Kaimai. More Info >>
Q: How much does a tug cost?
A: Approximately $8-12 million.
Q: What is a tug used for?
A: To push and pull ships as they arrive or leave the harbour to provide for the safety of the ship, the
wharf and our environment.
Q: How many staff are employed by Port of Tauranga?
A:
177 full-time permanent staff, 14 permanent part-time staff and approximately 25
casuals are employed as at 30 June 2014.
Q: Does Port of Tauranga employ stevedores and marshallers?
A: No, stevedores and marshallers are private contractors. They operate on the wharf and provide
services direct to the shipping lines who call at Tauranga. Port of Tauranga is the only port in New
Zealand that does not directly employ stevedores and marshallers. More Info >>
Q: How many cranes does Port of Tauranga have?
A: Port of Tauranga operates seven cranes based at Sulphur Point. More Info >>
Q: What is a reefer point and how many are there?
A: A reefer point is the power supply that a refrigerated container is plugged into. Port of Tauranga
has 1,600 reefer points at Sulphur Point and 337 reefer points at Mount Maunganui. More Info >>
Q: When was a port first established at Tauranga?
A: The first port was officially established in 1873. More Info >>
Q: How do the stevedores unload cargoes such as grain, salt and fertiliser?
A: They use electronic grabs to pick up large amounts of the free flowing cargo, which is then
discharged into a hopper. More Info >>
Q: What is a hopper?
A: It is a funnel like mobile structure that free flowing cargo is poured through. Trucks are positioned
below the hopper for loading.
Q: How do we know how much fertiliser has been discharged?
A: Once cargoes like fertiliser are loaded into trucks, the trucks drive over our weighbridge. The
weighbridge calculates the volumes of cargo that have been discharged.
Q: Do we have restrictions on vessels arriving and departing through the entrance?
A: The movement of shipping is based on the flow of water in and out of the harbour. Vessels are
graded depending on size and manoeuvrability. This grade determines when a vessel can safely
arrive or depart. More Info >>
Q: What is a pilot and how do they get on board an arriving vessel?
A: A pilot is a person who goes on board a vessel and guides them into or out of the Port. To be a
pilot you must hold the qualification of "Master, Foreign Going". Pilots travel out to meet the
arriving vessel in a pilot launch and climb a ladder hung over the side of the arriving vessel to
board.
Q: When is the Port open?
A: The Port is open 24 hours a day, 365 days a year. More Info >>
Q: What is the average length of time a vessel stays at the Port?
A: Log vessels approximately 3 days.
Container vessels approximately 10-16 hours.
General vessels approximately 2 days.
Q: How much land does Port of Tauranga have?
A: Port of Tauranga has 113.4 hectares at Mount Maunganui and 74.7 hectares at Sulphur Point.
This includes the land currently used for wharf activities and the surrounding land used by
industries supporting the Port. More Info >>
Q: What is a straddle carrier and how many do Port of Tauranga own?
A: Port of Tauranga has 36 straddle carriers. A straddle carrier is a piece of machinery that a driver
uses to pick up containers and move them around the wharf. The Port uses trucks and trailers to
move containers between the rail area and the container yard. More Info >>
Q: How does Port of Tauranga know how deep the channel is?
A: Port of Tauranga carries out regular hydrographic echo sounding surveys of all shipping channels.
This is matched with existing charts to ensure safe passage for all vessels. A designed depth is
maintained by regular dredging.
Retrieved from http://www.port-tauranga.co.nz/Community/Education/Port-Information/ 0n May1, 2015