Unit 3 assessment task: case study

and structured questions

This assessment task for Outcome 1 in VCE Business Management Unit 3 is
based on information on the Heinz Australia website. This organisation was
chosen as the basis for a case study because of recent media coverage
relating to the closure of manufacturing plants in regional Victoria, NSW and
Queensland.
Task details
Assessment task
Case study and structured questions

Unit/area of study
Unit 3: Corporate Management
Area of study 1: Large-scale organisations in context

Outcome 1
Discuss and analyse the context in which large-scale organisations operate.

Relevant key knowledge and key skills

Key knowledge

This assessment task addresses the following key knowledge for this area of study:
the context which contributes to the unique nature of large-scale organisations
characteristics of large-scale organisations
variations in types of large-scale organisation, their objectives and related business strategies
contributions, both positive and negative, of large-scale organisations to the economy
internal and external (operating and macro) environments of large-scale organisations
performance indicators used to evaluate the performance of large-scale organisations,
including the percentage of market share, net profit figures, the rate of productivity growth, the
number of sales, results of a staff and/or customer satisfaction survey, the level of staff
turnover, level of wastage, number of customer complaints and number of workplace accidents
identification and characteristics of stakeholders of large-scale organisations, including their
interests, possible conflicts and related ethical and socially responsible considerations.

Key skills

The key skills that this assessment task addresses include the ability to:
accurately use relevant management terms
analyse business information and data
analyse the context in which large-scale organisations operate
apply knowledge and concepts to practical and/or simulated situations.

Instructions and conditions

In completing these structured questions, students should demonstrate an understanding of the
relevant key knowledge and key skills, and an ability to plan, organise and undertake written
communication.
Answer all questions in this answer book. The marks for each question are indicated after each
question.
Conditions: Closed book
Time allowed: 50 minutes (plus reading time)
Marks allocated: 20 marks

Disclaimer: This assessment task has been written by the author (Gillian Somers) for use with students of VCE
Business Management. This does not imply that it has been endorsed by the Victorian Curriculum and
Assessment Authority (VCAA). While every care is taken, we accept no responsibility for the accuracy of
information or advice contained in Compak. Teachers are advised to preview and evaluate all Compak classroom
resources before using them or distributing them to students.

Heinz sets out global productivity plan

HJ Heinz Company Australia Ltd was established in the 1880s and
operates in Australia as a subsidiary company of the United States
based Heinz global food group. From its early days of producing
bottled horseradish, baked beans in tomato sauce and canned
spaghetti it has grown to be in 2011 a $1 billion food and beverage
company with six manufacturing facilities and around 1600 staff.
Heinz has a reputation for owning or producing under licence quality
brands and products that all Australians are familiar with, such as
Heinz, Greenseas Seafood, Golden Circle, Original Juice Co., Roses,
Cottees and Weight Watchers .
The motto and goal of Heinz is to provide Good Food Everyday, for
Australians (customers/consumers) everywhere and it takes pride in
doing common things, uncommonly well. This approach also extends
to the role Heinz plays as a global corporate citizen and employer.
The stated focus of Heinz is to seek out changes that will benefit its
communities, its consumers, its people and its environment.
On 27 July 2011, Heinz Australia announced the following strategies as part of a global productivity
plan to strive for increased manufacturing efficiency, better use of existing capacity and improved
productivity on a global scale:
1 Consolidating its manufacturing to create a stronger foundation for future growth in the Australian
and New Zealand markets. This will involve the shifting of production of sauces, beetroot and
some meal products from facilities in Victoria (Girgarre), New South Wales (Wagga Wagga) and
Queensland (Brisbane) to its facility in Hastings, New Zealand. This decision will result in the loss
of 160 jobs at Golden Circles Brisbane plant, 146 jobs at Girgarre and 38 jobs at Wagga Wagga.
2 Spending more than $20 million to upgrade the beverage manufacturing facilities at Northgate
(Queensland) and $5 million to enhance the capabilities of the baby food facility in Echuca,
Victoria.
3 Continuing to operate four factories and employ around 1400 people, including seasonal
employees.
Heinz has stated that in relation to its need to make some employees redundant its goal is to support
affected employees by providing redundancy packages, counselling, job search services, new skills
training and retirement planning services. Affected growers will also be offered finance and other
assistance for transition to other crops or supply arrangements.
Reference: http://www.hjheinz.com.au

Questions
Question 1
Identify two characteristics from the case study that indicate that Heinz is a large-scale organisation
and describe how this is indicated.

1 + 1 = 2 marks

Question 2
Classify Heinz according to its type of large-scale organisation.

1 mark

Question 3
Distinguish between a mission and a vision statement. Explain why the two need to be aligned.

3 marks

Question 4
Analyse the two main strategies that Heinz is planning to use to implement its global productivity plan.

3 marks

Question 5
Discuss the contribution of Heinz to the Australian economy, referring to one positive and one
negative contribution.

2 marks

Question 6
Distinguish between one internal and one external factor that may affect Heinz environment. Identify
the environmentinternal or external (operating or macro)that each factor belongs to.

2 marks

Question 7
Heinz Australia is an organisation that has many stakeholders. Its decision to close its manufacturing
plant in the Victorian town of Girgarre would have an impact on several of these.
a. Identify two of these stakeholders.

b. Choose one of the stakeholders identified in your answer to (a.) and explain the interest they
have in Heinz.

c. Choose one of the stakeholders identified in your answer to (a.) and explain one conflicting
interest they could have with Heinz.

1 + 1 + 1 = 3 marks

Question 8
Describe two suitable performance indicators that Heinz could use to measure the effectiveness of its
global productivity plan. Justify your choice of indicators.

4 marks
Total: 20 marks