HI5019: Strategic Information Systems Case Study: Marketing

This case study examines the marketing strategies and information systems of Rainbow Illusion, a 30-store retail chain. It analyzes the company's strengths, including its organizational structure with full-time managers, a four-copy invoice system, manual sales record-keeping, and daily reconciliation processes. The study also addresses potential problems within these strengths, such as the risk of internal manipulation and the absence of a computer-based system. Furthermore, it explores situational pressures that could lead to fraud, especially given the reliance on manual processes and the potential for collusion among employees. The case study discusses the need for a computer system, comparing centralized and distributed computer systems, and concludes with an analysis of the company's marketing approach, emphasizing the importance of customer relations and the role of information systems in achieving business objectives. The report also covers the topics of ethics, fraud, internal controls, revenue cycle, purchases & cash disbursements, payroll cycle & fixed assets, conversion cycle, financial reporting, REA Approach to Database Modelling, ERP Systems, System Development, Computer Controls and Audits.

Running head: Marketing
Marketing
Name of the Student
Name of the University
Author Note

1
Marketing
Table of Contents
Introduction................................................................................................................................2
Six Strength in Company System..............................................................................................2
Problem which Company have consider in Strength.................................................................4
Situational Pressure in Rainbow Illusion...................................................................................5
Computer System in Company..................................................................................................6
Conclusion..................................................................................................................................7
Reference....................................................................................................................................8

2
Marketing
Introduction
Marketing help the company to gain an advantage in the market. Each company is
able to have different kind of marketing strategies which help them to run their business
enterprise and able to achieve the goal and objective easily and effectively. It helps the
company to know the need and preferences of the customer so that the company is able to
satisfy them easily and able to earn a proper revenue in the business (Abu Naser, Al Shobaki
and Ammar 2017). Each company is able to built a proper relation with customers so that it
can able to sustain in the market so this relationship is built with the help of marketing
process in the business. This report shows how the company is able to manage its system in
the company so that no error or omission of the transaction can take place in the business. It
also show the different internal control issue which the company face and how it able to get
up from the different issue in the market (Brown, Pott and Wömpener 2014). It also about the
situation in which company can have fraud in their company as well as how it able to recover
from the same.
Six Strength in Company System
Each company should have a proper sale system so that no error or omission can take
place in the company, company should have proper internal control so that it can able to fix
all the business risk easily and effectively in the business. The strength of company system is:
Company is having a full time manager as well as assistance manager for each store
so this help the company to maintain a proper organizational structure in the business, so this
is one of the strength which the company is having as there are two manager who have proper
knowledge as well as experience so this will help the company to get more amount of
revenue in the business (Ciborra and Lanzara 2017). Both managers has some kind of

3
Marketing
responsibility in the store and both can divide the responsibility so that each aspects of the
store can easily be seen by both of them.
Sale invoice system which the company is having is also a strength to the business, as
the company is able to have four copy of invoice in all type of payment my be cash, cheque
or bank transfer (De Mooij 2018). This will help the company to gain more advantage of
recording proper amount of transaction in company business as well as help them to have a
proper record of each business event in the financial statement.
Sale person record each transaction manually in the sales book, this is also a strength
in the company sales as it able to match all the details about the person in charged in the
counter, type of cloth, details of price and other aspects (DeFond and Lennox 2017). This
help the company to have a proper record of sale as well as it helps them to match the
inventory level of the cloth easily and effectively. It also that it keeps one copy of invoice as
a proof so this will help the company to match all the details easily whenever they needed so
it makes proper crystal-clear image of the transaction.
Cashier check itself the transaction then give a proper identification number upon the
same so that it can be identified easily in the upcoming period so this help the company to
have separate identity number on each transaction (Demb 2014). This is also a strength for
the company as it helps them to keep a proper record of the transaction and it able to keep all
the invoice properly in the business which let them know about each transaction properly and
effectively in the business.
Cashier reconcile each day all the transaction with the sale invoice so that the
company is able to match up all the balance in different accounts, so these help them to locate
any human error that could have occur in the business and also it help them to know the

4
Marketing
amount of revenue which the company is earning in a working day (Donelson, Ege. and
McInnis 2016).
The information and other detail are send to the central data processing unit so that
the company is able to know all the details and from the same it able to make a daily report so
this help them to reconcile each information on a monthly basis in the company (Kerin and
Hartley 2015). It also serves a strength as no fraud or material misstatement can take place in
the company business unit.
Problem which Company have consider in Strength
Each store is having two managers so this help stop the problem of over burden of
responsibility upon an individual, as both the person can easily able to divide the
responsibility and can carry the business smoothly and effectively.
Company have incorporate four invoice system so this will help them to gain a proper
understanding so the problem which the company is able to avoid is that it have not made one
invoice as in this the company will not able to have proper record of each transaction whereas
in four invoice it can have proper detail of each transaction in then business (Kotler et al.,
2017). This invoice will help them to reconcile all the data and information easily in the
business.
Sale person record transaction manually and no computer system is there so this stop
the problem so mis-statement or error in the recording as the system may not able to perform
each activity properly whereas the company sale person manually can check each transaction
easily and record the same in the sale book (Kotler et al., 2015). This will help the company
to have proper knowledge of transaction as well as no error will be there in the company
books of accounts.

5
Marketing
The strength is that the cashier is able to check each transaction and give them an
identification number so this avoid the problem so double computation or error in
computation as it check each transaction properly and also able to maintain slip of each event
so that the company can reconcile the event easily in their business (Kotler et al., 2018).
The matching concept which the cashier follows at the end of each day by checking
the transaction with the invoice so this avoid the problem of any kind of error or omission of
record in company books of accounts (Laudon and Laudon 2016). It also help the company to
have proper idea of its revenue on a regular basic which let them make their strategies
accordingly.
Company send all the data and information to central processing unit so this help the
company to avoid the problem of misstatement or fraud in the business. It help to record all
the data in one place so if company lost their data of one store, it can revert it back from the
central data processing unit (Lovelock and Patterson 2015). It also help the company to
reconcile all the data on a weekly basic in the company financial statement.
Situational Pressure in Rainbow Illusion
Situational pressure are the one which happen in come situation in which the person is
not able to deal it properly and ethically in the business house.
Company employee internally get unite able to manipulate the accounts than fraud
can take place in the company (Mullin, Hardy and Sutton 2014). The company is not having
any computer based or technology-based system so this denotes all the activity is to be handle
by company internal employee. If the employee wants, they can easily manipulate the
company financial statement and due to these frauds can take place in the company business.
The above points show that each sales section is having an individual to take care the process,

6
Marketing
so this make very easy for the individual to carry unfair trade practices in the business of the
company.
Manger are the main person in the store so they are the one who can easily able to do
unfair trade practice in the company business (Newton et al., 2015). The discussion shows
that the company is managed by two manager one is senior and other one is assistance. The
manger get unite and able to cheat the business it can easily manipulate the sale figure of the
company so that it can able to gain some kind of gain from the same.
Computer System in Company
Each company have to install a computer system in their company so that each
business activities can be recorded easily and effectively in the business. There are two kind
of system which the company is able to have in their business unit.
Centralised Computer System in which all the processing is done by a single central
server, it able to record all the company transaction in one place and able to provide all the
information which are required by the company as a whole in their business (Rice, Weber and
Wu 2014). In this company record all their data of all the stores which it operates and it is
connected with each department and system interlink each department on the server. It help
the company to run all their activities from a single server so that the company is not having
any problem or complexity in the system.
Distributed Computer System in this all the company business activities is carried on
different server which are not inter linked, as each department has its own server so that it can
carry its business operation (Vargo, and Lusch 2014). In this the information of company
business activities is recorded with each department and no proper place of information is
been kept in the system. This system help the company department to run all its activities as
per their need and preference.

7
Marketing
Company usually select Distributed Computer System rather than centralized one as it
help the company to give each department a server which is not there in the centralised
computer system as in that the company have to maintain its business activities on a single
server (Xu and Tang 2015).
Centralised system is able to become slow as it have to take so much of work load
which directly affect the company activities as it not able to run those activities easily
whereas in distributed system company is able to get a proper amount of speed as the work
load is limited to the department works so this help the company to carry its business
operation easily in the market (Zamir and Ilan, D 2015).
Centralised system are usually very expensive and company have to do huge capital
investment to get the system which is not possible for each kind of company whereas
distributed computer system is less costly compare to centralised one so this help the
company to get proper system and also in a friendly budget.
Each department is able to have different need of software so it become very hard in
centralised one as it have to do many configuration to make it proper for the company
whereas the distributed accounting system are meant for each department separately so this
help them to modify the system as per their need and preference in the company.
Conclusion
The report concludes about the marketing strategies as how the company is able to
make proper strategies so that it can hold healthy relation with its customers. It concludes
upon the clothing store which carry its business in different part, it shows how the company
is able to have strength in their sale transaction. The discussion able to conclude the six
strength as well as the problem which the company is able to recover from the business. It
also show about the situation in which there can be fraud in the company as if the employee

8
Marketing
able to manipulate the books or the managers is able to do so the same, then only fraud can
take place in the company. Lastly it conclude about the computer system which is used by
different industry as it show about the distributed computer system and centralised computer
system. It also show why the managers prefer for distributed computer system rather than
centralised computer system.

9
Marketing
Reference
Abu Naser, S.S., Al Shobaki, M.J. and Ammar, T.M., 2017. Impact of Communication and
Information on the Internal Control Environment in Palestinian Universities. Available at
SSRN 3085429.
Brown, N.C., Pott, C. and Wömpener, A., 2014. The effect of internal control and risk
management regulation on earnings quality: Evidence from Germany. Journal of Accounting
and Public Policy, 33(1), pp.1-31.
Ciborra, C.U. and Lanzara, G.F., 2017. Designing dynamic artifacts: computer systems as
formative contexts. In Symbols and Artifacts (pp. 147-165). Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
DeFond, M.L. and Lennox, C.S., 2017. Do PCAOB inspections improve the quality of
internal control audits?. Journal of Accounting Research, 55(3), pp.591-627.
Demb, A., 2014. Computer systems for human systems. Elsevier.
Donelson, D.C., Ege, M.S. and McInnis, J.M., 2016. Internal control weaknesses and
financial reporting fraud. Auditing: A Journal of Practice & Theory, 36(3), pp.45-69.
Kerin, R. and Hartley, S., 2015. Marketing: the core. McGraw-Hill.
Kotler, P., Bowen, J.T., Makens, J. and Baloglu, S., 2017. Marketing for hospitality and
tourism.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.

10
Marketing
Kotler, P., Keller, K.L., Ang, S.H., Tan, C.T. and Leong, S.M., 2018. Marketing
management: an Asian perspective. Pearson.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Mullin, B.J., Hardy, S. and Sutton, W., 2014. Sport Marketing 4th Edition. Human Kinetics.
Newton, N.J., Persellin, J.S., Wang, D. and Wilkins, M.S., 2015. Internal control opinion
shopping and audit market competition. The Accounting Review, 91(2), pp.603-623.
Rice, S.C., Weber, D.P. and Wu, B., 2014. Does SOX 404 have teeth? Consequences of the
failure to report existing internal control weaknesses. The Accounting Review, 90(3),
pp.1169-1200.
Vargo, S.L. and Lusch, R.F., 2014. Evolving to a new dominant logic for marketing. In The
Service-Dominant Logic of Marketing (pp. 21-46). Routledge.
Xu, L. and Tang, A.P., 2015. Internal control material weakness, analysts accuracy and bias,
and brokerage reputation. Handbook of Financial Econometrics and Statistics, pp.1719-1751.
Zamir, T. and Ilan, D., VMware Inc, 2015. Rapid cloud-based image centralization. U.S.
Patent Application 14/074,528.
Zenz, I., Semerdzhiev, K.P., Pancheva, E.N. and Markov, M.L., SAP SE, 2014. System and
method for system information centralization. U.S. Patent 8,838,750.