Business Report 2022

Running head: BUSINESS REPORT 1
Business report to Mr Laurel, the CEO
Name
Institutional Affiliation
Author’s note

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Executive summary
The report shall focus on the expenditure and inventory management process and the
need for new innovations at Laurel Pty Ltd. The report has its basis on the request by the CEO
to search for some advice in terms of ho how to deal with the challenge of the continuously
rising costs and associated inefficiencies in the area of purchasing, inventory management and
accounts payable departments. The report provides evidence of how well the business can be
improved through the implementation of Business Intelligence (BI) and digital dashboards in
its manufacturing processes.

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Table of Contents
Executive summary.................................................................................................................................2
Report on the inventory process analysis for Laurel Pty Ltd.................................................................4
Table showing internal control weaknesses, impact of the weakness control and the way to mitigate
the identified weaknesses......................................................................................................................4
Below are some examples of internal controls that can be applied by the company...........................7
The purpose of internal control..............................................................................................................7
2. a. Impacts of business intelligence on the company.........................................................................7
Management decision making...............................................................................................................8
b. Below are some of the business intelligence tools..........................................................................10
ii. Impact of the use of dashboards in the efficiency of the manufacturing process...........................10
Conclusion.............................................................................................................................................11
References............................................................................................................................................11

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Introduction
Report on the inventory process analysis for Laurel Pty Ltd
Inventory management refers to the process of maintaining and controlling the
company’s stock right from the placement of an order to when the stock is used for its purpose.
Business intelligence refers to the technology driven process for analyising data and presenting
actionable information which helps executive, managers, and other corporate end users to make
informed business decisions (Baden and Mary, 2010). Business intelligence embeds a lot of
tools, applications and methodologies that enable organizations to collect data from both internal
systems and external sources. It prepares it for analysis, develop and run queries against that
data. It also creates reports to make the analytical results available to corporate decision makers,
as well as end users. Digital dashboard, it may be seen as a data visualization tool that shows on
a single screen the status of business analytic metrics, key performance indicators and important
data points for an organization ,department, team or process.
Table showing internal control weaknesses, impact of the
weakness control and the way to mitigate the identified
weaknesses.
Internal control
weakness
Impact of the
weakness control
Ways how to mitigate
the weaknesses
Management,
Management styles
Good management,
that is comprised of both
Monitoring of internal
controls,

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vary, some managers are
auto-cratic, that is they make
final decisions without the
consent of other employees
while others are permissive,
they delegate responsibilities
of decision making to their
subordinates.
auto-cratic and
permissiveness affects the
company positively since the
top management sometimes
delegates authority to
subordinates to make some
decisions. However, being
consistent to one style of
management is likely to
affect other parties
negatively.
Performing ongoing
and periodical evaluations of
internal controls including
external audits.
Communicating
internal control deficiency
and assure timely actions. For
instance, timely
communications and
feedbacks.
Leadership,
The quality of
leadership in the company
will determine the quality of
employee’s satisfaction,
weaknesses in leadership will
lead to employee’s
dissatisfaction and labor
turnover. Good leadership
leads to motivation and
creates self-drive in
employees.
Good leadership
brings about corporation,
unity thus yielding
company’s success. Bad
leadership leads to disunity
and demotivates employees
(Lim, 2010).
Communication,
This is achieved by
use of relevant, quality
information to support
internal control functions.
Through
communicating internal
control information
internally.
Communicating
internal control information
externally.

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Culture,
Beliefs and behaviors
of people define the
company’s culture.
Any weakness in the
company’s culture causes
customers turnover and
tension among employees
which cripples the company.
When the company’s culture
is favoring, both employees
and customers are given a
concussive environment thus
creating a room for the
company to achieve its goals
(Geissdoerfer etal.2017).
Establishing a control
environment,
Demonstrating
commitment to integrity and
ethical values.
Ensuring that board
exercises oversight
responsibility.
Establishing
structures, reporting lines
authorities and
responsibilities.
Demonstrating
commitment to a competent
workforce.
Holding people
accountable.
Value,
This encompasses on
how the company appreciates
the contribution of employees
to its progress.
Well appraised
employees are motivated to
work and achieve the
company’s goals and
objectives. Failure to
appreciate their contributions
Implementation of
control activities,
Selecting and
developing control activities
that mitigate risks such as
performance appraisal of

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makes them feel as if they are
not part of the company, thus
being motivated.
employees.
Selecting and
developing technology
controls. These may include
use of ICTs in the company.
Deploying control
activities through
implementation of policies
and procures.
Below are some examples of internal controls that can be
applied by the company.
The purpose of internal control
The main issue of internal control is to assist the company’s stakeholders understand the
attitude, goals and objectives of the organization as a whole. Provisional of reasonable assurance
to customers and others since all the transactions are recorded properly and on a timely basis.
Internal controls also protect the company’s assets. Since assets are all recorded and indicating
the person in charge of each asset.it is not easy to misplace some assets and deny the responsibity
though it happens in certain circumstances (Berglund and Sandström, 2013). Internal controls
ensure that the kept or recorded information is accurate. This is achieved through the
implementation of various constraints. Such as who to create, who to access and the limits of
accessing at every level, who to make changes on information among others.
2. a. Impacts of business intelligence on the company.
Business intelligence is concerned with ideas that relate to a set of methodologies,
processes, architecture, and technologies that transform raw data into meaningful and useful

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information impacts the company both positively and negative ways. Decisions made depend on
data collected and brought together by the business intelligence tools (Visnjic, etal.2018). This
implies that BI greatly play a big role in the decision making part since its applications turn the
company’s data into meaningful information that is used for making decisions. Introduction of
business intelligence decrease the degree of uncertainty in the company (George and Bock,
2011). This is seen in a way that it provides information about the company’s transaction and all
other processes that are carried out both within and outside the company. Since all the business
transactions are made basing on the available information, business intelligence plays an
important part of transforming or converting data into information (Borgh, etal.2012).
Management decision making
Improved visibility of core business components enhances the businesses’ capacity for
decision making. Managing a company is not a simple thing without enough processed
information. Business intelligence comes in to provide information about the all components of
the company. For instance, the manager at the top of the organization rarely knows what is
happening on the ground unless provided with the information about what is on the core ground
of the company (Chen, 2009). Efficiency marketing and sales intelligence, business intelligence
improves the marketing skills in the marketing section. This improves on the total sales of the
company. This implies that an increase in the marketing section leads to an increase of the
company’s financial status. Business intelligence improves understanding of consumer level. The
company will understand more about its customers since it will maintain a database. This will
help to realize their strength and weaknesses basing on the feedback got from customers. That is
it analyses its weaknesses and try to change them into opportunities. They make the company
gain an added competitive advantage over other companies. Due to the provision of information

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by business intelligence, the company will end up coming with the best ways to overcome others
in the world of competition. Business intelligence increase access to the firm’s data thus increase
in the company’s profit. However, in practice, ineffectiveness of business intelligence is
common in various organizations. In relation to the causes of its failure in other organizations
may also be the same case thus impacting the company negatively. The following may hinder the
performance of business intelligence thus causing negative results (Garbuio and Lin, 2018).
It may lead to coming up with different conclusions by different observers. Information
may be the same, but different people are likely to interpret it differently. This becomes
expensive items of time consumed on deciding the best decision. Due to the use of business
intelligence, data security is still questionable. As long as data is entrusted with technological
ways of guarding it, one should always think that there is a possibility of hacking that
information. As technology improves on a higher rate the hackers and crackers also come up
with new techniques of responding to it.
There are high costs in data management. Right from when data is received or created in
the company to when it’s used needs much attention and it is costly to manage. For instance,
business intelligence is not a one thing process; it works hand in hand with other applications so
as to give more meaning to data. Additionally, it is cost ineffective for small and medium
enterprises (Daas etal. 2012). It is cost effective in big enterprises Time consuming in terms of
implantation; business intelligence is not an easy process to do with. On top of that, it takes some
good period of time like eighteen months to become active and implemented. Many companies
today are impatient. Additionally, a profit oriented company looks at time as money thus a
resource of a company that cannot be wasted in patience.

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b. Below are some of the business intelligence tools.
Mobile, software that extends desktop business intelligence applications so that they can
be used on mobile devices. Real-time, an approach to data analytic that enables business users to
get up to the minute data by directly accessing operational systems. Operational reporting, in a
company many tasks are being carried out daily. Any mistake in these operations affects the
company’s performance. This tool helps to record daily operations of the company, enabling
real-time monitoring so as to instantly identify weaknesses or mistakes and corrected.
ii. Impact of the use of dashboards in the efficiency of the
manufacturing process
It is an essential tool of a company that helps to pull out a particular instance or
occurrence of data in a company’s database. This helps in easy retrieval of information when
needed to make a decision. Increases efficiency and improves decision making. They provide a
centralized platform for end users to access. They give room to users to share, interact and
analyses information up to date so that they can make clear data based decisions. They are tools
that help the company to gain a competitive advantage over its competitors (Borgh, etal. 2012).
A clear full awareness of the company’s information allows the management to focus more on
the important company’s aspects and aligns its processes with how the potential competitors go
about it. It allows flexibility for a company’s growth.an effective dashboard is continuously
iterated upon as the company grows and changes (Karl and Ralf, 2010). The common needs of
the company are under one platform, including data connectivity, data preparation, presenting,
self-service analytics and administration. Internal controls refer to a process affected by an
entity’s board of directions, management and other personnel designed to provide a reasonable
assurance regarding the achievement of objectives relating operations, reporting and compliance.

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Introducing internal controls will ensure that the company runs more efficiently, stock is not lost,
and there are fewer unpleasant occurrences (Zott and Amit, 2009).
Conclusion
Conclusively, the implementation of business intelligence connects people with
information when and where they need it, and provides capabilities beyond others to deliver a
true picture of the company. Creating useful business intelligence is a moving target that must
adapt as available data and organizational needs change.

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References
Baden, F., C., Mary, S. (2010). Business Models as Models (PDF). Long Range Planning. 43
(2/3): 156–171. doi:10.1016/j.lrp.2010.02.005.
Berglund, H. Sandström, C. (2013). Business model innovation from an open systems
perspective: structural challenges and managerial solutions. International Journal of
Product Development. 8 (3/4): 274–2845. doi:10.1504/IJPD.2013.055011.
Borgh, M., Cloodt, M., Romme, A., Georges, L. (2012). Value creation by knowledge-based
ecosystems: Evidence from a field study. R&D Management. 42 (2): 150–169.
doi:10.1111/j.1467-9310.2011.00673.x.
Chen, T. F. (2009). Building a platform of Business Model 2.0 to creating real business value
with Web 2.0 for web information services industry. International Journal of Electronic
Business Management 7 (3) 168-180.
Daas, D., Hurkmans, T., Overbeek, S. and Bouwman, H. (2012). Developing a decision support
system for business model design. Electronic Markets - The International Journal on
Networked Business, published Online 29. Dec. 2012.
Garbuio, M., Lin, N. (2018). Artificial Intelligence as a Growth Engine for Health Care
Startups: Emerging Business Models. California Management Review. 61 (2): 59–83.
doi:10.1177/0008125618811931.
Geissdoerfer, M. Savaget, P., Evans, S. (2017). The Cambridge Business Model Innovation
Process. Procedia Manufacturing. 8: 262–269. doi:10.1016/j.promfg.2017.02.033. ISSN
2351-9789.

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George, G.,Bock, A.J., (2011). The business model in practice and its implications for
entrepreneurship research. Entrepreneurship Theory and Practice, 35(1): 83-111
Henning, D. (2012). IBM launches new form of day-wage labour. World Socialist Web Site.
International Committee of the Fourth International (ICFI). Retrieved 2015-02-24.
Hummel, E., G. Slowinski, S. Matthews, and E. Gilmont. (2010). Business models for
collaborative research. Research Technology Management 53 (6) 51-54.
Karl, M and Ralf, M. (2010). Profit from Software Ecosystems: Business Models, Ecosystems
and Partnerships in the Software Industry. Norderstedt, Germany: BOD. ISBN 978-3-
8391-6983-4.
Lim, M. (2010). Environment-Strategy-Structure-Operations (ESSO) Business Model.
Knowledge Management Module at Bangor University, Wales. https://communities-
innovation.com/wp-content/uploads/2019/06/ESSO-Business-Model-Michael-Lim-
Bangor-University-iii.pdf
Visnjic, I., Neely, A., Jovanovich, M. (2018). The path to outcome delivery: Interplay of service
market strategy and open business models. Technovation. 72-73: 46–59.
doi:10.1016/j.technovation.2018.02.003.
Zott, C. and Amit, R. (2009). Business Model Design: An Activity System Perspective. Long
Range Planning 43 216-226

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