The extreme risk of personal data breaches

Running head: CASE STUDY- RAINBOW ILLUSION
CASE STUDY- RAINBOW ILLUSION
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1CASE STUDY- RAINBOW ILLUSION
Executive Summary
The nature of businesses is dynamic and complex thus they need to get aligned to certain
strategic information systems so that the goals of the organizations are met. There are many
challenges in the process that helps in achieving this specific alignment. Considering a firm
that is a retail store having its branches in New South Wales and Victoria the case study has
been analyzed. The context of the report gives information about the system that the firm has
adopted to control the sales transactions. The strengths of the system are found out and the
reasons as why these are the strengths and what problems they have succeeded in avoiding
are also discussed. The paper also gives an idea about some frauds that company like this can
fall into. The comparison in between installing a distributed computer system and a
centralized one has also been include in the report. Lastly, the overall scenario related to the
sales transactions of the company has been assessed.

2CASE STUDY- RAINBOW ILLUSION
Table of Contents
Introduction................................................................................................................................3
Strengths in Rainbow Illusion’s system for controlling sales transactions............................3
Problems avoided by Rainbow Illusion by incorporating the strength..................................5
Situational pressures that would increase the likelihood of fraud..........................................7
Reasons for companies to install a distributed computer system...........................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

3CASE STUDY- RAINBOW ILLUSION
Introduction
Rainbow Illusion is a retail firm and has 30 stores all around New South Wales and
Victoria. The store deals in readymade clothes and young females are its target customers.
Each of these stores has a manager as well as an assistant manager who work on a full time
basis. The case study provided has the sales structure of the firm and tells about the process
involved in the daily sales transactions (Ingram et al. 2015). The report will be discussing on
certain questions that relate to the case study. It will be mentioning the strengths of the firm
in the sales transaction process and what problems it has probably avoided owing to these
strengths. The paper includes the advantages that distributed computer systems have over that
of single computerized systems.
Strengths in Rainbow Illusion’s system for controlling sales transactions
1) Each of the stores of Rainbow Illusion has different manager and assistant manager.
2) The firm hires young people for handling its cash counters as well as to attend to the
customers.
3) In the firm the salesperson maintain a manual record when a customer buys something and
then passes it on to the cashier.
4) In the firm the cashier is responsible to review the sales invoice as well as to input the sale.
5) A reconciliation report is prepared by the assistant manager on a daily basis.
6) On a daily basis the cash register tapes, return slip and the cash invoices are updated to the
central data processing department based at the corporate headquarters.
The sales cycle of any firm is a part of its transaction cycle. The transaction cycle serves as a
chain or an interlock system for a set of business transactions. Majority of the business
transactions are aggregated into a relative number of smaller transaction cycles relating to
sale of the goods, payments made to the lenders, employers and the suppliers. Here in this