Literature Review: Wesfarmers' Organizational Structure, ERP Systems, and Accounting Software Adoption

This literature review examines the organizational structure of Wesfarmers Limited, a leading Australian conglomerate, and its implications for operational efficiency. It analyzes the company's system acquisition methods, focusing on the suitability of ERP systems for its diverse operations. The review also explores the development and adoption of accounting software packages in the Australian market, identifying key players and challenges faced by users. It concludes with recommendations for Wesfarmers to optimize its ERP and accounting software systems for improved efficiency and effectiveness.

Assignment 1 (Literature Review)
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Table of Contents
Introduction:..........................................................................................................................................3
Part 1.....................................................................................................................................................4
The current organizational structure.................................................................................................4
What operational problems (e.g. Efficiency, errors) do you think the organisational could
experience because of its structure?.................................................................................................6
What is the most likely system acquisition method- commercial software, custom software, or
ERP?...................................................................................................................................................8
Describe and prepare a system flowchart of the sales procedures for the chosen organisation.. . .10
Identify any control problems in the system and what sorts of fraud are possible in this system?
.........................................................................................................................................................11
Part 2...................................................................................................................................................13
Development and adoption of the accounting software packages..................................................13
The current market size...................................................................................................................14
Identify the leaders in the market and what gives them the competitive advantage.....................15
Identify the current gaps or challenges encountered by users or customers of accounting
software/packages and make relevant suggestions or recommendations......................................16
Conclusion...........................................................................................................................................17
Recommendations...............................................................................................................................18
References...........................................................................................................................................19
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Introduction:
This literature review is about an Australian company Wesfarmers. In this review the current
organisational structure of the Wesfarmers has been discussed along with the organisational
problems it faces due to its structure. The ERP module of Wesfarmers has been discussed
according to system acquisition method. Sales procedure of Wesfarmers has been described
and what can be the control problems and potential fraud issues in this system are also
discussed. Wesfarmers Limited is a top performing company in the Australia and has its
operations worldwide.
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Part 1:
The current organizational structure:
Wesfarmers Limited is an Australian claimed open organization, getting income from a
broadened arrangement of tasks which incorporates basic need and other retailing,
protection items, coal mining, gas preparing and dissemination, compound and compost
fabricating and modern security items. The organization is Australia's biggest private part
business, with more than 200,000 staff, and tasks all through Australia. Wesfarmers is
recorded on the ASX under the code WES, and is administrated from its head office in Perth
(Usmanij, et. al, 2013).
Each association comprises of a specific structure that distributes the assignment of the
association among the workers or the partners with the goal that no disarray about the part of
the diverse assignments happen. Through the structure, the authoritative activity, the
supervision of the assignment through coordination is done keeping in mind the end goal to
accomplish the hierarchical objective and its goal. The structure that wins in Wesfarmers is
the various levelled structure. The hierarchical structure of Wesfarmers incorporates the
executive at the highest point of the association took after by the director and local
supervisor who handles the diverse local workplaces where the association works. The
group pioneers are next in line that takes care of the activity that is being finished. The
representatives answer to them straightforwardly and they frame the ground level manager
of the association. The general administrator assignment additionally wins soon after the
chief who manages the distinctive divisions of the association like the generation, fund,
showcasing and research and development. Without an appropriate authoritative structure, it
can be troublesome for Wesfarmers to keep up the level of consistency it has in the
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Australian business showcase. This can hamper the development of the association
(Daneshgar, et. al, 2013).
What operational problems (e.g. Efficiency, errors) do you think the organisational could
experience because of its structure?
The operational challenges faced due to the structure of Wesfarmers can be the partnering
and the alliances which it has with other companies and the other companies put a hindrance
in the day to day operational decisions of the company. Other can be the size of the
company which if very huge faces a lot of problem in operations as many operations come
hand to hand together. The next challenges faced are in the sales and marketing of the
product as when the size of the organisation is very huge the sales and marketing is the main
issue as it involves huge cost which can be a problem in the operations of the organisation
(Tucker and Schaltegger, 2016).
The service and the delivery and provisioning of it is also a big hindrance in the operations
of the organisation as when the structure is so huge the delivery in goods takes a lot of time
and even the after sales service is not that responsive. The other is the customer care as
when the organisational structure is huge the customer care needs to be good otherwise it
will give a negative effect on the operations of the company. Billing is also a problem as in
large company billing is done through different organisations and affects the operations of
the company as more time is being consumed in these activities. Infrastructure can also be
an operational problem as if it is huge it can be negative for employees and may affect the
operations of the organization (Fishman, et. al, 2014).
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What is the most likely system acquisition method- commercial software, custom software, or
ERP?
The specialists dependably confront an issue while picking the suitable strategy for
framework procurement in connection to the necessities of the association. The frameworks
that the associations utilize for the most part rely on the capacity of that organization. There
is no direction accessible in the decision of the securing strategy as there are various
framework procurement techniques accessible that confounds the general population.
Wesfarmers is an aggregate that arrangements with numerous kinds of items. The ERP
programming is most appropriate for Wesfarmers (Tijani and Mohammed, 2013). It is said
to be powerful programming with every single required prospect that are required by the
association. The ERP (Enterprise Resourcing Planning) is utilized by associations to deal
with the tasks that the association is working. The ERP is well-suited for Wesfarmers on the
grounds that the association as specified before is a combination that is exceptionally
different in its items and administrations. The administration of the activities is multifaceted
as the association manages market administrations, home decorations, coal mining and
numerous different businesses. To oversee such gigantically different industry, Wesfarmers
must utilize the procurement technique for ERP that suits the request of the association in
connection to the administrative activity and bookkeeping arrangement of the association.
The most imperative advantage of utilizing ERP is that the administration it gives is far
worthier than the underlying cost that is required amid the establishment of the product. In
addition, this specific framework is extremely time effective and plays out a wide range of
requests of bookkeeping programming with better examination and administrative
consistence that is basic and along these lines it is able for this combination (Ismail and
King, 2014).
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Describe and prepare a system flowchart of the sales procedures for the chosen organisation.
Source: (Ismail and King, 2014)
The Sales system of Wesfarmers incorporates the four levels that is the advertising,
qualifying, proposing and conveying in the offers of the administrations and the items. The
procedure is done in connection to the business destinations, suspects, openings, assertions
and fulfilled clients. The sales procedure of Wesfarmers starts by the receiving of order by
the sales department, they then enter the sales order header and the line information, they
then book the order by the item type, quantity, order number and its status. The team then
gives the quotations and ask for the PO and decide the payment terms by the customer.
When the trade is finalised then the sales order report and created and then the product is
delivered to the customer accordingly.
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Identify any control problems in the system and what sorts of fraud are possible in this system?
Issues in regards to the establishment and up degree are contemplated in the securing of the
ERP in a few associations and nation. Be that as it may, innovation isn't the issue in the
usage of the product of the ERP. The intermittent issue is that of hazard administration
inside Wesfarmers and the difference in the general population. In many associations, the
usage of the ERP means the financial plan and timetable thought and overlooks
contemplations like the desire of the consistence and the hazard administration. The
significant dangers related to the execution of ERP comprise of the accompanying:
 Losing control over the undertakings and the postponements in the execution of ERP
inside the association
 Issues identified with process, information honesty and control
 Cost issues and live adjust
 Absence of information and aptitudes in connection to the in-house task
 Consistence issue
The arrangement that needs are the association's structure, target process and the execution
of ERP identification of extortion in connection to the ERP usage is to a great degree
complex however is taken care of by the misrepresentation inspectors and the evaluators.
The discovery is principally done through examining the log. Scarcely any deceitful details
are specific to various fields. The manual procedure of exchanging information and
information adjustment is another hazard identified with the business activity with ERP
establishment (Ng, et.al, 2013).
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Part 2
Development and adoption of the accounting software packages
Any association frequently faces issue in picking between the current bookkeeping
programming that is as of now in usage inside the association and the one that the
association is selecting to execute in the segment. The purpose for this perplexity is the
venture that the association bears in connection to the execution of the bookkeeping
framework that additionally needs up degree. The PC control is expanding step by step that
energizes or rather pressurizes the specialists to create or redesign their current
programming. This can help in compelling work in the working environment and increment
execution in a powerful way. A similar reason works for the association who dependably
needs to be the first in the race as per the upper hand or inward deceitful. In selection, any
association goes for the aggregate difference in the bookkeeping framework that is
supplanting the current bookkeeping framework with the new framework to meet the
required procurement technique that matches activity of the association. As per Schaltegger,
et. al., (2017), another method for appropriation is the change of bookkeeping programming
bundle. This incorporates the running of the current bookkeeping programming alongside
the recently embraced bookkeeping programming. There has been fast reception of the
bookkeeping programming in Australia and Wesfarmers is no special case. Wesfarmers
embraces the MYOB ERP bookkeeping programming (Palmer, 2013).
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The current market size
The present income of Wesfarmers is AUD$65.98 billion of every 2016, that brought the
association among the best business endeavour. The association represent an investor of
530,000 bases spread crosswise over various parts of Australia. It to a great extent works in
Australia and has advertise nearness in New Zealand as well however this association does
not work universally or have worldwide nearness. The association has an extraordinary front
of the market in Australia since it is an aggregate. The ventures that Wesfarmers work
incorporate the retail showcase, the industry in coal mining, results of home outfitting,
departmental stores, backups and protection business. The business under the name of
Bunnings, Coles, Target, Kmart, concoction and manure industry, home and office machines
works through various distribution centre and stores. This is the reason that the offer of the
Wesfarmers is very costly in the market. The association has quite recently begun working
in the market of Ireland. The purpose for such huge piece of the overall industry is the
enhancement, long haul systems that give long haul development. Profits are another factor
for the cost of Wesfarmers share that is 5.2% completely franked profit (Romney, et. al,
2013).
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Identify the leaders in the market and what gives them the competitive advantage.
Wesfarmers, the most different organization in the market of Australia has turned into the
main organization to beat Woolworths. Wesfarmers manage numerous administrations and
items. Consequently, a combination has been fruitful in working in various sorts of
enterprises. The nearest contenders of Wesfarmers incorporate Woolworths, Metcash
Limited, Caltex Limited who is giving extreme rivalry to Wesfarmers (Lodhia, 2015). The
achievement of Wesfarmers lies in its decision of the businesses where alternate contenders
have not yet arrived. Wesfarmers is to a great degree flexible in its items that assistance the
association to work in various kinds of industry. In this manner, the association has different
markets alongside assorted clients that alternate contenders don't have. The other pioneer or
the contender’s just arrangement in the grocery store or in the home outfitting or different
enterprises like the railroad, mining, nourishment benefit, departmental stores, synthetic and
composts, protection foundations et cetera. As opposed to this, Wesfarmers bargain in
different ventures. All things considered, the pioneers are in the burden of working in a
different market (Ruivo, et. al, 2014).
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Identify the current gaps or challenges encountered by users or customers of accounting
software/packages and make relevant suggestions or recommendations.
Wesfarmers utilize the MYOB ERP that is bookkeeping programming, which is utilized by
the association to meet the securing framework technique. This specific ERP is utilized
broadly by the majority of the association that decides on an across the board programming
bundle in taking care of the demand of the authoritative task. XERO is the new ERP
programming that is by and large generally utilized by numerous associations in Australia.
This is on account of MYOB is the ERP programming supplier that gives its clients the
upside of the principal mover yet generally every one of the highlights are comparable that
XERO gives. The MYOB is significantly more costly than XERO with simply similar
highlights of online help, application accessibility, and program upheld while the MYOB
needs a program for establishment reason, not at all like XERO. Accordingly, it is
profoundly prescribed that Wesfarmers ought to go for the change that introduces the XERO
ERP as the bookkeeping programming (Tanaka and Sithole, 2015).
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Conclusion
It can be concluded from the above literature review that Wesfarmers is a huge company
and it has a requirement of today’s new type of ERP module as it has operations which are
diversified and as the customer base is also very large the there is need of ERP in the
organisation. The sales procedure of Wesfarmers is also very complex and due to this it has
a lot of problems in covering the need of the customers and meeting the requirements of the
customers in all its subsidiaries. It can also be concluded that being such a large company.
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Recommendations:
Through the literature review it can be recommended that the Wesfarmers is a big company
and it has various market segments and operations and hence Wesfarmers requires a strong
ERP system that is capable of doing all the activities of the organisation. ERP systems are
important in these types of organisations because of its size and the customer based
operations. It can also be recommended that instead of employee more people the system
acquisition systems should be proper as they are more productive than the employees or the
workforce. It is advisable that more investment should be made on the enterprise resource
planning systems.
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References:
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