This literature review discusses the organizational structure, operational problems, system acquisition method, and accounting software packages used by Coca Cola Amatil Australia. The report recommends the use of an Enterprise Resource Planning system and XERO as the leader in the market of accounting software.
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Running head: MPA MPA Name of the Student Name of the University Author Note
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1 MPA Table of Contents Introduction..........................................................................................................................2 Part 1: Coca Cola Amatil Australia.....................................................................................2 1. The current Organization structure..............................................................................2 2. Operational Problems in Coca Cola Amatil................................................................5 3. The Most Likely System Acquisition Method.............................................................6 4. The system sales of Coca Cola Amatil........................................................................7 5. The Control Problems in the System...........................................................................8 Part 2: Accounting Software Packages................................................................................9 1. Development and Adoption of Accounting Software Packages..................................9 2. The Current Market Size...........................................................................................10 3. Leaders in the Market and the Competitive Advantage............................................11 4. Current Gaps, Challenges and Recommendations.....................................................12 Conclusion.........................................................................................................................13 References..........................................................................................................................14
2 MPA Introduction Coca Cola Amatil Australia is one of the largest bottlers and distributers of alcoholic and non alcoholic ready to drink beverages in Asia Pacific. Around 14,000 employees are engaged with this company across the world. Therefore, it is obvious that the company will have a complex organizational structure. However, in order to ensure proper information flow and easier management of the different operations of the organization, it is essential that the company possessagoodandsmoothorganizationstructure.Theliteraturereviewdiscussesthe organizational structure of Coca Cola Amatil. A complex organizational structure might result in different operational issues within the organization. The literature review focuses on the different operationalproblemsthatthecompanyhasfacedduetotheineffectiveorcomplex organizational structure. After identifying the different operational problems of the company, the literature review focuses on the most likely system acquisition method that the company can use to integrate the different business process of the organization (Galliers and Leidner 2014). The literature review gives an overview of the different accounting software packages that would be beneficial for different organization. The report gives an overview of the different characteristics of this accounting software packages, and the issues, the users of the accounting software packages might face. The report further discusses the different benefits of accounting software packages. Part 1: Coca Cola Amatil Australia 1. The current Organization structure The organizational structure of any company or business organization is the hierarchical arrangement of the different lines of authority, communication and rights associated with an
3 MPA organization. The organization structure of an organization gives an overview of the different activities associated with an organization such as task allocation, coordination and supervision of the all the operation and the business processes running within an organization (Lunenburg 2012). By having a view to the organization structure of a company, an individual can gain a velar idea of the business structure of the organization. An organization structure of a company mainly consists of the implicit and the explicit rules and policies that define the organizational responsibilities of the different resources associated with the company (Claver-Cortés et al. 2012). A complete understanding of the organizational structure of a company further helps in understanding the work efficiency of the organization. The picture below represents a simplified version of the organization structure of Coca Cola Amatil. It provides an overview of the human resources associated with the company that manages the different operation of the organization (Hoch and Dulebohn 2013).
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4 MPA Figure 1: Organizational Structure of Coca-Cola Amatil (Source: created by author with data taken fromCcamatil.com. 2018) The above picture gives an overview of the organizational structure of the Company. However, from the picture, it can be evaluated that there is some severe problem with the organization structure that can be a major cause of the different operational inefficiency that the company might face in future. In this organizational structure, it will become very difficult of the human resources to directly communicate with the managers or employees of the higher tier therebycreatingasituationofcommunicationgap.Thismightresultinineffective communication floe within the organization thereby hampering the different crucial business
5 MPA processes. The different operational problems that Coca Cola Amatil might face with this ineffective organizational structure are discussed in the following section. 2. Operational Problems in Coca Cola Amatil. In the previous section of this report the organization structure of Coca Cola Amatil is discussed.Asevaluatedearlier,therearesomemajorproblemsassociatedwiththis organizational structure that might result in different operational issues in future. The different operationalproblemsassociatedwiththeorganizationareasfollows(Hao,Kasperand Muehlbacher 2012)- 1. Management of the product can be problematic if there is a problem associated with the organizational structure of the organization. This is because of the employees do not have a clear idea about the current processes of the organization, it becomes very difficult for them to manage those process (Christensen 2013). Since the information flow is not smooth with this complex organizational structure, product management can be a major operational issue that Coca cola Amatil might face in future. 2. It would be difficult to properly manage the supply chain of the organization, if there is a problem with the organizational structure of the company. Proper management of the supply chain requires a clear understanding of the different business processes of the organization, which might not be possible with the complex organizational structure. Therefore, this is a major operational inefficiency or problem that the company can face due to its poor or complex organizational structure. 3. Ineffective communication flow is another major operational inefficiency that the company might face due to the problems in the organizational structure. As discussed earlier,
6 MPA since the organization structure of the organization is complex, it is not easy for the employees to easilycommunicatewiththehigherofficials.Impropercommunicationcanaffectan organization in a number of ways leading to the different operational problems as well. Therefore, it is essential to develop a proper communication plan in order to eliminate this cause of operational inefficiency. 4. Since the employees or the officials of the organization find it difficult to easily communicate with each other, an operational problem of human resource management might crop in due to this (Hendry 2012). The complex organizational structure and ineffective communication among the employees are the major causes of this operational inefficiency. 5. Since Coca Cola Amatil is a large organization supplying products all over the world, it is necessary for the organization to ensure strategic management of the different operations within the organization. This can however be a problem with ineffective organizational structure. These are some significant operational problems that the company might face due to the complex or inefficient organization structure of the organization. Therefore, it is definitely important to improve the organizational structure so that the company does not face these identified operational problems in future. The next section of this report discusses the most likely system acquisition method for Coca Cola Amatil in order to mitigate the risk of these operational inefficiency. 3. The Most Likely System Acquisition Method Coca Cola Amatil has different branches spread all over Australia and therefore, it is very essential for the company to integrate all the business processes running within the different branches of the organization, in order to ensure easier information flow and easier management
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7 MPA of the different operations of the organization. Therefore, the most likely system acquisition method for the company would definitely be the use of enterprise resource planning system within the organization (Shaul and Tauber 2013). It would be beneficial for Coca Cola Amatil to use the enterprise resource planning system as it offers a number of benefits to the organization, the most significant one being the integrationandautomationofallthebusinessprocessandsignificantoperationsofthe organization. Enterprise resource planning system is a software that manages all the vital operation associated with an organization, such as the supply chain, financial and accounting and so on (Leon 2014). All these processes will be managed by the software and therefore it reduces the need of human labour and human error. Therefore, it is impossible for a company that is using a proper ERP system to face any operational problems. Therefore, the operational inefficiencies of Coca Cola Amatil that are identified in the previous section can be mitigated with the help of and Enterprise Resource Planning system (Aslan, Stevenson and Hendry 2012.). Therefore, the recommended or most likely system acquisition method for Coca Cola Amatil is ERP. 4. The system sales of Coca Cola Amatil The system sales flowchart of Coca Cola Amatil is represented in the picture below. This is a basic flow chart of the events associated with the preparation and sales of the Coca Cola products.
8 MPA Figure 2: Flow Chart representing sales of Coca Cola Amatil (Source: Ccamatil.com. 2018) This above picture represents the sales procedure of Coca Cola Amatil. 5. The Control Problems in the System There are certain control problems associated with this system because of which some sorts of fraud are possible as well. This is therefore essential to identify the control problems associated with the system. The sales procedure although seems to be simple a linear, there is no internal control over the human resources of the company in this system. This might result in severe control problem in the organization. It is the aim of the organization to supply best quality finished products to the customers and therefore, it is essential to ensure that there are no human errors associated with the process, which might result in fraud.
9 MPA Therearecertaininefficienciesintheorganizationassociatedwiththecustomer relationship management. Since customers’ satisfaction is very vital for any business, it is necessary to eliminate this control problems\m. The system processes running within the organization is quite old and therefore, it is essential for the organization to improve these processes. The system processes might result in thedifferentoperationalinefficienciesaswell.Therefore,itisamajorcontrolproblem associated with the organization. The employees of Coca Cola Amatil should have a clear idea about the different system processes running within the organization in order to remove the operational inefficiency (Karim and Arif-Uz-Zaman 2013). These are the major control problems associated with Coca Cola Amatil, which might result in frauds such as delivery of the product with a low quality thus tarnishing the relationship of the organization with its customers. Part 2: Accounting Software Packages 1. Development and Adoption of Accounting Software Packages AccountingSoftwarepackagesareincreasinglyusedbythedifferentbusiness organizations in order to integrate and manage the major business operations of the organization.
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10 MPA This is because an accounting software helps an organization in managing the different financial operations associated with an organization, which includes, the amount receivable, payable balance and the transactional details associated with the organization (Domeika 2015). The accounting software is an application software that manages, records and processes the different transactions of an organization thus automating the entire process. One of the benefits of using accounting software is that it eliminates the human error. Coca Cola Amamtil also makes use of accounting software packages in order to manage the different financial operations. One of the most adopted accounting software is Xero as it provides a much simplified option in processing the accounting information of an organization. Therefore, it can be said that development and adoption of the different accounting software packages helps an organization in easy tracking of the financial records, data and information associated with an organization. 2. The Current Market Size The use of different accounting software packages in business organization has increased over the years. This is because the accounting software packages automate the different financial operations of the organization (Hall 2012).
11 MPA Figure 3: Represents the adoption of the Accounting Software packages across the World (Source:Toth 2012) The above picture represents that the accounting software packages are increasingly adopted across the world. The mostly used accounting software is XERO and MYOB. This is mainly because they are easy to use and manage. 3. Leaders in the Market and the Competitive Advantage Use of accounting software is increasing in the different business organization. This is mainly because of the offered benefits. The leader in the market of accounting software is however XERO as it has a considerable amount of competitive advantage in the market place. The reasons behind XERO being the leader in the market of accounting software are as follows- 1. The speed of the operation output in XERO is quite high that reduces the waiting time of the output. The benefit of faster output makes this accounting software a leader in the market.
12 MPA 2. The data are securely stored in cloud which is another major advantage of XERO and therefore it is adopted by many business organizations (Mudge 2013). 3. XERO comes with a simple interface that is easier to manage, which gives it a competitive advantage in the marketplace (Mageto 2017). Therefore it can be said that XERO being the leaders in the market is justified. 4. Current Gaps, Challenges and Recommendations Although use of accounting software integrates many business operations, there are still certain challenges associated with the use of this software. The current challenges and the gaps associated with this software are as follows – 1. There is certain security issues associated with the use of this software as the data is stored in cloud (Mishra et al., 2013). 2. The process of installation and the update associate with the accounting software packages is complex. Recommendations In order to mitigate the different challenges associated with the use of accounting software packages, certain steps are recommended, which are as follows- 1. Use of hybrid cloud can definitely mitigate the cause of the security risk associated with the storage of data in cloud. 2. proper training should be given to the employees of the organization in order to eliminate the challenges associated with the installation and updates.
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13 MPA Conclusion Therefore, from the above discussion, it can be concluded that it is essential for an organization to have a simplified organizational structure in order to eliminate the risk of several operational inefficiencies that may arise due to an ineffective organizational structure. The report takes into consideration the organization Coca Cola Amatil in order to analyse the organizational structure and the different operational problems that might arise due to this organization structure. The report further gives an overview of the different accounting software packages and evaluates the leader in the market. The different challenges faced by the customers of accounting software are analysed and evaluated as well.
14 MPA References Aslan, B., Stevenson, M. and Hendry, L.C., 2012. Enterprise resource planning systems: An assessment of applicability to make-to-order companies.Computers in Industry,63(7), pp.692- 705. Ccamatil.com.2018.OurCompany–CocaColaAmatil.[online]Availableat: https://www.ccamatil.com/our-company [Accessed 23 Apr. 2018]. Christensen, C., 2013.The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business Review Press. Claver-Cortés, E., Pertusa-Ortega, E.M. and Molina-Azorín, J.F., 2012. Characteristicsof organizationalstructurerelatingtohybridcompetitivestrategy:Implicationsfor performance.Journal of Business Research,65(7), pp.993-1002. Domeika,P.,2015.CreationoftheInformationsystemofenterprisefixedasset accounting.Engineering Economics,60(5). Galliers, R.D. and Leidner, D.E. eds., 2014.Strategic information management: challenges and strategies in managing information systems. Routledge. Hall, J.A., 2012.Accounting information systems. Cengage Learning. Hao, Q., Kasper, H. and Muehlbacher, J., 2012. How does organizational structure influence performance through learningand innovation in Austria and China.Chinese Management Studies,6(1), pp.36-52. Hendry, C., 2012.Human resource management. Routledge.
15 MPA Hoch, J.E. and Dulebohn, J.H., 2013. Shared leadership in enterprise resource planning and humanresourcemanagementsystemimplementation.HumanResourceManagement Review,23(1), pp.114-125. Karim, A. and Arif-Uz-Zaman, K., 2013. A methodology for effective implementation of lean strategies and its performance evaluation in manufacturing organizations.Business Process Management Journal,19(1), pp.169-196. Leon, A., 2014.Enterprise resource planning. McGraw-Hill Education. Lunenburg, F.C., 2012. Organizational structure: Mintzberg’s framework.International journal of scholarly, academic, intellectual diversity,14(1), pp.1-8. Mageto, J., 2017.Accounting Softwares in Australia. An Overview. GRIN Publishing. Mishra, A., Mathur, R., Jain, S. and Rathore, J.S., 2013. Cloud computing security.International Journal on Recent and Innovation Trends in Computing and Communication,1(1), pp.36-39. Mudge,J.C.,2013.Cloudcomputing-itsdevelopmentandsecurity.AustralianJournalof Telecommunications and the Digital Economy,1(1). Shaul, L. and Tauber, D., 2013. Critical success factors in enterprise resource planning systems: Review of the last decade.ACM Computing Surveys (CSUR),45(4), p.55. Toth, Z., 2012. The current role of accounting information systems.Theory, Methodology, Practice,8(1), p.91.