Strategic Information System in Coca-Cola Australia

This report discusses the implementation of ERP and accounting software packages in Coca-Cola Australia, along with its organization structure, operation problems, market size, leaders, competitive advantage, and issues in accounting information system.

Running head: STRATEGIC INFORMATION SYSTEM
STRATEGIC INFORMATION SYSTEM
Name of the Student
Name of the University
Author Note:

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Table of Contents
Introduction..........................................................................................................................2
Discussion............................................................................................................................2
Current organization structure.........................................................................................2
Operation Problem...........................................................................................................2
Implementation of ERP in Coca-Cola.............................................................................2
Flow chart of sales procedure in Coca-Cola....................................................................2
Problems in ERP system..................................................................................................2
Development and adaptation of accounting software packages......................................2
Current size of market.....................................................................................................2
Leaders in the market.......................................................................................................2
Competitive advantage....................................................................................................2
Issues in Accounting Information System.......................................................................2
Recommendation.............................................................................................................2
Conclusion...........................................................................................................................2
References............................................................................................................................2

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Introduction
Coca-Cola is well known food and beverage organization which operates globally. It
operates in on local scale and community for doing a large number of business (Wilson, 2017).
Coca-Cola Australia foundation (CCAF) is considered to be well known community strategy in
Australia. The ultimate mission of this organization is provide happiness and possibilities to
young Australian. Coca-Cola Amatil (CCA) is considered to be an Australian bottling partner
(Chance, 2017). CCA has more than 15000 people and needs to access more than 265 million
customers on which 70 thousand are considered to be active. The head office of CCA is located
in Sydney and this particular organization is listed in Australian Securities exchange.
In the coming pages of the report an idea has been provided regarding the organization
structure of Coca-Cola Australia. Various kinds of operation problem in Coca-Cola has been
discussed in details. ERP implementation in Coca-Cola and various kinds of problems of ERP
implementation in Coca-Cola has been provided in details. After that an analysis has been done
regarding development and adaptation of accounting software packages. Current market size of
Coca-Cola and leaders its leaders in markets has been described in detail. Various kinds of issues
and possible recommendation of accounting information system has been discussed details.
Discussion
Current organization structure
Coca-Cola Australia has a separate international division structure because it operates
separately and is in isolation from head office. Coca-Cola has various kinds of division in the
continents round the globe where it operates (Lanis, McClure and Zirnsak, 2017). This

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organization operates in five continent division that is Africa group, Europe group, America
group, Latin America group and lastly pacific group.
Each continental division has vice president which can easily control sub division based
on regions and countries. Structure of Coca-Cola has to be efficient for controlling this large
organization (Johnson, 2017). Coca-Cola is known to be a well-known MNC because its
domestic operation is considered to be similar to international operation. Coca-Cola operates in
same way in all the organization regardless of brand and type of soft drink sold by this
organization.
President of Coca-Cola works on the top of the organization. Under president four
departments that is corporate staff, manufacturing, marketing and finance operates. Under it four
important group operates that is manufacturing, chemical product group and finance department
(Jolley et al., 2014). Beneath it various other kinds of group like human resource, marketing,
finance, accounting and marketing work effieciently.
Operation Problem
Coca-Cola experiences a lot of challenges because of this centralized structure like
 Delay in work- Centralization management system in Coca Cola results in loss of
man-hour and delay in performance of work. It happens because of transmission
of records from central room. In centralized management system quick
management system is not possible which ultimately results in delay of work in
Coca Cola Australia.

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 Remote control- Good kind of supervision is not possible because executives are
generally under high work load in Coca-Cola Australia. Lag in work is seen in
absence of better control or supervision.
 No loyalty – The centralized system of Coca- Cola Australia results in no kind of
initiative from worker. Employees only do the thing which are asked. Employees
work like machine which result in no kind of involvement in their work.
 No secrecy- In Coca- Cola Australia no kind of secrecy is possible because all
kinds decision and new orders flow from headquarter to all branches.
Implementation of ERP in Coca-Cola
ERP stands for Enterprise Resource Planning is nothing but a process which mainly aims
is managing and integrating important part of business (Hoy et al.., 2014). An ERP system in
Coca-Cola will integrate various areas like planning, sales, human resource and marketing. ERP
software provides some kind of synchronization related to reporting. It removes the issue of
maintaining separate database and spreadsheet which is merged manually for generation of
reports. It will help the employee of Coca- Cola to pull all report in one system (Kilic, Zaim and
Delen, 2015). After the implementation of ERP system in Coca-Cola sales orders will
automatically flow into various kind of financial system without the problem of re-keying. The
order management system of Coca-Cola can easily process orders at much faster rate after the
implementation of EPR system. After the implementation of ERP system the financial
department of Coca-Cola can close the booking of orders at much faster rate (Efe, 2016). Other
common features of ERP in Coca-Cola is that various kinds of employee can easily understand
the various kinds the business performance.

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Flow chart of sales procedure in Coca-Cola
Fig 1: Flow chart of sales procedure in Coca-Cola
(Source: Created by Author)
Problems in ERP system
An ERP system allow an organization like Coca-Cola to synchronize all the business
process (Tenhiälä and Helkiö, 2015). There are large number of issue in ERP system like
implementation time, implementation cost, employee retention, investment in hardware. After
the implementation of ERP system in Coca-Cola, the employee will encounter resentment. This

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will ultimately degrade the productivity of the process (Tanaka and Sithole, 2015). Special
training should be provided to employees of Coca-Cola so that it can motivate the employees.
ERP implementation in Coca-Cola will require time as it is a step by process. For successful
implementation of ERP Coca-Cola needs to assign their employees for its successful
implementation. Cost of ERP implementation is considered to be much more that initial cost.
The total cost of ERP will depend on the cost of customization (Kilic, Zaim and Delen, 2014).
Higher customization in final stage will result in higher implementation cost. After the
implementation of ERP system in Coca-Cola many employees of Coca-Cola will leave the
organization after the implementation of ERP. This can ultimately affect the growth of this
organization. If the employees of Coca-Cola work on slow system, then it can result in
unproductivity and frustration. In general, the ERP system requires sufficient storage and high
performance of work. Low investment in software by Coca-Cola may result various kinds of
software issues.
Development and adaptation of accounting software packages
Accounting software is a kind of software which is used by various organization
inclusive of Coca-Cola for managing various and performing operation related to accounting.
Accounting is considered to a systematic method of work or process for communication and
recording of financial information (Nwankpa, and Roumani, 2014). After the implementation of
accounting software in Coca-Cola it can save a lot of time in comparison to manual
bookkeeping. This particular package can easily process front end documents as well as end kind
of transaction. With the help of accounting software package Coca-Cola can easily track all
kinds of financial transaction in the organization. After the successful implementation of
accounting software in Coca-Cola can easily keep various of financial monitoring in

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organization. This software will ultimately help in overcoming various kinds of issues related to
finance. With the help of accounting software Coca Cola Australia can easily keep a track of
proper management of flow of cash within organization. The number of financial mistake will be
reduced after the implementation of this accounting software (Mas et al. 2014). With the help of
accounting software, the management of Coca-Cola can easily information regarding various
customer payment by the help of invoice. This software will help in tracking of amount will be
paid and the amount left to be paid to the organization.
Current size of market
Coca-Cola is considered is to be largest seller of non-alcoholic beverage in the world.
With the passage of time this organization has grown to the fullest. Coca-Cola is considered to
be third most valuable brand in world. They own many kind of products and have developed
internally by help of acquisition. At present Coca-Cola has more than 20 brands with a value of
more than 1 billion dollars in domain of sales (Nwankpa, and Roumani, 2014). The diverse
portfolio of products results in operational diversification. The broad portfolio of Coca-Cola has
resulted in rewarding various kinds of investors. It has provided more than 39 billion of capital
which is returned to investor of Coca-Cola by help of dividend and purchasing of share. Coca-
Cola Australia is much focused to continue this trend and will help in 2 billion of purchase of
share. In the figure below, the statistic focus on market share of various leading beverage
organization in the year of 2015 (Boulianne, 2014). Originally Carbonated soft drink was
dominated by an organization known as Coca-Cola. It claims to hold a market share of value
48.6 percent. The global market of Coca-Cola is expected at 341.6 billion dollars.

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Fig 2: Market size of Coca-Cola
(Source: Tucker and Schaltegger, 2016)
Leaders in the market
During the period of 2004 to 2015 Coca-Cola is considered to be leading producer of
carbonated soft drink. In the year of 2015 the carbonated soft drink market of Coca-Cola
amounted to a value of 42.5 percent (Lester, 2015). Carbonated soft drink belong to non-
alcoholic beverage industry. In the different regions of the world they are known by different
name. The software drink containing various things like water, artificial sweetener and a
favoring agent. Various multinational companies are addressing issues in soft drink market are
Coca-Cola, Pepsi-Co Inc. Cola- Coal and Pepsi-Co are considered to be long term competitors.
PepsiCo always have to tackle challenge so it is also called Pepsi-Challenge with rival

9STRATEGIC INFORMATION SYSTEM
organization name Coca-Cola. In Pepsi challenge consumers are offered two cups one containing
Pepsi and another containing Coca-Cola (Blount et al., 2016). After that consumers are to check
the taste of two soft drink and after that a choice is provided soft drink they prefer to use.
Competitive advantage
When an organization have profit which exceed the average for an industry then the firm
is said to have competitive advantage over its various rivals in the market. The ultimate mission
of business strategy is to achieve a sustainable business development. There are two basic kind
of competitive advantage that is cost advantage, differentiation advantage.
Cost advantage: A proper kind of competitive advantage exists when a firm is able to
deliver same kind of benefit like its competitors (Smit et al., 2017). At a lower cost will
ultimately result in benefits which can easily tackle the competitive products.
Differentiation: Differentiation by an organization like Coca-Cola is achieved from
competitors when it claims to provide something which is unique in nature which is valuable to
buyers by offering them with products at much lower price.
Fig 3: Competitive advantage of Coca-Cola
(Source: Boulianne, 2014)

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Issues in Accounting Information System
Account information system contains some confidential and private kind of information
which can be altered if the system is left unprotected (Contractor, 2015). Unethical use of
accounting information system may result in disastrous, loss of information, misuse of
confidential information. Security of accounting information system is considered to be of first
priority in Coca- Cola. Security of management information is considered to be a top
management responsibility. Sarbanes Oxley Act that is SOX has a section named 404 which
states that it is vital for management for keeping and maintaining of internal records. The Act
also work on accounting system which generate a large number of reports (Upping and Oliver,
2016). There are large number of risk in accounting system which ranges from fake transaction
to having someone who can easily black tape all the information. Various kinds of risk are
 Payment which are made to various fake vendors.
 Loss or deletion of data.
 Loss and deletion of data
 Losing of server and computers.
Recommendation
Various kinds of security measures can be easily taken for tackling issues in account
information system. The security measures are known as control which can be used for
preventing risk and identifying various kind of problem. Some kind of security measures are
 Changing password of accounting information system on regular interval.
 Proper encryption of data
 Supervision of report of vendor on regular basis
 Safeguarding and protecting environment of server and computers.

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Conclusion
From the above discussion it can be concluded that this report is all about Coca-Cola
Australia. This particular firm has been selected because it makes use of accounting software
package. In the discussion portion of the report the current organization structure of Coca-Cola
has been discussed in detail. Various kinds of operation problem of Coca-Cola due to centralized
organization structure has been discussed in detail. An idea has been provided regarding the ERP
implementation in Coca-Cola. Various kinds of profits have been discussed in detail which can
be achieved by Coca-Cola after the implementation of ERP system. A flow chart has been
created for understanding sales procedure in Coca-Cola. Various kinds of problems have been
discussed which Coca-Cola will address after the implementation of ERP system. After that an
idea has been provided regarding development and adaptation of accounting software package in
Coca-Cola. The present market size of Coca-Cola has discussed in details along with graph in the
above pages of the report. Various kinds of leaders like Pepsi-Co Inc. and Coca Cola has been
discussed in details. An idea has been provided regarding competitive advantage of Coca-Cola
like cost advantage, differentiation has been discussed in details. Various kinds of issues in
accounting information system has been discussed in details. A list of recommendation against
the issue of accounting information system has been provided.

12STRATEGIC INFORMATION SYSTEM
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