Strategic Information System for Coles: Accounting Software Packages and ERP System

This report discusses Coles' organizational structure, operational problems, system acquisition method, system flowchart, control issues, and accounting software packages. It also covers the current market size, leaders in the market, and challenges faced by users and customers of accounting software packages. The report provides recommendations to overcome these challenges and enhance the profitability and revenue of Coles group.

Running head: Strategic information system
Strategic information system

Strategic information system
Table of Contents
Introduction.................................................................................................................................................3
Part 1...........................................................................................................................................................3
The current organizational structure of Coles..............................................................................................3
Operational problems..................................................................................................................................4
System acquisition method..........................................................................................................................4
System flowchart.........................................................................................................................................5
Control issues and some sort to reduce fraud in the system.........................................................................6
Part 2...........................................................................................................................................................7
Adoption and development of accounting software packages.....................................................................7
The current market size...............................................................................................................................7
Leaders in the market and how they provide competitive advantage...........................................................8
Challenges encountered by users and customers of accounting software packages and recommendations. 8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Introduction
In today’s era, the companies cannot survive and grow its business without using software within
the organization. To expand and flourish the business, each and every company uses accounting
software packages and ERP system in the workplace. Coles company has been chosen in the
task. It is one of the oldest companies who provide retail and consumer products in the
international market. It has been noted that Cole is the second largest retailer behind Woolworths
limited. Furthermore, the paper explains the ERP system, organizational structure and system
flow chart of Coles Company. The report explains that how the company uses accounting
software packages to maximize the profitability of the firm. The paper discusses that how leaders
in Australia provide competitive advantages to the company. In addition, it also depicts the
current challenges and issues that are faced by the company due to poor accounting software
packages. More detail of the paper has been discussed below.
Part 1
The current organizational structure of Coles
Coles is one of the largest supermarket industry producing retail and consumers products and
services in the global market. It was founded in 1914 in Australia with its headquartered is
situated in Australia (Colescareers, 2018). It serves almost all the countries of the world. The
organizational structure of Coles is decentralized and forms a matrix structure. It follows from
top management to down level management. It shall be noted by Upadhyay, Bhargava and
Faircloth (2014) that the important decisions are taken by the higher authorities and top
management. The structure of Coles is also formed in such a manner that like any other
company, it is also divided at three levels which consists of top level, middle level and low level
management (Giftcards, 2018). The top level management includes higher authorities who take
all the important decisions, the middles level management is taken care by the managers and
professionals and at the low level employees are made to work for the company. Coles is serving
many parts of the country today due to its efficient organizational structure (Coles, 2018). The
structure makes it easy for the company to manage the work and tasks properly. At each level,
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the work is taken care by the respective members that help in carrying out business smoothly.
John Durkan is the CEO of Coles group. He is responsible carry out the business actions and
operations effectively (Colesgroup, 2018).
Operational problems
Since the company is widely known all over the country, therefore it has to face many problems
while its operation. It has to take care about the increasing demands of the public in order to
meet their requirements effectively and efficiently. The solutions to the problem are generally
expected from the professionals of the organization. These operational problems can have a long
time effect on the growth of the company. The main problem for Coles becomes when the
demand of for a particular product rises in the business by its customers. The problem that occurs
while standing in the demands of the business includes the supply of raw materials, shortages of
merchandise which also becomes expensive to buy as the products are sold at higher rates than
usual. In order to stand on the demands of the customers it is important for the country to tie up
with other companies to work on large scale. The poor partnership between companies becomes
one of the biggest problem in meeting the demands of the customers effectively and efficiently
(Benelli and Pozzebon, 2013). The company is unable to collect feedback and reviews from the
customers due to poor and ineffective leadership. Lack of efficiency and effectiveness is also a
biggest problem for Coles group (Fan et al, 2014). The company has to face such type of
problems and issues while operating and managing its activities (Bloomberg, 2018).
System acquisition method
The commercial software used by the company takes care about the demands of the customers. It
helps in selling and buying the products of the business, whereas custom software is designed for
specific user in the organization. The software is comparatively expensive and is generally used
for specific purpose (Hatley and Pirbhai, 2013).
This ERP is the strength of the business. A company like Coles group also has to maintain its
market over networks. The most important aspect of the company in earring profits is through
internet. Coles uses ERP software to promote and encourage its business. It stands for Enterprise
Resource Planning which is a very effective system used in companies growth. It helps the
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company in redesigning the whole process of the business, maintains the records and data of the
business, and gives its employees chance to get in touch with the strategies of the business. The
software allows the Coles group to work on many integrated factors that is related to technical
fields. The major part of the business such as planning, sales, marketing, etc. are managed by
using ERP system in the organization. The software uses only one database to store many other
types of data. It works the way company wants and expects. It manages the accounting and
finance of the business and carries out business firmly. It has helped Coles in collaborating with
the business and other large firms in the marketplace (Smit et al, 2013).
System flowchart
(Source: https://apessay.com/order/?rid=cc49f4f3231bb03f)
The flow chart above is an example of how sale of a product at Coles Company takes place. It
talks about the electronic transaction of buying and selling of products. The sales process at
Coles is seen initially from the customer placing the order for the product. Then the company
checks the availability of the product and places the order accordingly. The order for the required
product is then placed and the customer is notified for the delivery of the product. The above
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diagram talks about the how companies like Coles manage to sell its product over the world.
Company is concerned in fulfilling the demands of the customers not only manually but also
managing its business electronically. This helps in generating good amount of profits for the
company and helps the company to flourish in the market. Hence, the diagram above shows how
Coles stands effectively on the demands of its consumers (Batarseh et al, 2013).
Control issues and some sort to reduce fraud in the system
Coles is one of the largest developing companies serving super market and therefore it is obvious
for the company to face issues. It faces issues like decreasing in the demands of consumers,
shortage of stock sometimes, lowering the prices to sell the product, unavailability of resources,
technical problems that unable the company to run business (McDermid, 2013).
1. Decreasing demands in the consumers for the products reduces the profits of the business.
The demands are generally reduced due to inappropriate use of ingredients for making
the products or high prices. In such cases company can suffer great loss and reduces the
demand of the products in the market. The problem can be controlled if company can
make better strategies by consulting with consumer through surveys.
2. The shortage of products is also seen when there is unavailability of resources. This
causes a great failure to the company. To control this issue company must keep a track on
the amount of resources available in the market and must plan to make products
accordingly. The other solution can be that it must keep ample stock of products in the
storehouse in case of such emergencies.
3. Technical problem such as error in software is also a major issue faced by the country. In
such cases company should have a permanent software engineer who is highly qualifies
in the field of technology. This could be beneficial as whenever the software counts to
any problem, the company can save its time by calling the one who is specialized in it.
Also, the software must be updated and checked time to time (Burke, 2013).
System of the company also faces frauds like leaking of confidential matters, disloyal
employees, corrupt software, etc. In order to reduce such issues it is important for the company
to make necessary step like discussing the confidential matters just among a small and
trustworthy members of the business. Organization must keep a record of each and every
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employee working in the company (Patterson and Hennessy, 2013). They must know his
background and personal information. The software must be checked time to time in order to
avoid any failure in the working. The technology used by Coles Company is one of the major
areas where there are chances of frauds. To avoid these failures company can also organize
motivational seminars and conferences where they can discuss on the topic of working as a
family with loyalty and harmony (Grabner and Moers, 2013).
Part 2
Adoption and development of accounting software packages
It has been studied by Mas et al (2014), accounting software packages play an empirical roles in
each and every company to increase and enhance the sales and productivity of Coles group
successfully. The company needs to maintain daily transactions and accounts of the consumers
and suppliers to capture the whole market in the Australia. Financial accounts, ledgers, balance
sheet and cash flow statement are made by the organization with the help of accounting software
packages. Coles group uses this software to predict the needs and demands of the consumers in
the international market. By using accounting software packages, the organization has been able
to maintain minimum level of inventory and stock within the organization. Data accesses can be
done easily and effective by using of accounting software packages in the workplace. The
accounting software also provides credibility and reliability to the users and company as well.
This software also helps to make unique decisions whenever required. Along with this, the
organization can keep the records and data of the customers, investors and suppliers separately
with the help of accounting software packages. The accounting software packages indicate the
technological advancements in the field of finance and business accounting. By using effective
and unique accounting software packages, Cole’s group has been able to stand out against the
rivalries in the Australian market.
The current market size
It has been noted that market size of Coles is unique and dynamic in Australia to attract and
retain the maximum number of clients in the global market. Due to large market size, Coles
group has become a global a global leader in retail industry. It is the second largest super market
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company who is struggling with competitors to make a strong goodwill in the marketplace. The
revenue of the company was A$33.00 billion(2016) and revenue income of Coles group was
A$1.9 billion (2016). In this way, it is assumed that the company is increasing and enhancing the
revenue and profitability day by day. The main aim of the firm is to maximize in the sale
percentage by 10% till 2019. It will help to increase and enhance the sale and market share of the
firm. This profitability and revenue show that Coles group is in good condition to face the
competition and risks in the Australian market. Along with this, it shall be stated that the
company uses leadership styles to assist and guide the employees in the workplace. Delegation
of roles and responsibilities among the workers are done by top management and leaders to make
unique and effective decisions within the organization (Tzafestas, 2013).
Leaders in the market and how they provide competitive advantage
It shall be noted by Knox (2015) where he stated that there are ample of leaders in the
supermarket industry in Australia that could affect the success and growth of the firm adversely.
Coles needs to focus on activities and operations of the competitors to gain competitive benefits
in the Australian market. Aldi, Wesfarmers, and Woolworths are main and primary competitors
of Coles group that may influence the profitability and revenue negatively. Coles group can
attain competitive advantages by analyzing and identifying the pricing, policies and strategies of
the competitors (Mas et al, 2014). The firm needs to differentiate its products from the
competitor’s products to make a unique and attractive image in the eyes of the customers in the
Australian market. Along with this, it has been noted that the company should use diversification
strategy to distinguish its products and services from the rivalries. Apart from this, appropriate
price is fixed by Coles group to beat the competitors in such market. Besides this, distribution
model is used by the firm to allocate its products and services among the consumers effectively
and successfully (Boulianne, 2014).
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Challenges encountered by users and customers of accounting software packages and
recommendations
It has been noted by Teittinen, Pellinen and Järvenpää (2013) accountants struggle and fight to
find out the right and appropriate file within the organization. It is one of the biggest issues that
faced by users and customers while using the accounting software packages. It is seen that
potential errors and mistakes are high in accounting packages due to absence of cloud based
accounting software. Along with this, it shall be noted that users and consumers are unable to
secure and keep the data confidentially. It affects the selling process of the companies in the
Australian market. Lack of security and efficiency, the company is unable to provide adequate
information to the clients in the international market. After the various researchers, it has been
studied by Kanellou and Spathis (2013), that some accounting software packages are outdated
due to lack of accuracy and efficiency. In addition, data corruption is one of the serious matters
in accounting software packages.
Now it is recommended that the company should protect the hardware and software to gain
competitive advantages in the global market. Along with this, cloud based accounting platform
or system shall be used by the users or customers to provide various advantages to the
consumers. Moreover, training and development sessions and seminars must be held by the
HRM to tell the employees about the benefits of accounting software packages. Innovative and
latest technologies, resources and ERP system should be used by Coles to handle and manage the
grievances and complaints of the consumers. Unique and effective customer relationship
management shall be maintained and built by the top management and leaders in the
organization to reduce and avert the issues related to accounting software packages (Jansen,
Cusumano and Brinkkemper, 2013).
Conclusion
From the above mentioned analysis, it has been proved that Coles is one of the biggest brands in
the retail industry. The company uses effective and unique accounting software to run the
business activities and actions in a hassle free manner. ERP system is implemented by Coles to
attract maximum number of customers in the marketplace. Along with this, unique and effective
organizational structure is used by the Corporation to motivate and encourage the employees in a
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large extent. Apart from this, here is the discussion about the system flow chart, current size of
the market and operational issues of Nestle. The above analysis shows that how the company
reduces and eliminates the operations and control issues within the organization. At the end,
some suggestions have been explained in the task to make a dynamic image in the global market.
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