Strategic Information Systems for Business & Enterprise: Assignment

Strategic Information
Systems for Business
and Enterprise

EXECUTIVE SUMMARY
The present report will have the discussion on the strength of Rainbow Illusion system to
have the proper controlling transaction of sales to prevent from fraud. The company will be able
to avoid the issues with development in strength. The report will also have discussion about
emotional and financial pressure which leads to have the increase chance of fraud and
mishappening activities. Further , in this report the reason for choosing the distributed channels
system rather than centralized one in future is discussed.

Table of Contents
INTRODUCTION...........................................................................................................................3
1.Identification of the strength in Rainbow Illusion's System in controlling sales transactions.
.....................................................................................................................................................3
2.Identification of problems from the identifies strength in Rainbow Illusion's System by
incorporating the strength in the system for controlling sales transaction..................................4
3.Identification the two situational pressure...............................................................................4
4.Reason why company install distributed computer system rather then the centralized one....4
CONCLUSION................................................................................................................................4
REFERENCE...................................................................................................................................4

INTRODUCTION.
The development of the strategic information system is have respond to corporate world
and many business initiative developments. It plays an important role to have development of
generic models, plans and structure. It helps in gaining competitive advantage in competition
from other companies. In this present report the company Rainbow Illusion is 30 store retail
chain that is connected in New South Wales and Victoria.. The implementation strategic
information system have several features like have the strategic analysis for growth in terms of
business perspective. The company have various strength in terms of sales management which
helps in development and gain comparative advantage. There are problems that are needed to be
identified in each strength along with pressure. The report will further have discussion about the
reason for having distributed channels system rather than centralized one.
1.Identification of the strength in Rainbow Illusion's System in controlling sales transactions.
There is approximately 30 retail store of Rainbow illusion concentrated in New South
Wales and Victoria having ready made clothes for young females. The store has various reason
which makes the store able to attract more and more customers for buying of products.
Salesperson has to perform the role and responsibilities to avoid problems in sales transaction.
There is collaborative working between the manager, cashier, sales person and assistant manger
to have the increase in sales and avoidance of problems. The following are strength of Rainbow
illusion-
STRENGTH
1.Proper management of work
There is proper management of work in each and every 30 retail stores of Rainbow
illusion. There is proper manager and assistant manager along with cashier and sale personnel.
There is proper distribution of salaries between the permanent and part time employees (Peltier,
2016). In case of manager and its assistant they are both paid salary. On the other hand cashier
and sales personnel are the young one paid according hourly basis along with commission on
sales volume. This scale of income helps them to be energetic and increase sales on retail store.

2.Record Of Transaction.
The store has sophisticated recording of sales transaction on the cash register have 4
parts in sales invoice (Morecroft, 2015).This turned out to be strength as having such
sophisticated cash register help them in recording daily transaction along with detail of each and
every related sale. It help in having effective way of control along with security improvement in
store.
3.Relationship Between Sales Personnel And Cashier.
In the sales floor, there is manual recording of employee number, transaction, sales
invoice total, along with discount and sales to have the grand total of goods purchased. After the
completion of these essential formalities the invoice is passed to cashier to have review on all
sales. The manger will have proper overlook on management of inventory to maintain balance
between demand and supply. This will help in having track records of goods sold and what
amour is paid. This makes the functioning easy and turns out be strength of store.
4.Proper handling of invoice, if return take place.
The store has easy returning policy as to increase the satisfaction level of customers from
the store. The return are exactly handled in reverse manner by issuing of return slip by cashier.
The case is that if customer wants to return any of purchased product then the slip issues will
shoe all detailed information about product to returnee the amount to customer.
5.Daily reconciliation of report.
In the Rainbow illusion store there is daily transaction are recorded in terms of cash
resister tapes along with total of consecutively sales invoice numbers and return slips to
assistant managers (Laudon and Laudon, 2016). The assistant manger will have the duty to
prepare daily the reconciliation report for proper review of manger. This will have the company
to get acknowledge about the variation occurred in sales on daily basis.
6.Activity Report Preparation.
On the daily basis the cash registers taped are transferred to central processing data in
corporate headquarters for proper processing. The processing department of data have the proper
preparation of weekly report of sales and the manager have the compulsion to have review on it.
This reviewing will have mangers in taking the strategical decisions for bringing the change in
environment.

These are the major strength of the Rainbow illusion store that help them to increase in
sales of the store among the young females along with management of inventory in store
(Coltman and et.al., 2015). With the help of all these strength, the company have the maximum
chances to gain competitive advantage from the competitors and have expansion in business in
other countries as like Australia.
2.Identification of problems from the identifies strength in Rainbow Illusion's System by
incorporating the strength in the system for controlling sales transaction.
There are the major 6 strength in the company which helps in gaining the competitive
advantage to the business and also help in development and growth of company. Each strength
helps in having the avoidance of problems in sales transaction control. Each strength avoid
problems related to sales and it is described as follow:
1.Proper management of work with young sales personnel removes the problem of waiting
line
Due to hiring of young employee in the store gives an energetic appearance of work to
customer with knowledge about the recent trends in the market. It turned out to be helpful to
customers to have better choice according to preference (Laudon and Laudon,2015). Along with
customer , the company is also beneficial in increasing the sales and customer feedback in store.
Due to hourly wages and commission the employees have the cut throat competition to increase
the commission and prove excellence in their work. This directly or indirectly lead to have the
quick service to customer and have the avoidance in the formation of long waiting line of
customer to purchase product. This have growth in customer satisfaction and revenue of store.
2.Avoidance of training to new employees due to proper record of transaction system
The company has the formation of sophisticated cash register with 4 column turned out
to be strength of company. Due to record of proper transaction there is avoidance of training
and development to new employees as having different coloum for sales invoice helps in
providing quicker service to customers. With having detailed program system there is clear
understanding of customer sales and purchase details in the record.
3. There is proper balance in inventory management due to healthy relationship between
Sales Personnel And Cashier

There is proper management between the sales personnel and cashier leads to have
efficient management in balancing the demand and supply of inventory among the sales type.
The problem of shortage of stock will be resolved with proper analysis of sales invoice by
manager. The manager have the responsibility of reviewing all orders at the end of the day that
made by sales person, they make payment to sales person on the basis of sales volume.
4.Proper handling of invoice leads to easy sales return.
Due to handling of proper invoice of sales, there is avoidance in problem of sales return.
The return are exactly handled in reverse manner by issuing of return slip by cashier (Chang,
2016). With the help of slip issued by cashier at the time of buying the product will be used for
the easy return policy in which all thew information related to purchases of products will be
mentioned. There can be easy claim and understanding related to information of product as to
have the effectiveness and efficiency in management of store.
5.Reduces the chances of fraud due to daily reconciliation of report.
The assistant manger will have the duty to prepare daily the reconciliation report for
proper review of manger. The transaction are recorded in continuous basis as it reduce the
chances of any type of fraud in the organization. The company has the all modes of payment that
are cash, cheque or bank card for payment of purchase in store. With the help of daily reviewing
and acknowledging the daily transaction, there are can quick identification of the issues or any
type of fraud that is prevailing o trying to have excess in the system of company. No one can
manipulate data if the company prepare reconciliation report.
6.Reduction in error on approximation of sales forecasting due to Activity Report
Preparation.
There use to be preparation of activity report on weekly basis by data processing
department for the manager to have the review on weekly based activity and commission
activity report (Pearlson, Caroland and Dennis 2016). Due to implication of activity report there
is huge reduction in ineffective forecasting of sale in company. This makes the manger to have
the easy understanding of potential market and identify the opportunities and gain competitive
advantage. This also help in having the development of sales strategy to have increase in sales
and evaluation of sales performance.

3.Identification the two situational pressure.
Along with development of technology in e-commerce business, there is high level of
risk in fraud practices. Fraud in a company can be related to both external and internal sources.
As there are various factor which directly or indirectly have impact on the ethics and values of
company along with its employee and process of business. Due to impacts of external and
internal sources , the effectiveness and efficiency of business environment is also affected.
There is the presence of pressure or some situation among the people which makes to commit
such a unethical practice like fraud. There can be emotional as well as financial pressure such as
money problem,greediness and gambling debt which require amount to fulfill the needs. There is
no system in business which are totally prone to any type of risk. There can be factors such as
void sales, false returns, financial and emotional force in Rainbow illusion and other company
would increase the likelihood of fraud.
Emotional pressure
There is the factor of emotional dependency which can lead the employee to have the
ethical practices in an organization. There are several situation in which heir is maximum chance
of having the fraudulent practices. Some cases are that at time of increased sales there is
overburden on the sales personnel which make them frustrated as they make wrong sales invoice
knowingly (Cassidy, 2016) . The second reason can be the irresponsible behavior of employer
towards their employee makes them bind to perform such a crime in organization to fulfill their
demands. In case when employee feels that his preferences are not met properly or may be
ignored then they commit criminal act or fraud knowingly. Such type of activities create a
pressure and reduction in performance of company in the market. The creation of loophole in
management leads to damage in structure development in company. In addition, at times when
employees have pressure and workload from investors to meet a certain target or to meet goals
then there is high risk of financial reporting fraud.
Financial pressure -
the pressure refers to have shortage of money, gambling debts, loss in business etc. the
commitment of fraud in such pressure is because of having financial unsuitability or money
problem. The is increase level of greediness among the competitor from the rapid growth leads to
make fraudulent practice among company. The mindset of an individual of committing crime or
fraud is called rationalization. In Rainbow Illusion there is high risk of void sales which can be

refereed as sales which are recorded in the books of firm. So, it can be said that fraud related to
financial pressure happens due to lack of money or shortage of money (Kavanagh and Johnson,
2017).
4.Reason why company install distributed computer system rather then the centralized one.
There are the reasons where distributed has more advantages over the centralized are
given below.
 Speed- Distributed systems can achieve faster speed as compare to the centralized system
because there are various systems working together so the work is distributed among all
the systems reducing the work pressure (Pearlson, Caroland and Dennis 2016). to solve
the particular problem distributed system provides maximum speed unlike centralized
system.
 Inherent Distribution- there is another reason for building a distributed system is that if
some applications are inherently distributed for example Banking, Airline reservation.
They are inherently distributed as they are interconnected as all the bank are
interconnected (Laudon and Laudon, 2016).
 Reliability-Another reason is distributed system has higher reliability. As the workload is
distributed among the various machines that will the reduces the losses as in centralized
sytem ,if the machine fails the whole system is stopped and will increase the workload.
in distributed system it is beneficial as the system is able to work even with 5 percent loss
of performance (Lee, Thomas, and Baskerville 2015).
 Low latency rate -It has low latency than the centralized system due to its high
geographical spread hence it will take a less time to get a response. While disturbing the
workload over many machines. For example, it is used in the nuclear reactors or
aircraft ,by using the distribution system it achieves the high reliability which is a
dominant consideration (Kavanagh and Johnson, 2017).
 Scaling as well as parallelism-once the distribution system is set up among te various
servers involved. They can also easily scalable. They can be designed for the
parallelism .it is used for the operations like weather modeling as well as scientific
computing as here the multiple powerful processors are divide up into various
independent parts of a complex parts as well as get the answer comparably faster as they
would run those systems in series (Pearlson, Caroland and Dennis 2016).

CONCLUSION.
From the above report it can be stated that with development of strategic information the
company can gain competitive advantage from its competitors. There is the importance of
strategic information system and sales system in retail sector. With the help of proper
implementation there can be increase in productivity, efficiency and coordination among
different person related to sales department. Here the various reasons are also highlighted such as
distributed computer system has more advantage than the centralized system. The company
strength plays an important role in avoiding the the level of risk and problems for company.
There is basically the emotional and financial pressure on employee which makes them
responsible to practice fraud in company.

REFERENCE
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Coltman, T and et.al., 2015. Strategic IT alignment: twenty-five years on.
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Kavanagh and Johnson, 2017.
Hess and et.al., 2016.
Ansoff, and et.al., 2018.
Lee, Thomas, and Baskerville 2015
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