Strategic Management and Information Systems

Running head: STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
Strategic Management and Information Systems
Name of the Student:
Name of the University:
Authors Note:

STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
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Executive Summary:
The assessment evaluating the strength of Rainbow Illusions by evaluating and explaining
each problem that has been mitigated by the six identified strengths. Further explanation on
the each problems faced by Rainbow Illusions are mainly depicted. Thus, the adoption of the
strengths has mainly allowed the organisation to avoid the overall problems in their sales
transactions. The situation pressures also indicated, which states the possibility of fraud that
could be conducted by individuals on daily basis. Moreover, the significance of distributed
computer system has also been explained by highlighting its implication, which might help in
mitigating frauds and improve the cost saving mechanism of the organisation.

STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
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Table of Contents
Introduction:...............................................................................................................................3
Identifying the six strengths in Rainbow Illusion’s system for controlling sales transactions:. 3
Explaining what problem(s) Rainbow Illusion has avoided by incorporating the strength in
the system for controlling sales transactions:.............................................................................5
Identifying the two situational pressures in a company like Rainbow Illusion that would
increase the likelihood of fraud:.................................................................................................8
Explaining why some companies would choose to install a distributed computer system rather
than a centralised one:................................................................................................................9
Conclusion:................................................................................................................................9
List of references and Bibliography:........................................................................................11

STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
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Introduction:
The assessment aims in evaluating a report, which is provided to the Chief Executive
Officer of Rainbow Illusion for evaluating its processes, internal control and risk. Therefore,
relevant focus has been presented on detecting the internal controls for its revenue cycle by
evaluating and identifying the six strengths of Rainbow Illusion that are engrossed on
controlling sales transactions. Moreover, the analysis of the strength is further evaluated by
explaining each problem that has been mitigated by the six identified strengths. Further
explanation on the each problems faced by Rainbow Illusions are mainly depicted. Thus, the
adoption of the strengths has mainly allowed the organisation to avoid the overall problems in
their sales transactions. Further identification of two situational pressures are mainly
conducted for understanding the likelihood of frauds within the organisation. Lastly, relevant
explanation has been conducted to detect why some companies choose to install a distributed
computer system rather than a centralised one.
Identifying the six strengths in Rainbow Illusion’s system for controlling sales
transactions:
After evaluating the four-part sales invoices, its relevant strengths can be detected for
adequately controlling the sales transactions in each step. There are mainly six strengths in
the Rainbow Illusion’s system that allow the organisation to control the sales transactions.
The six strengths of Rainbow Illusion’s system are depicted as follows.
Dealings of the salesperson:
The main persons involved in the sales process is the salesperson, who manually
records all the relevant transactions with the sales involves. The information regarding the
clothes, class, description, quantity, and unit price needs to be inputted by the salesperson,