Strategic Management and Information Systems for Coca Cola Amatil Australia

This literature review evaluates the operations of Coca Cola Amatil, a company in Australia. It discusses the current organizational structure, operational problems, system acquisition method, system sales, control problems, accounting software packages, market size, leaders in the market, challenges and recommendations.

Running head: STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
Strategic Management and Information Systems
Akshaykumar Harshadkumar Nayak
Student Id -AZZ3391
Name of the University
Author Note

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Table of Contents
Introduction..........................................................................................................................2
Part 1: Coca Cola Amatil Australia.....................................................................................2
1. The current organization Structure of Coca Cola........................................................3
2. The Operational Problems of Coca Cola.....................................................................5
3. The Most Likely System Acquisition Method.............................................................6
4. The system sales of Coca Cola....................................................................................7
5. The Control Problems in the System...........................................................................8
Part 2: Accounting Software Packages................................................................................9
1. Development and Adoption of the Accounting Software Packages............................9
2. The Current Market Size of the accounting software..................................................9
3. The leaders in the Market and their Competitive Advantage....................................10
4. Current Gaps, Challenges and Recommendations.....................................................10
Conclusion.........................................................................................................................11
References..........................................................................................................................13

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Introduction
The literature review evaluates the operations of Coca Cola Amatil, a company in
Australia. The report gives an overview of the current organization structure of the organization
and the problems associated with the organizational structure of Coca Cola Amatil. Having a
proper organization structure is very vital for maintaining the normal operation of the
organization. An improper organizational issue can result in the different operational problems in
the business organization. The report discusses the different operational problems that Coca Cola
Amatil might experience due to an improper or ineffective organizational structure. The different
operational issues that the company might face can be a result of old or manual operational
processes that have been running within the organization. The report further discusses the most
likely system acquisition method that is recommended for Coca Cola in order to eliminate the
risk of operational problems in the organization (Christensen 2013). The report further discusses
the system flowchart for the sales procedure of Coca Cola and identifies the different control
problems that are associated with the existing system. The second part of the report gives an
overview of the development and adoption of the different accounting software packages and
their current market size. The report further identifies the current gaps and challenges
encountered by the users of the customers. The report further identifies the current gaps and the
challenges that are generally encountered by the customers of accounting software in make
certain relevant recommendations.
Part 1: Coca Cola Amatil Australia
Coca Cola Amatil is chosen for the literature review as it is one of the largest bottlers and
distributors of the alcoholic and the non alcoholic beverages. This company has around 14,000

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employees who are working in the different branches of the company situated in Australia,
Indonesia and certain other countries (Ccamatil.com. 2018). The organizational structure of the
organization provides guidance and clarity on the different human issues associated with the
operation of the organization and further gives an overview of the different managerial authority
in the organization (Galliers and Leidner, 2014). Having a clear view of the organizational
structure of an organization is necessary for designing the operational process of an organization
in an effective manner. The current organizational structure of Coca Cola Amatil is discussed in
the following section.
1. The current organization Structure of Coca Cola
Organization structure is very important for understating the internal operations of an
organization. This is because the organizational structure gives an overview of the managerial
processes of the organization. Organizational structure is vital since it helps in decision making.
It gives a clear overview of the hierarchy of the management process of an organization. The
idea about the different functional areas of the organization can be obtained from the
organization structure (Hao, Kasper and Muehlbacher 2012).
Coca Cola is a multinational company operating globally and therefore it is very vital for
the organization to have a clear and structured organizational structure. However, the
organizational structure of Coca Cola is quite complex since quite a huge number of people are
involved with the managerial process of the organization (Lunenburg 2012). The work efficiency
of an organization is largely dependent on the organization structure as it provides a clear
identification of the different human resources associated with the organization and their position
in the management. The picture below represents the organizational structure of Coca Cola

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Amatil (Hendry 2012). The organization structure of this organization is quite complex and it
often result in certain problems in the organization.
Figure 1: Organizational Structure of Coca-Cola Amatil
(Source: created by author with data taken from Ccamatil.com. 2018)
This is the current organizational structure of Coca cola Amatil that gives an overview of
the hierarchy of management in the organization. Considering the huge size of the company and
large number of business operation running within the organization, it is essential for the
organization to consider the redesigning of the organizational structure of the organization
(Claver-Cortés, Pertusa-Ortega and Molina-Azorín 2012). An effective organizational structure

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helps in proper communication flow within the organization, which is essential for ensuring
normal business operation within the organization.
An ineffective organizational structure might result in certain operational problems in the
organization. The different operational problems or inefficiencies that Coca Cola might face due
to this ineffective organizational structure are discussed in the following section.
2. The Operational Problems of Coca Cola
The operations of Coca Cola include delivering finished goods to the customers. This
process might involve the use of the different management processes for proper business
operations. The inefficient organizational structure results in the different operational problems.
The major operational problems that Coca Cola might face due to the poor and inefficient
organizational structure are discussed in the following paragraphs.
Inefficient communication which is a result of an in effective organizational structure
might result in certain operational problems in the organization. Proper product management can
be a huge problem if there is no proper communication flow among the employees of the
organization. This is a major operational issue arising from the complex organizational structure
of the Coca cola.
Supply chain management is another major operational issue that Coca Cola might face
due to an ineffective organizational structure. The supply chain management is an integral
business process associated with an organization and therefore it is proper supervision of the
same is needed. It is seen that an improper organizational structure results in the failure of the
implementation of the operational processes of the organization in a planned approach resulting

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in problems in supply chain. This is therefore a major operational issue associated with Coca
Cola that it might face due to a poor organizational structure.
Human resources of an organization are an important asset and it needed proper
management as well. Due to an improper and ineffective organizational structure, there might be
a problem with the management of the human resources of the organization as they might not
have a proper idea about whom to report for the problems arising in the organization (Hoch and
Dulebohn 2013). A proper organizational structure would have helped in eliminating this type of
risks from the organization.
The above discussed points are the major operational issues that a Coca Cola might face
due to its ineffective organizational structure. These operational problems cab however be
eliminated by properly designing the organization structure and correctly defining the role of
each individuals associated with the organizational structure of Coca Cola.
3. The Most Likely System Acquisition Method
Coca Cola has ensured that no operational problems arise in the company. For this it was
needed to integrate and automate all the running business processes of the organization (Aslan,
Stevenson and Hendry 2012). Enterprise resources planning system is therefore the most likely
system acquisition method for Coca Cola. Enterprise resource planning system or ERP helps in
integrating all the business processes of the organization with the help of an operational
software. Automation of the business processes is definitely a major need of any business
organization especially large business organization like Coca Cola. The use of ERP integrates
and automates all the vital business processes of an organization including the supply chain and
the financial processes (Leon 2014). This is very beneficial for Coca Cola in eliminating the

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different operational problems that might arise due to an ineffective organizational structure.
Since the business process of the organization largely depends on its ease of its operation, it is
essential to automate the different operational processes running within the organization.
Therefore, the most likely system acquisition method for Coca Cola is Enterprise resource
planning system.
4. The system sales of Coca Cola
Coca Cola deals with the production of alcoholic and non alcoholic beverages. The
picture below represents the sales process that is followed in Coca Cola.
Figure 2: Flow Chart representing sales of Coca Cola
(Source: Ccamatil.com. 2018)
The above picture represents the sales procedure that is followed in Coca Cola. It is the
basic a most normal process of manufacturing the beverage and transferring it to the customers.

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However, there are certain issues associated with this sales procedure, one of which is lack of
proper documentation. These issues in the sales procedure of the organization are the cause of
different control problems in the organization (Hall 2012). These control problems are discussed
in the following section.
5. The Control Problems in the System
Presence of the control problems in the organizational process result in the improper
management and fraud. It is therefore becomes very essential to identify these control problems
in order to eliminate the chances of fraud in the system (Domeika 2015). The major control
problems that are associated with the system are discussed in the following paragraphs.
Lack on internal control often result in various problems in the system. Similar is the case
of the sales procedure of Coca Cola (Karim and Arif-Uz-Zaman 2013). The business processes
of the organization lacks internal control, which is a major control problem associated with the
system.
Customers’ satisfaction is an important consideration for Coca Cola. However, there are
certain problems associated with the customer relationship management in Coca Cola that results
in the control problem in an organization. Addressing these control problems is vital in order to
keep the customers of the organization satisfied.
The sales process of the organization is quite old which is a major control problem
associated with the organization. This issue is needed to be addresses in order to eliminate the
control problems associated with the system.

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The above discussed points are the major control issues associated with the organization.
These control problems in needed to be addressed in order to maintain a smooth operation within
the organization.
Part 2: Accounting Software Packages
1. Development and Adoption of the Accounting Software Packages
Many business organizations are making use of the accounting software packages in
order to increase the efficiency of the business operations running within the organization. The
accounting software effectively manages the different accounting and financial operations of the
organization. The accounting software can be customized according to the requirements of the
organization and is therefore adopted by majority of the business organizations.
Coca Cola Amtil makes use of accounting software in order to manage the different
operations of the organization. Since the financial and accounting processes can be effectively
handled by the accounting software packages, the use of this software becomes mandatory
(Mageto 2017). Accounting software furthermore offers a number of benefits including
automatic report generation.
Examples of mostly used accounting software are definitely XERO and MYOB. XERO
and MYOB provide a solution to all the different financial problems of the organization and are
therefore adopted by the business organizations. Accounting software helps in easy tracking of
the financial records and the accounting information associated with the organization. XERO is
one of the most widely used accounting software package in Australia.
2. The Current Market Size of the accounting software

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The use of the different accounting software packages has increased in global market.
This number is expected to increase in the coming years. Global business accounting software is
envisioned to flourish at a compound annual growth rate of 6.3% over the forecast period till
2024. The global market is expected to reach a revenue of USD 4.4 billion by the end of the
forecast period that is the year 2024. The use of accounting software is rapidly emerging in
Australia as well and is expected to increase in the coming years. This software is adopted by the
business organization of manufacturing, service and retail sector as well.
3. The leaders in the Market and their Competitive Advantage
The leader in the market of accounting software is definitely XERO. There are a number
of reasons that makes XERO a competitive advantage in the market. These are as follows-
1. XERO makes use of the cloud platform that is one major advantage of XERO.
2. The output speed of XERO is very high which gives it a competitive advantage over
the other accounting software.
3. XERO possesses a simple interface that is easy to use and operate.
4 XERO ensures secure storage of data in cloud. This gives it a competitive advantage as
well.
These are the major characteristics of XERO that gives it a competitive advantage in the
market. This is the reason; XERO is a leader in the market of accounting software.
4. Current Gaps, Challenges and Recommendations

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Development and adoption of accounting software packages has increased across the
globe as it helps in integrating different financial and accounting processes of an organization.
However, there are certain challenges associated with the adoption and use of accounting
software packages which are discussed below-
1. Majority of the accounting software makes use of cloud in storage of their data, which
is a major disadvantage of the accounting information software (Mishra et al., 2013).
2. Proper training is required for the installation process and installation of the updates.
These are the major two challenges the customers of accounting software face. In order to
eliminate these issues, certain recommendations are made-
Recommendations
1. The security issues associated with the storage and access of data from cloud can be
mitigated by the use of the hybrid cloud environment (Mudge et al., 2013).
2. The employees of the organization that are making use of accounting software should
be properly trained about its usage.
Conclusion
The literature review gives an overview of the organizational structure of Coca Cola
Amatil that operates in Australia. The report gives an idea of the current organizational structure
and the different operational problems that Coca Cola might face due to an ineffective
organizational structure. The report further gives an overview of the sales process of Coca Cola
Amatil and the existing control problems. The second part of the report discusses the process of
development and adoption of the accounting software packages and its current market size.

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However, there are certain challenges associated with the use of accounting software packages
that is identified in this report and certain recommendations are made to eliminate those
challenges.

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References
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