Sample Assignment on Using Information

Using Information 2

TABLE OF CONTENT
INTRODUCTION...................................................................................................1
1. For each of the term below definition and examples of what these statements can be used
for.................................................................................................................................................1
2. Discussing the use of accounting information systems to provide management with data for
better decision making.................................................................................................................3
SECTION 2..............................................................................................................4
1. Biggest income earner for Boots and its percentage in overall organisation..........................4
2. Pie chart demonstrating percentages of various aspects of Boost Plc.....................................5
3. Performance product areas of company which are denoting different growth rates...............5
4. Strategy of Boots for consolidating market position...............................................................7
5. Net income of Boots over 5 years with the help of mean and standard deviation..................8
CONCLUSION........................................................................................................9
REFERENCES..........................................................................................................1

INTRODUCTION
Accounting information system is a procedure which includes collection, storing as well
as processing of financial information. Financial information is used by management for making
important business decisions. Market position and growth of firm is the foremost criteria which
reflects success of business. The assessment is based on determining biggest income earners of
Boots Plc which is health and beauty retailer in United Kingdom. The focus of firm in on
increasing demand and sales for its every product that is hair care, bathroom, oral care, etc.
Further, the report will discuss performance of company as per different products which are
responsible for company’s growth. Thus, it will outline mean and standard deviation to comment
on net income of Boots PLC.
SECTION 1
1. For each of the term below definition and examples of what these statements can be used for
A. Cash Flow Statement – It is defined as a financial information which provides complete
information related to all cash flows. Cash flow statement renders information which includes
total amount of money received by an organisation and investment made during specific
financial year. It can also be referred to as summary of the anticipated or actual outgoings and
incomings of cash in an enterprise during particular accounting period.
Cash flow statement can be used for analysing the liquidity as well as long term solvency of an
organisation. This statement is used by management in an enterprise for identifying the financial
performance of an enterprise (Marshall and Lambert, 2018). In addition to this a projected cash
flow statement can be utilised for knowing or determining the future need of cash. It is mainly
used by for making financial plan.
Cash flow statement can be used for identifying the variations or reason for deficiency in cash or
financial resources. In case of deficiency, it allows management to take immediate actions. It can
be used by management for forecasting the ability of company to repay its due debts or meet
obligations. Examples of cash or revenue generated from operating activities are cash receipts of
revenue generated by selling products or services.
B. Income statement –It can be defined as a financial statement which assist management
in analysing an organisational performance during specific accounting year. All the revenues as
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well as profits are included in income statement. Sales and service revenue are shown at the top
of income statement (Hall, 2018).
Income statement is used by management in an organisation for evaluating the whether firm has
net income or loss during particular financial year. For instance, annual report include total
income earned by company during particular accounting year. On the other hand, quarterly
report emphasizes on revenue earned by an enterprise in three months.
Income statement can be used by management for determining the tax liability. It
is used by analyst for calculating financial ratios. For instance, return on asset, operating profit,
gross profit, earning before tax etc.
C. Statistical data –It is considered to be as an important element in accounting system
which helps management in making important business decisions. Statistical data is defined as
quantitative information on any subject. In context of business, statistical data might include
earning by different business activities. Statistical data is defined as branch of mathematics
which include various activities such as collection, organisation, analysis and interpretation of
numerical data.
Statistical data is generally used by management in an enterprise for reaching to specific
conclusion. It can also be utilised by manager for calculating the average income earned by firm
during specific financial year.
D. Annual report- It is considered as comprehensive report which include detail about the
various business activities which are carried out throughout the financial year. Annual report is
used by management for analysing the performance of company and making future business
plans. It is used by management for identifying the area which require improvement. Annual
report also provides detail information related to market segments, products, management, legal
process dings, customers, competitors etc.
E. Trend analysis- It is defined as a technique which is used by management in an
organisation for technical analysis. Trend analysis can be used for predicting the fluctuations in
stock prices which is based on present trend. It assists management in determining the growth of
company, industry or market in the future. Trend analysis includes the collection of information
from multiple time periods and plotting the information on a horizontal line for further review
(Mohammad, 2018). For instance, a trader or manager in an organization should look inside the
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financial conditions of an enterprise, understand the market and technologies, and anticipate
competitive pressures on the firm within its sector.
2. Discussing the use of accounting information systems to provide management with data for
better decision making
ERP accounting system
The word ERP stands for Enterprise resource planning system. This accounting
information system assist management in determine the need of resources required for
performing various function. It could also be described as database software which supports all
business procedures as well as operations such as manufacturing, human resource, marketing etc.
There are various benefits of using modern ERP system such as it helps in saving
money. This system helps business entity in preventing delays in production. Advance ERP
system assist management in identifying an appropriate path for achieving goals (Rikhardsson
and Yigitbasioglu, 2018). It also supports management in determining the number of workers
they will need. This system will help management in identifying the time when they should order
inventory.
The major drawback is that implementation of ERP involves high cost.
Customer relationship management software
This management software assists an organisation in performing routine business
functions. It helps management in identifying the ways to improve relationship with customers.
Customer relationship software assist business entity in meeting overall goals. It provides
management with actionable customer insight which further support manager in making decision
regarding improving quality of products or services (Trinandha and Ghozali, 2018). Customer
relationship management software is used by firm for storing the contact information of client.
The major advantage of this software is that it enables manager to address the
permanent customer and helps them in analysing the number of time purchases made by an
individual within specific time period. It also supports management in formulating various
customer policies.
The drawback of this system is that there are one major obstacles that is transition
from manual to automatic processes might occur in implementing ERP system. There are high
chances of hacking of system.
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SECTION 2
1. Biggest income earner for Boots and its percentage in overall organisation
Figure 1: Last period performance of Boots PLC
Source: (May, 2018)
In accordance with retail week data, it has been bathroom amenities and toiletries ha
marked tremendous growth of company by boosting its sales by 19.3 million pound. Volume
growth of four and five million is seen in Bath and skin care. With reference to growth, it has
been determined that the sales of bathroom toiletries and skin care products packs have increased
in comparison to last year. As per data, it has been denoted that Boots PLC holds 38 percent of
share in skin care market which is a leading position and still firm managed its sales by selling
11 million packs worth 13 million pound.
Further, Skin care market of company offers wide range of products like, makeup,
cleansers, accessories, scrub and natural body care. The focuses on providing packs which helps
its customers to look great from top to toe (Scott and Walker, 2018). Therefore, it can be said
that remarkable growth of organisational market in every aspect is reflected by its trending
beauty tips and wide range of products.
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2. Pie chart demonstrating percentages of various aspects of Boost Plc
Figure 2: Percentage of different aspects of Boots PLC
In accordance with above illustration, it can be said that the retailer has emerged
sucessfully in market with its wide range of beauty and health products. As per illustration, it can
be implied that Bathroom products of firm holds its half of the market which is 50 %. Further,
hair care holds 19 % which is alo large in comparison in competitors. Increasing growth of
every aspect refects success and increaisng sales of firm. However, it can be siad that increase in
percentage of market share of Boots is sign for growth and incresing revenue. Increasing share
in different market is the best strategy which is assiting retailers in targeting different types of
buyers across the globe. Hence, it can be conlduded by stating that the strategy behind increasing
market share of toiletries and boosting volume perfornce is its sales strategy where the firm
offers packs at discounted price. Offering products via discounted channel is technique which
helped Boots PLC in expanding share of its particular aspect with consumer satisfaction.
3. Performance product areas of company which are denoting different growth rates
Data of retail week denote the decline and incline in business and its market share of
particular aspect. The retailer deals in health and beauty where the firm holds share in grocer and
non-grocer market. The classification offers own unique products which denotes wide range of
organisational products and services (Tungate, 2011). For example, in health the company offers
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Nicotine replacement therapy with the motive of stop smoking aid. The pack contains nicotine
but in little amount and is offered to motivate people to quit smoking as it is dangerous for heath.
In accordance with this product example, it can be said that different products of company are
offered with different strategy to increase sales.
Further, market monitoring denotes that expenditure of Boots Plc has increased by 0.6 %
which worth 1.39 billion pound. As per increase in expenses, it has been implied raising capital
reflects firm’s ability to upgrade, acquire and maintain physical assets of organisation such as,
equipment’s, machinery and buildings. In accordance with this, it can be stated that increase in
capital expenditure denotes companies’ ability to work consistently with dynamic market trends.
On the other hand, there is an increase in number of units of retailer by 0.4 % which is
approximately 681.81 units (May, 2018). However, increase in units implies increase in demand
of customers which is sign of rise in revenue, profit and market share of Boots Plc. Thus, rise in
demand of buyers and increasing sales reflected that the average price of unit of firm has
increased by 0.2 %. In accordance to this it can be said that usual price of per unit offered by
Boots PLC is 2.04 pound.
Likewise, market monitor sector share of firm is classified into two that is grocers and
non-grocers. In accordance with changing trends and increasing sales of business, it has been
determined that there is a 53 % decrease in grocery percent of retailer and 47 % increase in non-
grocer packs. The retail week data of 2017 helped the firm in comparing change in share of
sector from where it is outlined that there is -1.5 % decrease in grocery sales of enterprise
whereas 1.5 % rise in sales of non-grocery products like bathroom, skin and hair care.
Apparently, product share in retail week data reflects 4 aspects of health and beauty
retailer where bathroom segments holds almost 50% of market share. As per growth in bath
segment, it has evaluated that toiletries packs are the biggest sale booster of Boots (May, 2018).
Almost 4 to 5 million bath products are sold by PLC in 2017 which represents increasing
demand of buyers. Rise in sales of bath products evaluated that bargain stores of organisation are
reflecting incline of 8 % specially by uplift in toiletries volume performance. Thus, from market
monitoring it can be outlined that performance of bath packs is increasing because of discount
channel of Boots Plc.
Apart from bath room packs, the firm has increasing market share for its hair, oral and
other products which is 19%, 16% and 15%. Thus, from the discussion, it can be concluded that
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Boots Plc is focused on growing its market share for every aspect in order to target majority of
buyers by fulfilling their different needs. Moreover, as per retail week data it has been calculated
that bargain stores of Boots Plc have increased by 8 % and its pack moved up to 0.7.
Nevertheless, as per retail week data, it has been determied that toiletry market of Boots holds
highest market share and has sold products worth 11 million pound. This remarked sales of
business which were 19.3 million pound highest among all aspects of organisation.
4. Strategy of Boots for consolidating market position
As per differing growth rates and performance of Boots PLC in retail week data of 2017,
it can be suggested that the firm should focus on improving its both market that is grocer and
non-grocer. The evaluated implies that non grocer share of Boots emerged as a sales booster
while sales of grocer have been declined. Therefore, focusing on both sector can be effective
strategy because it will help the firm in managing successful business operations. As per
performance monitoring, it is important for the organisation to balance sales of both market.
Sense of stability on both sector will allow firm to target different types of consumers to increase
market share.
In accordance with analysis, it can be suggested that Boots Plc should make use of
different market positioning strategy to balance profits and growth of targeted sector of business.
The management can make use of price quality approach where the business can focus on
maintaining relation between price and quality of grocery products. Maintaining quality of
grocery is essential for PLC because it includes gifts, electrical, and basic household amenities
which are offered by retailer in different packaging (Wittock, 2018). Packaging of grocery item
plays a vital role in gaining consumer attention where the firm focuses on packaging edibles in
types of boxes and bottles. However, proper labelling will help Boots Plc in gaining consumer
towards product price and quality.
Apart from price and quality approach, it can be suggesting that organisation can make
use of competitive pricing where the firm will be liable to set price of packs according to rivalry
firm. In this the management and production team sets price of certain product little less with
regard to competitor pricing of similar good. Minor difference in price will help company to
attract buyers which will assist in boosting sales of all products offered by organisation that is
grocery and non-grocery.
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Moreover, there is product class approach which should be used by Boots Plc to improve
its market for both sector (Varley, 2014). The approach is neither narrow nor broad but helps the
business in segmenting products according to different needs of buyers. In accordance with
health and beauty market it is necessary for the organisation to offer packs on the basis of class
like narrow goods class can be leaning products which comprise of shampoos, shower gels,
conditioners, soaps, etc. Whereas broad product class for Boots Plc can be department which will
include, beauty and skin care, baby and child, electrical, opticians, sun and holiday, etc. (Boots,
2018). Thus, from different strategies and discussion it can be outlined that the firm should focus
on improving its both sector in order to balance profits and revenues.
5. Net income of Boots over 5 years with the help of mean and standard deviation
Year Net income (USD BILLIONS)
2013 2.45
2014 1.93
2015 4.22
2016 4.17
2017 4.08
Mean 3.37
Standard deviation 1.093915
In accordance with net income of 5 years of WBA, it can be interpreted that the firm
faced rapid up and down in recent years but still managed to balance growth index with the help
of different strategies like offering products on bargain stores, discounted channel, etc. The
average net income is 3.37 billion $ which denotes growth graph of WBA (Walgreens Boots
Alliance Inc, 2018). With the positive fluctuation, it can be outlined that it is important for the
firm to focus on its products shared which will help the business in getting sense of balance in
profits and revenues.
As per standard deviation which is 1.093, it has been analysed that growth of firm is
remarkable and denotes positive response of buyers towards products of company. Moreover,
from the evaluation it can be sated that when standard deviation is marked above 1 is positive
signs of increasing sales and revenue of business (Avison and Cowton, 2012). WBA managed its
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growth by segmenting products and increasing market share for each sector which assisted the
enterprise in targeting different type of buyers.
Figure 3: Net income of WBA over 5 years
The graph reflects decline and incline in net income of firm over 5 years, from which it
has been evaluated that in 2015 the net income of WBA was at its maximum that is 4.27 billion $
where the firm made use of different strategies to boost its sales. In accordance with analysis it
can said that focus of company was on offering products with unique packaging, appropriate
labelling, quality and competitive pricing.
Thus, from the discussion it has been determined that mean and standard deviation of
Boots denotes positive response of consumers towards business products and services
(Greenwood and Ingram, 2018). It denoted that standard deviation denotes balance growth of
WBA which can helps the firm in managing innovation in services and long term success.
CONCLUSION
It has been concluded from the report that the various reports or statement such as cash flow,
statistical data, income statement can be used for making various business decision. The another
conclusion drawn from the study is that ERP and CRM is an appropriate as well as effective
advance accounting system.
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The report summarized differing growth rates of Boots Plc on the basis of retail week
data of 2017. It evaluated performance product areas of company from where this has been
determined that bath segment hold majority of product share which is 50 %. Further, the
assessment outlined strategy which can be used by Boots consolidate market position where the
firm should focus on enlightening it’s both sector that is non-grocer and grocer. Hence, report
concluded by evaluating net income of retailer with the help of standard deviation and mean.
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REFERENCES
Books and Journals
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Governance: The international journal of business in society. 12(1). pp.42-53.
Greenwood, A. and Ingram, H., 2018. Sources and Resources ‘The People’s Chemists’: The
Walgreens Boots Alliance Archive. Social History of Medicine.
Hall, J.A., 2018. Bundle: Accounting Information Systems, Loose-leaf Version, 10th+ MindTap
Accounting, 1 term (6 months) Printed Access Card.
Marshall, T.E. and Lambert, S.L., 2018. Cloud-based intelligent accounting applications:
accounting task automation using IBM watson cognitive computing. Journal of Emerging
Technologies in Accounting.15(1). pp.199-215.
Mohammad, A.A., 2018. An exploration of accounting information system's role in SMEs failure
triangular. International Journal of Agile Systems and Management. 11(2). pp.155-178.
Rikhardsson, P. and Yigitbasioglu, O., 2018. International Journal of Accounting Information
Systems. International Journal of Accounting Information Systems. 29. pp.37-58.
Scott, P. and Walker, J.T., 2018. Retailing under resale price maintenance: Economies of scale
and scope, and firm strategic response, in the inter-war British retail pharmacy
sector. Business History. 60(6). pp.807-832.
Trinandha, A. and Ghozali, I., 2018. Understanding the Potential Impact of Accounting
Information System to Computer Accounting Fraud. International Journal of
Engineering. 11(2). pp.191-200.
Tungate, M., 2011. Branded beauty: How marketing changed the way we look. Kogan Page
Publishers.
Varley, R., 2014. Retail product management: buying and merchandising. Routledge.
Wittock, N., 2018. Sales Promotion Techniques and VAT. EC Tax Review. 27(3). pp.127-138.
Online
Boots. 2018. [Online]. Available through: <
https://www.boots.com/webapp/wcs/stores/servlet/TopCategoriesDisplay?
catalogId=28501&langId=-1&storeId=11352&webrewrite=Y&geoOpts=Y >.
May, N., 2018. Boots grows Health & Beauty sales by £13m – Market monitor. [Online].
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Walgreens Boots Alliance Inc. 2018. [Online]. Available through: <
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