Coca Cola Amatil: Organizational Structure, Problems & Software Use

This literature review examines Coca Cola Amatil Australia, a major beverage bottler, focusing on its organizational structure and the operational challenges stemming from its complexity. The review identifies issues such as product management difficulties, supply chain inefficiencies, ineffective communication, and human resource management problems. It proposes the adoption of an Enterprise Resource Planning (ERP) system to integrate business processes and mitigate these risks. The review also discusses the company's sales system and associated control problems, highlighting potential for fraud and inefficiencies in customer relationship management. Furthermore, it explores the use of accounting software packages like Xero and MYOB in managing financial operations, noting their increasing adoption and benefits in automating processes and reducing errors. The review concludes by emphasizing the importance of addressing these challenges to improve Coca Cola Amatil's overall operational efficiency and strategic management.

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Name of the Student
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Author Note

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Table of Contents
Introduction..........................................................................................................................2
Part 1: Coca Cola Amatil Australia.....................................................................................2
1. The current Organization structure..............................................................................2
2. Operational Problems in Coca Cola Amatil................................................................5
3. The Most Likely System Acquisition Method.............................................................6
4. The system sales of Coca Cola Amatil........................................................................7
5. The Control Problems in the System...........................................................................8
Part 2: Accounting Software Packages................................................................................9
1. Development and Adoption of Accounting Software Packages..................................9
2. The Current Market Size...........................................................................................10
3. Leaders in the Market and the Competitive Advantage............................................11
4. Current Gaps, Challenges and Recommendations.....................................................12
Conclusion.........................................................................................................................13
References..........................................................................................................................14

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Introduction
Coca Cola Amatil Australia is one of the largest bottlers and distributers of alcoholic and
non alcoholic ready to drink beverages in Asia Pacific. Around 14,000 employees are engaged
with this company across the world. Therefore, it is obvious that the company will have a
complex organizational structure. However, in order to ensure proper information flow and
easier management of the different operations of the organization, it is essential that the company
possess a good and smooth organization structure. The literature review discusses the
organizational structure of Coca Cola Amatil. A complex organizational structure might result in
different operational issues within the organization. The literature review focuses on the different
operational problems that the company has faced due to the ineffective or complex
organizational structure. After identifying the different operational problems of the company, the
literature review focuses on the most likely system acquisition method that the company can use
to integrate the different business process of the organization (Galliers and Leidner 2014). The
literature review gives an overview of the different accounting software packages that would be
beneficial for different organization. The report gives an overview of the different characteristics
of this accounting software packages, and the issues, the users of the accounting software
packages might face. The report further discusses the different benefits of accounting software
packages.
Part 1: Coca Cola Amatil Australia
1. The current Organization structure
The organizational structure of any company or business organization is the hierarchical
arrangement of the different lines of authority, communication and rights associated with an

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organization. The organization structure of an organization gives an overview of the different
activities associated with an organization such as task allocation, coordination and supervision of
the all the operation and the business processes running within an organization (Lunenburg
2012). By having a view to the organization structure of a company, an individual can gain a
velar idea of the business structure of the organization. An organization structure of a company
mainly consists of the implicit and the explicit rules and policies that define the organizational
responsibilities of the different resources associated with the company (Claver-Cortés et al.
2012). A complete understanding of the organizational structure of a company further helps in
understanding the work efficiency of the organization. The picture below represents a simplified
version of the organization structure of Coca Cola Amatil. It provides an overview of the human
resources associated with the company that manages the different operation of the organization
(Hoch and Dulebohn 2013).

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Figure 1: Organizational Structure of Coca-Cola Amatil
(Source: created by author with data taken from Ccamatil.com. 2018)
The above picture gives an overview of the organizational structure of the Company.
However, from the picture, it can be evaluated that there is some severe problem with the
organization structure that can be a major cause of the different operational inefficiency that the
company might face in future. In this organizational structure, it will become very difficult of the
human resources to directly communicate with the managers or employees of the higher tier
thereby creating a situation of communication gap. This might result in ineffective
communication floe within the organization thereby hampering the different crucial business

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processes. The different operational problems that Coca Cola Amatil might face with this
ineffective organizational structure are discussed in the following section.
2. Operational Problems in Coca Cola Amatil.
In the previous section of this report the organization structure of Coca Cola Amatil is
discussed. As evaluated earlier, there are some major problems associated with this
organizational structure that might result in different operational issues in future. The different
operational problems associated with the organization are as follows (Hao, Kasper and
Muehlbacher 2012)-
1. Management of the product can be problematic if there is a problem associated with
the organizational structure of the organization. This is because of the employees do not have a
clear idea about the current processes of the organization, it becomes very difficult for them to
manage those process (Christensen 2013). Since the information flow is not smooth with this
complex organizational structure, product management can be a major operational issue that
Coca cola Amatil might face in future.
2. It would be difficult to properly manage the supply chain of the organization, if there is
a problem with the organizational structure of the company. Proper management of the supply
chain requires a clear understanding of the different business processes of the organization,
which might not be possible with the complex organizational structure. Therefore, this is a major
operational inefficiency or problem that the company can face due to its poor or complex
organizational structure.
3. Ineffective communication flow is another major operational inefficiency that the
company might face due to the problems in the organizational structure. As discussed earlier,

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since the organization structure of the organization is complex, it is not easy for the employees to
easily communicate with the higher officials. Improper communication can affect an
organization in a number of ways leading to the different operational problems as well.
Therefore, it is essential to develop a proper communication plan in order to eliminate this cause
of operational inefficiency.
4. Since the employees or the officials of the organization find it difficult to easily
communicate with each other, an operational problem of human resource management might
crop in due to this (Hendry 2012). The complex organizational structure and ineffective
communication among the employees are the major causes of this operational inefficiency.
5. Since Coca Cola Amatil is a large organization supplying products all over the world,
it is necessary for the organization to ensure strategic management of the different operations
within the organization. This can however be a problem with ineffective organizational structure.
These are some significant operational problems that the company might face due to the
complex or inefficient organization structure of the organization. Therefore, it is definitely
important to improve the organizational structure so that the company does not face these
identified operational problems in future. The next section of this report discusses the most likely
system acquisition method for Coca Cola Amatil in order to mitigate the risk of these operational
inefficiency.
3. The Most Likely System Acquisition Method
Coca Cola Amatil has different branches spread all over Australia and therefore, it is very
essential for the company to integrate all the business processes running within the different
branches of the organization, in order to ensure easier information flow and easier management

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of the different operations of the organization. Therefore, the most likely system acquisition
method for the company would definitely be the use of enterprise resource planning system
within the organization (Shaul and Tauber 2013).
It would be beneficial for Coca Cola Amatil to use the enterprise resource planning
system as it offers a number of benefits to the organization, the most significant one being the
integration and automation of all the business process and significant operations of the
organization. Enterprise resource planning system is a software that manages all the vital
operation associated with an organization, such as the supply chain, financial and accounting and
so on (Leon 2014). All these processes will be managed by the software and therefore it reduces
the need of human labour and human error. Therefore, it is impossible for a company that is
using a proper ERP system to face any operational problems. Therefore, the operational
inefficiencies of Coca Cola Amatil that are identified in the previous section can be mitigated
with the help of and Enterprise Resource Planning system (Aslan, Stevenson and Hendry 2012.).
Therefore, the recommended or most likely system acquisition method for Coca Cola Amatil is
ERP.
4. The system sales of Coca Cola Amatil
The system sales flowchart of Coca Cola Amatil is represented in the picture below. This
is a basic flow chart of the events associated with the preparation and sales of the Coca Cola
products.

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Figure 2: Flow Chart representing sales of Coca Cola Amatil
(Source: Ccamatil.com. 2018)
This above picture represents the sales procedure of Coca Cola Amatil.
5. The Control Problems in the System
There are certain control problems associated with this system because of which some
sorts of fraud are possible as well. This is therefore essential to identify the control problems
associated with the system.
The sales procedure although seems to be simple a linear, there is no internal control over
the human resources of the company in this system. This might result in severe control problem
in the organization. It is the aim of the organization to supply best quality finished products to
the customers and therefore, it is essential to ensure that there are no human errors associated
with the process, which might result in fraud.

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There are certain inefficiencies in the organization associated with the customer
relationship management. Since customers’ satisfaction is very vital for any business, it is
necessary to eliminate this control problems\m.
The system processes running within the organization is quite old and therefore, it is
essential for the organization to improve these processes. The system processes might result in
the different operational inefficiencies as well. Therefore, it is a major control problem
associated with the organization. The employees of Coca Cola Amatil should have a clear idea
about the different system processes running within the organization in order to remove the
operational inefficiency (Karim and Arif-Uz-Zaman 2013).
These are the major control problems associated with Coca Cola Amatil, which might
result in frauds such as delivery of the product with a low quality thus tarnishing the relationship
of the organization with its customers.
Part 2: Accounting Software Packages
1. Development and Adoption of Accounting Software Packages
Accounting Software packages are increasingly used by the different business
organizations in order to integrate and manage the major business operations of the organization.

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This is because an accounting software helps an organization in managing the different financial
operations associated with an organization, which includes, the amount receivable, payable
balance and the transactional details associated with the organization (Domeika 2015). The
accounting software is an application software that manages, records and processes the different
transactions of an organization thus automating the entire process. One of the benefits of using
accounting software is that it eliminates the human error. Coca Cola Amamtil also makes use of
accounting software packages in order to manage the different financial operations.
One of the most adopted accounting software is Xero as it provides a much simplified
option in processing the accounting information of an organization. Therefore, it can be said that
development and adoption of the different accounting software packages helps an organization in
easy tracking of the financial records, data and information associated with an organization.
2. The Current Market Size
The use of different accounting software packages in business organization has increased
over the years. This is because the accounting software packages automate the different financial
operations of the organization (Hall 2012).

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Figure 3: Represents the adoption of the Accounting Software packages across the World
(Source: Toth 2012)
The above picture represents that the accounting software packages are increasingly
adopted across the world. The mostly used accounting software is XERO and MYOB. This is
mainly because they are easy to use and manage.
3. Leaders in the Market and the Competitive Advantage
Use of accounting software is increasing in the different business organization. This is
mainly because of the offered benefits. The leader in the market of accounting software is
however XERO as it has a considerable amount of competitive advantage in the market place.
The reasons behind XERO being the leader in the market of accounting software are as follows-
1. The speed of the operation output in XERO is quite high that reduces the waiting time
of the output. The benefit of faster output makes this accounting software a leader in the market.