Accounting Information System: A Case Study of Coca-Cola Amatil

This report provides a comprehensive analysis of Coca-Cola Amatil's accounting information system (AIS). It begins with an overview of Coca-Cola Amatil's organizational background and structure, followed by an identification of operational problems, including issues with awareness, communication, development, interpersonal relationships, influence, trust, and accountability. The report then examines the company's ERP system acquisition method and details the sales procedure flowchart. Control problems within the system, particularly the decline in share value, are also discussed. The second part of the report focuses on the development and adoption of the Xero accounting software package, the current market size, and the identification of market leaders and competitors. Finally, the report identifies key challenges, such as employee conflicts and lack of instruction following, and offers suitable recommendations for improvement. The report concludes by summarizing the key findings and emphasizing the importance of an effective AIS for organizational success.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System: Coca Cola
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Organizational Background of Coca Cola Amatil.................................................................2
Part 1......................................................................................................................................3
1. Organizational Structure of Coca Cola Amatil..............................................................3
2. Operational Problems in Coca Cola Amatil...................................................................4
3. System Acquisition Method in Coca Cola Amatil.........................................................6
4. Description of System Flowchart of the Sales Procedure..............................................7
5. Identification of Control Problems in the System..........................................................8
Part 2......................................................................................................................................9
1. Development and Adoption of Accounting Software Package......................................9
2. Current Market Size.......................................................................................................9
3. Identification of Market Leaders..................................................................................10
4. Identification of Challenges and Suitable Recommendations.....................................10
Conclusion................................................................................................................................10
References................................................................................................................................12

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Introduction
Accounting information system is the technique for the finance department for the
proper enhancement of the organizational effectiveness within the era of global technology
(Amrollahi, Ghapanchi and Talaei-Khoei 2013). The overall effect of the accounting
information system on the organizational effectiveness is extremely important for any
organization and thus could be easily and substantially implemented within the organization.
The whole idea and process of decision making becomes extremely easier with this and thus
is extremely popular and well accepted by various organizations. It is the most effective as
well as well defined system that is utilized for reducing the errors of accounting systems. The
systems that are utilized within the organization are mainly for the successful execution of the
strategies (Li 2013). These strategies are for the betterment of the organization and thus they
should be extremely effective and efficient. The strategic information system helps the
organization to take proper strategies for them and hence they should be implementing this
system within their business.
This literature review will be highlighting on the concept of strategic information
system for the most popular soft drinks company, Coca Cola Amatil or CCA. This particular
organization has become popular gradually. They have implemented accounting information
system and strategic information system within their business. The entire structure of the
organization, with various errors and frauds will be properly described here. The suitable
accounting software will also be given here with relevant details.

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Discussion
Organizational Background of Coca Cola Amatil
Coca Cola Amatil is the largest organization that provides non alcoholic and ready to
drink beverages is considered as one of the five important Coca Cola bottlers (Ccamatil.com.
2018). This particular organization has its head quarters in Australia and mainly does its
operation in six countries. They are Australia, Papua New Guinea, New Zealand, Samoa, Fiji
and Indonesia. They provide a lot of products like soft drinks, spring water, sports drink,
energy drinks, flavoured milk, fruit juices and many more. They distribute various beverages
that contain sparkling (Ccamatil.com. 2018). The most popular products of water are Mount
Franklin Water, Pump, Neverfail, Aquariius Water, Kiwi Blue and many others. The non
alcoholic beverages are Coca Cola, Diet Coke, Fanta, Sprite, Lift and many more.
They started their journey in the year 1904 and for more than 100 years they had
providing products for their customers. They have their customers mainly in Australia and
New Zealand. The heritage of this organization is extremely high and thus they have faced
success in their business (Ccamatil.com. 2018). They work as the joint venture with the Coca
Cola Company and thus finally becoming Coca Cola Amatil. They have constantly been on
the top position in respect to shares.
Part 1
1. Organizational Structure of Coca Cola Amatil
The organizational structure of Coca Cola Amatil is given below:

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Figure 1: Organizational Structure of Coca Cola Amatil
(Source: Ccamatil.com. 2018)
The above figure demonstrates a clear image of the entire organizational structure of
Coca Cola Amatil. The top management level is the President of this company. After then,
come the manufacturing staff and the corporate staffs. They are the middle level
management. These employees follow the instructions of the top level management
(Whittington 2014). The lower level management comprises of the sub divisions of the
organization in the entire world. Various area managers are appointed in the lower level
management and thus all of them follow the instructions of middle level management.
2. Operational Problems in Coca Cola Amatil
Although, the organization of Coca Cola Amatil is popular in its field, there are some
of the major problems in operations within the organization. The most significant problems
within the company of Coca Cola Amatil are as follows:
i) Awareness: the first and the foremost problem that the organization faced is
awareness. The top management level or the leadership team is lacking alignment. They

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eventually operate in silos and do not always collaborate effectively (Haron, Sabri and
Zolkarnain 2013). This creates major problem within the organization as the middle level and
lower level management are not getting enough and significant instructions. Due to the lack
of instructions, conflicts are arising in the organization.
ii) Communication: The second problem that arises within the organization is the
problem with communication. The top level management does not properly communicate
with the other level management and this lack of communication; the remaining
organizational bodies are not working timely.
iii) Development: The opportunities are not enough for the professional growth and
hence the employees do not wish to work in this organization any longer (Bernus, Mertins
and Schmidt 2013). The career path of this organization is clear and thus people do not want
to work anymore.
iv) Interpersonal: The fourth important problem within the organization is the
interpersonal. The culture of the organization is absolutely missing in some of the branches
and hence they are missing the specific system, support and process to resolve the conflicts
amongst the employees and management bodies.
v) Influence: The fifth significant problem with Coca Cola Amatil is the influence
(Altameem, Aldrees and Alsaeed 2014). The departments, divisions, offices and business
units eventually work in silos according to their functions and thus they do not have any idea,
what other departments of the organization are doing or what is the procedure in leveraging
them.

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vi) Trust: Another vital problem with the organization of Coca Cola Amatil is trust.
The lower level management often find it extremely difficult to trust the higher levels of
management and various departments have trust issues with the rest of the departments.
vii) Accountability: The accountability is yet another important operational problem
within Coca Cola Amatil (Therivel et al. 2013). They do not have proper accountability
systems and thus the organization often encounters major problem due to this. Coca Cola
Amatil comprises of various branches and all the lower level management of each and every
branch is not aware of the accountability systems.
3. System Acquisition Method in Coca Cola Amatil
The system acquisition method of the Coca Cola Amatil is ERP system. They have
implemented ERP within their business as enterprise resource planning is responsible for
integrating all types of important business processes in one single process (Uçaktürk and
Villard 2013). This system acquisition method of the organization has helped the
organization with various other advantages. The most important advantages of ERP for any
business mainly include competition, efficiency, forecasting, easy collaboration, scalability,
cost effective, integrated information, streamlined processes, mobility, productivity,
reporting, flexibility, high security, customer services, regulatory compliance and many more
(Li, Hsieh and Rai 2013). Since, Coca Cola Amatil makes non alcoholic beverages, they have
to deal with various business processes and thus they have used ERP for this integration.

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Figure 2: Benefits of ERP
(Source: Ccamatil.com. 2018)

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4. Description of System Flowchart of the Sales Procedure
Figure 3: Sales Flowchart of Coca Cola Amatil
(Source: Ccamatil.com. 2018)
The above figure provides the entire flowchart of sales for Coca Cola Amatil. The
flowchart starts with the customer processing order. The next step is the sales order. Here the
sales of the order are checked and the agent of the organization takes necessary actions for
fulfilling the order (Cassidy 2016). The next step involves that the process order is created
after checking that all the criteria is being fulfilled by the customer. If the customer has not
fulfilled all the criteria, the order is cancelled; however, if the criteria are fulfilled by them,
the customer would get his products instantly after making payments.

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5. Identification of Control Problems in the System
The problems within the system of the organization of Coca Cola Amatil are
extremely vulnerable for the company as they are to be mitigated in time and if not mitigated
properly, they would be stopping the growth of the company (Men 2014). This particular
organization is serving its customers for more than 100 years and has been one of the most
famous organizations. However recently they have problem in their shares and their position
is going down drastically. The most significant problem within the organization is the issue
of conflicts amongst employees. These conflicts are bringing out major problems within the
organization and they should be resolved as soon as possible (Therivel et al. 2013). The
second problem that is within the organization of Coca Cola Amatil is the lack of instruction
following within the management levels. They are not being able to fulfil all the instructions
of the organization substantially.
Figure 4: Degrading Shares of Coca Cola Amatil
(Source: Ccamatil.com. 2018)
The above graph shows the downfall of shares of the organization of Coca Cola
Amatil. Previously, it was above 15, however now it has come down to below 10.

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Part 2
1. Development and Adoption of Accounting Software Package
Coca Cola Amatil is utilizing the accounting software package of Xero. It is the New
Zealand based software organization, which eventually develops all types of cloud based
accounting software especially for the small as well as medium sized organizations. This
particular organization has their branch offices in Australia, New Zealand, Singapore, the
United States and the United Kingdom (Xero Accounting Software. 2018). All the products
of this company are on the basis of SaaS model and the products are sent in all over the
world. This particular software provides various advantages to the organization that has
implemented it. The Australian market has acquired this software from 2008. The excess
rising of shares of the organization of Coca Cola Amatil is due to the incorporation of
accounting software package of Xero (Collier 2015). It has helped them to achieve all the
organizational goals and objectives.
2. Current Market Size
The current market size of Coca Cola Amatil is given below:
Figure 5: Current Market Size of Coca Cola Amatil

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(Source: Ccamatil.com. 2018)
Although, this organization is popular and the shares have gone up gradually, recently
in 2018, they have encountered a sharp downfall within their shares and the annual dividend
summary is 0.26 dollars (Dillard and Yuthas 2013).
3. Identification of Market Leaders
The market leaders refer to those organizations, who are leading the market
eventually and substantially. The brand, organization or the product, which comprises of the
largest sales revenue percentage, is known as the market leader. They dominate the
competitors in customer loyalty (Belfo and Trigo 2013). The competitors of Coca Cola
Amatil are Dr Pepper Snapple, Coca Cola FEMSA, S.A.B. de C.V (KOF) and CCE or Coca
Cola Enterprises. Amongst all these, Coca Cola Amatil is in the winning position and thus
they are clearly the market leaders.
4. Identification of Challenges and Suitable Recommendations
The first problem in the organization is the conflicts amongst employees. The
recommendation for this problem is that Coca Cola Amatil should talk with the employees
for properly understanding the point of views of their employees. The second problem of
Coca Cola Amatil is that lack of instructions within management levels. The recommendation
for this problem is to take significant follow ups so that the lower level has the idea of their
work and no problems arise within the system of the company. These two recommendations
would be useful for them.
Conclusion
Therefore, from the above literature review, conclusion can be drawn that accounting
information system is the most effective system for any organization to make all types of