Holmes Institute: Rainbow Illusion Case Study Analysis, HI5019

This case study analysis focuses on Rainbow Illusion, an Australian retail company operating in Victoria and New South Wales, with a focus on ready-made garments for young women. The report details the company's business procedures, including its six strengths in managing sales transactions. Key aspects covered include the recruitment of young employees, the use of unsophisticated cash registers, the role of cashiers in handling transactions and returns, and the reporting processes involving assistant managers and managers. The analysis also highlights how the company avoids potential issues in sales control and identifies situational pressures that could lead to fraudulent behavior, such as economic pressure and incorrect business decisions. Furthermore, the report justifies the use of a distributed computer system over a centralized one, emphasizing data backup, reduced data loss, cost-effectiveness, and swiftness. The assignment aligns with HI5019, covering strategic information systems, transaction cycles, financial reporting, risk management, and e-commerce.

Case Study Analysis
RAINBOW ILLUSION COMPANY IN AUSTRALIA
Name of the Student:
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Author’s Note:

Executive summary
This paper focus on a company named Rainbow Illusion, an Australian company, which
deals with retail chain stores. The retail chain stores spread the region of Victoria as well as New
South Wales. After discussing the company’s case study, the report was prepared. After studying
the case study, it is clear that the company focuses on only young female to sale readymade
garments. This report illustrated whole business procedure as well as idea. Furthermore, this
paper illustrated the system of company’s six strengths for supervising the transaction of sales.

Table of Contents
Introduction......................................................................................................................................4
Power of the Company Rainbow Illusion for Adjusting the Transaction Of Sales.........................4
Defects avoided by the Company Rainbow Illusion for controlling the transaction of sales with
the power of application:.................................................................................................................7
Following are the situational pressure that increases the fraudulent behaviour..............................8
Following are the reasons for installing the distributed computer system rather than company
Rainbow Illusion’s centralized system..........................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
The company Rainbow Illusion is the leading as well as growing garment industry in the
province of Victoria and New South Wales in Australia. This company have thirty retail stores in
the country, which provides the services of ready-made garments to young female only. The
industry administrates its business activities with young employees, following assistant manager,
sales personnel, manager and cashier. Rapidly the company is growing and they expand their
business. The company followed the hourly basis wages for their workers. There are various
lucrative policies for their employees. The workers are recruited based on part time and the
company provides the incentives on sales volume to their employees.
Power of the Company Rainbow Illusion for Adjusting the Transaction of
Sales
The case study revealed several findings as well as outcomes of the company Rainbow
Illusion, which have disclosed the company’s strength for regulating transaction of sales. By the
company itself, the pro forma of maintaining the transactions of sales explained and observed on
the power of the company and six strengths.
Employment of young sales personnel as well as cashier:
The company recruited young cashier as well as sales personnel because the company has
a better business strategy. The company deals with sales of readymade garments in thirty stores
to only the young females. Therefore, recruitment of young sales personnel is the company’s
power as the company provides services to the young women. The young cashier has done the
transaction task (Beilin 2018). Part-time basis wages are paid to the employees as well as extra
earnings have paid based on sales volume by the sales personnel. The company integrated all
workers to complete the tasks.
Unsophisticated Cash Register’s Function

For cash transaction, the company maintains a strong as well as serious system and the
four part invoice of sales. By four part sales invoice each record for any transaction are stored.
The company’s manager and assistant manager prepared the structure of transaction of sales.
Furthermore, the transaction of sales follows three types of methods for payments i.e. cash
payments, credit card or bank card payment, and cheque payment (Altin, Uysal and Schwartz
2018).
Billing By the Cashier in the Final Stage
For the company Rainbow Illusion, the company cashier handles the final invoicing.
Firstly, each personnel of sales handle manual account as well as from the customer drafts the
approximate of the bought item. Sales personnel adds the price, other charges, tax value and
make final amount when they handover it to cashier for preparing final in voice for the targeted
customers (Debra Cascardo 2018). With the help of this procedure the cashier, take advantage
for make rapidly the final invoice of sales, also without making defects. Instantly the cashier
correct the calculations related to the tax or any mismatch to the amount by the personnel of
sales. The cashier also reviews sales invoice, orders and sales input.
Return Manage By Cashier:
The return process is performed by the cashier and reverse same manner for the customer
the process-producing invoice of sales. Cashier is responsible for issues the slip of return and
return transaction is also performed. Cashier determine number of sales in cheque or cash, take
account, details of the bank card transaction and register of cash adding the credit card return
(Ehrenhard et al. 2017).
Assistant manager preparing and producing a report:
Every day, company’s assistant manager prepared as well as produced a reconciliation
report for the manager’s review. The details of whole transaction in everyday in store includes in
reconciliation report. Reconciliation report is prepared on the sales volume and details of total
transaction. The reconciliation report bounds the methods of payment including cheque, bank
card and cash in accordance with sales invoice. The report is moved with account details to the

manager, after prepared by the assistant manager. With the help of several forms, the reports are
stored such as sales invoice, return slip and cash register (Amasiatu and Shah 2018).
Manager reviewed the report
Every account details and details of transaction in the report followed by manager
submits by the assistant manager of the company for better verification as well as review. This is
known as company’s double check verification and it is safe and example of the better ‘robust
management system’ of Rainbow Illusion company. This task is done by the assistant manager
daily; also the manager everyday reviews it (Balsundaram et al. 2019). Reviews as well as re-
verifies of the whole transaction done in every day by the manager, which includes details of
sales invoices, number of transactions, bank card, cash and cheque.
Each component that constitute details of accounting like sales invoices, tape of cash register,
return slips must be promoted by the manager to the department of central data processing. This
is because of the processed accounting data to the company’s corporate headquarter. The detail
report regarding sales and manager’s commission for weekly review sends back to the
department (Harris and Kaplan 2015).
Defects avoided by the Company Rainbow Illusion for controlling the
transaction of sales with the power of application:
In the company, there are various issues can appear relating the control of transaction of sales.
However, with the help of the application o the power the company has fortunately avoided
those issues in managing the business.
 The young cashier and sales boy recruitment based on part-time wages as well as
additional commission on the sales amount done by worker has resolved the sloth of
performance inside the workers. The company exploited because of the young sales
personnel which is reduce any kind of difficulties as well as hazards includes reduced the
customers cheque therefore the customer’s waiting time. The workers problem related to
the wages avoided by the company with the help of payments based on hourly
(Balsundaram et al. 2019).

 The invoice of sales for the customers done very quickly by the young cashier. The whole
accounting process has been upgraded by the young cashier’s appointment. The cashier
must not irritate to look at the customers as well as sure to make the customers
understand each and every amount breaking in the billing. Various methods of payments
are offered by the cashier to the customers who made good relationship between the
Rainbow Illusion Company and the customers. The payment method must be easier and
free of hassles for the customers (Chandra et al. 2018).
 The company provides four-part method ‘unsophisticated cash register. At first manual
billing done by the sales personnel with the approximate of the appropriate price of the
item purchased, tax on that sale item also the total amount of the item. After that for
review and to finalization of invoice, the sales personnel give it to the cashier. Then the
cashier after reviewing prepares two copies of invoice. One copy is for the store itself for
accounting records as well as future evidence and another is for the customer. There is no
more chance to mistakes in the accounts. A report prepares by the cashier then followed
by the assistant manager and lastly followed by the manager. Then the manager makes to
review and finally send every day the report to the ‘central data processing department’.
Lastly the after reviewing and recheck of a report the department returns the report to the
company’s manager (Carnahan et al. 2019).
Following are the situational pressure that increases the fraudulent behaviour
The company Rainbow Illusion is a big garment company, which have their thirty stores
in the region of Victoria as well as New South Wales in Australia. Rainbow Illusion company
has several young employees, manager, assistant manager and a cashier. Generally, this type of
company reaches situational pressure that has perceived with fraudulent behaviour.
Economic Pressure
Fraud can be occurred by the lack of capital a company required to operate its business.
Basically, company that have high investment as well as high debt there company loses instead
of any gain, this caused more chances of fraudulent activities to the employees. Company

fraudulent activities may occur by the rules related to the restriction of providing agreement of
loan facilities. This situation may arise in the urgency in the income of the company (Graham
2019).
Incorrect business decision
Sometimes in the company, the fraudulent activities may occur by the decision related to
the business. The decision includes fast expanding the business as the industry expanded their
thirty retail chains. Fraudulent behaviour may occur due to the decision related to the company
among the personnel of the company to the expected income and forecast (Huefner 2016).
External financial conditions
The external or outer side of the company Rainbow Illusion, fraudulent activities happen
if it faces any adverse financial situation, then internal part of the company. Huge competitions
in the business era can sometimes leads to fraudulent activities. There is also a chance of having
fraudulent activities when there are more difficulties in the ‘company’s robust system’ at the
time of collecting receivables. Increasing in the inventory of the company where the sale is not
increasing can create fraudulent activities. Many of the time decline in sales, pressure for
surviving as well as unite are some of the major factor which caused by the company personnel
to the fraudulent activities (Mironov and Zhuravskaya 2016).
Following are the reasons for installing the distributed computer system
rather than company Rainbow Illusion’s centralized system
Company Rainbow Illusion and other companies which have several retail stores in
around the country, for the accounting process they are always prefer ‘distributed computer
system’ instead of ‘centralized computer system’.
The ‘distributed computer system’ provides more advantages than the ‘centralized
computer system’ (Pollin et al. 2018). Furthermore, in this distributed computer system server-
client is single; therefore, the industry can avoid various server-clients after using distributed
computer system. Below are the reasons:

Data backup:
All the calculations performed by the centralised computer system. The system keep only
one calculating server is appropriately. The users of it can store huge number of data and divide
by sending the data to other computers. By applying this process, each part of the calculation can
be stored by single computer (Wright 2016).
Less chance of losing data
Several processors used by the distributed computer system and spread the data within
the processors, there is no chance to lose any data as the processors is interconnected with the all
computer networks. On the other hand, in centralised computer system, the data calculation
performs in a single computer central processing unit (CPU) and data also stored in a particular
unit. This cause to the chance to losing of the data because it is depends on system of processing
(Tauscher and Kietzmann 2017).
 Budget-friendly
The centralized computer system is more expensive than the distributed computer system.
Several microprocessors used by the distributed system which deliver less cost and good
performance. The power is also increased by using this system.
 Swiftness
There is more power as well as speed in the distributed computer system. The power naturally
distributed with the help of some applications.
 Trustworthy
In an integrated network there are several computers in the distributed computer system. By
dividing calculation data it keeps
 Growth increment
Modular expandability maintain by the distributed system. With the small increment, the
computer power can work. At a same time it will perform all the issues.
 Deriving force

In a number of the personal computers the distributed computer system exists. It helps to easy
way to share information to the people with collaboration (White 2018).
Conclusion
However, from the above-mentioned report it can be concluded that the company named
Rainbow Illusion has maintained successfully their business operation. The company has taken
various initiatives relating to prevention of the mistakes in accounting by applying method of
four-part transaction. For the employees the company creates better rules as well as regulations.
The company also have good work culture. For the reliable operation of the business the
company used distributed computer system. In this case study the fraudulent activities of the
company summarised in detail. Overall, the company Rainbow Illusion has shown good attitude
in business operation to dealing with only young female customers.

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