University Report: Strategic Information System Analysis of Austrade

This report provides a comprehensive analysis of Austrade's strategic information system. It begins by examining the company's hierarchical organizational structure, highlighting its impact on decision-making and communication. The report then identifies operational problems, such as communication barriers and employee dissatisfaction, stemming from the structure. It proposes a preferred system acquisition method, suggesting the use of commercial software to enhance capabilities and efficiency. A system flowchart of Austrade's sales procedures is described, emphasizing the importance of customer satisfaction. The report also addresses the identification and control of internal and external problems, including competition, regulations, and disputes, recommending technological advancements and efficient employee management. Furthermore, it explores the development and adoption of accounting software packages, such as MYOB, and analyzes the current market size and identifies key market leaders. Finally, the report identifies current gaps and challenges encountered by users, particularly in communication, and suggests potential solutions. The report concludes with a discussion of the company's financial performance, employment figures, and market position.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System
Name of Student
Name of University
Author Note

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Table of Contents
PART 1.......................................................................................................................................2
1. Current organisational structure.........................................................................................2
2. Operational problems of Austrade......................................................................................3
3. Preferred system acquisition method..................................................................................4
4. Describing a system flowchart of the sales procedures of Austrade..................................5
5. Identifying and controlling the problems in the company..................................................6
PART-2......................................................................................................................................7
1. Development and adoption of accounting software packages...........................................7
2. Current market size.............................................................................................................8
3. Identifying market leaders..................................................................................................9
4. Identifying current gaps or challenges encountered by users.............................................9
Reference List.......................................................................................................................11

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PART 1
1. Current organisational structure
Every organisation need to ensure that an effective organisational structure is formed
that can help in maintaining the stability of the business. According to Glavas and Mathews
(2014), the organisational tasks of the organisations are based on the structure and following
a proper hierarchical structure can help organisations to avoid any type of conflicting issues.
The assignment focuses on Austrade and the manner in which the structure of the company
affects its decision-making activity. Austrade follows a hierarchical structure that helps the
company maintain a continuous two-way communication flow between employees and
employers (Austrade.gov.au 2017).
Based on the structure, the operational activities of the organisation can be easily
supervised and the organisational goals are attained. The head of the company is the Minister
of Trade and Investment, Honourable Steven Clobo. This provides the company with an
opportunity to promote various trade activities with international companies and invest in
projects that are challenging. The chief assistance provided by the company is mainly in the
countries of Asia and America. Austrade controls the promotion, attraction as well as the
products invested in the foreign lands (Austrade.gov.au 2017). The main aim of the company
is to attract foreign investors so that the economic condition of Australia improves. Austrade
also acts as a good medium for providing information to people and organisations regarding
investments in foreign countries.

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Figure 1: Organisational structure of Austrade
(Source: Austrade.gov.au 2017)
2. Operational problems of Austrade
One of the important problems that Austrade face is the existence of the hierarchical
structure. The operation of the company is based on the hierarchical framework that provides
consists of a descending structure. Therefore, the employees do not get opportunities to
participate in decision-making activities and at the same time fail to maintain effective
communication. As stated by Drew, McCallum and Roggenhofer (2016) Austrade maintains

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the sanctions of the United Nations Security Council and accordingly maintain trade
restrictions, assistance and travelling sanctions of every country. The managers of Austrade
take up a dominating position in the organisation and because of this, employees remain
dissatisfied and stressed within the organisation. The stressful treatment of the workers put
extra burden that hampers the quality of work that is usually expected from the employees.
This hampers the productivity of Austrade.
Due to the existence of the hierarchical structure and the nature of the managers, the
communication process of Austrade suffers considerably. This is because transferring a
message from one department to another can require time due to the existence of different
managers. The operational factors of Austrade may be affected due to lack of
communication. This is because important messages related to the transportation of goods,
import and export of materials or the investment factors cannot be provided in quick time.
Therefore, as stated by Hill, Jones and Schilling (2014) proper strategies cannot be formed
due to the lack of communication and trust between the superiors and subordinates. This even
hampers the promotional activity of the company, as the products may not be received in a
positive manner due to the lack of proper planning.
3. Preferred system acquisition method
Austrade ensures that a proper relation is maintained between the buyers and sellers
for the promotion of the products and the investments of the company. In the modern world,
the application of technological assistance in the form of advanced software can help the
organisation to maintain its position in the market. Schaltegger, Etxeberria and Ortas (2017)
are of the opinion that Austrade can use certain software that can help the company to
maintain its stability in the business market. For example, Austrade can apply the commercial
software that can be effective for the promotion of the company.

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According to Lu et al. (2013), the application of the commercial software can help a
company like Austrade to identify its capabilities and help in the trading of the products and
services. This particular software is effective in providing companies with an opportunity to
indulge in technical prowess and ensure that the facilities as well as the productivity
increases. Given the current state of problems faced by Austrade, the application of this
software can help in meeting the business requirements. Dealing with the multiplication of
the products, Austrade can identify the factors that contribute to attracting foreign investors in
the market. At the same time, the commercial software is also time efficient and helps in
performing all type of activities by maintaining the regulatory compliance of the state as well
as the organisation.
4. Describing a system flowchart of the sales procedures of Austrade
According to Mas et al. (2014), maintaining a proper sales process can help an
organisation to attract customers as well as increase the efficiencies in the organisations. In
the case of Austrade, the company ensures that the buyers get the investment schemes that the
company is looking for and at the same time maintain a proper relationship with the
company. The relationship between the importing and exporting countries are also improved
with the application of software, such as the commercial software. Therefore, the sales
process of the company consists of ensuring that satisfaction between every sales party is
secured. It has been seen that the sales parties of Austrade deal with focusing on the
marketing of the company and the promotion of any new investment schemes.
Austrade also focuses on attracting investors so that the sales of the product can be
maintained in a proper manner. The marketing of the products provides Austrade with an
opportunity to meet the business objectives and make an agreement with investors so that the
satisfaction of the customers can be attained. As observed by Yen et al. (2015) this is one
way in which Austrade manages to gain the trust of the investors and recruit agents that can

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help in promoting the services of the company. With the help of the agents, Austrade can
attract customers from all over the world.
Figure 2: Sales process of Austrade
(Source: Created by author)
5. Identifying and controlling the problems in the company
In order to solve the problems, a company need to ensure that it develops its
technologies and resources to gain a competitive edge. The problems faced by Austrade are
in the form of both internal as well as external. Some of the issues faced by Austrade include:
● Competition rules
● Registration of the company
● Liability of its products and services
● Ineffective workers
● Territorial activities
● Limitations in contract
● Resolution disputes

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According to Van Wart (2017), the advanced methods that a company need to adapt
can vary depending on the type of problems faced and the advancement that has been made in
the society. Hence, it can be said that the Austrade can control its internal problems of
communication and mismanagement by ensuring that technologies are developed, teamwork
is maintained and efficient employees are recruited to promote the sales. Ruokolainen and
Aarikka-Stenroos (2016) stated that every company consist of an IP address that can be used
to track activities related to sales, transactions or delivery of information.
Similarly, with the help of the IP address of Austrade, the Government can keep
records about the foreign applications and investments of the company. Austrade can also use
the foreign IP addresses to identify the companies with which it can conduct its business.
This helps Austrade in maintaining the deals with the foreign countries. One of the positive
points of Austrade is the fact that it does not get involved in any type of dispute between the
local and the foreign companies. Friesen et al. (2014) stated that the company provides legal
assistance to law firms so that it can resist from facing any type of frauds and other illegal
activities such as distribution.
PART-2
1. Development and adoption of accounting software packages
Selecting proper accounting software can be difficult as factors such as popularity,
user ability and competence need to be taken into consideration. Organisations such as
Austrade faces problems in the application of the accounting software packages as the
company need to ensure that resources are available that is capable of implementing and
using the packages in a provisional manner. Austrade can gain success as it can lead to its
success in terms of productivity.

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Göllmann and Maurer (2014) stated that the application MYOB software could help
in the development of Austrade as it is one of the accounting software that is upgraded and
feasible. MYOB can help in providing ideas regarding the investment of the company and the
manner in which it can be used increase the safety and security of the company. However,
Austrade needs to keep in mind that using this particular software requires the expertise of
the employees. With the increased competition among companies, the application of this type
of accounting software can help Austrade to continue with the new and adopted software
(Leon 2014).
2. Current market size
Reports have provided evidence that the current annual revenue of Austrade is about
AUD$200 (Austrade.gov.au 2017). The chief executive officer of the company Stephanie
Fahey has opened up the provisions related to the trading with foreign countries. This can
help in increasing the level of employment in the company and ensure that the society in
which it works receive education related to the corporate social responsibilities of the
company. Therefore, the level of employability in the organisation can increase and it can
help in making proper investments in the company.
Currently, the total strength of employability in the company is about 100,000
workers. This is mainly because of the international development it has in the market and the
manner in which investment is made in the foreign countries. Austrade also helps in assisting
other Australian companies so that they can connect with the buyers and sellers. The
company also makes an investment as well as attract foreign markets for the greater good. It
has been reported that between 2004 and 2006, the company managed to provide grants
worth $394,009 (Austrade.gov.au 2017).

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3. Identifying market leaders
Despite being a private company, Austrade competes with both private as well as
public companies within the country. The rivalry of the company is mainly with The
Department of Human Services, a high ranked company in the region. The Department of
Human Service employs about 34,575 employees and ensures that the company maintains its
capabilities in the competitive market. The reason behind the success of the company is
mainly attributed to a proper organisational structure and the fact that it helps in maintaining
effective communication within the departments. The diversity of the market and the
diversity of the customers make The Department of Human Service a strong competitive
organisation for Austrade. As stated by Mayer, Melitz and Ottaviano (2014) the satisfaction
of the customers is important to the success of a company. In the case of Austrade, the
satisfaction of the investors is an important factor that needs to be considered so that the
company can remain a driving force in the international market.
4. Identifying current gaps or challenges encountered by users
The analysis shows that communication forms the biggest gap in Austrade. According
to Morse (2016), the application of certain software such as SHAREWARE or MYOB can
help in the development of the company. The application of this software can help in gaining
ideas about the manner in which investors can be attracted for the improvement of the
company. At the same time, trading of the company has been identified as a problem factor as
the lack of communication between employee and employer may hinder proper strategic
development. Nica (2013) is of the view that in order to get a perfect solution for the
company, it is necessary that software like SHAREWARE be applied. Austrade can use the
assistance of other market leaders in the industry and ensure that the application of
commercialised software can be effectively used. SHAREWARE can help in a smooth

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understanding of the business and ensure that proper trade relation is maintained with the
trading countries.

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Reference List
Austrade.gov.au. 2017. Austrade, Australian Government - Austrade. [online] Available at:
https://www.austrade.gov.au/ [Accessed 16 May. 2018].
Drew, J., McCallum, B. and Roggenhofer, S., 2016. Journey to lean: making operational
change stick. Springer.
Friesen, J. P., Kay, A. C., Eibach, R. P., and Galinsky, A. D. 2014. Seeking structure in social
organization: Compensatory control and the psychological advantages of hierarchy. Journal
of Personality and Social Psychology, 106(4), pp.590.
Glavas, C. and Mathews, S., 2014. How international entrepreneurship characteristics
influence Internet capabilities for the international business processes of the firm.
International Business Review, 23(1), pp.228-245.
Göllmann, L., and Maurer, H. 2014. Theory and applications of optimal control problems
with multiple time-delays. Journal of Industrial and Management Optimization, 10(2),
pp.413-441.
Hill, C. W., Jones, G. R., and Schilling, M. A. 2014. Strategic management: theory: an
integrated approach. Boston: Cengage Learning.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Lu, J., Shambour, Q., Xu, Y., Lin, Q. and Zhang, G., 2013. a web‐based personalized
business partner recommendation system using fuzzy semantic techniques. Computational
Intelligence, 29(1), pp.37-69.
Mas, J. F., Kolb, M., Paegelow, M., Olmedo, M. T. C., and Houet, T. 2014. Inductive pattern-
based land use/cover change models: A comparison of four software packages.
Environmental Modelling & Software, 51, pp.94-111.
Mayer, T., Melitz, M. J., and Ottaviano, G. I. 2014. Market size, competition, and the product
mix of exporters. The American Economic Review, 104(2), pp.495-536.