Strategic Information System Analysis and Business Strategy for Coles

This report provides a comprehensive analysis of Coles' strategic information system, examining its organizational structure, operational challenges, and system acquisition methods, including custom software and ERP systems. It delves into the importance of accounting software packages, discusses the market size of Coles, and identifies challenges related to globalization, cybersecurity, and employee training. The report also explores fraud prevention strategies, the significance of system flowcharts, and the impact of leadership on achieving competitive advantage in the market. Furthermore, it highlights the adoption of accounting software, analyzes the company's market share, and discusses competitive dynamics within the Australian market, including comparisons with competitors like Woolworths and Aldi. The report concludes with recommendations for improvement and emphasizes the need for effective information systems to support Coles' business strategy.

Running head: Strategic information system
Strategic Information System

Strategic Information System
Table of Contents
Introduction.................................................................................................................................................2
Part 1...........................................................................................................................................................2
The current organizational structure of Coles.........................................................................................2
Operational problems..............................................................................................................................3
System Acquisition method.....................................................................................................................4
System Flowchart....................................................................................................................................5
Control problems to minimize fraud in the system.................................................................................5
PART 2.........................................................................................................................................................7
Development and adoption of accounting software packages................................................................7
Market size of Coles................................................................................................................................7
Challenges and Recommendations..........................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Strategic Information System
Introduction
Coles take into consideration ERP system and Accounting software as a major aspect to
conduct the activities of the company. This paper will give emphasizes on Coles to discuss the
importance of the custom software, ERP system and also the accounting software system.
Therefore, this paper will focus on the discussion concerned with how the organization has made
and created effective culture and diversity in the workplace.
The paper will also discuss that how the company is trying to manage the activities. This
will consider flowchart and the significance of leadership. The analysis will be made on the
activities of the leaders, that how they are contributing towards achieving competitive advantage
in the competitive environment.
Part 1
The current organizational structure of Coles
Coles focuses on offering better quality products and services to the consumers so that
image can be maintained in the market. In Australia, Coles is one of the largest and trusted
companies. The head office of the organization is situated in Melbourne. The company was
established in 2007 and there are more than 21 million customers who are connected with the
company and avail the services and offers. The company has more than 101,000 employees who
are conducting their assigned task in the company itself and retail outlet of Coles are more than
23000 worldwide. The founder of the company is George Coles (Coles, 2018).
The main motive of the company is to attain good customer case worldwide so that
growth can be achieved in a proper manner. Cole's focuses on the effective supply chain as it can
help to enhance the wants of the customers. The decisions of the company are taken by the group
executive committee and they try to manage the activities conducted in the company. Coles was
acquired by Wesfarmers in 2007 (Qrunfleh and Tarafdar, 2014).
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(Source: Group structure, 2010).
Operational problems
Coles emphasizes on managing the operational problems when the activities take place
on an international level. The issues concerned to the activities can give influence of the revenue
and profits achieved by the organization. It is also analyzed that the issues give effect on the
sustainability level. The effects on the profits are just because of the taxation and high cost of
products (Qiu, 2016). The major issue faced by Coles is concerned with the language. It is
important that message within the software should be translated in a correct way. The impact can
also be analyzed on the overall employee's efficiency and effectiveness. There are also cultural
barriers which affected the overall growth rate of the company (Nusa, 2015).
Cross culture is also one of the problems in which the employers are not capable to
enhance the relationship with the other people. It has been evaluated that Coles does not
emphasize on giving training to its workers and due to lack of training the employees are not
able to gain knowledge and information about the working system of the technology (Grimmer,
2018).
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The workers of the organization do not have proper knowledge of the latest system and
technology. It has been examined that revenue is affected because the problem related to
technology and also with the employees. There is no proper workforce in the organization and
this is the major reason due to which the employees do not give focus to the resources and
capabilities of the organization (Jarzabkowski and Kaplan, 2015). The employee's mistakes are
enhancing day by day just because of lack of training. The employees are not able to show their
efficiency towards the work assigned. It is important to control the activities in a proper manner
as the activities are conducted on a global basis.
System Acquisition method
The essential part of Cole is related to the information system in which it helps to attain
success and growth of the organization. This method helps to accomplish the long-term goals so
that the operations can be done in a proper manner. There are various methods of acquisition
which is taken into consideration by the company. The methods are custom software and
enterprise planning system.
The important technique is commercial software in which it is seen that data is recorded
and also tracked in an effective manner. This method is helpful to accomplish long-term goals so
that in right directions the activities can be completed. This software helps in selling the products
and services and it has been seen that Coles consider the example of Ms. Office. Custom
software is also helpful in satisfying the requirement of the customers. This software also helps
in designing and completing the task according to the requirement and also the changes take
place in the organization are managed through this software (Deulkar et al., 2018).
ERP system is taken into consideration by the company so that integration of the
applications and data at the workplace can be done in a proper manner. Back office operations
are controlled by considering effective solutions to the issues. It has been seen that ERP system
is taken into consideration by the organization at the time of completing the operations of the
company. ERP system helps the company to take accurate decisions which will help to achieve
success in the marketplace (Nour and Mouakket, 2013). If enterprise solution is considered by
the company then it can be easy to offer good quality products and services to the customers. If
the company has strong ERO solutions then proper track can be kept of the regulations within the
company and changes can also be managed.
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Strategic Information System
System Flowchart
(Source: Sales process Flowchart, 2018).
In this flowchart, proper evaluation of the activities conducted by the company is
elaborated. System flowchart is related to the proper investigation of the sales of products and
services. The diagram shows that how the company satisfy the needs and wants of the customers.
To create a creative flowchart it is seen that the company offers training and development so that
sales process can be conducted in a proper manner. The managers and the warehouse keeper
focus on the essential role in the technique of system flowchart.
Control problems to minimize fraud in the system
In the present scenario, there are various problems faced by the company. Some
of the issues that should be managed are globalization, change in the organization, infrastructure,
and cybersecurity. Coles is also facing issue to retain and recruit talented employees in the
company. In the issue related to globalization, it is analyzed that company is facing major
setbacks and due to this the focus is also not given by the company on the competitors. It has
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also given influence on the overall result of the organization. It has been analyzed that Coles is
considering the old technology and system in the company and it creates problem to conduct the
activities (Peppard and Ward, 2016).
The issue related to the cyber security is considered by the company so that privacy can
be maintained in the activities conducted by Coles. As a result, it is seen that a data breach can
give loss and adverse impact on the goodwill of the company and also on its bottom line (Price,
2016). If these operations are not considered by the company in the proper manner then the
negative impact can be seen in the daily activities conducted by the employees of the company.
Coles is trying to gather the data concerned with the customer and system as it is giving an
adverse effect on the overall financial position of the company (Olstad et al., 2016).
By not having sufficient wage system the company is facing the issue to retain the
employees in the organization. When changes take place the employees do not consider the
changes and it sometimes led to a loss of the company. By not having proper software it has been
seen that misunderstanding and conflicts between the workers enhance.
There are many acts on which the company should focus so that fraud in the system can
be reduced. Auditing is one of the methods that can help the company to control the frauds and
mistakes which is done in the company. Services related to cloud-based should be taken into
consideration by the company so that the frauds in the workplace can be seen. It is also important
for the company to focus on retaining the employees so that the problems concerned with the
software and flowchart can be reduced. It is also important to retain the employees so that
competitive advantage can be maintained in the company.
It is essential to give training to the employees so that employees can be retained and also
errors can be minimized. Training is the method that not only gives knowledge to the employees
but also helps to give direction in which they should conduct the activities. The confidence level
is enhanced by the employee if proper training is given. This is the best way in which the
company can be a good leader in the market and can give tough competition to the competitors.
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PART 2
Development and adoption of accounting software packages
To adopt the accounting software package is beneficial for the company as it helps to
control the routine transactions and also ledgers of the customers and suppliers. The financial
statements are also maintained through this method and the employees will be efficient towards
the working pattern. In the organization, it is seen that cost and expenses also take place in Coles
(Simkin Norman and Rose, 2014). It has been seen that accounting system software helps in
technological advancement in the accounting sector. To analyze the practices of the business this
software is considered by the company because through this it can be simple to gather the
information (Kamal et al., 2015). If the information is gathered in proper manner then it can help
to enhance the company's sales.
Market size of Coles
Coles has a large market share. By giving offers and discounts the company has made a
good relation with the customers and this has given impact on covering the large market share. In
2017 the company has more than $ 220 Mill of gross profit and also the large market share as
stated in the image (Coles, 2018). Due to high profits, the company also has the stable financial
position in the market of Australia. The operations are completed in a proper manner by having a
large market share. The good financial position helps to consider the resources that help to
remain in the competitive environment (Phillipov, 2016).
Proper leadership is considered by the company so that routine activities can be
controlled in a proper manner. Research and development is the factor that can help to lead the
employees. By having goodwill the market the company has achieved large market share. The
culture and the conditions of the company can be managed effectively (Boedker et al., 2011).
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(Source: Supermarket Weep, 2016).
Leaders in the market and competitive advantage
It has been analyzed that in the Australian market there are many leaders who are
conducting the same operations. The competitors are Woolworths and Aldi. They focus on
offering to innovative products so that large market share can be grabbed. Coles consider
effective marketing and pricing strategies which induce customers towards the products. Due to
this rivalries are also minimized in the market (Chimhundu, McNeill and Hamlin, 2015). Coles
focuses on the distributing system in which proper distribution of products and services takes
place. This helps to satisfy the requirement of the customers and also helps to achieve
competitive advantage.
Challenges and Recommendations
There are many problems faced by the organizations when they conduct the activities by
focusing on the accounting software packages and ERP system within the company. Due to
having an effective accounting system the frustration level of the customers is enhancing day by
day. The accounting software can only be accessed with the help of internet and just because of
the distance in data center problems take place at the time of conducting the activities. Also, the
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packages are expensive and they not providing the data to the consumers. It has been examined
that the data file is not analyzed with the help accounting software packages (Otley, 2016).
By analyzing the information it is recommended that the company should emphasize on
the giving proper training to the employees so that efficiency can be maintained in the activities.
Cloud-based accounting software should be taken into consideration so that issues can be
reduced in the workplace. To achieve success in the marketplace it is important for the company
to focus on considering the latest technologies so that retention of the employees can take place.
If there is sustainable human resource management then only the company will be able to
bring best out of the employees. Also, Coles should emphasize on giving a right job to the right
candidate to enhance the overall efficiency. By recruiting right candidate on the right post can
help to enhance the confidence level in conducting the assigned task.
Conclusion
It can be concluded that Coles should emphasize on considering the ERP system and also
accounting software packages so that on the international level the products and services are
sold. This analysis states that ERP system and accounting system software are important for the
company as it can assist in enhancing the range of the products offered to the customers. It is
also essential to manage the operational and control issues as it can give effect at the time of
implementing the ERP system and also the accounting system software. To compete in the
competitive environment it is important to offer discounts to the customers so that competitive
advantage can be achieved and the activities can achieve growth in the market.
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References
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