Strategic Information System Report: An Analysis of StarBox Limited

This report provides a comprehensive analysis of StarBox Limited's strategic information system (SIS). It begins with an introduction to accounting information systems and their importance in decision-making. The report then delves into StarBox's organizational background, highlighting its market position in the wooden box and packaging industry. Part 1 focuses on the organizational structure, operational problems such as high product prices and ineffective marketing, system acquisition methods (ERP), sales flowcharts, and control problems. Part 2 analyzes accounting software packages, market size, identifies market leaders and competitors, and offers relevant recommendations for StarBox, such as price reduction, technology upgrades, and improved marketing strategies. The report concludes by emphasizing the significance of SIS in organizational success and the importance of accounting software for efficient business processes.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System: StarBox
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Organizational Background of StarBox.............................................................................3
Part 1......................................................................................................................................3
1. Organizational Structure of StarBox..............................................................................3
2. Operational Problems of StarBox..................................................................................4
3. System Acquisition Method of StarBox........................................................................7
4. Sales Flowchart of StarBox............................................................................................7
5. Control Problems in the System.....................................................................................8
Part 2......................................................................................................................................8
1. Accounting Software Packages......................................................................................8
2. Current Market Size.......................................................................................................9
3. Identification of Market Leaders and Competitors........................................................9
4. Relevant Recommendations for StarBox.....................................................................10
Conclusion................................................................................................................................10
References................................................................................................................................12

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Introduction
Accounting information system is the proper amalgamation of various records,
methods and people for the sole purpose of utilizing them to gather the various financial data
about each and every business event (Galliers and Leidner 2014). This processing or
recording of data or information is eventually done to make the transaction complete and
successful. The communication of information is extremely vital for any decision maker as
well as end user. The process of decision making is extremely easier with this accounting
information system. The proper collecting, recording and also organization of financial
transactions of any specific company is eventually done by AIS or accounting information
system (Willcocks 2013). The major objective of this accounting information system is that
there is a proper record or collection of any financial datum for making them important
financial information. There are various elements or components of the AIS or accounting
information system. These components are sub divided in five categories (Laudon and
Laudon 2016). These categories are information storage, source documents, information
processors, input devices and output devices. Several organizations use this information
system.
The following literature review outlines a brief discussion on the popular provider of
various quality wooden boxes and packaging within Australia, namely, StarBox. The
strategic information system or SIS is implemented within this organization and thus the
organization has become successful with its unique strategies. Furthermore, they have
incorporated a system acquisition method to attain all the organizational goals and objectives.
The second part of this literature review is the proper selection of accounting software
package, probable competitors, and market size and market leaders.

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Discussion
Organizational Background of StarBox
One of the most promising organizations that is leading the market of wooden boxes
as well as packaging in Australia is StarBox Limited. The organization was started in 1940s
and had been leading the market for all these years (Starbox.co.nz. 2018). Recently, this
particular organization is the most popular manufacturing organization of the wine boxes,
cable reels, pallets, wooden presentations, cases and many more in New Zealand and
Australia. The other products that they are manufacturing are boxes and crates for shipping or
display.
Previously, this organization only used to manufacture crates or boxes for military
and soft drinks companies. Now, StarBox Limited is also manufacturing presentation boxes
and bed frames. Significantly, six major product types are being manufactured in this
organization (Starbox.co.nz. 2018). These are display stands, cable reels, wine box, cases,
pallets and gift box. Best raw materials are being utilized by this organization for the purpose
of making the products perfectly. StarBox Limited is considered as the best organization for
gift box and presentation box and no other organization has the ability to acquire the market.
Part 1
1. Organizational Structure of StarBox
Organizational structure of any organization provides a clear view of each and every
management level and the most important shareholders and stakeholders of the organization
(Al-Hiyari, AL-Mashre and Mat 2013). The organizational structure of StarBox Limited is
given below:

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Figure 1: Organizational Structure of StarBox
(Source: Starbox.co.nz. 2018)
The above figure shows the organizational structure of StarBox Limited. Various
significant management levels and organizational bodies of the organization are shown here.
The top management level starts with shareholders as well as board of directors. The various
departments of the organization mainly include production, marketing, financial, human
resources and technical (Altameem, Aldrees and Alsaeed 2014). All these departments have
further sub departments and several staffs are working within these departments.
2. Operational Problems of StarBox
StarBox Limited is the best organization for providing wooden boxes as well as
packaging within New Zealand and Australia (Uçaktürk and Villard 2013). In spite of having
various advantages and extra ordinary features, some of the most significant operational
problems are present within the organization. These operational problems are eventually
responsible for bringing the organization in a degrading place. One of the significant
problems of this organization is that as the product quality of this organization is very high,

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the price of the products is also very high and thus the products are unaffordable by everyone.
This is driving away the customers and they are not buying any more products from the
organization and rather they are looking for other companies, which can provide them with
cheaper items, however with same quality. The second important operational problem is risk
management of the organization (Lee et al. 2015). They are unable to control or mitigate their
risks and thus, the market shares are going down drastically. As, the clients are dissatisfied
with the high price; the total revenue and annual dividend are going down. The major reason
of this share degradation is various wrong strategies, which they have undertaken for their
business. Hence, all these wrong strategies should be changed (Pearlson, Saunders and
Galletta 2016). Moreover, the technology must be changed and the systems should be
upgraded periodically. This would help in maintaining a balance with the new market trends
and also maintain a fair competition with the other existing organizations. The next vital
operational problem within the organization of StarBox Limited is the ineffective marketing
team. They are not marketing their products properly and thus the new customers are not
aware of the products and services (Amrollahi, Ghapanchi and Talaei-Khoei 2013). This
losing of customers is extremely dangerous for them and hence it is affecting their shares.
Figure 2: Shares Downfall in StarBox
(Source: Starbox.co.nz. 2018)

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The above figure has properly depicted the shares fall for the organization of StarBox
Limited. During 2010, their shares were more than 30% and during 2012, the shares have
gone down to lower than 5% (Haux et al. 2013). Thus, the organization is suffering from
major problems.
There are various significant strategies of StarBox Limited. They are given below:
i) Strong Bonds with Market: StarBox Limited always maintains a stronger bonding
with market and thus they always get better raw materials for the products. The supply of the
raw materials is also proper.
ii) Strong Financial Discipline: The second strategy is that the shareholder value
added system or SVA system is implemented in the entire business operations of StarBox.
The productivity and the cost is thus checked and estimated by the most basic system
(Pearlson, Saunders and Galletta 2016).
iii) Balanced Investment Approach: The next significant strategy of the StarBox
Limited is a balanced investment approach. Due to the balanced investment, the organization
is able to maintain the top position even after so many years.
iv) International Export: Another important strategy of the StarBox Limited is that
they are not only providing products to the domestic regions, but also internationally in the
entire world. Thus they are able to obtain popularity in the world.
v) Flexibility to Labours: The final important strategy of this particular organization
is the proper flexibility to the labours of the organization (Simkin, Norman and Rose 2014).
A healthy relation is maintained with all the employees and customers of the organization.
These above mentioned strategies have helped the organization of StarBox Limited to
gain popularity and competitive advantages for the business.

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3. System Acquisition Method of StarBox
StarBox Limited is popular for its excellent strategies that they have undertaken for
the business. The system acquisition method that they have implemented within their
business is ERP or Enterprise Resource Planning. The system acquisition method helps any
organization in successfully maintaining or executing business processes or operations within
the business (Arvidsson, Holmström and Lyytinen 2014). Enterprise Resource Planning is the
type of enterprise application that is eventually designed for the purpose of integrating each
and every significant business process to one single business process and thus making the
business processes easy to execute. Enterprise Resource Planning is thus StarBox has got all
the advantages of this particular software. Moreover, the business processes have become
extremely effective and efficient.
4. Sales Flowchart of StarBox
Sales flowchart of any organization provides a view of the sales process of the
company clearly and properly.

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Figure 3: Sales Flowchart of StarBox Limited
(Source: Starbox.co.nz. 2018)
The above flowchart shows the sales process of the organization of StarBox Limited.
The first stage in this flowchart is requirement of product. Next, the design is being prepared.
The third step in this flowchart is the definition of problem. Analysis of the process is done
and synthesis as well as optimization is done in the next processes. Finally, the evaluation of
prototype, refinement and manufacturing is done.
5. Control Problems in the System
Several important problems are present in the system. Erroneous strategies are the
most significant amongst them. All the stakeholders of StarBox Limited are unhappy with the
business processes (Ismail and King 2014). The business trends are altering every year and
the organization is not being able to cope up with these trends. For mitigating all these
problems, StarBox Limited should opt for service process and such issues would be resolved.
Part 2
1. Accounting Software Packages
Accounting software packages are eventually used by any organization to gain or
obtain utmost popularity and hence the business processes can become extremely efficient.
These accounting software packages help in reducing all the business complexities for the
successful mitigation of threats or issues (Bernus, Mertins and Schmidt 2013). The most
common risk in all businesses is financial risks. These risks could be successfully mitigated
with the help of accounting software package. StarBox Limited has implemented the software
package of Xero within their business. It is cloud based software that is mainly popular for
the smaller or medium organizations. Various benefits are present within this software.

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2. Current Market Size
The market size of this particular organization of StarBox Limited is going down
drastically and thus they are facing major problems due to this. This particular organization is
trying in getting back to the previous position with proper measures (Power, Sharda and
Burstein 2015). This current market size of the organization also helps them in maintaining a
proper good relation with all of their customers and employees.
3. Identification of Market Leaders and Competitors
The following graph shows the major market leaders and competitors of the
organization of wooden boxes as well as packaging items.
Sales
Other 8.10%
The Wooden Box Factory 9.80%
ABC Crates 12.50%
Starbox 36.30%
Sydney Crates 33.20%
Figure 4: Sales of StarBox Limited and Competitors
(Source: Created by the Author in Ms Doc.)
The sales percentage of all these organizations is properly provided in the graph. It is
clearly shown that StarBox Limited is leading the market.

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4. Relevant Recommendations for StarBox
The organization of StarBox Limited is suffering from several issues. The first
important problem of this organization is the higher price of the products. The
recommendation to this problem is to reduce the prices as soon as possible. The second
problem is the lack of upgraded technology. The recommendation to this problem is to
upgrade their systems. The final problem is the ineffective marketing team. They should
advertise their products properly so that the customers can know about the products.
Conclusion
Therefore, from the above discussion, it can be concluded that strategic information
system is one of the most important and significant requirement within any organization. It
helps the organization by helping them in taking several strategies effectively and efficiently.
The accounting software system or AIS can be defined as the type of information system,
helping in proper collection and processing of data or information for the purpose of
distribution of this information to all the users. Any type of data operation that is related to
the accounts is properly executed with the accounting information system. The management
levels of any organization use this information system for the core purpose of decision
making for their business. In the prior days, the AIS or accounting information system was
managed manually, however, in recent days; the system has become perfectly computerized.
The important functions of this system mainly involve operation of efficient data, information
supply to take significant decisions and also be sure regarding the controls of the business.
The six important parts of this particular information system are procedure, people, internal
controls, software, information technology and data. The systems and applications of the
software are properly managed by this software with the purpose of financial data processing.
The above literature review has properly highlighted the accounting information system and

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strategic information system of a wooden box and packaging Australian company, StarBox.
Various important details are provided within the literature review for understanding the
organizational strategies and position perfectly.