Strategic Information System Analysis Report: Wesfarmers Limited

This report provides a comprehensive analysis of Wesfarmers Limited's strategic information system. It begins by examining the organizational structure adopted by Wesfarmers, highlighting the conglomerate structure and its implications. The report then delves into the operational issues faced by the company, particularly those related to the retail divisions and the adoption of its structure. It explores the system acquisition method, focusing on the use of Enterprise Resource Planning (ERP) software and its benefits. A detailed sales flow chart is presented to illustrate the sales process. The report also addresses control problems, potential frauds, and the development and adoption of accounting software, along with an analysis of the current market size and competitive advantage. Finally, it discusses current gaps and challenges in the accounting software's implementation and the leadership strategies employed by the company. The report concludes with a review of the business operations and acquisition methods for accounting purposes.

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Strategic Information System
According to the survey executed it has been noted that alterations made in the
organizational structure after the emergence of the concepts of information technology or
information systems. Long term strategizing and planning for the above-mentioned concept have
been the top priority for the management of any of the business corporation. Moreover, it has
also been stated by Amrollahi, Ghapanchi and Najaftorkaman, (2014), that strategic information
system is a mechanism which has been developed as an outcome of the initiatives taken by the
business corporation so as to attain competitive advantage. The concept has been considered as a
salient feature of the aspects of information technology. A strategic information system is the
mechanisms which have been developed so as to aid the business entity in segmenting the
various operations which are concerned to store management and transformation of data which
has been received and developed.
Organizational structure
On the basis of the survey conducted by Greenblat, E, (2015), it has been concluded that
Wesfarmers has been working and operating the business activities as per the conglomerate
structure which has been adopted by the organization. The adopted structure has been formed by
combining two or more business corporations and that too in a single corporate structure. This
amalgamation has developed a group of entities, which comprise a single parent entity and
different subsidiaries of the same. But as per the organizational structure adopted by
Wesfarmers, it has been stated that the concept of diversification has been considered as a
normal practice, and also a multi-industry corporate structure has been presented and also these
organizational structures are referred as multinational one. As Wesfarmers has been astute –
holding up calmly to buy quality organizations at engaging costs throughout the years and in the
process making a stone strong aggregate structure. Adoption of this organizational structure has
aided the business entity by bringing the reduction in the risks pertaining to risks and moreover,
a capital market will be developed within the business corporation which will be bringing
development and growth and success.
Operational issues
On the basis of the analysis conducted by Treadgold, T, (2016), it has been observed that
the business entity has been facing a crisis which made the investors worry. The business entity
was relying highly on the on the retail divisions especially on the food and liquor divisions of
Coles, and the same was under risk from various directions. Moreover, the author also noted that
there are several issues due to the adoption of the above mentioned organizational structure.
Adoption of this structure has made an increase in the size of the group which has brought
enhancement in the managerial and operational expenses. Further, the business entity has been
facing a number of operational issues such as it can be related to the accounting operations
(Galliers and Leidner, 2014). For instance, the business entity will be facing an issue of reduction
in development and innovations and this is due to inertia. Moreover, taxation of group structure
will bring a reduction in the taxation benefits. The workforce will be having a less level of focus
and also it will be difficult for the managerial team to manage a un-related and well-diversified
business effectively.
System acquisition method

Strategic Information System
Enterprise resource planning (ERP) is business process management software which
enables the Wesfarmers in utilizing a mechanism which is formed due to the integration of the
various applications. This application can be adopted by the business entity and also can be
considered as the best and most likely system acquisition method (Peppard and Ward, 2016).
Moreover, this system will also allow the firm in automating a number of functionalities which
are associated with back office and technology and human resources.
Sales flow chart of Wesfarmers
The above presented is the sales flow chart which has been segmented in various divisions and
the explanation of the same is described as below:
The initial step includes prospecting .i.e. finding the clients, investigating the necessities
and the prerequisites and after that introduction of the request sheet which contains the insights
about the items which is the basic requirement for the clients while putting in the request
(Pearlson, Saunders and Galletta, 2016).
The next is the approach which is to be made by the organization towards the clients. A
decent approach will decide the achievement way of the business procedure. The sales
representative ought to have a decent learning about the items which are to be sold.
Sales Flow Chart of Wesfarmers Limited

Strategic Information System
The evaluation ought to be planned for a request to decide the requirements of the buyers.
This will help the sales representative in coordinating the endeavors which are to be made in
order to pitch the items to the focused on the customer.
After that, the items are required to be displayed before the shoppers. This will help in
building up the will to purchase the item. A solid and appealing introduction will guarantee a
positive reaction of the purchaser towards the item.
The greater part of the business procedure flops as the sales representative neglects to
close the procedure adequately (Cassidy, 2016). This has been considered as propelling the
procedure towards getting an extreme request.
The last stride during the time spent taking the development, a great follow-up wills
twofold the accomplishment of shutting proportion.
Control problems
Updating and managing the ledger and accounting records are expected to be done by the
warehousing supervisor.
Determination of the orders is done by the managers.
The below mentioned are the frauds which can occur in the system:
In most of the cases, the supplier is selected by the warehousing manager and after that
order is placed. The inventory ordered which will be of no use or it can also be ordered at higher
prices as compared to the market price.
The vendor can also be a reason of fraud in this case, where the manager is the authority
for ordering and receiving the inventory (Aversa, Cabantous and Haefliger, 2017). The manager
can present himself as a process and execute fraudulent transactions.
Development and adoption of the accounting software
The term accounting software has been considered as an application which can be
adopted by the business entity for recording and processing accounting transactions that are
within the functional areas such as accounts payable and accounts receivable trial balance and
general ledgers. In the above scenario it has been stated by the Realitysoftware, (2017), that
accounting software is a mechanism which comprises of the various segments of accounting
section within Wesfarmers Limited. The accounting software has been serving a number of
benefits to the business corporation and the same is presented by the author. The accounting
mechanisms will be planned, maintained and implementation of the same will be aided. This
approach has been established by combining the distinct models and the same are dealing with
some specific areas of accounting which are mentioned as follows:
Accounts receivable: Billing and payments of the dues is done
Accounts payable: Money owed will be transacted by Wesfarmers
General ledger: Record of all company’s books

Strategic Information System
Current size of market
A detailed survey has been conducted for getting aware about the current size and the trends of
the market of Wesfarmers Limited. According to the research conducted by au.finance.yahoo,
(2017), has been enjoying a leading position in its sector and is a multinational brand name. The
below mentioned are the key takeaways and are presented by the author as follows:
Revenue was seen to have a hike of 4.3% to $34.9 billion
Whereas, the Profit 13.2% to $1.6 billion
A half year fully franked dividend of $1.03 was declared, up 13.2%
The retail and supermarket sector has been stimulated and ruled by some of the business
corporations and from which Wesfarmers (Coles) and Woolworths are Australia’s are considered
as the largest. The last five decades has been witnessed as very much beneficial for the both the
business corporations in the form of a number of sustainable developments (Rainer et al., 2013).
And both the entities and more than doubling their combined market share to over 70 per cent of
the country’s supermarket/grocery sector. Moreover, it has also been noted that the total market
share of the business entity is 35%.
Leaders in the market and attaining competitive advantage
On the basis of the study led by Richard Goyder which is the present CEO of the Wesfarmers
Limited and preceding this, he was named in this association as the Managing Director in 1993
and in 2005; he was elevated to the most noteworthy specialist of the association (Roberts,
2016). Richard's initiative style is one of a kind and compelling and his advancement is the proof
of his viable authority procedures and styles Alongside Richard Goyder, Rob Scott, current
Deputy Chief Executive Officer of the Wesfarmers Limited. Aside from these two officers, there
are numerous more pioneers present in the Wesfarmers limited. Initiative methodologies
embraced by these identities have helped the Wesfarmers Limited to build up their viable
position in the worldwide market (Sarker, Xiao and Beaulieu, 2013). It is seen that
fundamentally present day quality hypothesis of authority and a behavioral hypothesis of an
initiative is being drilled in the working environment of Wesfarmers restricted. As these styles
are the outcomes arranged styles. Woolworths is the essential contender of Wesfarmers and both
of these associations are extended in remote nations.
The most suitable and dependable method utilized by Richard Goyder is holding ability and key
workers. Maintenance of key representatives is the greatest open door for each association since
they comprehend the circumstance of the association and the working strategies know about
them. The arrangement of any new worker rather being skilled and encounter, he would require
some an opportunity to settle down in the new business condition (Willcocks, 2013).
Arrangement of new worker in the place of any accomplished representative does not assurance
for positive outcomes but rather maintenance of key and experienced representative is the
insurance that association does not requirements to experience the ill effects of misfortunes or
from questionable circumstances
Current gaps and challenges in accounting software’s
Execution of ERP framework in the association is not a simple task and every one of the
procedures performed in the association does get influenced by the usage of ERP framework

Strategic Information System
(Morecroft, 2015). The primary test would be tested to utilize the new and propelled procedure
for its clients. Wesfarmers restricted necessities to designate a designer or a specialist who could
direct the workers and alternate individuals from the association with the goal that proper
outcomes could be gotten for which ERP framework was executed. Another enormous test
would be spillage of mystery and secret data of clients. This is because of an absence of
mindfulness in pertinence with the utilizing propelled innovations which were actualized with a
view to building the productivity of the association (Peppard and Ward, 2016).
In the limelight of the above-executed analysis, it has concluded that Wesfarmers is a brand
name in the region of Western Australia. The business entity has been a diversified range of
business operations which includes supermarkets, liquor, convenience stores and hotels;
improvement; office supplies; department stores; and an industrials division with businesses in
chemicals, energy and fertilizers, industrial and safety products and coal. The above presented is
the review of the current organizational structure which has been adopted by the business entity.
Moreover, the further report comprises of the acquisition methods which can be adopted by the
business corporation for accounting purposes. The further analysis concludes the operational
issues and the accounting software packages which are required to be adopted by the business
entity for the execution of the accounting and other associated activities

Strategic Information System
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