Analysis of Strategic Information Systems at Wesfarmers Limited

This report provides a comprehensive analysis of Wesfarmers Limited's strategic information system. It begins by examining the company's organizational structure as a multinational corporation and its operational issues, including the impact of market competition and the challenges of maintaining managerial control. The report then delves into the system acquisition methods employed by Wesfarmers, highlighting the role of information technology and the sales procedures. It also discusses the control issues related to accounting practices, including the development and significance of accounting software. Furthermore, the report assesses the market size and the leaders in the Australian retail market, including Wesfarmers and its competitors, while also identifying current gaps and challenges in accounting software. The analysis emphasizes the importance of strategic management and information technology in enhancing organizational performance and achieving business objectives. The report also considers the implications of various organizational structures, operational challenges, and system acquisition methods on the overall success and efficiency of Wesfarmers Limited.

Running Head: Strategic Information System
WEsfarmers Limited
Strategic Information System

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Table of Contents
Organizational structure...................................................................................................................2
Operational Issues............................................................................................................................3
System Acquisition method.............................................................................................................3
Control Issues..................................................................................................................................4
Development of accounting software..............................................................................................5
Market Size......................................................................................................................................5
Leaders in market............................................................................................................................6
Current gaps and challenges in Accounting Software.....................................................................6
References........................................................................................................................................8

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Organizational structure is a significant factor for every business enterprise in order to
accomplish the desired goals and objectives in an appropriate manner. This is done to improvise
organizational efficiency, productivity as well as to develop an effective workplace environment.
Organizational structure is a combination of several strategies and methods. These are adopted
with the objective of attaining sustainable development and growth for business. Primary
objective of every business enterprise is to sustain in the competitive and dynamic business
environment for a longer period of time. In relevance with coping up with the changing time and
trends, organization is required to adopt certain crucial elements in order to improvise its
organizational structure. Apart from the organizational structure, techniques in relation with
strategic management are also required. This helps the organization to uplift its efficiency along
with the development of an effective marketplace.
In relevance with the strategic management and organizational structure, it is required for an
organization to consider information technological factors. Information technological factors
plays crucial role in terms of enhancing the performance of the organization along with
highlighting the advanced measures of the organization. With the help of information
technology, organization could easily move towards automation and this also leads to decrease
the chances of errors. In this assessment, requirement of accounting software, significance of
accounting software, etc. aspects will be discussed. Apart from this, organizational structure of
Wesfarmers Limited will also be discussed in order to manage organizational functions in an
effective manner. Strategic management policy will also be discussed as it is feasible enough to
accomplish the management related tasks in an effective manner (Cassidy, 2016).
Organizational structure
Wesfarmers Limited is an Australian multinational corporation headquartered in Perth. Company
was founded in 1914 and areas served by the organization are New Zealand, Asian countries,
UK, etc. Company is engaged in several areas such as coal, mining, chemicals, and fertilizers.
Apart from this, organization also deals in industrial safety products. Along with these
operations, organization has attained leading position in the Australian market in terms of
revenue by overtaking Woolworths Limited and BHP Billiton in 2016. Wesfarmers Limited is

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known as the largest private employer in Australian market with approximately 220,000
employees (Wesfarmers Limited, 2018).
As organizational functionalities are expanded in various countries, thus, organization has
adopted multinational corporation type organizational structure. This is done to improvise
organizational performance as well as to manage all the functionalities of all the stores from one
place. This organizational structure is known as the combination of two business entities that
have the same corporate background. As Wesfarmers is engaged in sundry industrial operations,
thus, adaptation of common organizational structure would be of no use. Recognising these
challenges, organization has adopted multinational type of organizational structure with the
motive of performing organizational activities in an effective manner along with meeting with
the desired organizational goals and objectives. Apart from this, the adopted organizational
structure by Wesfarmers Limited will help them to cope up with the changing business
environment. This organizational structure has helped the organization to uplift its performance
in the dynamic business environment along with gaining leading position in terms of revenues
(Sarker, Xiao & Beaulieu, 2013).
Operational Issues
In the concern of author, it has been evaluated that there are numerous factors which affect
organizational performance, efficiency as well as effectiveness. It has been observed in the
Australian business environment that various multinationals, supermarkets, hypermarkets, etc.
have shown their interest towards food and beverage industry. Both these industries are quite
effective in terms of expansion of the organizational business and this is the reason organizations
are moving towards these industries. But the fact cannot be denied that to the extent success and
growth factors are present in these industries, same amount of challenges, risk and issues are also
exist (Cecez-Kecmanovic, et. al, 2014).
Author has described the negative as well as positive aspects of the organizational structure
adopted by Wesfarmers Limited. Wesfarmers Limited was one leading the Australian market in
2016, but there are certain challenges and issues exits with the organizational structure adopted
by Wesfarmers Limited. Lack of accounting methods, lack of improvements and innovation, etc.
are some of the major issues faced by Wesfarmers recently. These issues are pushing

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organization backwards which could lead to negative results for the organization. Apart from
this, taxation benefits will also be reduced with the effect of implementation of this
organizational structure. Lack of managerial control and lack of knowledge in relevance with
inventing the new methods in relation with innovation and development will also lead the
organization towards failure. This is because, business environment and target audience’s
demands, customer trend are changing rapidly and with the help of this structure, attainment of
desired goals and objectives is bit difficult task (Galliers & Leidner, 2014).
System Acquisition method
Information technology is trending these days in workplace environment. This is because it eases
the operations of an organization and accomplishment desired goals and objectives also becomes
an easy task. Along with this, it has been reviewed that software technology adopted by
Wesfarmers is helping in the management of operations as well as in integrating sundry
application software so that the available resources with organization could be utilised in an
effective manner. Adaptation of software technology is considered as appropriate step by
directors and other crucial stakeholders of the organization. This technology improvement has
leaded the organization to attain its desired goals and objectives along with expanding its
business in target market. With the help of adaptation of advanced measures, organization will be
able to enhance its performance along with this; all operations of the organization will be
performed in the most appropriate manner (Greenblat, 2015).

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Figure 1: Sales procedures of Wesfarmers Limited.
Aforesaid picture shows the sale procedure of the Wesfarmers Limited and following is the
discussion in relevance with the activities involved in sales procedure:
 Initial stage of the sales procedure showcases the entry of customers into the
Wesfarmers’ stores. Customers make selection amongst the products available and add to
their cart on the basis of their requirements. All products are marked with a unique
identity number i.e. bar code. Along with this, price tag, quantity and other type of
information is marked over the product so that consumers could take appropriate
information regarding the product (Willcocks, 2013).
 Adding the products to the cart describe the consent shown by consumers in relevance
with the price offered by the organization. Further, customers and organization sign the
contract in relevance with the product quantity ordered along with the price of the
product. After this, shipping takes place, organization delivers the product ordered by
consumers and then the second stage of sale takes place which is also known as after sale
service (Hunter, 2010).
 Above stages and operations only executes after taking consent from the consumers and
if consumers denies the contract offered by organization in terms of price, quantity,
quality, etc., sale procedure ends there only (Zafar, Babar & Abbas, 2013).

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Control Issues
Accounting department is responsible for maintain all the ledgers and other account books in an
effective manner so as to fulfil the requirements of maintaining transparency amongst the
physical stock available and stock shown in the accounting books. Below are some of the
possible issues which could be occurred in the absence of appropriate managerial control:
 As per business culture, environment and procedures, it has been noticed that warehouse
manager is responsible for select the suppliers with taking permission from the top level
management. Thus, organizational management along with HR department is responsible
for appoint a responsible, knowledgeable, talented and skilled candidate over warehouse
manager position so that the desired outcomes could be attained. If selection of suppliers
will be done considering the personal benefits by warehouse manager, efficiency of the
organization will be reduced because quality of raw materials will be compromised
(Kavanagh & Johnson, 2017).
 These activities will lead to corruption amongst the organization and ultimately,
performance of the organization will suffer.
 Apart from this, software technology also leads to leakage of consumer’s private and
secret information which includes secret credentials of debit, credit card used by
consumers while making payment. If this happens, organization will lose reliability
amongst the target audience. In order to prevent this, it is required to adopt appropriate
security and safety measures through which consumers’ data could be kept secure and
safe (Morecroft, 2015).
Development of accounting software
Accounting software is useful for recording daily transactions, maintaining ledgers of suppliers,
customers, etc. and to make financial statements at the year end. Apart from this, various other
facilities are provided by accounting software. Using accounting software reduces chances of
errors, miscalculation, recording of wrong information, etc. It reduces human efforts and
increases efficiency and accuracy. Traditional accounting was based over manual method which
was time consuming, chances of errors were high and reliability was also low. With the help of
trending software technology, Wesfarmers could easily maintain its account books, record

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transactions with fewer chances of errors as well as organization will be able to portray clear
picture amongst its stakeholders. Investors will easily be attracted and the attainment of goals
and objectives would be an easy task (Pearlson, Saunders & Galletta, 2016). Accounting
software is created with considering all sections of accounting rules, regulations and the
standards of accounting. Organization will be able to portray transparent and clear picture in
front of the customers and investors. This will help the organization to gain effective goodwill in
the marketplace along with the attaining competitive advantage. Following are certain crucial
steps of accounting which are made quite easy with the help of accounting software:
 Accounts Receivable: All debtors are included under this.
 General Entry: All the organizational transactions are recorded.
 Accounts Payable: All creditors of an organization are recorded here.
Market Size
As per au.finance.yahoo (2018), Wesfarmers is leading the Australian market in terms of
revenues. With the effect of this, opportunities for organization to grow and expand in
international market have been increased. In 2017, growth rate of Wesfarmers have been
recorded as 4.3% along with the $34.9 billion revenues. In this, profits were $1.6 billion which
shows a 13.2% hike from the previous year’s profits. In Australian market, there are number of
retail stores are available and this has made the retail industry bit competitive but with the help
of unique measures and techniques, Wesfarmers has managed to attain the leading position. In
relevance with maintaining the acquired position, organizational management has invested a
huge amount in R&D department to invent new methods and techniques to enhance performance
of the organization. Woolworths Limited is the direct competitor of Wesfarmers and both the
companies have acquired almost 70% market share of the retail industry in Australian market.
This shows that the opportunities for new companies and other retail stores are less and in order
to develop an effective image in this competitive business environment, new comers should
introduce certain effective measures. Amongst the acquired market share portion, both
companies share equal proportion which describes both have equal power (Peppard & Ward,
2016).

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Leaders in market
Every organization’s success is dependent over its employees. The more potential and talented
employees a company have, company will be more progressive as well as result oriented. In
order to accomplish the goals and objectives of Wesfarmers, leaders of the organization have
performed quite well and in effective manner. Richard Goyder is one of the key employees for
Wesfarmers Limited. He was appointed as Managing Director in 1993 and after reviewing his
efforts for the organization, he was soon promoted as the CEO of the organization and he is the
current CEO of Wesfarmers Limited. His potential, knowledge and efforts have helped the
organization to attain reputed and leading position in the marketplace. Rob Scott, Deputy CEO of
Wesfarmers is also one of the key employees for organization. Apart from these two, there are
several other employees and leaders who have contributed a lot in attainment of organizational
desired goals and objectives (Rainer, et. al., 2013).
This is the reason, organization focus over retaining key and potential employees at any cost.
Employees are treated in fair manner and to avoid any type of inappropriate activity within the
workplace, organization has adopted various measures such as internal communication tools.
Through this, employees could immediately report to the top level management in relevance with
the execution of unfair practices (Readyratios, 2017).
Current gaps and challenges in Accounting Software
After implementation of ERP framework in functionalities of organization, it has been evaluated
that organization requires appropriate measures to find out the challenges and gaps faced during
usage of the automation network. Primary objective of ERP framework is to establish a clear and
transparent picture in front of the stakeholders so that investors and clients could easily be
attracted. For making a clear understanding in relevance with the gaps and challenges regarding
accounting software, Wesfarmers Limited should execute an analysis so that the effectiveness of
the operations could be detected (Realitysoftware, 2017).
From the aforesaid information, it could be concluded that ERP framework will help the
organization to move towards automation but for checking the functioning of software, manual
checks needs to be executed. Major objectives of the organization would easily be attainable
through ERP framework such as attainment of desired goals and objectives, recording

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transactions error free, making error free and clear financial statements as well as to attract
clients to invest. Advanced accounting software, controlling factors of the accounting software,
size of the market and the market share across the globe as well as in the local market were
discussed in the report to evaluate functioning of accounting software.

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References
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Cecez-Kecmanovic, D., Galliers, R.D., Henfridsson, O., Newell, S. and Vidgen, R., 2014. The
sociomateriality of information systems: current status, future directions. Mis Quarterly, 38(3),
pp.809-830.
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Greenblat, E. 2015. Wesfarmers restructure to streamline operations. [Online]. Assessed from:
http://www.theaustralian.com.au/business/wesfarmers-restructure-to-streamline-operations/
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Hunter, M. G., 2010, “Strategic Information Systems: Concepts, Methodologies, Tools, and
Applications”, University of Lethbridge, Canada, vol. 1, pp. 315-332.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.
Morecroft, J. D. 2015. Strategic modelling and business dynamics: a feedback systems approach.
John Wiley & Sons.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and Using Information
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Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
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Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C.,
2013. Introduction to information systems. John Wiley & Sons.

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Readyratios, 2017. Conglomerate. [Online]. Assessed from:
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Wesfarmers Limited. 2018. Our History. [Online]. Accessed from:
http://www.wesfarmers.com.au/who-we-are/our-history. [30th April 2018].
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