Strategic Information Systems for Business: Coca-Cola Amatil Report

This report provides a comprehensive analysis of strategic information systems within a business context, specifically using Coca-Cola Amatil as a case study. It begins by examining the organizational structure of Coca-Cola Amatil, identifying operational problems such as ineffective human resource management, product management issues, supply chain management problems, poor communication, and strategic management deficiencies. The report then recommends Enterprise Resource Planning (ERP) as the most likely system acquisition method to mitigate these issues, detailing the benefits of ERP integration. A flowchart of Coca-Cola Amatil's sales procedures is presented, followed by a discussion of potential control problems and associated fraud risks within the current system. The second part of the report shifts focus to accounting software, exploring its development, adoption, and market size, with an emphasis on Xero and its competitive advantages, including fast functional output, cloud-based setup, and a simple interface. Finally, it addresses the challenges faced by accounting software customers, such as security concerns.

Running head: STRATEGIC INFORMATION SYSTEMS FOR BUSINESS
Strategic Information Systems for Business
Name of the Student
Name of the University
Author Note

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STRATEGIC INFORMATION SYSTEMS FOR BUSINESS
Table of Contents
Part 1....................................................................................................................................2
1. Introduction..................................................................................................................2
2. Current Organizational Structure.................................................................................2
3. Operational Problem....................................................................................................3
4. Most likely System Acquisition Method: ERP............................................................5
5. Flowchart of the Sales Procedures of Coca-Cola Amatil............................................6
6. Control Problems of the System..................................................................................7
6.1. Frauds possible.....................................................................................................7
7. Conclusion...................................................................................................................8
Part 2....................................................................................................................................8
1. Introduction..................................................................................................................8
2. Development and adoption of accounting Software....................................................9
3. The current market size...............................................................................................9
4. Leaders in the market and their competitive advantages.............................................9
5. Challenges encountered by customers of accounting Software................................10
6. Conclusion.................................................................................................................11
References..........................................................................................................................12

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Part 1
1. Introduction
Organizational structure of an organization illustrates the process of monitoring and
coordinating the different process in organization in order to achieve the organizational goal. An
improper organizational structure may result in operational problems, which can ultimately result
in decrease in the output of the organization. A proper organizational structure makes it easier to
specify the different roles and responsibilities to the employees. This ascertains a proper
information flow within the organization (Christensen 2013). Acquisition accounting deals with
a formal guideline that describes the assets and liabilities that must follow a proper structure in
order to achieve a set goal. The different system acquisition methods include commercial
software, custom software and ERP. The report discusses the organizational structure of Coca-
Cola Amatil Australia and the different operational problems experienced by the organization.
The report identifies the most likely system acquisition method and the control problems in the
system. The details of the system flowchart of the sales procedures and the different frauds
associated with the current system are elaborated in the following paragraphs.
2. Current Organizational Structure
Organizational structure mainly deals with the hierarchical arrangement of lines of
authority, communication and rights associated with an organization. The organizational
structure depends on the objectives and the strategy employed in a particular organization.
Organizational structure consists of implicit and explicit rules and policies that define the roles
and responsibilities of the organizational members. Knowing the organizational structure is

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important in understanding the various issues associated with the organizational structure. The
organization structure of Coca-Cola Amatil is illustrated below-
Figure 1: Organizational Structure of Coca-Cola Amatil
(Source: Created by author using MS word)
3. Operational Problem
A smooth process flow and operation is required in an organization in order to achieve
the desired result. Operation management is important in order to administer the business
practices properly and to ensure highest level of efficiency within an organization. Setting a
smooth operational structure is essential for converting materials and labor into finished goods
and services (Domeika 2015).

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The operational problem of Coca-Cola Amatil are listed below-
1) Improper Human Resource management- Effective human resource management is
essential in order to maintain a steady operation. Researches show that Coca-Cola Amatil has an
ineffective resource management, which is one of the major reasons of the operational problems
arising in the organization. (Hendry 2012)
2) Product management problem: Proper product management is another necessary
aspect for having a smooth operation. Effective product management is necessary for dealing
with the operational problems arising in the organization. The organization structure is complex,
which in a major reason of the operational problems the company is facing. Coca-Cola Amatil
should concentrate on the target market and hatch an effective product management plan in order
to gain the competitive advantage over others. The ineffective product management is mainly
due to the improper and the complex organizational structure (Ccamatil.com 2017). The
productivity sector and the supply chain sector should include thorough supervision in order to
eliminate the operational problems associated with the organization.
3) Supply chain management problem- properly managing the supply chain is essential in
ensuring the growth of the organization. The supply-chain management problem arises mainly
due to the improper organizational structure. The structure is complex and hence it becomes
difficult to supervise this sector properly. Improper organization structure is the main reason
behind the ineffective supply chain in Coca-Cola Amatil (Gereffi and Fernandez-Stark 2016).
4) Communication difficulty/poor communication: the major operational issue in Coca-
Cola Amtil is due to the poor communication among the different level of the organization. The
difficulty in communication arises due to the complex organizational structure. Communication

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is a very important tool for effective decision-making and lack of communication may result in
clash of decisions among the executives. Moreover, the poor communication may delay the
normal flow of processes and tasks (Kiani, Lamego and O'reilly 2014). Thus, it can be concluded
that the ineffective organizational structure is the major reason for all the operational problems
arising in Coca-Cola Amatil.
5) Strategic management problem: A proper strategic management plan is necessary for
an effective growth within an organization. An improper management may hamper the growth of
the organization by hampering the normal work process within an organization. Strategic
management ensures all the tasks are performed according to the set structure thus helping in
achieving the goal of an organization (Warren, Reeve and Duchac 2013). Moreover, lack of
proper strategic management also hampers the process of decision-making. Effective decision-
making is important to eliminate the operational problem associated with the organization.
Therefore, an improper strategic management is one of the major causes of the operational
problems persisting in the organization.
4. Most likely System Acquisition Method: ERP
The system acquisition method recommended for Coca-Cola Amatil is ERP or Enterprise
resource Planning System. This can lessen the operational problems face by the organization.
Enterprise resource planning system helps an organization in managing and integrating the
important processes in an organization. An ERP integrates different process in an organization,
which includes planning, purchasing, marketing and sales, finance and human resource (Wallace
and Sheetz 2014).

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The operational problems that the company is facing are managed with the
implementation of ERP. Furthermore, the ERP reduces the workload of the organization by
managing the major operations of the company. ERP manages the business operations with the
help of software. ERP use system integrated application in managing the processes within an
organization (Leon 2014). Enterprise resource planning system has been undertaken by much
organization in order to manage their operations more effectively. The organization can surely
implement ERP to eliminate the operational problems associated with the organization.
However, proper implementation of ERP is necessary for gaining the advantages it offers.
Therefore, implementation of ERP can be the most effective system acquisition method that can
be undertaken by Coca-Cola Amatil.
5. Flowchart of the Sales Procedures of Coca-Cola Amatil
The flow chart of the sales procedure of Coca-Cola Amatil that can be implemented in
order to eliminate the operational issues associated with organization is illustrated below-

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Figure 2: Representing the manufacturing and sales procedure of Coca Cola product
(Source: Ccamatil.com 2017)
6. Control Problems of the System
The control problems that are identified in the operational and sales department of Coca-
Cola Amatil are mainly due to the improper organizational structure and the identified
operational problems. The control problems associated with the organization are listed below-
1) The internal control system of the organization is not sturdy enough and therefore it
becomes difficult to clearly identify and manage the requirements and the processes in a proper
way (Cummings and Worley 2014).
2) The lack of proper supervision is another major reason of the control problems arising
in an organization (March 2013).
3) Coca-Cola Amatil failed in setting up a clear objective of different compliance
activities.
4) The company does not possess proper control activities and formalization of the
processes within an organization.
5) The absence of appropriate methods of assessing the progress of the processes and
tasks is another control problem associated with the organization.
6.1. Frauds possible
The fraud possible due to an ineffective control system in an organization is listed below-

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1) Fraud in production due to absence of supervision
2) Fraud in sales due to absence of progress tracking
3) Delay in production se to absence of formalization of processes within an organization
7. Conclusion
Therefore, from the above discussion, it can be concluded that a major problem lies in the
operation department of Coca-Cola Amatil. A complex organizational structure is a source of
many problems as well. Poor organization structure gives rise to certain operational and control
problems that reflects to the productivity of the organization. The operational and the control
problems can be lessen with the implementation of the ERP. Enterprise resource system is very
effective in managing the operations within an organization. ERP reduces the workload and
increases the efficiency in the work processes associated with an organization.
Part 2
1. Introduction
Accounting software is used to record and process the accounting transactions, which
includes amount receivable, payable trial balance and order account related transactions.
Accounting software performs all the work of an accounting information system. Accounting
software is an important resource in today’s business world (Murthy and Abeysekera 2015 ). The
software allows the tracking of all the financial transactions and analyzes it on basis of the
organizational target. The different report discusses the different functionalities involved in
adoption of different accounting software s discussed in this report. The report further discusses
the current market size, leaders in market and their competitive advantage. Furthermore, the

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current gaps and challenges encountered by the customers of the accounting software is
elaborated in the following paragraphs-
2. Development and adoption of accounting Software
Development and adoption of accounting software has wide number of benefits in
different organization. Accounting software is mainly used for managing the different accounting
related problems and procedures of an organization. Xero is an example of accounting software.
Xero provides a proper solution for managing and analyzing the accounting related issues
persisting in an organization (Von Der Emde et al. 2014). This results in reduction of the
workload within an organization.
3. The current market size
Researches in the competitive market shows that two accounting software MYOB and
XERO are leading in the Australian target market. However, Xero has a greater competitive
advantage in the Australian target market. This is because Xero provides an effective support to
manage the financial transactions of an organization. Some additional features and great
advantages compel the customers in adopting the Xero as their accounting software package. The
software helps in managing the needs and demands of the clients and takes care of all the
accounting operations within an organization (Robey, Anderson and Raymond 2013). Therefore,
it can be said that Xero meets all the expectations and requirements of proper accounting
software and therefore leads in the target market of the organization.
4. Leaders in the market and their competitive advantages

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The leaders in the market and their competitive advantages on basis of Xero accounting
software are elaborated below-
1) Fast Functional Output: In this competitive world, a software that taken a large amount
of time in delivering the results cannot be considered and therefore, fast functional output
becomes a necessity. Xero accounting software provides a very fast functional output and
therefore it is one of the leading software in the Australian target market.
2) Cloud based setup: use of cloud in data storage is a cost effective option. Cloud based
software can be customized according to the needs of the client and therefore it has an increasing
popularity in Australian target market. Xero has the feature of cloud-based set up and therefore
has a competitive advantage in Australian target market.
3) Simple Interface: simple interface helps in easy management of the software and
therefore software that have simple interface has increasing popularity among the clients. This is
because it helps in easy management of the software. The interface of Xero is relatively less
complex and therefore it gains competitive advantage in the target market.
5. Challenges encountered by customers of accounting Software
Different challenges that are encountered by the customers of accounting software are
elaborated below-
1) Security issues: the use of cloud for information storage although have certain
advantages, the security issues associated with cloud is quite concerning. Proper security
measures are essential for maintaining the market position (Mudge 2013).

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2) Complexity: Accounting software benefits the organization by managing the different
account related tasks. With addition of more features in the software, the complexity of the
software further increases. With the increasing in the complexity, the software becomes difficult
to handle (Xero Accounting Software 2017).
3) Time Consumption: The update and the installation of the software are very time
consuming and complex. An expert’s supervision is necessary in installing the software and
therefore, this can be another challenge in employing accounting software.
6. Conclusion
Therefore, from the above discussion, it can be concluded that the accounting software
offers wide benefits in managing the different processes within the organization. Out of the
different software available in the market, Xero is the leader of the market. Use of accounting
software increases the efficiency of the accounting functionalities of an organization. However,
there are certain challenges associated with the use of accounting software, which should be
eliminated in order to increase the effectiveness of the software.

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