Analysis of Strategic Information System for Lion Beverage Company

This report analyzes the strategic information system of Lion Beverage Company, a leading food and beverage company in Australia and New Zealand. It begins by examining the company's organizational structure and identifying operational issues such as improper strategic management, communication problems, reduced productivity, ineffective supply chain management, and human resource management deficiencies. The report then discusses the most likely acquisition method, Enterprise Resource Planning (ERP), and its benefits in addressing these challenges. A system flowchart for the sales process is presented, along with an identification of control problems. Part two focuses on the development and adoption of accounting software, specifically Xero, for the company, including market size, market leaders, competitive advantages, and gaps. The report highlights the advantages of using accounting software and its benefits for Lion Beverage Company, concluding with a comprehensive overview of the strategic information system and its impact on the organization.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System
Lion Beverage Company

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Table of Contents
1.1 Organizational structure.........................................................................................................1
1.2 Operational issues faced by the organization........................................................................2
1.4 Description of system flowchart for the sales process of the organization...........................5
1.5 Identification of any control problem in the system..............................................................6
2.1 Development and adoption of accounting software package................................................7
2.2 Current market size................................................................................................................8
2.3 Identification of market leaders and the reason behind competitive advantage....................9
2.4 Current challenges and gaps encountered by the customers...............................................10
References......................................................................................................................................11

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Part 1:
In this paper, it mainly focuses on ‘Lion Beverage Company’ which is one of the leading
Food and Beverage Company of Australia as well as of New Zealand. The main purpose of this
paper is to illustrate the organizational structure of Lion Beverage Company in terms of
analyzing all different operational problems which are mainly related with the organizational
structure of a company.
In this particular paper it also illustrates about the most likely acquisition method as ERP
which Lion Company have selected. It helps to mitigate all types of challenges which are mainly
based on the organizational structure of Lion Company. In addition to this, the proper flow chart
of all operations in Lion Company is shown.
1.1 Organizational structure
Organizational structure is mainly referred as a proper structure that is mainly followed in
any organization to maintain a proper hierarchy (Chou et al., 2014). The main purpose of this is
to be differentiated the power, responsibilities and roles which are mainly controlled and
associated with different management level of organization. The pictorial view of organizational
structure of the Lion Company is shown below which is showing the clear view of organizational
hierarchy maintained in this particular organization.

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Figure 1: Organizational structure
(Source: Lionco.com. 2017)
1.2 Operational issues faced by the organization
The organizational hierarchy of ‘Lion Beverage’ company is mainly considered as an
important aspect that helps to manage and simplify the organizational expansion in terms of
proper development of the company (Dimitriu and Matei, 2014). However, in relation to this, it
presumed that to maintain a better standard of the organization in today’s market the ‘Lion
Beverage’ company taken part in different competitive acts of business market which helps to
create value for the organization. Any particular organization is consists of various operational
departments which is inter-related with each other and becomes essential to manage all
departments properly for proper success and the achievement of various functional remuneration
to improve the rating of organization in business market share (Dunbar, Laing and Wynder,
2016). All these directly help the Lion Company to attract more shareholders and customers. In

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addition to these, there are also different types of challenges as well as issues that are faced by
‘Lion Beverage’ company are discussed below:
Improper Strategic Management: The organizational growth of ‘Lion Beverage’ company is
mainly based on the proper organizational hierarchy. Apart from that, it is also discussed about
different strategic processes and functionalities that help in proper decision making in any type
of organization (Fan, Wong and Zhang, 2013). Because of the dearth of suitable strategic
management in Lion Beverage, the organization needed to face various challenges and issues
that can be resolved with the help of better strategic decision making steps. However, after in
depth analysis, it is identified that Lion Beverage is slowly losing their sustainability and
customer availability which are becoming the sole most reason for their deviating of target and
today’s market space.
Improper Communication: It acts as an important operational issue for an organizational
development. However, due to lack age of proper communication, the organization needs to face
different kind of issues directly related with the management procedure and organizational
structure (Hicks, 2014). However, in very first cases, ‘Lion Beverage’ does not pay more
attention which rise the conflict level and creates more obstacles to accomplish various
functional and non-functional benefits. It leads to the downfall of the ‘Lion Beverage’ in Food
and Beverage market of Australia. Apart from that, they are also facing some internal issues like
conflicts among employees, dis-satisfaction of staffs and also variability within both high grade
and low grade employees. The improper communication between the organizational staffs and
customers also leads to low customer satisfaction and ultimate losing of loyal and valuable
clients.

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Reduced Productivity: Productivity is the major resultant outcome and end product for any type
of organization. The more productivity is co-related with the proper organizational hierarchy.
Therefore, in this case also the improper organizational hierarchy acts as vital role for the low
productivity (Jenkins, 2016). However, with the help of better organizational structure along
proper organizational goals and objectives, makes Lion Beverage as a productive and profitable
organization. On the other side, it is also discovered that the organization did not follow any
considerable approaches and functional aspects of development based on selected supply chain
management techniques, proper standard of communication, different suitable actions to gain
more productivity and increasing of customer level.
Ineffective Supply Chain Management: Improper supply chain process of the organization is also
one of the vital problems which create more downfalls in organizational growth. However, the
supply chain management process of any organization is determined with the help of proper
organizational structure, so, if the organizational structure is not in good place then the supply
chain process will surely be effected (Ma, 2015). Thus, all these irregularities directly cause
impact to all associated stakeholders, employees and also create different challenges for the
organization to survive in recent day’s competitive market.
Improper Human Resource Management: Due to not having better profit margin, Lion Beverage
fails to provide secured and safe job satisfaction to their employees. All previous availed
facilities are get inactive and employee’s attrition rate become higher with respect to previous
stage of organization (Lin, Zhao and Wei, 2014).
Hence, it is identified that all these functionalities are inter-related with each other
therefore, due to one inactive function collapses the whole system.

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1.3 Most likely acquisition method
The most likely acquisition method of Lion Beverage organization is the implementation
of Enterprise Resource Planning (ERP) process. Oram, (2014) discussed that ERP system acts as
a vital tool for both the organizational managers and customers which helps to create and show
an accurate forecasting of all internal and external processes of the organization. With the help of
ERP, it becomes easier to resolve all faced issues which are mainly created due to the improper
assessment and evaluation of organizational hierarchy (Ma, 2015). In addition to this, the
organizational directors did the implementation of ERP which helps to stable all business related
processes and also creates bridge among both organization and customers by improving all their
existing modules and doing appropriate collaboration among all business modules of Lion
Beverage.
On the other side, it becomes clear that the implementation of ERP system helps to
reduce all types of redundancies in the existing system of Lion Beverage. It also makes all
processes automated by removing the manual systems. Along with these, ERP system also helps
to streamline all processes in effective and easier ways (Subramanian, Venkateswaran and Fu,
2013). Furthermore, it is found that with the help of ERP system it become simpler to provide
quality services to customer along with post-delivery supports. Therefore, ‘Lion Beverage’ again
started to acquire their previous place for all these facilities to employees and supports to their
employees.
1.4 Description of system flowchart for the sales process of the organization
In this part, it discuss about the pictorial view of the sales flow chart followed by ‘Lion
Beverage’ organization. The flow chart assists to understand their exact problems in a whole

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process of getting a product from preparation to delivery to customers. Below is the system flow
chart of Lion Beverage sales procedure:
Figure 2: Sales system of Lion Beverage Company
(Source: Lionco.com. 2017)
1.5 Identification of any control problem in the system
The lack age of various inventory items helps to increase different controlling challenges within
the implemented system. The faced core problem based on sales process design is the failure of
system integration depending on procedures and methods followed in Lion Beverage (van
Donselaar and Broekmeulen, 2013). Apart from that, it is acknowledged that because of sales
system problems, various items get lost which can raise the inventory problems and the increase

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of labor cost due to of manual process. Therefore, it becomes important to incorporate all
designing solutions to the system which helps to re-check the orders number in effective manner.
Part 2:
In this second part of report it mainly discusses about both the adoption and development process
of new accounting software for the organization which acts as a type of application software
helps to record and process all types of accounting transactions happens with all associated
functional elements like accounts receivable, accounts payable, trial balance as well as general
ledger.
In this paper, we have selected Xero as accounting software for doing the proper illustration of
the whole process do the proper development and adoption. However, along with this, this paper
helps to describe all market leaders, market size of accounting software in Australian market as
well as various types of gaps and challenges in relation with the selected accounting software
‘Xero’.
2.1 Development and adoption of accounting software package
The accounting software packages acts more advantageous for any organization because of the
proper deployment of accounting packages it helps to reduce the time consumptions, look after
of finances, mitigation of mistakes along with printed improvised machine generated invoices
(Viswanathan, 2015). In addition to this, it is also discussed that Xero is one of accounting
software, organization that helps to develop better software supports to create various standard
and functional for operating all issues and the development of various types of standard in
relation with the accounting department. It is identified that all types of organization like both

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medium and small types of organization is considered as target market in Australia who mainly
supervise all issues faced in accounts department of Lion Beverage.
In addition to this, accounting software is also used for the determination of functionalities and
the determination of standards based on organizational hierarchy of Lion Beverage (Zach,
Munkvold and Olsen, 2014). However, it also become helpful to determine both the demands as
well as needs of any particular organization in effective manner with the help of technical team
who mainly involves in the accounting system of Lion Beverage organization. In addition to this,
Xero is the considered effective software selected for this organization to access both the
processes and new standards of the organization which also helps to manage all types of
accounts details and management information.
2.2 Current market size
In today’s market of Australia, there are two types of accounting software like MYOB
and Xero packages are on leading position. However, it is also identified that for Lion Beverage,
Xero is considered one of the suitable accounting packages in Australia that helps in different
organizational functional modules (Zhang, Hoque and Isa, 2015). In addition to this, Xero also
allows to provide different functionalities as well as operational features required to manage all
organizational needs.
It is identified that Xero also provide different automated functionalities to its customers
which helps them by reducing all types of challenges they were facing from the manual system.
In addition to this, Xero also supports to allow updates all financial data by diminishing data
loss, redundancy occurs from the input of large data set that are mainly encountered from the
system architecture (Dimitriu and Matei, 2014). Furthermore, there are also numbers of

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advantages from using of accounting software which generally helps to fulfil the organizational
demands. For Lion Beverage, Xero is considered more advantageous for their customers with
respect to other market available accounting software packages.
2.3 Identification of market leaders and the reason behind competitive advantage
From lots of market analysis and investigation on Xero software, it is evaluated that it mainly
provides different benefits to their customers. Therefore, some of these benefits allowed from
Xero accounting software are listed below:
Cloud based set up: This particular software is mainly based on cloud access in terms of
providing valid data and information to all customers and users (Fan, Wong and Zhang, 2013). It
is identified that, this could based system acts as more advantageous over other available
different software in market based on customer review.
Interface simplicity: This Xero accounting software assists to provide easy and user-friendly
interface architecture for all users. However, both functional and non-functional supports of Xero
help to the organization to provide all necessary details based on organizational structure. In
addition to this, it is also identified that various issues and difficulties are managed in the simpler
manner to gain different operational measures (Hingorani, Beasley and Bradford, 2015). It also
helps by providing proper availability to both customers and organizational users that helps to
attracts them by using their interface design and simplicity.
Fast functional outputs: Xero also helps by providing lots of functional operations to its clients
which acts more advantageous for the Lion Beverage.
Customized invoicing: Xero provides the option to create and update the functionality of creating
automated professional invoice creation option (Lin, Zhao and Wei, 2014). With the help of

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online invoicing creation, one user can email their customer link for the live creation of invoice
himself. In the invoice, it reflects payment history, payment status, any pending payment and
also the whole payment procedure.
Automated backup: By using Xero accounting software, all data are created online back-up on
hourly basis so that it can be accessed from anywhere and anytime (Subramanian,
Venkateswaran and Fu, 2013). However, it also allow the facility of not getting any data losses
due to system crash or infection of viruses, etc as it store all their data on cloud storage.
2.4 Current challenges and gaps encountered by the customers
Some of different challenges and gaps faced from Xero software are listed below:
Complexity: This software is considerably complex from other available software due to its more
numbers of options. However, because of complexity, many users are unable to access the
software and also face lots of difficulties (Ma, 2015).
Cash flow management: Arranging proper fund for a business is one of the biggest challenges in
any types of business start-up. It becomes quite difficult more any entrepreneur to arrange large
amount of budget and also to look after on the expenditure.
Time consumption: Xero is time consuming software which consume more time in data fetching
and supervising of the database in both small-sized and medium-sized organizations
(Viswanathan, 2015).
Security issues: As Xero is online based software solution, it requires proper authentication and
validation of data and information to keep the whole database secure.

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