Statistics for Business Decisions: Woolworths Report Analysis

This report offers a comprehensive analysis of Woolworths' business operations, focusing on its organizational structure, sales procedures, and the use of accounting software. It begins by examining the current organizational structure of Woolworths, identifying issues such as internal conflicts and lack of coordination among departments. The report then delves into the sales procedure and flowchart used by the company, as well as control problems and fraud systems. Part 2 of the report focuses on the development and adaptation of accounting software, specifically NetSuite, detailing its market size, leaders, and competitive advantages. Challenges and gaps in the accounting software packages are also discussed, along with recommendations for improvement. The report concludes with a summary of key findings and insights into Woolworths' business strategies and challenges.

Running head: STASTICTICS FOR BUSINESS DECESIONS
Statistics for Business decisions
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Part 1................................................................................................................................................2
Current organizational structure of Woolworths.............................................................................2
Issues in the existing organizational structure of Woolworths........................................................4
Use of commercial software............................................................................................................4
Sales Procedure and Flowchart........................................................................................................5
Control Problems and Fraud system................................................................................................7
Part 2:...............................................................................................................................................7
Development and adaptation of accounting software......................................................................7
The current market size...................................................................................................................8
Leaders of the Market and their Competitive advantage.................................................................9
Challenges and Gaps of the accounting software packages and Recommendations.....................10
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................12

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Introduction
The aim of the current report is to provide literature review related of the business
activities related to Woolworths, which is one of the major Supermarket retail giants in Australia.
The report will aim to provide the organizational structure and issues that are encountered by
Woolworths due to the existing structure. The detailed description of the cells flow chart will
also be provided.
The subsequent part the focuses on the accounting software package that is used within
the organization. Detailed description of the accounting software package will be provided along
with the market share and competitive advantage that is gained with its application. The
challenges and drawbacks of the accounting software will also be described.
Part 1
Current organizational structure of Woolworths
Woolworths Limited is the largest Supermarket chain in Australia that occupies nearly
80% of the market share. The organization currently has nearly thousand super market retail
stores in all across the nation.
According to Rajabian Tabesh et al. (2016), it is important for every large scale business
firms to have effective organizational structure in order to have proper coordination among the
workers. The overall objectives of Woolworths can be reflected upon in the development of
organizational structure.

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The overall structure of the organization is divided into different departments of sales of
Woolworths. At the top level of the management, there are 5 executive directors along with the
chairman. This board is controlled by the CEO of the company.
The board of directors controls the activities of all other departments that include
marketing, human resource, finance and every other sales department that includes all products
that are being sold by Woolworths. Each of this department is headed by an individual manager.
There are also various sub divisions in each of these departments. All the major activities in
every department are directly controlled by the board of Executive members. The managers of
each department are responsible for controlling the activities of workers under the respective
department (Woolworths.com.au, 2017).
Figure 1: Organizational structure of Woolworths
Source (Woolworths.com.au, 2017)

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Issues in the existing organizational structure of Woolworths
Internal conflict among the board of directors and workers is one of the major issues
within the existing organizational structure.
In case of Woolworths the existing issues related to organizational structure is due to the
fact that there are different opinions among the five members of board of directors, which often
do not match with the CEO. Moreover, there is also lack of coordination among all the different
departments of Woolworths. Lack of proper communication among the managers of each
department with the board of directors within the organizational structure has compromised upon
the overall productivity.
Financial issues are also one of the major factors that has Limited the capability of each
department. The manager of the finance department has not been effectively able to provide
valuable information about the current financial status of the company. Hence, it is not possible
for managers of other departments to implement their plan for the marketing activities and also
allocate funds accordingly. Hence, it is important for the company to develop on the existing
organizational structure and ensure that proper information related to the financial performance
of the company is being provided to all the workers and manager.
Use of commercial software
It is important for the Woolworths Company to make use of commercial business
software in order to provide accurate and up to date information to the managers. This can help
them to maintain proper coordination among different departments.

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Schiff and Szendi (2014), have mentioned about the importance of the accounting
software packages that can be used by all major business organization in order to effectively
process the information related to the financial performance. All records related to accounting
process and transactions are maintained with the help of the accounting software. The financial
information of the organization are also processed with the help of this accounting software
Net Suite is one of the important accounting software packages that are used by the
Woolworths limited to deal with the financial data that can help in the process of dealing with
the financial data. The Net Suite is one of the leading cloud integrated software package that are
used by various business across Australia to deal with the challenge of managing the financial
data. The financial package is one of the important part of the software development process of
Net Suite that can the finance department of Woolworths to store the vital information related to
the company’s expenditure.
Sales Procedure and Flowchart
It is important for the business firms to follow a standard sales procedure in order to
successfully accomplish the process of marketing. Number of steps involved in the overall sales
process of Woolworths. The overall process of the sales is described in the below flow chart:

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Generation of Lead
Problem identification
As a part of the selling process, it is important
for the company to identify the problem within
the consumer market. The next step is to
recruit proper sales agent, who will interact
directly with the customers. In this process, the
company is able to establish relationship with
the customers. Building of Desire
It is important in this step for the company to
gain the trust of the customer which will allow
them to rely upon their products.
Objection handling
In this process the company is able to
provide training to the sales agent, which
can allow them to properly interact with
the target customers and also able to
improve upon their brand value. The
sales agent needs to convince the
customer for purchasing a particular
product of the company.
Product delivery and sales closing
This is the final step of the sales procedure,
where the company is able to deliver the
desired products to the customers
according to their need.
Choosing of Target Customers
Prospect Client
Product
Sales

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Control Problems and Fraud system
The lack of proper communication is the major problem within the organization of
Woolworths that do not allow them to control the operational activities. There is also lack of
coordination among the workers in the financial department. Due to these issues, there is risk of
fraud that can spread false or fake information within the internal stakeholders of the
organization. False information from the finance department may not allow the company to make
accurate financial prediction.
Part 2:
Development and adaptation of accounting software
The development process of the accounting software is one of the important parts in the
process of implementation in the overall accounts department of organization.
Net Suite is being used as the primary agent of accounting software for Woolworths. The
development of the digital technology, the accounting related software has been able to
overcome the consequence of the client based database. Rahman et al. (2014), have mentioned
about the importance of the automate software that is one of the primary components of financial
reporting system. In the past, the finance department of Woolworths had to deal with the manual
forms of accounting that had the chance of several errors within the system. The latest software
of Net Suite uses the complex and effective forms of mathematical calculations to process and
store the account data. This processed data is then published in the annual financial report of the
organization.

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In order to properly add up the accounting software within the business process, it is
important for Woolworths to recruit Financial Software experts and accountant. Acquiring of
software vendors like the Net Suite can help in the process of dealing with the process of dealing
with most of the challenges related to the account calculation process. Net Suite is able to apply
the latest forms of software in the overall development and adaptation process of dealing with
the complex tasks of account management. Fossella and Kennedy (2014), have mentioned about
few of the key aspects of the accounting software that can help in the process of dealing with
sourcing of the accounting software. In order to properly adopt the accounting software it is
important to have flexibility in the elements related to data entry that is an essential part of
operation of accounting software. It is important for the company to consider the overall cost of
maintenance and installation of the software. Proper training is also needed to be given to the
staffs that can help them to make full use of the software. The overall system of accounting is
dependent on the overall size and infrastructure of the organization (Lyons 2015). For large scale
firms like the Woolworths, it is important to adopt effective software with large capacity in the
database that can help to save large amount of data. According to Rahman (2016), the efficiency
of the accounting software and the process of its adaptation is dependent on the ease of its use
and practical application.
The current market size
With the development of the digital technology, the market share of the accounting
software agencies is increasing. As companies are becoming aware about the importance of
maintaining financial information, they are adopting accounting software package system in
order to deal with the challenge related to accounts management. According to the report of Dyt,
and Halabi (2007), the total revenue generated by the accounting software industry is estimated

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to be around 20 billion Australian dollars. Rate of annual growth of the Australian account
development software industry is estimated to be around 2.6% for the last 5 financial years.
There are nearly 32,573 business firms of large, medium and small scale that have implemented
the software package system. More than 115,000 workers are also employed within this industry
(Arber and Rahimi 2015). Hence, it can be said that the accounting software industry is one of
the great source of employment.
The generation of the total revenue is expected to grow significantly in the coming years
due to the fact that more business organization in the Australian market are expected to adopt
this software system in order smooth the overall process of business generation. Hyvönen et al.
(2006), have added in the context that the industry has expanded in the financial advisory section
that can help to deal with the challenge related to the getting financial advice.
Leaders of the Market and their Competitive advantage
Few of the major firms that have significant share in the Australian accounting software
packages includes the Xero-online , Cash Flow Manager, Sage and Net Suite. There are different
levels of service that are offered by the accounting software industry that has helped them to
capture the Australian market share. All these firms have been able to capture nearly 70% of the
market share in the respective domain (McManus 2013).
Few of the major advantages of these business firms as respect to other business are that
they are able to provide the best quality of service to the clients. The Net Suite Company has
been able to improve upon their cloud storing technology that has held their clients to store data
in the online databases. They also provide high level of security that is needed to store the

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classified information. One of the best ways that has been adopted by these firms is due to the
fact that they allow 30 day free trial that help the client to get the idea about the quality of the
service before they make the final investment.
Challenges and Gaps of the accounting software packages and Recommendations
The threat from the online database that involves the risk of data leakage is one of the
major challenges in this sector. There are times, when the business owners had to suffer from
lack of efficiency among the workers. The major gaps in this domain are due to the fact that the
companies are not able to improve by keeping themselves updated and latest forms of
technology.
It is recommended from all the business organization to choose the correct business
accounting software package that can help in dealing with the respective financial data by
properly understanding the importance in context of the software that are available in the market.
Proper security measures also need to be adopted that can reduce the risk of financial
information being leaked in the public domain. The companies also need to hire software experts
that can help them to make best use of the accounting software in the management activities of
the finance operational activities.
Conclusion
In the concluding note, it can be said that the use if the latest forms of accounting
software package is one of the important part that can help in the process of financial business

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operation and accounts management. The account software package industry is one of the fast
growing sectors in the Australian market that has helped in the process of business development.

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Reference
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Experiences of international graduates of accounting transitioning into the Australian labour
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Dyt, R. and Halabi, A.K., 2007. Empirical evidence examining the accounting information
systems and accounting reports of small and micro business in Australia. Small Enterprise
Research, 15(2), pp.1-9.
Fossella, G.C. and Kennedy, K.F., Kokopay, Inc., 2014. Electronic Payment System Operative
with Existing Accounting Software and Existing Remote Deposit Capture and Mobile RDC
Software. U.S. Patent Application 14/211,110.
Hyvönen, T., Järvinen, J. and Pellinen, J., 2006. The role of standard software packages in
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Rahman, M., 2016. Accounting software application as internal control system and its benefits:
case study of treasure island company.

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Rahman, M.M., Elahi, T.E., Gupta, S.K. and Rahman, I., 2014. Assessment of Accounting
Software Practices in Small Medium Enterprises (SMEs) of Bangladesh: A Survey of Barrier
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Woolworths.com.au. (2017). {{metaController.metaData.title}}. [online] Available at:
https://www.woolworths.com.au/Shop/Discover/about-us [Accessed 22 Aug. 2017].