ZicroDATA Pty Ltd.: Comprehensive Industry and Company Analysis Report

This report presents a comprehensive analysis of ZicroDATA Pty Ltd., examining its industry dynamics, competitive strategy, and management accounting practices. The analysis begins with an overview of the industry, highlighting the increasing digitalization trend in Australia and its impact on revenue and growth, followed by an application of Porter's Five Forces model to assess the competitive landscape. The report then delves into ZicroDATA's competitive strategy, focusing on product differentiation through innovation and technology, and its target market approach. The report also covers ZicroDATA's primary activities, including information management systems and backfile scanning services, and evaluates the effectiveness of its management accounting systems, including performance measures like the balanced scorecard, service costing using standard costing, and cost-volume-profit analysis. Furthermore, it addresses budgetary control and sustainability practices, including the use of the Environmental Performance Index. The report concludes with recommendations for improving customer satisfaction, leveraging information systems, and enhancing overall productivity through various technological and strategic initiatives.

ZicroDATA Pty Ltd.
-An In Depth Analysis
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Industry Analysis
 The urge of the Australian companies for
inheriting the process of digitalization is
observed to be a major factor responsible for the
increased growth of the mentioned industry.
 The list of benefits includes professional
handling of the important information, the scope
of the effective and urgent sharing of the
information along with the reduction in the
concern of losing the data.
 The industry is currently developed in such a
manner that is able to create a revenue of 528
million US dollars with an annual growth of
2.2% in the time span of 5 years from 2014 to
2019 (Australia.gov.au. 2019)

Porter’s Five Forces Analysis
Threat from the Competitors: High
Threat of New Entry: High
Threat of Substitution: High
Bargaining Power of the Buyers: High
Bargaining power of the Suppliers: Low

Competitive Strategy and
 The company is seen to be significantly focused in
differentiating their products through the incorporation of
the innovations and the technological advancement for
gaining the competitive advantage over the organizations,
producing the same services and the products
(Zircodata.com.au 2019).
 The specific pricing of the products and the production
quality are two of the major influential factor that enables
the company to target a specific section of the market
along with the demographics (Zircodata.com.au 2019).

Business Activities
The services they provide are highly scalable
and can be tailored to the requirements of the
industry and the customers.
 The information managements system helps
to scan the files to initiate legally achieved
digital documents and can be accessed
whenever required. The copies of the files
are kept on a web –based repository that are
available on –demand(Cordray et al. 2015).
 The backfile scanning helps to scan with
highly active physical records which are
convertible into the searchable electronic
forms. The records are then uploaded on the
web-based platform that is an easy
alternative to the physical archiving system.

Performance measures
 The company makes use of the
balanced scorecard which combines
both the financial and non-financial
measures in order to construct a
holistic approach towards the
individual performance(Snyder and
Diesing 2015).
 The strategy map is followed by the
company including the financial,
customer, operational and people.

Management Accounting systems in ZircoDATA
 The ZircoDATA company is
facilitated by the integration
of the technological
advancements into its
accounting system.
 The systems have made the
operations less expensive to
make the data driven
business decisions(Xu
2015).

Service Costing
 The service costing is the way that
determines how the product or
service is costing and the way the
organization identifies the direct and
the indirect costs(Yara, Kummari
and Hamm 2015)
 ZircoDATA company uses the
standard costing method for
recording the accounting
transactions at the expected costs.
 This method also analyses the
difference between the actual costs
and the standard costs.

Cost volume profit analysis
• The cost volume profit analysis is a specific method by which
cost accounting can be done.
• This method looks into the varying levels of cost volumes.
• It helps to determine the break-even point for the several
sales volumes along with the cost structure.

Budgetary Control
o The budgeting is an essential; tool
for the business management.
o There are some of the best
budgeting tools which are
available today(Yasuda Moriki and
Takase 2016).
o The tools are useful as it does not
require the enter category
manually. The financial
dashboard also helps to track the
investments.

Sustainability
 In the contemporary market, sustainability plays a
major role(Lamego, Cercacor Labs 2016). .
 The increasing competition has forced the
organizations to stay sustainable in the market
through various strategies(Malcolm et al. 2015). .
 The ZirCoDATA company uses the
Environmental Performance Index for evaluating
their socio –economic activities, the carbon
footprint and the CSR values.

Evaluation of the accounting management
system
• There are few of the well-known tools and techniques
which are used in the management accounting.
• ZircoDATA company has a well-structured
management accounting system.
• The performance measures are effective, so is the
cost profit analysis techniques.
• The ZircoDATA company is facilitated by the
integration of the technological advancements into its
accounting system.