The following assignment is the study of the accounting software package and the chosen company for the assignment is the “BHP Billiton”. BHP stands for Broken Hill Proprietary an Australian company. This assignment focuses the organizational structure of the chosen company and various operational problems in terms of errors or the inefficiencies which can be face by the company with the structure. The assignment further discusses about the system acquisition method from the ERP or commercial software or custom software. The assignment analyses the sale flow chart of the company and the possible fraud which is possible in the company
In the second part the assignment focuses upon the accounting software package used by the BHP Billiton and its market size. The assignment eludes the leaders in the market which will give them the competitive advantage in the market and finally analyses the gaps and challenges which can be encountered using the accounting software and make some recommendation how software should be with the respect to described difficulties
BHP is an Australian public company which deals in the multinational mining metals and petroleum which is headquarters in the Melbourne, Australia (Lodhia and Martin 2014). It was founded in 1885 and the largest mining company in the year 2015 report and the fourth largest company in the Australia in terms of the revenue (Romney and Steinbart 2012). Its revenue is over 31 billion with the profit incurred in the year 2016 over six billion. It is used in the stock market with the mane of BLT with its share value over 1344 GBX.
The organization structure of the company is given below in the figure where the board member of the company is controlling the audit, sustainability, nominal, remuneration committee (de Villiers and Alexander 2014). The board member is in charge of delegating the chief executive officer (CEO) which in return is reporting all the accountability report to the board members. The board members are also controlling the assurance which includes the external auditor, projects, oil/gas review.
In the huge organization to manage the business operation and to make profit from them is the huge challenge for this company (Grant et al 2014). Therefore it evident that there is some risk that the business is going to face and problems the company is going to face in carrying out the operation. Some of these are:
The biggest challenge this company is the resources. The major and the chief resource for the mining is the availability of the water (Ghaffour, Missimer and Amy 2013). The company operates in various country and they may face the water shortage in that area. To design a simulation model for the better water management is quite complex for the company. AMD (Acid Mine Drainage) is another factor which company has to monitor for better operation.
Another challenge faced by the company is the fluctuation price of the products due to the change in the market value of the company product (Floris, Grant and Cutcher 2013). The financial crisis of the global market hampers the desired result of the company. The change is market is not stable which makes a great challenge for the company to maintain its operation and generate the desired profit from it
To bring the innovation in the business is the critical theme for any business (WANG and FAN 2012). The company focuses their innovation on to optimize the technological innovation in old technique rather than bringing innovation in ways to configure and engage externally.
The most likely system acquisition method for the BHP can be the commercial software. System Acquisition method means the process through which the business can manage its operation (YANG, YANG and DENG 2012). According to the IT news the company is using the cloud based software to control and manage the business. The company has chosen to deploy Loc8 which is developed by the Melbourne firm .The software Loc8 is used as layer which will underpin everything that will go in that automated facility. Besides maintaining the software will also maintain the record of components which are put on rail cars and simultaneously will feed that data into BHP Billiton’s enterprise resource planning system “1SAP”.
The sales model of the company seems to focus on the low cost and the large assets of the company which has ability to expand. The company aims to bring the investment in the company to improve it economic status on the market which include the four commodities and the ten operation of the company (Hatley and Pirbhai 2013). The cost in the company operations and the healthy demand of the products has enabled the company to support its core majorities. The sale process model focuses on the customer satisfaction, timely reliever of the design and presentation, regular meeting with the stake holders and to identify such product which keeps them in lead in the market (Andzulis, Panagopoulos and Rapp 2012).
As discussed above news the company is using the cloud based software to control and manage the business. The company has chosen to deploy Loc8 which is developed by the Melbourne firm which is the cloud software (Hipgrave 2013). Therefore the first challenge for the company is to purchase a powerful firewall for the software which can protect the company data from the breach.
The supply chain for the company is at global level as it operates in various countries which them easy vulnerable to the cyber attack. The cyber attacks on the company are particularly targeted to the specific company as they operate globally (Lei and Ghorbani 2012). The major vurneabilty of the company is dependence on the integrated systems to bring automation in their operation. As this company work with government projects, the main intention of the cyber attack on this company is to hack the government confidential report to get the information. The other challenge is to be associated with the tax structure of the company. If the company is not able to meet the tax requirement of the company they will be fined heavily. Another challenge for the company is to design a simulation model for the better water management for the company (Mirzoev and Lyubartsev 2013). AMD (Acid Mine Drainage) is another factor which company has to monitor for better operation.
The accounting software package is application software which is coded to maintain record and processes the accounting work of the company (Simkin ,Norman and Rose 2014). The software act as the information system which stores all the account related information. These types of software are made by the company itself or is bought and maintained by the third parties who design such software.
The account software can be used for all the purpose whether for personal or for the large company(Romney and Steinbart 2012).. Various advantages are enlisted as why using account software is beneficial
BHP Billiton also uses the accounting software to maintain their transactional record for accounting. The software used by them is XBRL. The full form of XBRL is extensible Business Reporting Language. The main use of this software is to give the accounting insights which deliver the financial report of the company. The software is designed to work with the excel software which helps in delivering the report to the client in easy way. The software is supported with the basic Microsoft office version. Moreover the software allocation of the information to different type of template takes place in an easy manner. Usage of the template made the easy incorporation of the data (Trüby and Paulus 2012). The usage of the XBRL software has eased the company to be in process of creating IFRS financial reports that had US SEC compliance.
The BHP Billiton which has started in the year 1885, in the year 2015 report it has become the largest mining company and the fourth largest company in the Australia in terms of the revenue (Teittinen, Pellinen and Järvenpää 2013). Its revenue is over 31 billion with the profit incurred in the year 2016 over six billion with its share valuing over 1400 dollars. The BHP Billiton has been employing over 65,000 people.
The market capitalization of the BHP Billiton has reached over the 108 billion dollars in the month of august 2017.
In the mining industry business BHP Billiton is ranked at the second position in the mining giants companies in the world. The first place is occupied by the Swiss company Glencoe Xstrata with its revenues over 200 billion dollars from the industrial and mining activity in the year 2013. The company has over 150 mining sites in the world producing over 140 million tones of the coal in the year 2013. The second place is occupied by the BHP Billiton with over the revenue of 68 billion dollars in the year 2013. The company is regarded as the operator of the world biggest copper mine.
The company is regarded as the largest producer of the copper above all mining giants so this can be the reason they are staying at the second position in the mining industry.
As describe above there are various advantage of using software to manage the accounts and transaction of the company but it there are various challenges the software faces in operating the accounts. These challenges listed are:
Security issue: All the software which is used they require a strong firewall to protect its data from being hacked. The same challenge is with the accounting software even they have strong firewall the fear of the hacking of the data lim9ts its use in the industries.
Outdated and lack of the accuracy: if someone is using software then it is crucial he should keep updating the software time to time to improve the accuracy of the software. The same case is with the accounting software. Various accounting software become outdated as the result their analysis are not accurate which cannot be relies upon.
The compatibility issue: there are various accounting software which is not compatible with the company software programmed thus an extra investment is required to make the software compatible with other software.
Not being the user friendly: various accounting software which are used in the market are difficult to understand and not easy to customize. Thus it will be difficult for the user to understand all its operation to use it efficiently.
Thus seeing all the difficulties related to the software the company need to design accenting software which guarantees to have the powerful firewall, easy to understand its faction, compatible with all software’s and have capability of auto update
Conclusion
From the report it can be concluded that the BHP Billiton is among the fourth largest company in the Australia and second large mining company in the world. It has managed to remain at the top of the market through its copper business which has its highest production. The organizational structure of the company has improved with the coming year which has helped the company to thrive in the market. The accounting software has the great application in the industry to maintain the accounts transaction but the industry needs to use the software which guarantees to have the powerful firewall, easy to understand its faction, compatible with all software’s and have capability of auto update. There are various optional problems that any general mining company faces in their business. The BHP Billiton needs to acknowledge these problems in order to rise to top position from the second position in the mining business
References
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Floris, M., Grant, D. and Cutcher, L., 2013. Mining the discourse: Strategizing during BHP Billiton’s attempted acquisition of Rio Tinto. Journal of Management Studies, 50(7), pp.1185-1215.
Ghaffour, N., Missimer, T.M. and Amy, G.L., 2013. Technical review and evaluation of the economics of water desalination: current and future challenges for better water supply sustainability. Desalination, 309, pp.197-207.
Grant, R., Butler, B., Orr, S. and Murray, P.A., 2014. Contemporary strategic management: An Australasian perspective. John Wiley & Sons Australia, Ltd..
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Romney, M.B. and Steinbart, P.J., 2012. Accounting information systems. Boston: Pearson.
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