Discuss about the Strategic Information System of Coca Cola Amatil.
The purpose of the literature review is to give an overview of an organization which is using accounting software packages in Australia. This case study is based on Coca Cola Amatil which is an Australia company, operating in Australia, New Zealand and South Pacific. This company is one of the largest bottlers of non-alcoholic beverages and ready to drink beverages and has a number of outlets in Australia. The report discusses the current organization structure of the company and the different operational problems that the company might face due to an ineffective operational structure. The report further discusses the most likely system acquisition method along with the sales procedure of the company. There are certain operational problems associated with the current system of the organization and the report discusses the different types of frauds that are possible in the system. The second part of the report gives an overview of the accounting software packages in Australia and the problems that the users of accounting software face.
Coca Cola Amatil is one of the largest bottlers of non alcoholic beverages in Australia. It is a local manufacturer and the distributor of the ready to drink beverages. The company has been operating is Australia for many years with thousands of human resources working for the company. It is therefore essential to review the organizational structure and the different operational issues associated with the organization. The organizational structure of Coca Cola Amatil, the operational issues and the most likely system acquisition method is discussed in the following sections.
The Organization Structure of Coca Cola
It is essential for any organization to maintain a proper organizational structure as the organization structure is important in order to maintain a proper information flow within the organization (Claver-Cortés, Pertusa-Ortega and Molina-Azorín 2012). It provides a guidance and clarity about the role and responsibilities of the human resources of the organization. Along with a well structured information flow, it is possible monitor the operational processes in an efficient way with the help of proper organizational structure (Lunenburg 2012). There organizational structure of Coca Cola Amatil is represented below-
Coca Cola is a multinational Company operating globally. Maintaining a proper organization structure is therefore important since it determines the efficiency in maintenance of different vital processes of an organization. The organization of the different works in an organization largely depends on its operational structure since the employees should have a clear idea about whom to report. The work organization of a company largely depends in its organizational structure. The picture above gives an idea of the organizational structure of Coca Cola Amatil. It is seen that the organizational structure is quite complex, which might in turn result in several operational problems in the company. Proper information flow is essential for any business. For that, proper communication among the different levels is essential. Improper information flow can create a disaster in the normal operation of the different business processes associated with an organization. The organizational structure of Coca Cola Amatil needs update in order to reduce the several operational problems that the company is facing. This will prevent the several operation problems that the company might face in future (Hao, Kasper and Muehlbacher 2012). The following section of the report discusses the different operational problems that Coca Cola Amatil might face due to this improper organizational structure.
The Operational Problems in Coca Cola
Coca Cola manufactures ready to drink and non alcoholic beverages and the operations include manufacturing, packing and delivery of the finished goods to the customers. Therefore, the business operations of the organization involve efficient management and monitoring of the business processes of the organization. However, an improper organizational structure can result in certain operational problems in the organization mainly due to the poor communication and inefficient management of the vital business processes. The different operational problems that Coca Cola Amatil might face are as follows –
Proper communication flow is largely hampered due to an inefficient and improper organizational structure. Ineffective communication can further result in the several operational inefficiencies such as problem in product management. Severe issues in product management can be faced due to an inefficient organizational structure.
Another operational problem that the organization might face is problem is supply chain management. It is one of the most significant business processes in any organization. Supervision is needed for ensuring proper management of the supply chain works (Domeika 2015). Improper organizational structure will not ensure proper management of the supply chain and therefore, it can result in the severe problems in the process of supplying finished goods to the customers (Karim and Arif-Uz-Zaman 2013).
The problem in the organization structure can give rise to several problems in management of human resources as well (Hendry 2012). The organizational structure of a company gives an overview of the management process of an organization. An improper organization structure therefore can result in severe problems in the management of the human resources in the organization (Hoch and Dulebohn 2013).
These are the most significant operational problems that the organization might face in future due to an improper organizational structure. These operational problems can be prevented by redesigning the organizational structure of Coca Cola Amatil.
Most Likely System Acquisition Method: ERP
Coca Cola operates in the different locations of Australia and therefore it is essential to integrate all the business processes associated with the organization. The use of Enterprise resource planning system is capable of integrating all the vital business processes of the organization (Aslan, Stevenson and Hendry 2012). Administration of the vital operations associated with a business is easier with the use of enterprise resource planning system. Coca cola make use of several enterprise resource planning systems in order to integrate the different business operations of the organization (Shaul and Tauber 2013). The business processes is automated with the use of ERP. With the emergence of the business it becomes essential to automate the different business process of the organization. This is because manual control and recording of the data is not possible and is prone to human error as well. Use of ERP therefore is beneficial for Coca Cola Amatil (Leon 2014). The use of enterprise resource planning system helps in removing the different operational issues associated with a particular organization. The different operational processes can be automated with the help of enterprise resource planning system and therefore, the most likely system acquisition method for Coca Cola is ERP.
The system sales process of Coca Cola
The company Coca Cola Amatil manufactures and supplies non alcoholic beverages to the customers. The basic sales process associated with the company is represented in the following flow chart-
Sales process that is followed in Coca Cola. This is a basic process of the system sales in Coca cola. The inefficiency in the system sales of the organization can result in several control problems in the organization. The control problems of a system can result in certain frauds as well.
The Control Problems in the System
Improper organization structure and inefficient system sales process can result in several control problems in the organization (Galliers and Leidner 2014). The control problems can further result in frauds in the system. The control problems in the system is discussed below-
Lack of internal control is a severe control problem associated with the existing system of Coca Cola. Studies prove that there is a lack of proper internal control in the organization resulting in inefficient management of several business processes running within the organization.
Success of any product or business largely depends of customer’s satisfaction. Recently it has been observed that there are certain problems associated with the customer relationship management that is needed to be addressed. The customer care service can be redesigned an updated in order to eliminate the frauds in the system.
Another significant control problem is associated with the sales process of the organization. The basic sales process can be redesigned in order to eliminate this control problem in the system.
These are the most significant control problems persisting in Coca Cola Amatil that are needed to be addressed in order to maintain a significant and smooth operation within the organization.
Development and Adoption of the Accounting Software Packages
The use of accounting software packages helps in increasing the efficiencies of the different operations running within the organization. Use and adoption of the accounting software packages has considerably increased in the recent years (Hall 2012). Accounting software packages helps in managing the different accounting and financial operations of organization thus automating the entire process. Since the accounting software packages can be customized according to the requirements of the organization or the client, the accounting software packages are most widely used.
Coca Cola Amatil currently make use of SAP. Use of accounting software packages in the organization can help in automating the different financial operations of the organization. Examples of the accounting software include XERO and MYOB. The accounting software makes it easier to track the different financial transactions and the accounting information of a company. Automatic report generation further helps in easy tracking of different financial information of the organization. The accounting software XERO is one of the most widely adopted accounting software package in Australia.
The Current Market Size of accounting software
The use and adoption of the accounting software packages has increased in the global market in recent years. The business of the accounting software is expected to increase at a compound annual growth rate of 6.3% within the year 2024. The revenue in the global market is expected to be USD 4.4 billion by the end of the year 2024. Therefore, it can be said that not only in Australia the use of accounting software packages is expected to increase all over the world (Mageto 2017). There had been a considerably increase in the use of accounting software packages in Australia with a number of business organization making use of accounting software packages in order to track the different essential accounting information of the organization.
The leaders in the Market and their Competitive Advantage
A close research on the use and adoption of the accounting software packages in Australia proves that the accounting software XERO is leading in the market as it is being adopted by a number of business organizations. The reason Xero being the leader in the market are as follows-
Current Gaps, Challenges and Recommendations
Although the use of accounting software is increasing across the world, there are certain gaps and challenges that the users of accounting software face. These challenges are as follows –
In order to eliminate these challenges associated with the sue of accounting software packages, certain steps are recommended-
Conclusion
The literature review provides an overview of the different accounting software packages and its use in Australia. The report gives an overview of the organizational structure of Coca Cola Amatil and the different operational issues associated with the organization. The system sales process and the control problems are discussed in the report. The literature review provides an overview of the case study organization Coca Cola Amatil and use of accounting software packages.
References
Aslan, B., Stevenson, M. and Hendry, L.C., 2012. Enterprise resource planning systems: An assessment of applicability to make-to-order companies. Computers in Industry, 63(7), pp.692-705.
Ccamatil.com. 2018. Our Company – Coca Cola Amatil. [online] Available at: https://www.ccamatil.com/our-company [Accessed 9 May. 2018].
Claver-Cortés, E., Pertusa-Ortega, E.M. and Molina-Azorín, J.F., 2012. Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance. Journal of Business Research, 65(7), pp.993-1002.
Domeika, P., 2015. Creation of the Information system of enterprise fixed asset accounting. Engineering Economics, 60(5).
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.
Hall, J.A., 2012. Accounting information systems. Cengage Learning.
Hao, Q., Kasper, H. and Muehlbacher, J., 2012. How does organizational structure influence performance through learning and innovation in Austria and China. Chinese Management Studies, 6(1), pp.36-52.
Hendry, C., 2012. Human resource management. Routledge.
Hoch, J.E. and Dulebohn, J.H., 2013. Shared leadership in enterprise resource planning and human resource management system implementation. Human Resource Management Review, 23(1), pp.114-125.
Karim, A. and Arif-Uz-Zaman, K., 2013. A methodology for effective implementation of lean strategies and its performance evaluation in manufacturing organizations. Business Process Management Journal, 19(1), pp.169-196.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Lunenburg, F.C., 2012. Organizational structure: Mintzberg’s framework. International journal of scholarly, academic, intellectual diversity, 14(1), pp.1-8.
Mageto, J., 2017. Accounting Softwares in Australia. An Overview. GRIN Publishing.
Mudge, J.C., 2013. Cloud computing-its development and security. Australian Journal of Telecommunications and the Digital Economy, 1(1).
Shaul, L. and Tauber, D., 2013. Critical success factors in enterprise resource planning systems: Review of the last decade. ACM Computing Surveys (CSUR), 45(4), p.55.
Toth, Z., 2012. The current role of accounting information systems. Theory, Methodology, Practice, 8(1), p.91.
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