Discuss About The Qualitative Features Accounting Information.
Strategic information system is one of the main feature of the information system. The strategic information system mainly discusses the organization structure, the issues with the organization and accounting software that are used for the improvement of the business. The main objective of the accounting software is to track and operate the transactions with the business. This type of software mainly associated with the execution. This type of accounting software are highly effective for the different type of processes of the business and the software is used with different type of software models. One of the top organization in Australia that is the commonwealth bank of Australia is the area in which the further literature review will be discussed. The software of the accounting mainly used in the information system as to provide the accounting (Kowalewski and Niedzielska 2015). The vendors are made this kind of software and then supply it to the various organizations. The software is mainly accounting software but there are minor changes are made in the system so that that one software can be used in more than one purpose besides having the accounting ability. This kind of software can be of online or this can be offline. The information that are related to the accounting is retrieved by the accounting software.
The below discussed literature review is the way that helps the processes to understand the organizational structure of the Commonwealth Bank of Australia. Along with the review the various issues that are faced by the Commonwealth Bank of Australia are discussed. The flowchart of the organization and the market share analysis is also given in the review. The next part of the literature review the top market leaders and the competitors of the marker are discussed.
The Commonwealth bank of Australia is one of the biggest bank in the Australian country. Beside the Australian region the bank has its several branches on the different parts of the world like Asia, U.S, U.K and New Zealand. The bank provides various type of services that are related to the finance. The services that are provided by the Commonwealth bank of Australia are “fund management”, “the services that are related to the loan providing”. “Services related to the investments making”, “retail banking”, “educational loans”, “other all types of loans” and many more other services. The “Australian Securities Exchange” or the ASE has complimented this bank that it is the best bank of the Australia in 2015. The commonwealth bank of Australia starts its journey in the year 1911 by the initiative of the Australian government (Commbank.com.au, 2018). This bank is ranked one of the top four banks in the Australia the other three top banks are Westpac bank, New Zealand bank and the National Australian Bank or the NAB. Though in the year 1911 it was a government bank but in the year 1996 it has become a private bank.
The organizational structure of the organization includes the total management and the whole corporate portion of the organization that is the commonwealth bank of Australia. Along with the corporate portion of the bank and the bank management it also includes the associated persons like the bodies of the management and the employees of the organization and the customer that has been associated with the commonwealth bank of Australia. The blow provided figure mainly describes the main organizational structure where the whole management is divided into three different levels that includes the higher level management, middle level management, and the lower level management.
Figure 1: The Structure of the Organization of Commonwealth Bank of Australia
The commonwealth bank of Australia is one of the top banks in the Australia. However, the bank still faces several different type of issues. One of the main issue that has been the concern of the bank is the falling rate of the market share in the recent time and this reason has brought several other drawbacks within the business that has been conducted by the bank itself. In the recent years it seemed that the market shares of the bank is rapidly falling. This share fall is mainly happens because of the different wrong strategies that that has been adopted in the technology. The bank has started to take action regarding the problem that are previously faced and they are keen to improve their market share that is falling rapidly. Though the actions taken regarding the issue but most of the action that are taken most of them are wrong strategies and they are generating more problem for the organization. The main problem they are facing is the alterations that are constantly taking in the market place. The reasons that are responsible for this type of constant alterations are the organizational structures competition between the commonwealth bank of Australia and the other top banks that are located in the Australia (Ashkenas et al., 2015). In the recent time the problems are grown rapidly and due to that the customer satisfaction is not met and the bank has failed to do that as well. The minimum necessities of the customers sometimes ton fulfilled by the bank. There are many examples of that like due to the fall of the shares the bank is unable to provide loans to the customers. As compare to the other banks in the Australia this banks interest rate is also higher, and due to that the existing customers are started to lose their interest on the commonwealth bank of Australia and they are started to moving to another banks. The new customers are also stopped creating account in this bank and stopped taking loans due to that the easy loan payment option is not also provided by the bank. For all of the above reasons and many other reasons the customers have opted out the commonwealth bank of Australia and shifted to another banks where the rate of the interest is low and the loan payment is easy (Chan and Rate 2018). The downfall of the market share of the commonwealth bank of Australia has been provided in a figure below. From the below graph it is very clear that the bank shares was above 75 and initially it started very good but suddenly degradation and rapid downfall happen. From the figure it can be concluded that the commonwealth bank of Australia has failed to hold its customers. The fallen shares are also affected the clients that are new and they are getting afraid to invest there money on the bank. As the shares are falling constantly the customer do not showing any interest of taking any loans from the bank and the high rate of interest is also affecting them. Now days the customers are only looking for the banks who gives the lower rate of interest and where they will get the money security. The commonwealth bank of Australia is facing another problem that is the problem related to the employees associated with the bank and the bank staffs. The rude behaviour of the bank officials towards their client is also another problem with this particular bank is facing. Due to this, it creates a negative impact on the client and can affect their future investments.
Figure 2: Commonwealth Bank Downfall of shares.
In the above the problems regarding the company has been discussed. The bank understood that to mitigate the problems certain strategies have to be adopted (Kolodner 2014). In order to do that four major elements for the success is identified. The four identified elements on which the commonwealth bank of Australia decided to mainly focus is discussed below:
The organization of the commonwealth bank of Australia understood that customers are the ones those are the foremost elements that responsible for of the success of any type of organization. If the customers stopped their association with the bank then the bank will be in a total non-functional state and that will lead to the closure of the bank (Kumar and Reinartz 2018).
This one is the next element where the bank needs to put its focus on. The banks need to update their thought regarding the use of the technologies that are used in the bank. The must understand that the new technologies are they key to get success in the current market as the technology in the world are updating in a rapid speed (Grant and Meadows 2016).
The organization is good or bad depends on the strength of the organization. The strength of the organization is highly dependent on the capability and the efficiency of the teams that are associated with the bank (Cho and Ishiguron 2015). The same is applicable for the commonwealth bank of Australia as well. To achieve the goals and the objective of the organizations the main responsibilities are lies upon the employees and the staffs so that they work together efficiently.
This is the last element that has to consider for running the business successfully. An annual production report must be recorded by the bank to store the productivity of the individual employee as well as the whole organizations productivity (Tanna, Luoand De Vita 2017).
The below provided figure shows the strategies percentages that has been adapted by the Commonwealth bank of Australia.
Figure 3: Commonwealth Bank of Australia Strategies
There are many organizations in the market those are using the ERP or the Enterprise Resource Planning. Commonwealth bank is not an exception as it also uses the Enterprise Resource Planning (Leon 2014). By using the ERP the bank associates different kind of controls along with amalgamation the most portion of the business. The information system of the management and the enterprise resource planning is associated with the different organizational areas. The areas includes the planning, sales, finance, marketing, and the human resource. The commonwealth bank of Australia is also use the basic system applications and the product model, SAP model for their business purpose (Kale 2014) . In the business model the introduction of the SAP model is very complex and due to that knowledge and the training is required. By applying this methods the proficiency of the banks will be increased hugely. Along with the proficiency it will also increases the flexibility and it also integrates the all module of the business in a huge rate. The application of SAP is very cost effective (Roze et al., 2017). There are some strategies that are adopted by the bank gone wrong and the bank faced a huge amount of problems for that. After the implantation, updating and renewing the SAP has resulted a steady market share for the bank which in the past is falling rapidly. The bank shareholders are trying their best to reduce the rate of interest in order to attract the clients as well as the customers associated with the bank.
Figure 4: Systems Flowchart
The above figure which is provided is associated with the different processes of the bank. The figure shows the different procedures conducted by the commonwealth bank of the Australia. The figure is also helps to detect the loopholes that happens in the processes of the bank. The above provided flowchart is divided into total three different categories. The three major categories includes the review, evaluation and the last is the response. The review section includes the feedbacks of the customers. The section of the evaluation includes the necessary steps and the answers which are necessary after the customers send their feedback which received. In the section of the response all the main functions and the processes of the banks are included. Necessary action needs to be taken if the banks are not capable of responds in time.
There are major problems that the Commonwealth Bank of Australia is faced. And these problems are responsible for the different type of modifications creations in the bank shares. There are different aspects that are responsible for the growth of the Commonwealth Bank of Australia are mainly dependent on the clients, shareholders and on the marketing team of the commonwealth bank of Australia. These problems are affecting the reputation of the bank in a high rate. This harm in reputation can be affect the bank in long term (Bahaa 2017).
The commonwealth bank of Australia has been associated with the different kinds of clients and that has been act as an important factor for getting the success of the bank. The will power to work and the employee’s involvements of the organization is highly increased due to the involvement of the clients of the commonwealth bank of Australia. The basic need of the particular case is the service processes. There must have been alteration in the organization from the time the organization is starting. In the case of the Commonwealth bank of Australia which is established on the year 1911 must alter some of the organizational structure and must associated with the new and innovative market trend. The employee of the bank are not sufficient enough for the huge quantity of the clients and those are the regular clients.
The Customer Relationship Management or the CRM is acting as one of the most important function for any organizations. The bank is associated to deal with the clients and the responsibility of the bank is to full fill the requirements asked by the clients. Customer relationship management what, which main objective is to refer to the various different techniques and the various strategies that is used by the bank to provide a good relations with the customers and the clients. For the various different processes of the commonwealth bank the customer relationship management is not at all sufficient. The commonwealth bank of the Australia does not have the capability to maintain a good relationship with the customer of the bank. The bank must focus on the customer relationship management in order to satisfy the clients need and to give the customers the interest towards the bank (Kumar and Reinartz 2018).
By introducing the accounting software, the problems and the challenges that are the commonwealth bank of the Australia is facing can be possibly reduced (Zare 2015). The Business to Customer or the B2C software packages is associated with the Commonwealth Bank of Australia. There are several advantages of the business to customer software. The advantages are as follows:
Figure 5: Commonwealth Bank shares Margin
The above provided figure is associated with the market size of the Australia. From the figure it can be seen that that a slight degradation has occurred in the market shares of the commonwealth bank of Australia. From the image it can be said that in the previous year the shares was about 283 but the shares has come down to the 262.
In the Australia there are various different competitors of the Commonwealth bank of Australia is available. The list of the top market leaders and the competitors are as follows:
Figure 6: Core Competitors of Commonwealth Bank.
The above figure which has been provided above describes and helps to understand the core competitors and the top competitors of the commonwealth bank of the Australia. In the above figure there are seven banks are provided as the core competitors for the commonwealth bank of Australia. The above chart or the figure helps us to understand that the market is totally occupied by the market by the commonwealth bank of Australia despite having lots of problems regarding the bank.
Conclusion:
The above literature review helps us to conclude that the fact is true as the commonwealth bank of the Australia is the top bank in the region of the Australia and the New Zealand. The bank has been associated with the different kinds of problems though the bank has been listed among the top banks in the Australian region. In the review various problems are discussed with related to the bank and its organization. Due to the different probles that are faced by the bank several customers are lost their interest towards the banks and opting to shift to another banks those are providing good benefits. The shares of the bank is constantly falling and the rate is rapid. The bank must lower their rate of interest for the customers. Easy payment options for the loan must be there for the customer. Although the bank is facing lots of problems but the bank is still putting efforts to come out of the situation and new and innovative strategies are being applied to the business. The above literature review discussed the several aspects like the organizational structure, the problems faced by the bank, inefficiencies of the organization, the flowchart of the organization , the market shares of the bank, and the process design of the of the commonwealth bank of Australia. The literature review also discussed the top market leaders and the core competitors of the commonwealth bank Australia. In the review there are several recommendations also given. The recommendations are provided to overcome the issues and the challenges that has been faced by the ban and that affect the customer of the bank. The main objective of the recommendation is to hold the falling market share and if possible then upgrade it so that the clients can get back their interest and again associated with the bank (Dymski 2016). If all the problems are mitigated then the existing and the new customer will head bank toward the bank and the bank will be again on its track like it was before.
References:
Ashkenas, R., Ulrich, D., Jick, T. and Kerr, S., 2015. The boundaryless organization: Breaking the chains of organizational structure. John Wiley & Sons.
Bahaa, G.M., 2017. Fractional optimal control problem for differential system with delay argument. Advances in Difference Equations, 2017(1), p.69.
Chan, K. and Rate, E.A.I., 2018. & 6 The Time Value of Money. Financial Management.
Cho, H. and Ishiguro, K., 2015. Organizational Strength and Individual Career: A Qualitative Study on Individual Career Formation in the Newspaper Industry. International Journal of Innovation, Management and Technology, 6(4), p.309.
Dymski, G., 2016. The Bank Merger Wave: The Economic Causes and Social Consequences of Financial Consolidation: The Economic Causes and Social Consequences of Financial Consolidation. Routledge.
Grant, A.E. and Meadows, J.H., 2016. Communication technology update and fundamentals. Routledge.
Kale, V., 2014. Implementing SAP® CRM: The guide for business and technology managers. Auerbach Publications
Kolodner, J.L., 2014. Retrieval and organizational strategies in conceptual memory (PLE: memory): a computer model (Vol. 16). Psychology Press.
Kowalewski, M. and Niedzielska, J., 2015. A Study of the Financial Accounting Software Used by Small Enterprises in Olsztyn. Olsztyn Economic Journal, (10 (3)), pp.233-245.
Kumar, V. and Reinartz, W., 2018. Customer relationship management: Concept, strategy, and tools. Springer.
Kumar, V. and Reinartz, W., 2018. Customer relationship management: Concept, strategy, and tools. Springer.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Roze, S., de Portu, S., Smith-Palmer, J., Delbaere, A., Valentine, W. and Ridderstråle, M., 2017. Cost-effectiveness of sensor-augmented pump therapy versus standard insulin pump therapy in patients with type 1 diabetes in Denmark. Diabetes research and clinical practice, 128, pp.6-14.
Tanna, S., Luo, Y. and De Vita, G., 2017. What is the net effect of financial liberalization on bank productivity? A decomposition analysis of bank total factor productivity growth. Journal of Financial Stability, 30, pp.67-78.
Zare, I., 2015. Study of Effect of Accounting Information Systems and Software’s on Qualitative Features of Accounting Information.
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