Discuss about the Organizational Structure of Wesfarmers Corporation.
Information technology is one of effective and unique aspects of the management to run the business activities and actions successfully. Wesfarmers Corporation has been chosen in the task to evaluate and explain the significance of the ERP system, custom software and accounting software packages. Along with this, the paper explains the operational and control issues that are being dealt by the company in today’s modern world. The market size and structure of Wesfarmers also have been explained in the task. More detail of the task is discussed below.
Wesfarmers Limited is an Australian company with it’s headquarter is located in Western Australia. The company was incorporated in 1914 as a co-operative to provide services and merchandise to western Australian farmers. The organization provides chemicals, coal mining and industrial and safety products to the consumers in Australia and New Zealand. It was listed on the Australian securities exchange (Wesfarmers, 2018). The organizational functionalities are flourished in several countries therefore; the company has adopted various types of organizational structure. This is done to improve and enhance the performance and productivity of the employees as well as organization. It has been analyzed that Wesfarmers is engaged in sundry industrial operations and activities. Thus, common organizational structure would not be used by the firm. Furthermore, Wesfarmers is a Corporation limited by shares that is established and domiciled in Australia. Richard Goyder is the CEO and chairmen of the company. Along with this, the adopted effective organizational structure by Wesfarmers Corporation will help to strive with competitors in the workplace (Wesfarmers, 2018). It is one of the biggest companies with 223,000 employees and around 515,000 shareholders. The company can develop and imporve an MIS organizational structure that is more hierarchical in shape with the help of large network and information resources.
It has been evaluated by Momoh, Roy and Shehab (2010) that there are various operational issues faced by the company due to multiple organizational structures. The operational issues that are faced by Wesfarmers have been detailed below.
Various types of system acquisition methods and techniques can be implemented by Wesfarmers handles and control the business actions and operations. The company needs to use software system due to large number of activities are going on in the organization at a single time (Poba-Nzaou and Raymond, 2011). Therefore, the company uses system acquisition method to handle these activities and operations. Some of the effective acquisition methods are elaborated below.
It is one of the significant software that is used by Wesfarmers within the organization for maintaining records and information properly. For example MS office and windows operating system are initiated by the company.
One of the significant and dynamic software which used by Wesfarmers is custom software. This software designs for specific works and requirements within the organization. It helps in detecting external issues and problems. Furthermore, changes can be done easily with the help of this software (Nikookar et al, 2010).
ERP system is implemented by Wesfarmers for better utilization of resources in the organization. This software also helps to control and manage the business operations and actions effectively and efficiently. It has been further noted that system also helps forecasting to analyze the demand and needs of the consumers in the international market. Date integration is possible with the help of ERP system (Madapusi and D’Souza, 2012).
It has been found by Madapusi and D’Souza (2012) that ERP system is one of the effective and unique software among them that has been adopted by wesfarmers in the workplace. This system also helps to provide accurate and appropriate information and facts related to products and services. By using this system, the employees are able to track the data and information within the organization (Kuhn Jr and Sutton, 2010).
It is stated that firstly customers enter in the Wesfamers stores to pick the products. Therefore, purchase order is placed by the consumers. When the company receives purchase order, it is automatically converted in sales order. After then, a pick ticket is created to deliver the products and services. It also determines the quality and quantity of the products and it is sent to the customers. In this way, consumers get products and services. System flow chart plays a vital and significant role to increase and enhances the sale of the products and services. With the help of system flow chart, the company has been able to maintain a control over the sales (Rosenblatt, 2013).
In the absence of managerial control, there are enormous issues faced by Wesfarmers that have been stated below.
On the other hand, there are various ways to reduce the fraud and errors in the system. The company should provide training and development coaching to teach them that how to operate system and to reduce fraud which is occurring in the system. Internal control system shall be implemented by Wesfarmers to detect and eliminate fraud within the organization. New and latest technologies shall be used by the company. Apart from this, experts must be hired by the organization to monitor the activities and operations of the employees (Teittinen, Pellinen and Järvenpää, 2013).
Hall (2012) defines that accounting software plays a fundamental role in each and every organization. Accounting software may be defined as a type of application software that records and processes accounting transactions within functional modules including accounts receivables, accounts payable, general ledger, trail balance and payroll. It means accounting packages functions as a accounting information system. This system is used by the company to maintain data and information properly. Accounting software packages minimizes the chances of errors, misconducts and mistakes within the organization. Stallings et al (2012) stated that accounting software increases efficiency and reduces the cost of the firm. With the help of accounting software packages, Wesfarmers has been able to maintain records of the employees. This system also helps the investors by protecting the rights and interest of them. If the company select a good quality accounting software system then it can help to save the time and cost of the firm. Manual accounting software increases chances of errors and mistakes in calculation. It has been analyzed by Wohlin et al (2012) that accounting software package helps to eliminate the mistakes that are occurred in the organization. It has been revealed that accounting software also tracks the inventory and stock. Accounting platform can calculate the tax amount that needs to be paid on each invoice. Moreover, accounting software helps to prepare financial statements and balance sheet. Along with this, all the calculations are managed by accounting software packages automatically as it saves time and money of Wesfarmers. In this way, accounting software provides wide range of benefits to the consumers and organization as well (Galliers and Leidner, 2014).
Wesfarmers is one of the growing companies in the world. In today’ era, the company is increasing the profitability and revenue in the marketplace. The growth rate of wesfarmers is 4.3% and revenue of the firm is $34.9 billion. In 2017, the profit of the company was $1.6 billion which was higher than previous year profits. The organization uses innovative and effective tools, techniques and strategies to beat the competitors. This is also done by the company to attain desired long term goals and objectives. The organization has also invested in research and development to overcome the rivalries in the international market. Wesfarmers has acquired almost 70% market share of the retail industry in the Australia. This will help to provide new and innovative opportunities for the consumers in the market. It has been noted that market size of the Wesfarmers is wider and dynamic to attract large number of customers.
The profitability and success of Wesfarmers is dependent on the leadership. No company can survive and grow its business activities without effective leadership. The company also provides support to the leaders to be aware of their development and opportunities to keep continue learning. A high investment is done by the company to appoint a skilled workforce in the organization. Furthermore, it has been analyzed that Wesfarmers also provides collective learning and development coaching to the workers. Wesfarmers is a leading and growing Australian listed Corporation. The organization focuses on the diverse operations and activities to provide a satisfactory return to its shareholders. Richard Goyder is the CEO and managing director of the firm. Richard Goyder is the most influential leader in Australian business operations and activities. He always keeps an eye on the strategies, policies and plans of the Coles in order to destroy the competitors in global market. Richard Goyder also focuses on the performance and efficiency of the workers to maximize the outcomes and results.
Furthermore, there are various leaders in the market that affect the growth and profitability of the companies. These leaders include Aldi, Coles, Woolworths, IGA, Shop Rite, friendly grocer and star mart. These leaders affect the revenue and outcomes of the firm. Wesfarmers focuses on the activities and operations of competitors to meet the desired goals and objectives. By analyzing and identifying the plans and strategies of the rivalries, the organization has been able to cope with competitors in the international market.
The accounting software packages create various types of issues at the workplace. Some of the issues that are occurred in the workplace due to poor accounting software packages have been stated below.
Now it is recommended that the company should use cloud based system within the organization to accomplish the long term mission and vision. On the other hand, it has been evaluated that Wesfarmers limited must execute an analysis and report so that the efficiency and effectiveness of the operations and activities could be reduced and eliminated (Dingsøyr et al, 2012).
Conclusion
The above analysis indicates that ERP system and accounting software packages help the company to strive the competitors in the marketplace. Furthermore, Wesfarmers has been able to accomplish the long term mission and vision by initiating the ERP system and accounting software packages within the organization. Moreover, it also explains the functioning of the accounting software system
References
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