Discuss about the Quality in Croatian Middle and Large Companies.
IS or the Information System can be defined as the organized system which is used for proper collection, organizing and storing of the any kind of information or data. Besides this the IS is also used for communicating the various type of data or information. The operations related to the data is very simple as well as easy by making use of the IS as this produced the required the data whenever needed (Galliers and Leidner 2014). Strategic information system can be considered as one of the most important type of information system which is associated with dealing with different strategies adopted by various organizations. Strategic information system is an information system which is associated with the helping the organizations in achieving the various goals and objectives. By adaptation of proper information system an organization can easily gain a competitive advantage (Arvidsson, Holmström and Lyytinen 2014). It has been seen that most of the organizations has acquired the strategic information system for the purpose of running their business. Besides this the services and the goods that are provided by the organizations are having low price along with a better efficiency. Strategic information system can be considered as one of the salient feature of the information technology or the information system.
The literature review conducted below is associated with reviewing the strategic information system and the accounting information system which is used by one of the most popular supermarket known as the Woolworths Supermarket. This is Australian based supermarket which is very famous amongst all the citizens of Australia. This report mainly discusses about the structure of this organization and also provides a wide overview about the operational problems faced by this organization. The review also provides a relevant and appropriate system acquisition method along with a flowchart of the whole system. In Woolworths there exists several problems related to the control process. Additionally there also exists issues like the fraud and many more. All this issues has been discussed in this review. This literature review also consists of a second part which mainly focuses upon the accounting software package used by Woolworth by making use or relevant and proper information. Besides this in the second part a discussion has been made regarding the leaders of the market along with the major competitors of this organizations.
Woolworth is considered as one of the important and most popular grocery store situated in Australia. This grocery store is associated with various type of goods and services for the customers and for this reason this is highly accepted in different of Australia and suburbs. Woolworth started its business operations in the year of 1924 and along with the other supermarkets this is responsible for forming a near duopoly of all the accountings in the supermarkets of Australia. About 80% of the grocery market of Australia is occupied by this organization. The organization is associated with delivering and selling of all the grocery products which can be considered as one of the specialty of this organization. Their main item includes the fruits, vegetables and packaged foods along with baby foods, pet foods and other type of stationary items. Their branches almost exists around all around Australia and New Zealand. Amongst the branches nine hundred and sixty eight branches are supermarkets whereas sixteen of them are convenience stores (Cassidy 2016). The shares which this organization is always on the higher side but in recent days there has occurred a sharp downfall in the shares. This downfall has occurred due to various reasons and this reasons has been discussed below.
The structure of an organization can be defined as the different procedure in which different activities of the organizations which are responsible for achievement of certain objectives of the organization. This activities might include the allocation of the tasks, supervision and coordination and many more. The structure of the organization can be helping in the achievement of the competitive advantage and besides this the organization would be very much effective, flexible and efficient (Willcocks 2013). Along with this the structure of an organization is also considered as a perspective by which all the individuals in an organization have an overview about the environment of the organization (Woolworthsgroup.com.au. 2018). The structure of the organization can be created in various ways and besides this the structure also helps in the determination of various modes. And from this modes the operations and all the performances of the organization are done. The structure also helps in the enabling of the various responsibility allocation of the employees of the organization. The two structures of the organization has been provided below:
The figures which has been provided above shows the management and the corporate structure of the Woolworth supermarket situated in Australia (Woolworthsgroup.com.au. 2018).
The organization Woolworth’s supermarket has been very much successful in the market of groceries. Despite of being successful and getting accepted by the customers they have not been capable of avoiding the various type of operation problems that has occurred within the system (Majchrzak and Malhotra 2013). The different types of operational problem occurring within the Woolworths supermarket has been listed below:
Issues related to the employees is one of the significant issue which exists with the Woolworths Supermarket. There exists different type of conflicts within the employees which includes the issues of the supervisors, personal trauma within the mind of the employees and many more (Hall 2012). All tis problems are mainly responsible for shaking the whole structure of the organization besides this the problems amongst the employees is also increasing day by day.
In order to increase the performance of the organization the teams and the departments of Woolworths Supermarket should be fully functional in a proper way and by this way the the success of the organization would be greatly enhances. But the scenario of the organization is not at all similar (Soudani 2012). Due to the fact that this organization is almost 100 years old, it has been seen that most of the departments in the organization has become non-functional. For this reason many of the problems in the organization is hard to mitigate.
This is one of the important operational problem occurring inside the organization, Woolworths Supermarket. The main problem is due to the use of the old technologies and also the inability of adopting the new technologies for business processes (Simkin, Norman and Rose 2014.). The organization is still associate with the utilization of the traditional technologies and for this reason they face a major problem in adopting the competitive advantage over the other supermarkets of Australia.
Next problem related to the various operations of Woolworth includes the use of wrong strategies for various the business processes (Worrell, Di Gangi and Bush 2013). The strategies which has been developed by the organization is not sufficient for fulfilling the various long term goals and the objectives of eth organization and due to this reason the organization has been suffering huge losses in their business.
Another major problem includes the problem related to lack of communication. The communication gap existing in the operation is very high. There is lack of communication between the organization and the customers, besides this the customers who are new also might not be interested in having communication with the organization (Komala 2012). Besides this the organizations are also not associated with sharing their strategies with the employees and for this reason the communication gap increases between the staffs and the customers. For this reason a major lack of corporation also increases within the various divisions of the organization.
The supply of the raw materials and the resources is not sufficient for the purpose of meeting the demands of the products by the customers (Christensen and Feltham 2012). Due to this reason the customers are not at all happy with the organization and they are opting for other supermarkets due to this reason.
The supermarket has been associated with undertaking the model of the enterprise resource planning or the ERP for their various different processes. The ERP is mainly considered as a category of the business managing software. This ERP is associated with helping in the process of integration of all the applications in a proper way and this is to be done without any type of complexities (Dandago and Rufai 2014). By making use of this the organization is capable of collecting, storing and managing of the data in an easy way and besides this the organization would also be capable of interpreting the data or information about the various business activities. The various important activities of the business which might include the customer relationship management or CRM, procurement management, financial management, human resource management, production management, logistics management and many more are the main things which have been integrated with the ERP (Woolworthsgroup.com.au. 2018). Additionally the different processes of the business have been updated and integrated with the database. Besides this the database has been maintained and managed by the ERP. On daily basis the supermarket has to deal with the various business processes and activities (Collier 2015). ERP has been greatly helping the organization. However maintenance of this method of system acquisition is very hard as well as costly. Despite of this the software is still used by the organization for their business as this software is very much beneficial. The processes included in the business operations of the organization has been streamlined in a proper way with respect to the ERP and by this the productivity of the organization has improved and the efficiencies has also increased. The figure provided below shows a clear benefits of eth ERP:
The figure which has been provided above has been associated with providing a clear view about the benefits that the organization is getting due to the ERP. The methods shown in the figure have been substantially integrated with the ERP (Woolworthsgroup.com.au. 2018).
The sales flowchart mainly refers to the process of sales that the organization is using. This flowchart is associated with providing showing all the steps which are included in the process of sales and besides this the flowcharts is also associated with showing the various individuals who are involved in the different processes (Demski 2013). The gained outcome of the various processes is very much related to the various goals and objectives that the organization is having. The figure provided below shows the flowchart of the Woolworths Supermarket along with the various relevant information.
This figure has been associated with showing a clear view of the processes and the steps which are involved in the process of sales (Woolworthsgroup.com.au. 2018). From the flowchart it can be seen that there are five steps. The first step shown in this process is the customers. After this the customers are associated with booking of the products or the services and this booking is followed by the process of sales. The third process includes the contracts where it can be seen the agents of eth organization is associated the reviewing various orders and the requests for getting the approval (Qatawneh 2012). The fourth steps shows the various legal processes where the checking of eth order is done in order to check if it is legal or not and lastly comes the step of fulfillment where the fulfillment of the order is done.
The main control problems which can be seen in the Woolworths Supermarket along with the solutions have been provided below:
The frauds or errors which can be occurring inside the organization Woolworth mainly includes the following:
Simplicity in the business of Woolworth is brought by the Accounting software packages which is initially responsible for integrating and maintaining the various business processes. Woolworth dose not believe in the use of the modern technologies and for this reason they have not involved any kind of accounting software packages in their business. But instead of using the accounting software packages they have utilized the SAP or the System accounting and processes model for their business (Jing 2013). The SAP used by the organization acts as a core part of the ERP used by Woolworth. There exists several benefits of using the SAP and this mainly includes eth decreasing of the extra costs, increased rate of efficiencies, improved productivity, streamlining of the various process and many more (Woolworthsgroup.com.au. 2018).
From the figure provided above we can understand the various hosting services which are used by the supermarket. And this hosting service mainly includes the services provided by the service desk, management of the data center, management of the services related to the system, management of the access to the network and many more.
The major competitors of the chose organization Woolworths mainly includes the IGA, Aldi and Coles. The figure provided below shows the major competitors of Woolworths and also the rate of sale that they are having.
From the graph it is easy to understand that the major competitors of the selected organization. Besides this the graph provided above also shows that Woolworths is still the market leader with a sale rate of about 36.30% (Woolworthsgroup.com.au. 2018).
The major problems which are faced by the Woolworths Supermarket are very dangerous for the business. The various problems with suitable recommendations for the organization of Woolworths Supermarket are given below:
Conclusion
The literature review conducted above helps in concluding to the fact that by making use of the Strategic Information System the organization Woolworth would be very much successful. The organization that has been chosen for conducting the literature review is Woolworths Supermarket. This is one of the popular supermarket in Australia. This review mainly discusses about the organizational structure of Woolworth along with the management structure. Besides discussing about the structure the paper also reviews the major problems that are faced by the organization. Certain recommendations have been provided in order to deal with the problems. The second part of the review discusses about the major competitors of the organization. The benefits of using the ERP and SAP has also been provide in this review.
References
Arvidsson, V., Holmström, J. and Lyytinen, K., 2014. Information systems use as strategy practice: A multi-dimensional view of strategic information system implementation and use. The Journal of Strategic Information Systems, 23(1), pp.45-61.
Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.
Christensen, P.O. and Feltham, G., 2012. Economics of Accounting: Information in markets (Vol. 1). Springer.
Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.
Dandago, K.I. and Rufai, A.S., 2014. Information technology and accounting information system in the Nigerian banking industry. Asian Economic and Financial Review, 4(5), pp.655-670.
Demski, J., 2013. Managerial uses of accounting information. Springer Science & Business Media.
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.
Jing, H., 2013. THE STUDY ON THE IMPACT OF DATA STORAGE FROM ACCOUNTING INFORMATION PROCESSING PROCEDURE. Journal of Theoretical & Applied Information Technology, 48(3).
Komala, A.R., 2012. The influence of the accounting managers’ knowledge AND the top managements’ support on the accounting information system and its impact on the quality of accounting information: A case of zakat institutions in Bandung. Journal of Global Management, 4(1), pp.53-73.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Majchrzak, A. and Malhotra, A., 2013. Towards an information systems perspective and research agenda on crowdsourcing for innovation. The Journal of Strategic Information Systems, 22(4), pp.257-268.
Mami? Sa?er, I. and Olui?, A., 2013. Information Technology and Accounting Information Systems’ Quality in Croatian Middle and Large Companies. Journal of information and Organizational Sciences, 37(2), pp.117-126.
Neogy, D. and Kumar, T., 2014. Evaluation of efficiency of accounting information systems: A study on mobile telecommunication companies in Bangladesh. Browser Download This Paper.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.
Qatawneh, A.M., 2012. The Effect of Electronic Commerce on the Accounting Information System of Jordanian Banks. International Business Research, 5(5), p.158.
Simkin, M.G., Norman, C.S. and Rose, J.M., 2014. Core concepts of accounting information systems. John Wiley & Sons.
Soudani, S.N., 2012. The usefulness of an accounting information system for effective organizational performance. International Journal of Economics and Finance, 4(5), p.136.
Willcocks, L., 2013. Information management: the evaluation of information systems investments. Springer.
Woolworthsgroup.com.au. 2018. Woolworths Supermarkets – Woolworths Group. [online] Available at: https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/Woolworths [Accessed 10 May. 2018].
Worrell, J.L., Di Gangi, P.M. and Bush, A.A., 2013. Exploring the use of the Delphi method in accounting information systems research. International Journal of Accounting Information Systems, 14(3), pp.193-208.
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