ASSIGNMENT 1: LITERATURE REVIEW
This study will make a discussion on the Wesfarmers and its business policies implemented within the market. A discussion will be done on the company structure on the basis of the job roles of the employees. Depending on the structure evaluation will be done on the challenges faced by the company. Challenges in the operational management will be discussed in this study. This study will discuss the system acquisition method followed by Wesfarmers and will evaluate the advantages of using the commercial software, customized software, and the ERT and will. A discussion will be done on the differences in between them. In this study, the sales process will be reviewed by the Wesfarmers. A discussion will be done on the development of the software and evaluation will be done on the adoption of that software. This study will evaluate the current market and be depending on that will make a discussion on the leaders in the market. A discussion will be done on the advantages of the competition in the market. In this study, the evaluation will be done on the possible challenges for both the customers and the users for using the accounting software in the enterprises.
1. Current Structure of the organization
Wesfarmers is one of the biggest companies in Australia as in the Business year 2017 it was one of the listed Australian companies which earned the most revenue. Wesfarmers has many businesses in Australia. Generally, they earn the most in the sector of Cole’s supermarkets and bunning warehouse. In every department, the structure is the same but the higher authority of Wesfarmers takes care of all the departments. Generally, the director board takes care of the whole business and business planes. In the year 2017 Rob Scott was selected as the managing director of Wesfarmers limited. The board of directors includes non-executive chairman, non-executive director, and the managing director. At present non-executive chairman of Wesfarmers is Michael Chaney AO. The non-executive directors are Paul Bassat, James Graham AM, Tony Howarth AO, Wayne Osborn, Diane Smith-Gander, Vanessa Wallace, and Jennifer Westacott (wesfarmers.com, 2018). Under the directors and the members of the board of directors, there are Chief Financial Officer, Group General Counsel, Managing Director, Chief Executive Officer, Company Secretary, Chief Human Resources Officer, and Executive General Manager. Under Rob Scott, the Company Secretary is Linda Kenyon. The human resource is taken care by the Chief Human Resources Officer at present this position is handled by Jenny Bryant. She takes care of all the human resource management of all the sectors of Wesfarmers. Under her, there are departmental Human resource managers who take care of the human resource of dedicated sectors. The financial part of the company is taken cared by Anthony Gianotti who is the chief financial officer of Wesfarmers. Under him, there are the financial officers for every department of Wesfarmers. Maya Vanden Driesen is working with Wesfarmers since 1993 and now she is the Group General Counsel. Managing director for the business development of Wesfarmers is Edward Bostock. He was appointed as the in December 2017 takes care of the males and the marketing portion of the company. Under him, the unit of Wesfarmers is Marketing head, marketing manager, Zonal sales manager, and Area sales manager. The CEO of the departmental stores of Wesfarmers is Guy Russo who takes scare of the business mainly of the retail section of Wesfarmers.
2. Operational Challenges depending on the structure
The companies mainly maintain the goals in order to maintain the reputation in the market which is keeping the current customer base, Increase market share, develop high margin products, and decrease operational expenses (catalogue.pearsoned.co.uk, 2018). Depending on the above factors the operation of the company is defined. In order to maintain the business, there may be some challenges in operating the business of the company which is alliance, Organisational structure, staffing, decision making, growth strategies, Investments, Project Value Methodology, Determining customer needs and pricing. As mentioned by Nasser and Tariq (2015), there are several challenges that occur due to the organizational structure. There are several models is used in an organizational structure which are Telecommunications Management Network (TMN) model, Provisioning, Assurance, and Usage (PAU) mode, and Telecommunications Operations Map (TOM). These models can be categories into two parts which are Mechanistic structures and the other is Organic structures. Mechanistic structures designed in such a way that the control of a single person is narrowed. This design is done depending on the specialization and high centralization. Wesfermars has concentrated in a different model which is similar to Organic structures. The higher keys have the Haigh span of controls as the organizations run the business in many sectors. The main challenges faced in the structure of the company are the wide span of control of the higher authorities, decentralization, low departmentalization and a long chain command. The main challenge is due to the long chain in the company which makes gape in between the response and acts as barriers to a sound communication.
3. System Acquisition method
In the area of IT and advance technology enterprises maintain their business record with the help of software. Mainly the need of the software is in the section of accounting to get an overview of the business done by the company. In order to keep an eye on the business of an organization the companies generally uses commercial software, personalized software, and ERP. The organizations generally use the commercial software for the accounting the business such as the sales record and the inventory record. As suggested by Seethamraju (2015), the design of the software depends on the needs and the business strategy of the companies. Some companies use personalized software depending on the need of the company. The software may only contain the record and the accounting part. In the modern age, organizations are dependent on the newly specialized software which not only contains the accounting part but also contains all the information about the organization (Uschold, 2016). Wesfarmers use ERP based software which controls the total business of Wesfarmers. Generally, ERP is based on one database, one application, and one interface. ERP is mainly Enterprise Resource Planning software. The single software can handle the whole work of different sections of an organization. ERP is the most likely Acquisition method in an organization depending on some reasons which are flexible, modular, and comprehensive, beyond the company and best business practices. The features that enable ERP to be most liked which are as followed.
ERP includes multi lingual, multi-mode manufacturing, multi-currency, and a multi-platform facility which enables the company does all the work from the single place.
Strategic planning and business planning can be done with the help of this software.
It works for all sectors and the functional areas such as sales, marketing, manufacturing, human resource, accounts, distribution, inventory, and purchases.
ERP helps in core performance of the company and increases the efficiency of customer service.
ERP helps in filling a gap of information in an organization.
ERP also includes Electronic Fund Transfer (EFT), E-Commerce, and Electronic Data Interchange (EDI) which increases the efficiency of the company. Approaching the Customer, Determining Customer Needs, Presenting Goods and Services,
4. Sales Procedures
Wesfarmers is one of the biggest brands in Australia in the segment of retail. As the business of the organization is mainly dependent on sells that's why they maintain certain steps in order to retain the market and give growth to the business which is Prospecting, Approaching the Customer, Determining Customer Needs, presenting Goods and Services, addressing Objections and questions, closing the sale, handling payment, and follow up with the customer (mbci.mb.ca, 2018). In order to make a good impression on the mind of the customers Wesfarmers gives importance in greeting the customers who list in the 1st step, prospecting. The second step of selling is approaching the Customer. As Wesfarmers deals in the retail business that's why they give importance on approaching the customer as they can share their need. After approaching the customers Wesfarmers give importance to determine the customer needs as it can help the customers find the products easily (Bănărescu, 2015). Addressing Objections is the vital part of the sells process as in retaining a customer and maintaining the customer satisfaction. The main part of doing a business is closing the Sale which comes from the customers' satisfaction over the product. The last step of selling is handling payment which closes the selling process. In order retain the customers Wesfarmers gives importance in following up with the Customers.
5. Problems and Possible frauds in the system
In the accounting software, there can be several issues regarding fraud, technical issues, and incorrect information. The biggest issue is fraud case and there are many cases of information leaks. As the modern accounting is based on single interface and can be accessed from any place the software is based on cloud computing. As mentioned by Ramasubbu and Kemerer
(2015), even these days the software is combined with an electronic payment system. There are several chances of data leak and data stolen. Hackers can hack the software and can get access to the personal information of the companies. The hackers even can become the risk for assets, resources, and daily deposits (Lippmann and Riordan, 2016). Hackers can break down the software by which it can break down the whole system of the organization.
Not only are the fraud cases but there some technical issues regarding the software. The main issues arise regarding the system breakdown. The software runs depending on the data storage and the coding of the software (Veleva et al. 2015). Any kind of bug in the structure of the software can become the reason of system breakdown and data loss. Sometimes a virus can affect the system and that can crash the whole system. Without following the proper information if someone tries to do any different work that can result in the error.
1. Development of the accounting software and its adoption
In the present time, the accounting software is mainly based on cloud computing. This software not only performs the accounting works but also maintains the other works depending on the complex design of the software. Generally, the Accounting software is made for the selling process, which includes entry of the sells, bill generating, receiving payment and generating the receipts (Sales, 2016). Depending on these needs accounting software can be developed which will maintain the sells work. In order to design the sells software the first thing that comes is including the sells products depending on the bills will be generated. As suggested by Drechsler and Mante (2017), there will be storage for data entry where the organization can add and remove products. After sells registration comes which will start the process of registering the sell and accounting. After registering the sell this registered data will sync with the stored data from where it will take the rates of the products. After that, there will be the system of gathering all the registered sells and making the total bill. After that, the software will go to the payment section where it w8ill generate the bill. Then there will be an interface of online transaction. In the end, after receiving the money it will generate payment slip and will close the sell.
Figure 3: Accounting Software Development
(Source: bccpa.ca, 2018)
2. Current market size
Wesfarmers is one of the leading companies in the sector of retail business and supermarkets. In the financial year 2017, it has seen several growths in different sectors. According to the report of the financial year of 2017 earnings per share of Wesfarmers are 254.7 cents and the return on equity of 12.4%. Net profit after tax for the financial year 2017 of Wesfarmers is Au$ 2873 million. Revenue from ordinary activities, Earnings before interest and tax, Net debt, Free cash flows, Finance costs and income tax expense and Depreciation and amortization in the financial year 2017 are Au$ 68444 million, Au$ 4402 million, Au$ 4809 million, Au$ 4173 million, Au$ 1529 million, and Au$ 1266 million (wesfarmers.com, 2018).
3. Leaders in the market and competitive advantages
Supermarkets are the biggest organization doing business in Australia. In this segment, the biggest rivalry competitors are Wesfarmers and Woolworths. According to the survey of more than 50000 people in Australia Woolworths has left Wesfarmers behind as they incremented by 0.8% and becomes the market shareholding of 32.2%. In the market, Wesfarmers is lagging behind as they have the market share of only 7.4% in Australia. In the year 2017 Woolworths opened more than 500 stores in the region of Australia but in that sector; Wesfarmers is lagging for which the market share of this organization is also decreasing (bccpa.ca, 2018). This healthy competition on between the companies helps Wesfarmers to grow in a much better way. This healthy competition boosts the other companies and makes them seek business growth. Following the steps of the other leading companies can help Wesfarmers in increasing the business and gain more market share.
4. Challenges for both the customers and the users of accounting software and recommendation.
There can be several problems depending on the problems for the accounting software in use. The main problem arises regarding data hacking and fraud case. As most of the software is based on cloud data processing hackers can hack the software and can get access to the private data of the users and the customers also (Shen et al. 2016). Hackers can get access to the transaction and the tax-related information. Sometimes it is seen that hackers can hack the data at the time of internet transactions and can steal money from the transactions. Sometimes due to bus issues and the virus problems transitions become insecure and risk arises of data theft while sometimes the system crashes also.
This study has discussed on the Wesfarmers in Australia and has evaluated the business policies of it. A discussion is done on the company structure. This study has evaluated the structure on the basis of the job roles and categories of the employees. This literature review has discussed the challenges faced in between the company depending on the company structure. This study has evaluated the possible Challenges in the operational management. This study has discussed the system acquisition method followed by Wesfarmers and has evaluated the advantages of using the commercial software, customized software, and the ERT. It has evaluated the differences in between commercial software, customized software and the ERT. This study has discussed the sales process of Wesfarmers. Evaluation is done on the possible frauds while using the Commercial software. This study has discussed on the development of the software and evaluation is done on the adoption of that software. This study has evaluated the current market and depending on that has made discussion on the leaders in the market. A discussion is done on the advantages of the competition in the market.accounting homework help, accounting homework, financial accounting assignment help, financial accounting assignment, management accounting assignment, cost accounting assignment help, accounting homework help online, accountancy assignment, managerial accounting assignment help, accounting assignment help online, management accounting assignment help, managerial accounting homework help, cost accounting assignment, business accounting assignment help, cost accounting homework help, financial accounting homework help, accounting homework solutions, college accounting homework help, accounting assignment solution, corporate accounting assignment help,