The use of accounting software for any medium to large chain business is required for the proper maintenance of the economic transaction. The system can be functioned as a package or individual system used by the customers or users. There is some importance of this system in managing the financial operations of the organization. In the present study, different advantages of using the accounting software system or packages in Woolworths would be discussed. Along with that, the organizational structure would be discussed, with the drawbacks and mitigation strategies related to the problems of the present organizational structure. The study would conclude with suggestion and recommendation based on the different strategies for establishing an effective use of accounting software system or packages for Woolworths.
1. Structure of the organization (Woolworths)
The Woolworths is basically a supermarket for providing different marketing services. This supermarket does not produce any physical product like the other supermarkets. The organizational structure of such type of business are usually based on the transportation of the existed products to the remote suppliers, gathering the different products in regional warehouses, their distribution in different retailer stores and finally selling of the products to the local customers. These all collectively make an organizational structure of a supermarket business. Based on the organizational structure the subsystems of the supermarket business organization have gone on in a particular organized manner. It involves the collection of the household products, grocery items and other homely equipment from the remote suppliers based on the customers' demand. Next is the transportation of the products to regional warehouses for storing, then based on their need, products are supplied to the local stores finally to make them available to the local or regional customer. As stated by Brandon et al. (2013), the accounting software system is the core processor for this business organization. The system software helps to manage the economic transaction during the peak time by the organizational workers and also for providing a quality service to the customers. Hence the proper maintenance of the accounting software system for ensuring the safe economic transaction and the protection of the personal data by the customer is a key factor which has to be maintained properly by the organization.
Figure 1: organizational structure of Woolworth’s supermarket
2. Different problems could occur due to the organizational structure
The organizational structure which Woolworth usually follows is a basic structure, also used by every supermarket. But there are some inefficiencies or erroneous facts about the structure. These are as follows-
⦁ The collection of the products to the warehouses form the remote suppliers can create an issue if proper plans about the amount and type of products would not be done properly. In some cases, the products supplied by the workers are not at all demanding among the customers. In that case, those products will be there in the store for long without selling. This can be a result of communication error among the different hierarchy with each other.
⦁ Another issue can be occurred during storing of the products in the warehouse. If a proper environment for storing them for a prolonged period would not be there then the faulty products would come on the market and that can create a negative impact on the supermarket among the customer. As stated by Chen (2015), this can be considered as a faulty organizational management related error.
⦁ The safety or security problem like hacking of the private information related to the financial transaction of the customers can be responsible for a huge loss of the company. If the private information of the customers is not stored safely then the digital cash exchange process would not be used by the customers, which is a very convenient way of handling money. As suggested by Apostolou et al. (2013), this can have a direct impact on the negative financial growth by the company within a short time span.
3. Explain about most reliable acquisition method
There are several system acquisition methods in accounting software like commercial software, Custom software and Enterprise Resource Planning (ERP) etc. The commercial software system is a free or open source software system which is technically produced with a target of selling some particular commercial products for a particular organization. This is an open system which can be accessed by any worker in a company. Hence, the security of using the software is less reliable. The next system software is custom software. This is a tailor-made software system which is basically designed for a specific organization in order to promote it. As stated by Lu et al. (2012), the authority to access the use of this software is for only the management of the organization and based on the requirement the general employees can access it. This is more reliable than the previous method with respect to the data or information security of the customers. According to Kanellou and Spathis (2013), the last system which would be discussed here is ERP which is a process management of a specific business organization which allows it to access all the managerial system as an integrated application system.
The ERP is the most reliable method of acquisition among the three system software according to the context of the present structure of the supermarket business. As stated by Hilton (2013), the ERP would be helpful as it helps to establish an integrated application system required for the different services by the company, exclusively for its use. The security can be made strong for the different department like finance, transport and so on based on their demand. Along with that, it gives different steps of security for accessing the system software based on the authority of the user of the different workers. This high-level security system is a beneficial system for the customers' from the unauthorized access by the users from the company itself and also for the outside users of the organization.
4. Sales procedure of the organization
The sales procedure of the Woolworths involves 7 different steps of making an effective business by the sales procedures (Mas et al., 2014). These are as follows-
⦁ Identification of the potential and regular customer for different products. This involves the role of Woolworths in fulfilling the demand of the customer. It also helps to find out whether a customer can easily afford a product of his/her choice or not.
⦁ The next step is a proper research on the demanding product by the customers. The managerial organization has undergone several reviews on which type of product is being sold more, price, brand and variety of that particular type of product to create a unique business of Woolworths more than the rival groups.
⦁ A proper approach to the customer by the organization is an effective sale process for the company. The approach of different gift vouchers to the loyal customers and also for the new customer would attract more customers to the Woolworths.
⦁ The proper presentation of different goods in an organized manner enhances the sale of the supermarket.
⦁ Handling of the complaints by different customers with efficiency can return them to the store again. Hence Woolworths put special attention on this ground.
⦁ A proper timing maintenance for providing different services can make all the shopping method less time to consume for each customer, based on that strategy Woolworths tries to make the workers do their job within a certain bounded time period.
⦁ The last step is surveillance for all the service system properly, the safety of the private documents of the customers maintaining properly or not, usually done by the managers of the Woolworths.
5. Identification of drawback of the system along with a description of different types of frauds possible by the use of that system
The problems of accounting software system can be the following.
⦁ Issues related to improper security: This problem can create a chance of attempting a fraud by the workers of the Woolworths or by the outsiders by ensuring an access to the private data of each customer.
⦁ A faulty reporting service: This can make the workers take the advantage of the problem and that leads to less dedication to their work for the company.
⦁ Less efficiency to control the software: If the workers are not efficient enough to handle the software this can lead to a more time-consuming transaction by the workers and is a drawback of the whole organizational system (Marchand and Hennig-Thurau, 2013).
⦁ No modification of the system: If the system is not updated then the chance of accuracy while handling can be decreased. So the updated version is always required for an effective economic transaction. As stated by Mahzan and Lymer (2014), the older version of the software can also reduce the software compatibility which can take more time for each transaction and hence creates an inconvenience among the customers.
1. Discussion on the development and adoption procedures of the accounting software packages
The development of the accounting software considers several segments to deal with, so the development involves the successful establishment of the payable and receivable accounts between the customers and the company. This also includes the development of billing, expense and general ledger book for making proper records on the company's benefit of choosing invoice customers, details of different expenses entered for building the perfect customer-organization relation and so on. The system software also develops the facilities for recording payrolls, proper timesheet and attendance sheet along with everyday reports. As stated by Schilke (2014), the ideal accounting system software contains all these feathers while developing and a successful implementation of this kind of software can increase the economic growth of the company-Woolworths. If all these characteristics would be adopted properly in the software development the effectiveness of it would be increased which is having a direct effect in the positive growth of the company by competing others in the market (Worrell et al. 2013).
2. Details about the present market size
The Woolworths has completely involved them in the selling of grocery and household products since 2016 February by quitting the hardware business. The growth of the company was quite rapid since then to till today in the marketing business. The company had beaten its rival group after seven years. The company had introduced almost 290 products along with a discount list of 3,800 permanently discounted materials which helped the company to enhance its sale of different products by 4.9% in a comparison of the other supermarket organization in Australia. This helps to increase the shares of 2.1% in the market which is the highest level achieved by the company within the last two initial month of 2017. The overall profit of the company was increased by 3.7% at the end of 2017 which is 1.6% more than 2016. The selling of solid foods is AS 9.6 $ billion which is almost 2 billion more than Coles in that year. The Woolworths is sharing 37% grocery sharing market in Australia according to the recent report of IBIS world Australia (youngwitness.com.au, 2018).
3. Identification of the leading groups in the market and also the reasons for the advantages of that company for leading
The recent data on the leading position of the different supermarket in Australia shows that the Woolworths are leading the market in 2017, by beating the other organization. As stated by Simkin et al. (2014), the leading position helps to build up a good reputation for the organization in the national market. It helps to enhance the demand for employment in the organization which gives the organization an opportunity to select the best human resources working for their company to make to grow faster. Not only the manpower the maximum number of shares of the company helps to give it the chance of collaborating with the best investors or insurgencies organization to work with them which ensures to hold there in the same position for a long duration. As the company is leading the economic growth is also quite satisfactory which helps the organizers to make the employees pleased and motivated for their works by providing sufficient salary and other facilities. It also helps to make changes in the conventional stores for the better accommodation of the customers properly. Along with that, the economic growth could help to adopt more utilization of modern technologies and improved version of accounting software system to make a proper use of the human resource and a more secure system for the organizers. The 37% sharing market of the Woolworths which is 6% more than Coles brings the top position to them as a leading market (businessinsider.com.au, 2018).
4. Suggestion and recommendation based on the problems faced recently by the accounting software users and customers.
There are several problems, faced by the Woolworths recently to enhance their growth in the market. The challenges are related to the customer and organizers relations because of the faulty managerial system. The problem in the managerial system can results in the diminished economic growth of the company due to less customer satisfaction by the organization. As stated by Weil et al. (2013), a proper monitoring of the customer and worker relation can help in the early identification of any type of relational problem. This can be overcome with the proper surveillance. The use of an older version of the accounting software system can make the financial transaction procedure more time-consuming. This could make the customers irritated with the service and less interested to avail different services from Woolworths. Hence it is suggested to use the updated version to make the quality of service system better. Along with that the updated system would help to ensure a proper reporting by the workers and also make the data of customer more secured. It can be a key factor of their growth in the market and also helps to hold the best position in the coming years or it may enhance further demand of the company in future.
A proper organizational structure can help any organization to achieve the best position in a competitive market by beating others. The role of accounting software system packages in the supermarkets is mainly lying in the controlling of the financial transaction of each customer with a security. Along with that it also includes a discussion about the operational drawbacks of the existing organizational structure. Apart from that the reliable method of using system software has been discussed along with its benefits for making the company as a leading organization in the market. The present status of the supermarket Woolworths has also been discussed with the advantages it is getting for being a leader. At last, the study would be concluded with the recommendation and suggestion to keep the leading position for future by the proper use of different managerial factors and an effective utilization of accounting software system.