Elaboration Likelihood Model Influence Theory In Strategic Information System – Coca Cola Amatil Case Study

Organizational Background of Coca Cola Amatil

Discuss About The Elaboration Likelihood Model Influence Theory.

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Strategic information system is the type of information system that could be developed to cooperate all the business operations or initiatives. This strategic information system eventually provides several competitive advantages to the specific organization (Bernus, Mertins and Schmidt 2013). This type of system delivers various products or services, which is differentiated for focusing on the typical segment of market. It is the most salient feature within information technology. This strategic information system is responsible for helping the organization or business in categorizing, processing, storing and finally transferring confidential information, which they are creating or receiving. Moreover, the tools and techniques are offered to help the companies in applying metrics for recognizing opportunities of growth and development. The operational efficiencies are easily improved with this SIS or strategic information system. The accounting information system helps any business to enhance their organizational effectiveness in global technology (Dillard and Yuthas 2013).  The complete effect of this accounting information system is important or vital for all organizations as it can be easily implemented in the company. The process of decision making becomes extremely easy and hence this particular information system is being used by several organizations.

This literature review focuses on SIS of an Australian non-alcoholic beverages company, CCA or Coca Cola Amatil. Various significant features will be provided in the literature review. The second part of the review highlights on the accounting software package of this selected organization.

Coca Cola Amatil is one of the five significant bottlers of Coca Cola. The organization has the headquarters within Australia. However, they operate in six distinct countries. There is a vast range of products that they provide to their customers (Ccamatil.com. 2018). These drinks are majorly spring water, soft drinks, flavoured milk, energy drinks, sports drinks, fruit juices and many others. All the significant products of water for the organization are Kiwi Blue, Pump, Mount Franklin Water, Aquarius Water, Neverfail. The several non-alcoholic beverages are Diet Coke, Sprite, Lift, Coca Cola, and Fanta.

This organization was started in 1904 and now over 100 years they are providing services or products to the customers. The organizational heritage is extremely higher than any other company and this had lead to major success within their business. Coca Cola Amatil is working as the joint venture of this Coca Cola Company.

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The significant organizational structure of the organization of Coca Cola Amatil is as follows:

Organizational Structure of Coca Cola Amatil

Figure 1: Organizational Structure of Coca Cola Amatil

(Source: Ccamatil.com. 2018)

The above figure clearly shows the organizational structure of this particular organization including the three management levels.

This organization, namely, Coca Cola Amatil has undergone various operational problems in their business. All the operational problems within this organization are as follows:

  1. i) Awareness: Awareness is the first problem of operations for this particular organization of Coca Cola Amatil. The top level and the specific leadership group is lack of alignment. The management is operating in silos and thus never collaborates properly (Altameem, Aldrees and Alsaeed 2014). For this type of lack of alignment, the middle level and the low level of management is not being properly instructed. Hence, this is leading to rise of various significant conflicts amongst the employees of the organization.
  2. ii) Communication: The next operational problem within the business of Coca Cola Amatil is the communication. The higher level management is not significantly communicating with all the other management levels and thus due to lacking of communication, all the organizational bodies or employees are not working properly (Men 2014).

iii) Interpersonal: Another significant problem within the operations of Coca Cola Amatil is interpersonal. The organizational culture is not proper in most of the branches and thus due to the missing systems or processes, interpersonal conflicts are arising and the organization is facing major issues.

  1. iv) Accountability: The fourth problem of operation within the organization of Coca Cola Amatil is the accountability. This particular organization is lacking significant accountability within the company and thus the low level management is not aware of the system of accountability.
  2. v) Development: The next significant problem of operation within Coca Cola Amatil is this development. All the opportunities of this organization are considered as to be not at all enough for the proper development or growth of the company and thus the staffs are not willing to continue their work within the organization any more (Li, Hsieh and Rai 2013). Hence, the organization is losing many of their employees or staffs and their career is going down.
  3. vi) Influence: The other operational problem within Coca Cola Amatil is this influence. All the offices, departments, business units and divisions are doing their job as per the functionalities. The other departments do not get the idea regarding the fact that what is going in other departments (Therivel et al. 2013). Moreover, the process is also leveraged properly.

The above mentioned operational problems in the organization of Coca Cola Amatil clearly demonstrate that how the organization is suffering from in these days.

Coca Cola Amatil has eventually undertaken the ERP software for the system acquisition method. They have successfully implemented this software within their software since ERP helps in integration of each and every business process (Amrollahi, Ghapanchi and Talaei-Khoei 2013). The main advantages of ERP software majorly involve simple collaboration, integrated information, scalability, streamlined processes, flexibility, regulatory compliance and high security.

Figure 2: Advantages of ERP Software

(Source: Ccamatil.com. 2018)

The above figure has shown all the advantages of ERP that Coca Cola Amatil is getting from the software.

The system flowchart of any organization refers to flow of processes. It is the easiest method to display the flow of data within a specific system and the procedure how these decisions are being taken for controlling all the events. This system flowchart illustrates the significant symbols, which shows the processes for connecting together for the purpose of showing what is happening to the data and where all the data are going (Uçaktürk and Villard 2013). The system flowchart of the organization of Coca Cola Amatil is extremely unique in their terms. The entire sales procedure of the organization is shown in the systems flowchart.

Figure 3: Systems Flowchart of Coca Cola Amatil

(Source: Ccamatil.com. 2018)

The above figure clearly shows the entire sales flowchart of the organization of Coca Cola Amatil. The first step of the flowchart is the customer processing order. Here, the customer requests for products (Li 2013). The next step in the flowchart is the order of sales. The order sale is properly checked and the organizational agent takes up important activities to fulfil the order. The third significant step of the system flowchart of Coca Cola Amatil is the proper involvement of process order creation only after the process of checking of each and every criterion is done by the respective customer. When the customer or client has not completed every criterion, the particular order is being cancelled. Hence, the products are easily available after the payment is made successfully by the customer.

Operational Problems in Coca Cola Amatil

All the problems in the organizational system of Coca Cola Amatil are extremely dangerous for them since these problems are required to be resolved as soon as possible. If these problems are not resolved on time, these can bring out significant problems for the organization. The development of the organization of Coca Cola Amatil is going downwards with these typical problems. They are providing their customers with various products for over 100 years and since then are considered as one of the most important companies in the market of non alcoholic beverages (Whittington 2014). Recently, it has been observed that this organization is going through significant problems within the business and this is mainly due to the wrong strategies they have undertaken for their business. The next issue that is occurring within the business is for the conflicts that the employees are involved into. The senior management of the organization is extremely tensed about the rising conflicts amongst the employees. For these conflicts, it often becomes difficult for the management to take proper follow ups of the business operations. Moreover, the lower management of the organization is not getting proper instructions from the above management. The market shares have going down drastically due to this.

Figure 4: Shares Fall of Cola Cola Amatil

(Source: Ccamatil.com. 2018)

The above figure has clearly shown fall of shares for the organization of Coca Cola Amatil. The shares have gone down to lower than 10 (Haron, Sabri and Zolkarnain 2013). This graph shows that the organization is not at all in a good position and should take up certain measures for going on top position.

Accounting software packages are certain accounting software packages that help any organization in recording or processing of all the accounting transactions within the various functional modules like accounts receivables, trial balance and many more (Belfo and Trigo 2013). There are several accounting software packages, which are easily available in the market. These software packages are Myob and Xero. Amongst all of these, this company of Coca Cola Amatil is using the Xero accounting software package in the business. Xero is the specific New Zealand based software company that is responsible for developing each and every type of cloud based accounting software mainly for the smaller or medium sized companies (Xero Accounting Software. 2018). Xero has several significant branches within Australia, United States, New Zealand, United Kingdom and Singapore. Each and every product of this organization is mainly based on the software on a service cloud model and all the products are eventually sent worldwide. Several advantages or benefits are present for this particular software. After the incorporation of Xero software within the business of Coca Cola Amatil, the shares have eventually gone up and the company has enjoyed major success. The organizational objectives and goals are achieved with the proper incorporation of this software (Xero Accounting Software. 2018).

System Acquisition Method in Coca Cola Amatil

The current market size of this organization of Coca Cola Amatil is given below:

Figure 5: Market Size of Coca Cola Amatil

(Source: Ccamatil.com. 2018)

The above figure demonstrates the fact that the organizational market size. The annual dividend of this organization of Coca Cola Amatil was about 0.62 dollars in the year 2013; however, now it has come down to 0.26 dollars.

A market leader can be defined as the organization that is eventually leading the entire market in its domain (Collier 2015). The specific organization or brand that has acquired the market and thus providing the percentage of highest sales revenue is termed as market leader. These market leaders are responsible for dominating all of their major competitors for customer loyalty. The organization of Coca Cola Amatil has various competitors within their business. The most significant competitors of this particular organization are Coca Cola FEMSA, CCE or Coca Cola Enterprises, Dr Pepper Snapple and S.A.B. de C.V (KOF). All these organizations are leading the market of non alcoholic beverages. Amongst all the above mentioned competitors, Coca Cola Amatil has taken the top position on the list and thus is termed as the market leader in respect to others (Cassidy 2016). Hence, Coca Cola Amatil is considered as the market leader in the market of soft drinks.

Coca Cola Amatil or CCA has faced several important and significant problems within their business. These problems are dangerous for the organization, since if these are not mitigated in time, the organization might face destruction or degradation in the business processes or activities. The first and the foremost problem that this organization is facing is the major conflict between the employees. All the staff members are suffering from these problems. For the successful mitigation of this problem, the only recommendation for Coca Cola Amatil is that they should converse with each and every staff of the organization. This would help the higher authority to know about the various problems of the employees and hence all the problems would be mitigated. The next important issue with this company of Coca Cola Amatil is that there is lack of coordination within the organizational bodies of this particular organization. For the successful mitigation of this problem, the only recommendation for Coca Cola Amatil is that there should be proper follow ups of information. This would ensure the fact the flow of information would be perfect within the organization. The above mentioned two suggestions would be extremely beneficial for the organization of Coca Cola Amatil.

Description of System Flowchart of the Sales Procedure

Conclusion

Therefore, from the above discussion, it can be concluded that strategic information system or SIS is one of the most significant type of information system for any business. This particular information system is the guidelines collection, helping the organizations in setting the strategies or plans as per the existing rules and regulations. The most significant objective of this strategic information system is the incorporation helps in enabling the beneficial aspects. This strategic information system is divided in three major types, which are operational, financial and finally strategic types. All these types are based on the business types, where these are being implemented. The latest information is provided by the information system without any type of problem. The business strategies are extremely innovative in nature and thus the business processes are properly enhanced. The users are allowed for underlining the procedures of data collection and hence making the opportunities of marketing simpler. The recent trends in market are properly assessed with the strategic information system. The accounting information system is the significant system for collecting, processing and storing the financial or accounting data, which is being utilized by the decision makers. The above literature review has clearly discussed about the strategic information system and accounting information system of the Australian organization, Coca Cola Amatil. Relevant details are provided here for this particular company. The details regarding accounting software packages are also given here.

References

Altameem, A.A., Aldrees, A.I. and Alsaeed, N.A., 2014, October. Strategic information systems planning (SISP). In Proceedings of the World Congress on Engineering and Computer Science (Vol. 1).

Amrollahi, A., Ghapanchi, A.H. and Talaei-Khoei, A., 2013. A systematic literature review on strategic information systems planning: Insights from the past decade. Verified OK.

Belfo, F. and Trigo, A., 2013. Accounting information systems: Tradition and future directions. Procedia Technology, 9, pp.536-546.

Bernus, P., Mertins, K. and Schmidt, G. eds., 2013. Handbook on architectures of information systems. Springer Science & Business Media.

Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.

Ccamatil.com. 2018. Coca-Cola Amatil – Australia, New Zealand & South Pacific. [online] Available at: https://www.ccamatil.com/  [Accessed 17 May. 2018].

Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.

Dillard, J. and Yuthas, K., 2013. Critical dialogics, agonistic pluralism, and accounting information systems. International Journal of Accounting Information Systems, 14(2), pp.113-119.

Haron, H., Sabri, S.M. and Zolkarnain, Z.N., 2013, November. A situational analysis of Strategic Information System Planning in the context of a Malaysian SME. In Research and Innovation in Information Systems (ICRIIS), 2013 International Conference on (pp. 539-543). IEEE.

Li, C.Y., 2013. Persuasive messages on information system acceptance: A theoretical extension of elaboration likelihood model and social influence theory. Computers in Human Behavior, 29(1), pp.264-275.

Li, X., Hsieh, J.P.A. and Rai, A., 2013. Motivational differences across post-acceptance information system usage behaviors: An investigation in the business intelligence systems context. Information systems research, 24(3), pp.659-682.

Men, L.R., 2014. Strategic internal communication: Transformational leadership, communication channels, and employee satisfaction. Management Communication Quarterly, 28(2), pp.264-284.

Therivel, R., Wilson, E., Heaney, D. and Thompson, S., 2013. Strategic environmental assessment. Routledge.

Uçaktürk, A. and Villard, M., 2013. The effects of management information and ERP systems on strategic knowledge management and decision-making. Procedia-Social and Behavioral Sciences, 99, pp.1035-1043.

Whittington, R., 2014. Information systems strategy and strategy-as-practice: a joint agenda. The Journal of Strategic Information Systems, 23(1), pp.87-91.

Xero Accounting Software. 2018. Online Accounting Software – Free Trial, Free Support | Xero. [online] Available at: https://www.xero.com/  [Accessed 17 May. 2018].