Background of the Organization of the Supermarket

Discuss About The International Journal Of Business Social.

The system of the information can be described as the system that is organized to collect, optimize and store to communicate with any kind of data or any kind of information. Data operation is gets easier and simple for the any kind of data in the information system them. The information system produces the information as per the requirement whenever it needed. Of the Information system, the strategic information system is one of the important system. The strategic information system mainly deals with the strategies of any organisation. It is one type of information system that is used for the successful implementation and for achieving the goals of the organization (Laudon and Laudon 2016). From this strategic information system the advantages are gained effectively those are competitive in nature. For the businesses most of the business organization uses the strategic information system. The products and the services that are produced by the supermarket is delivered in the market with much lower cost and with much better efficiencies than the other supermarket in the market (Piercy 2016). The strategic information system target the specific section of the market Strategic information system is the most major feature of the information system.

In this literature review the topic of the discussion will be the strategic information system and the information system that is used for the accounting purpose of one of the popular supermarket in the Australia, which is thee Woolworths supermarket. This super market is very famous and the supermarket is located in Australia. In the further study the organizational structure of the supermarket and the various operational problems with the super market will be discussed. The proper and the relevant method of the system acquisition and the flowchart of the whole organization will also will be described further in the literature review. Various control problems with the supermarket for the fraud with the system is also will be mentioned. The next  part of the literature review will describe the details about the  software package used for the accounting that are used in the organization with the matchingdetails. Then in the review the top competitors and the leaders of the market are also mentioned and discussed their market share. At last the conclusion of the whole literature review is given.

ThisSupermarket that is Woolworths is one of the most renowned grocery store in the region of Australia and the New Zealand. The supermarket provides various products and services to its customers and for that this supermarket is widely accepted by the people of Australia than the other supermarkets. This supermarket is inaugurated in the year 1924 with the collaboration with another supermarket, for forming a near control for all the accounting of all supermarkets in the Australia, ‘Coles’is responsible (Woolworthsgroup.com.au. 2018). Coles takes the 80% of the whole market of grocery in the Australia. The main purpose of the Woolworths supermarket is to sell groceries to the people of Australia. The groceries that the supermarket provide is consist of packed food, vegetables, and fruits. Apart from these items the supermarket also sells baby foods, foods for pet and all other stationary items. The Woolworth super market has its branches mostly everywhere in the region of Australia and New Zealand. In the Australia & New Zealand near about one thousands stores are located by the name of Woolworths. Among the thousands stores near about nine hundred stores are supermarkets and rest of the other are the convenience stores. These all thousand stores is under the one brand name that is Woolworth. The share of the Woolworths supermarket is always on top among the market leaders. A slight downfall has been seemed in the recent market share though (Woolworthsgroup.com.au. 2018). The reason for the downfall are described in the further paragraphs.

Organizational Structure of the Supermarket

In any organization the organizational structure can be defined by the procedures of the different activities of any organization. The different procedures are consists of task allocation, coordinating and supervising to achieve the proper objective or the proper goal of the organization. The organization is effective, efficient and flexible in order to achieve the competitive advantages in a successful way (Pearlson, Saunders & Galletta 2016). The organizational structure can be formed in various ways which would be helping the organization in determining the operations along with the mode of performance .Organizations employee allocations is also the responsibility of this structure. The organization Woolworth consists of two parts and they are shown in the figure provided below.

Figure 1: Management Structure of  the Woolworths Supermarket

Figure 2: Woolworths Supermarket Corporate Structure

The above figures that are provide are related with the demonstrating the structure of the management and the prganizations strycture of the corporate that Woolworth Supermarket of Australiais is having. In the organization there exists several management bodies which are associated with the management and ensuring the success of the organization. (Kersiene & Savaneviciene 2015).

In the market of the groceries the Woolworth market is more successful than the other supermarket in the country. Though the supermarket is successful and widely accepted by the customer of the supermarket, several issues are raised within the system which the system cannot avoid. The issues have been discussed below:

1. Issues with Employees: the major issue that is raised with the Woolworths supermarket is the employees’ issue.  Inside the super market there are conflict within the employees, the issues of trauma that is personal and supervisor issues of the issues are raised. This problem can able to shake the whole organizational structure of the company (Brewster 2017).And the problem with the employees within the organization is increasing regularly.
2. Problem with the teams: to increase the performance of the organization of the supermarket the teams that are divided must be work effectively and efficiently. The departmental teams of Woolworth should operate properly in order to enhance the success of the organization (Cassidy 2016). The scene is not the same as desired. As the company is almost 100 year old in these year the company had to face several non-functional issues like this and most times are wasted to mitigate these issues.

• Traditional Technology: this is another problem which is related to the operation of the organization. As the company is old so the technology are used in this company are mostly older that affects the productivity of the company. The supermarket still uses the traditional technology methods and in these zone they face major competitions from the market (Short et al. 2013).

1. Wrong strategies: Adaptation of wrong strategies is one of the major operational problem faced byWoolworth supermarket. Many times the strategies that are implemented by the organization does not sufficient enough to fulfil the requirement or unable to meet the objective in long term (Haines 2016).  For these wrong strategies the company faces several losses.
2. Communication:This is another importantproblem faced by the organization while performing various operationswithin the Woolworths supermarket.Due to lack of communication a gap occurs between the customers and the organization. For this reason the new customers fell hesitated while communicating with the authorities of the Supermarket (Dibrell, Craig and Neubaum 2014). Many times the decisions or the strategies that are taken by the organization is not spread to the all the employees and this leads to communication gap between the staffs of the company. This lacks the cooperation between the staffs.
3. Lack of resources: as per the demand of the raw materials the supply is not made. This affects the suppliers are not getting their products and they get disappointed with the grocery store (Channon and Jalland 2016).. Then they opt another supermarkets and y this the supermarket loses its customers.  

Enterprise resource planning or the ERP has been taken by the Woolworth supermarket for their business. Enterprise Resource Planning can be categorised as a part of business which is associated with the management of the software, along with helping the organizations to integrate the various business application in a proper way which would not be having any kind of complexity (Seethamraju 2015). The various activities that are conducted by the organization can help in the collection, storage, management and interpretation of the data or the information. the customer relationship management that is  is one of the most needed requirment for any business that is associated with“management of procurement”, “financial management of finance”, “management of HR”, “production management”, “management of logistics” and many more. All these are combinded with the the enterprise resource planning. Woolworth supermarket is associated with dealing with various kind of business process as well with various kind of activities. The enterprise resource planning had the major impact on the businesses. The ERP maintenance is tough and very much costly, the Woolworths though still utilizes this software to their business because it have a huge benefit on the business (Seo 2013). The productivity of the Woolworths is increasing and the productivity also becoming efficient.

Operational Problems within the Supermarket

Figure 3: Benefits of Enterprise Resource Planning in Woolworths Supermarket

The above figure provides a clear view of the benefits that are given from the Enterprise Resource Planning that is the organization is enjoying in the business. The business processes which have been discussed above is integrated with the ERP.

The flowchart of the sales for the organization shows the processes of the sales of the organization. The flowchart that has been provided below depicts the steps that are included in the sales and also each and every individuals who are involved in the processes (Andraši, Domitrovi? & Roman,2014). The outcomes of the particulars are gained by the processes that are close to the goals of the organization. The flowchart which has been provided below shows the sales process of the Woolworths supermarket:

Figure 4: Flowchart of Sales Procedure

The above figure helps in understanding the various sales related process that the organization Woolworths Supermarket is having. The flowchart consists of five steps and the steps includes the Customer which is the first component. Once the booking is done by the customer, the sales process comes which is the second component. The third component is the Contract, in this step the agents are associated with seeing and reviewing the order. Once completed they provides the then approval. Legal aspects are included as the fourth componentwhich involves the checking of the fact is the order is legal. Lastly, the final component is fulfilment where the order of the customer is fulfilled.

The control problems which are faced by the organization Woolworth supermarket has been provided below:

1. i) Quality of the Product:  One of the highlighting control problem is the problem with the quality of the different products and the different product services. It is the responsibility of the organization to focus on the quality of the product in order to solve their problems. Along with this it is their responsibility to keep a balance between the quality of the productand the quantity of the product (Flanagin et al., 2014).
2. ii) CRM: The next problems is regarding the maintenance of customer relationship management.in order to maintain a perfect CRM the organization should adopt certain strategies that would be helping them a lot (Khodakarami & Chan 2014).

iii) Employees Retention: Followed by the problem of CRM is the problem related to the retention of the efficient employees as the organized in focused on retention of this employees. Good and efficient employees should be included in the organization in ordr to increase the productivity (Das & Baruah 2013).

1. iv) High Price: When compared with the price of the grocery products of different grocery stores it has been seen that the price of the products in Woolworth is relatively high than the other stores.

1. i) Payroll Frauds: in like every organization this fraud is there that is pay roll fraud and in this report Woolworths is not an exception and it also have to deals with payroll fraud.
2. ii) Fraud of Double Checking: This type of fraud can affect the revenue as it is directly involves with the account.

iii) Frauds in the supply material: the amount of the raw materials that is on the demand and that are supplied is not same and thus open the opportunity for the fraud.

The accounting software are providing and bringing the simplicity to the businesses. These packages substantially integrated and maintained the business processes. The Woolworths supermarket do not have any faith over the modern technologies and still used the traditional technologies from the beginning of their organization (Salome & Chukwunwendu 2014). Thus the organization did not take any accounting software packages for their organization. SAP is the core part of the ERP. The significant advantages of the SAP includes decreasing of the existing costs, streamlining of various processes, increased rate of efficiency, improvement in the productivity and many more.

System Acquisition Method

Figure 5: Hosting services of SAP in the supermarket

The above provided figure is shown the various different hosting services that the supermarket is providing to its customers and these services al so include some several features likedata center management, service desk provided sales, management of network access and the SAP basis operations and the data services and services of system management.

Market size basically describe the position of the company in the market.

Figure 6: the position in the market

As the super market is faces lots of problem there is a downfall in shares that can be seen in the above picture. The shares just dropped to below 5 from the high 15.  

One of the top competitors of the super market are Aldi, Coles and IGA.

Figure 7: Top Competitors of Woolworths Supermarket

The above graph is described the shares of the market of all the top competitors for the Woolworths supermarket. In the chart it is clear that the Woolworths is leading the market share by having 36.30% market share which is the maximum share among the all competitors.

Though it is the leading supermarket in the Australia but it has some issues and the issues are discussed earlier. To mitigate

1. i) Downfall of Shares: The downfall of the shares is one of the major problem faced by Woolworth. In order to tackle this problem it is recommended to make new and full proof strategies.
2. ii) Higher Price: The second problem due to which the customers are losing their interest over the organization is the higher price of products and for the services. In order to tackle the problem related to high price it is recommended that the organization should think of reducing the price of the products and make it affordable for the customers by maintaining the same quality of the product.

iii) CRM improper application: customer relationship problem is the major issue for thje businesses like these. For tackling this problem it is recommended that the organization should focus on the CRM in order to mitigate the problems.

Conclusion:

 From the above literature review, it can be concluded that the strategic information system impacts huge only in the betterment of a business. To add more feature and more pace for the growth in the business the strategic information system is applied. The strategic information system includes the decision support system for successfully deploying the strategies of the information system. In this literature review the selected organization is the Woolworths supermarket that is in Australia. Flowchart and the market share of the supermarket is also discussed in the review. Control problems and the mitigation techniques also mentioned. After using the different software packages of the accounting the business the super market is heavily benefited. SAP and ERP mainly used in the Woolworths super market.

References:

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Brewster, C. (2017). The integration of human resource management and corporate strategy. In Policy and practice in European human resource management (pp. 22-35). Routledge.

Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. Journal of Business and Management, 14(2), 8-16.

Kersiene, K., & Savaneviciene, A. (2015). The Formation and Management of Organizational Competence Based on CrossCultural Perspective. Engineering Economics, 65(5).

Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.

Lim, K. (2014). U.S. Patent No. 8,849,858. Washington, DC: U.S. Patent and Trademark Office.

Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016). Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.

Piercy, N. F. (2016). Market-led strategic change: Transforming the process of going to market. Taylor & Francis.

Salome, N., & Chukwunwendu, F. (2014). Integrating information and communication technology (ICT) in accounting education instruction in Ekiti State Universities. International Journal of Business and Social Science, 5(6).

Seethamraju, R. (2015). Adoption of software as a service (SaaS) enterprise resource planning (ERP) systems in small and medium sized enterprises (SMEs). Information systems frontiers, 17(3), 475-492.

Seo, G. (2013). Challenges in implementing enterprise resource planning (ERP) system in large organizations: similarities and differences between corporate and university environment (Doctoral dissertation, Massachusetts Institute of Technology).

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Woolworthsgroup.com.au. 2018. Woolworths Supermarkets – Woolworths Group. [online] Available at: https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/Woolworths  [Accessed 21 Apr. 2018].