Strategic Information System Coles Supermarket

Strategic Information System Coles Supermarket


Discuss about the Strategic Information System for Coles Supermarket.

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The significant planning or activity that is utilized to properly help any particular organization for the proper identification of all types of strategic applications and also for aligning the strategies of that organization with the help of effective communication is known as strategic information system or the planning of strategic information system (Cassidy 2016). The improvised systems for making the strategies within any organization are extremely crucial as well as critical. If there is any type of problem within the strategies, the organization could be a major failure and the organization might face huge losses. The usability of the information system or information technologies leads to the advancement and enhancement of success within the organization. In short, it is the core process by which any organization is benefitted by successfully integrating the wider range utilization of all the applications for fulfilling their purposes (Galliers and Leidner 2014). The most efficient strategic information system helps the company in achieving the goals of the business. The software packages of accounting help the organization in dealing with accounting transactions.

This review would be describing about the strategic information system and accounting information system of an Australian organization, Coles Supermarket. The details regarding all the areas including structure, problems, suitable software will be described here. These relevant details help to understand the position of the organization in today’s market.

Background of Coles Supermarket

Coles Supermarket Australia Pty Ltd. is the popular retail or chain of consumer services. The parent company of this organization is Wesfarmers and the headquarters are in Melbourne (Coles Supermarkets. 2018). This supermarket was eventually founded in the year 1924 and currently it is operating more than eight hundred supermarkets in the entire Australia with popular brands. The number of employees within this organization is more than one lakh and it is ruling the entire market of groceries. Over eighty percent of the total market shares are being taken by Coles (Coles Supermarkets. 2018). They even provide online services by allowing online shopping. The total assets of this organization are 22.1 billion dollars.

The structure of the organization helps to determine the various managing bodies and important persons of that particular organization (Simkin, M.G., Norman and Rose 2014). Moreover, this type of organization structure is responsible in the successful identification of all the duties or responsibilities of the employees or the management levels. For the Coles Supermarket, the top management level comprises of President, vice president, general manager and executive vice president. The middle management level comprises of the pricing coordinator, IT manager, operations manager, secretary and treasurer and many more (Belfo and Trigo 2013). The lower level management comprises of the salesman, accounting operators, assistant operations manager and many more. The three levels of management in Coles Supermarket are described with three different colours.

Coles Supermarket, although being the popular supermarket, often faces various operational problems within their systems. The first operational problem within the system of Coles Supermarket is for the online shopping category (Worrell, Wasko and Johnston 2013). The business is facing major problems due to this. The online retail supply chain of the organization is responsible for providing huge popularity to the company and the customers are getting benefit from them. Only two percent of the entire grocery sales are coming from the online sales (Demski 2013). Since, it is extremely low percentage; the organization is suffering through various significant problems. The other e commerce retailers are getting benefit and more sales from their online retail supply chain. Coles has become a loser in this sector as they are not being able to satisfy their customer. The most significant reason for this is that the products are not available (Collier 2015). Due to the lower availability of the products, the customers are not getting all the products online and hence they are avoiding this supermarket. This is eventually leading to the lower shares of the organization. The other operational problem of Coles Supermarket is that there are conflicts amongst the employees of the organization (Lucia 2013). One lakh employees are working here and thus this type of conflict is extremely dangerous for the company.

System Acquisition Method of Coles Supermarket

Coles Supermarket has acquired the market of Australia by providing various goods and services. The method of system acquisition in any company helps them with several advantages (Galliers and Leidner 2014). The most significant advantages of system acquisition method mainly include reduction of data redundancy, reduction of errors, increment of consistency, huge integrity of data, improvised access to data, improved security of data, reduction in entry of data, reduction in data storage and reduction in all types of retrieval costs. There are various types of system acquisition methods that are used by any organization. They are enterprise resource planning, commercial software and customer software. Amongst the three, Coles Supermarket has taken ERP as the method of system acquisition (Cassidy 2016). It is the most likely method for them and thus they are benefitted from this by gaining all advantages of ERP. The major advantages of ERP are streamlining business processes and improving productivity.

Coles Supermarket is providing various products to the clients. The flowchart of sales provides all the processes of sales of the organization.

The flowchart of sales for Coles Supermarket starts with the ordering of services. Then the next step is to complete the purchase from requisition form. The third step is to verify whether it is approved or not. If the answer is yes, it is checked whether the payment mode is cash or card (Cassidy 2016). If not, the requisition is rejected. If the mode of payment is cash, payment is taken and invoice is prepared and if the mode of payment is card, the CCPR is filled out and then invoice is prepared. For the modes of payments, after successful transaction, the product is delivered to the customer.

Strategic Information System Coles Supermarket; Control Problems in the System and Frauds

The problems within Coles Supermarket are as follows:

Conflicts: The conflicts amongst the employees have become a major issue in the organization. These conflicts should be resolved as soon as possible.

Price: The cost of the products and services are higher than other supermarkets and hence the clients are not happy with them.

Shares: The shares have gone down and thus Coles Supermarket is facing problem with the competitors.

There could be several frauds in the organization of Coles Supermarket. The main types of frauds are fake emails, fake transactions, hoax SMSs, spoofing and many others.

The adoption and implementation of accounting software package help any company to deal with the financial transactions easily and promptly. The various types of accounting software packages are present like Xero, QuickBooks, FreeAgent, Myob and many others (Simkin, Norman and Rose 2014). Coles Supermarket has implemented Xero in their business. This particular software has provided various advantages to the organization by simply supporting the clients within lesser time, by providing financial reports and also by making the collaboration extremely easier. Coles Supermarket is trying to get over their situation with the help of Xero.

This above graph shows the position of Coles Supermarket amongst all others. Wesfarmers is the parent company of Coles Supermarket. They are in the third position after Woolworths with 3.50% turnover.

Identification of Market Leaders

The above provided graph shows the clear image of the shares of Coles Supermarket and all the other popular supermarkets of Australia and New Zealand (Worrell, Wasko and Johnston 2013). It is clearly demonstrated that, Woolworths Supermarket is in the top position with maximum shares of 40.3% in 2006. No other supermarket is able to beat this percentage with their shares. In 2015, it is 38.3% and still they are on the top. The second position is of Coles Supermarket. They started with 37% in 2006 and gradually have gone down to 31% in 2015 (Collier 2015). The third competitor of Coles is Aldi with only 11.6% and that of IGA is only 9.6%. Thus, the market is taken mainly by Woolworths and Coles Supermarket and they are the market leaders.

There are several recommendations for Coles Supermarket for their challenges or problems. The first problem is higher price of products. The suggestion to reduce the price of the products by checking with their raw materials and logistics partners. This would be effective and the customers would be happy again. The second problem is the shares downfall. They should check with a financial advisor. Moreover, the marketing should be more effective and a conflict resolving technique should be incorporated for their problems.


Therefore, from the above discussion, conclusion could be drawn that any organization becomes successful with the help of excellent strategies. For the Strategic Information System Coles SupermarketIf, the strategies of the organization are not effective, there is always a high chance that the organization would never be successful in its goals. Information system is the most important part of any organization. They are responsible for any type of operation of confidential as well as sensitive data and information of the company. All strategies could be achieved with the help of proper and effective planning. The failure in planning can even lead to the wastage of resources and time. Moreover, the strategies could be short term or long term. The information system has the most effective role of strategies within any organization. The regular activities or actions are recorded within the information system. Strategic information system is the amalgamation of information system and meaningful strategies. The major objectives of this strategic information system mainly include gaining competitive advantages, developing new strategies, enabling new methods for the purposes of management and organizing processes and finally improving the performance as well as productivity of the business. These strategic systems are utter necessities of strategies for the development and growth of business. The literature review provided above is a clear example of strategic information system in any organization. The examples taken here is Cole Supermarket. Relevant details are provided about this Australian organization and finally significant recommendations are being provided.

Strategic Information System Coles Supermarket References

“Online Accounting Software – Free Trial, Free Support | Xero”. 2018. Xero Accounting Software.

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

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

Coles Supermarkets. 2018. Coles.Com.Au.

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

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.

Lucia, P.P., 2013. ACCOUNTING, AN ESSENTIAL COMPONENT OF THE INFORMATION SYSTEM. Annals of’Constantin Brancusi’University of Targu-Jiu. Economy Series, (1).

Simkin, M.G., Norman, C.S. and Rose, J.M., 2014. Core concepts of accounting information systems. John Wiley & Sons.

Worrell, J., Wasko, M. and Johnston, A., 2013. Social network analysis in accounting information systems research. International Journal of Accounting Information Systems, 14(2), pp.127-137.

Daoud, H. and Triki, M., 2013. Accounting information systems in an ERP environment and Tunisian firm performance.

Fitriati, A. and Mulyani, S., 2015. Factors that affect accounting information system success and its implication on accounting information quality. Asian Journal of Information Technology, 14(5), pp.154-161.

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

Prasad, A. and Green, P., 2015. Organizational competencies and dynamic accounting information system capability: impact on AIS processes and firm performance. Journal of Information Systems, 29(3), pp.123-149.

Smith, R.D., 2013. Strategic planning for public relations. Routledge.

Willcocks, L., 2013. Information management: the evaluation of information systems investments. Springer.

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