Factors Influencing Management Accounting †MyAssignmenthelp.com

Question: Discuss about the Factors Influencing Management Accounting. Answer: Introduction Coca-Cola is well known food and beverage organization which operates globally. It operates in on local scale and community for doing a large number of business (Wilson, 2017). Coca-Cola Australia foundation (CCAF) is considered to be well known community strategy in Australia. The ultimate mission of this organization is provide happiness and possibilities to young Australian. Coca-Cola Amatil (CCA) is considered to be an Australian bottling partner (Chance, 2017). CCA has more than 15000 people and needs to access more than 265 million customers on which 70 thousand are considered to be active. The head office of CCA is located in Sydney and this particular organization is listed in Australian Securities exchange. In the coming pages of the report an idea has been provided regarding the organization structure of Coca-Cola Australia. Various kinds of operation problem in Coca-Cola has been discussed in details. ERP implementation in Coca-Cola and various kinds of problems of ERP implementation in Coca-Cola has been provided in details. After that an analysis has been done regarding development and adaptation of accounting software packages. Current market size of Coca-Cola and leaders its leaders in markets has been described in detail. Various kinds of issues and possible recommendation of accounting information system has been discussed details. Coca-Cola Australia has a separate international division structure because it operates separately and is in isolation from head office. Coca-Cola has various kinds of division in the continents round the globe where it operates (Lanis, McClure and Zirnsak, 2017). This organization operates in five continent division that is Africa group, Europe group, America group, Latin America group and lastly pacific group. Each continental division has vice president which can easily control sub division based on regions and countries. Structure of Coca-Cola has to be efficient for controlling this large organization (Johnson, 2017). Coca-Cola is known to be a well-known MNC because its domestic operation is considered to be similar to international operation. Coca-Cola operates in same way in all the organization regardless of brand and type of soft drink sold by this organization. President of Coca-Cola works on the top of the organization. Under president four departments that is corporate staff, manufacturing, marketing and finance operates. Under it four important group operates that is manufacturing, chemical product group and finance department (Jolley et al., 2014). Beneath it various other kinds of group like human resource, marketing, finance, accounting and marketing work effieciently. Operation Problem Coca-Cola experiences a lot of challenges because of this centralized structure like Delay in work- Centralization management system in Coca Cola results in loss of man-hour and delay in performance of work. It happens because of transmission of records from central room. In centralized management system quick management system is not possible which ultimately results in delay of work in Coca Cola Australia. Remote control- Good kind of supervision is not possible because executives are generally under high work load in Coca-Cola Australia. Lag in work is seen in absence of better control or supervision. No loyalty The centralized system of Coca- Cola Australia results in no kind of initiative from worker. Employees only do the thing which are asked. Employees work like machine which result in no kind of involvement in their work. No secrecy- In Coca- Cola Australia no kind of secrecy is possible because all kinds decision and new orders flow from headquarter to all branches. Implementation of ERP in Coca-Cola ERP stands for Enterprise Resource Planning is nothing but a process which mainly aims is managing and integrating important part of business (Hoy et al.., 2014). An ERP system in Coca-Cola will integrate various areas like planning, sales, human resource and marketing. ERP software provides some kind of synchronization related to reporting. It removes the issue of maintaining separate database and spreadsheet which is merged manually for generation of reports. It will help the employee of Coca- Cola to pull all report in one system (Kilic, Zaim and Delen, 2015). After the implementation of ERP system in Coca-Cola sales orders will automatically flow into various kind of financial system without the problem of re-keying. The order management system of Coca-Cola can easily process orders at much faster rate after the implementation of EPR system. After the implementation of ERP system the financial department of Coca-Cola can close the booking of orders at much faster rate (Efe, 2016) . Other common features of ERP in Coca-Cola is that various kinds of employee can easily understand the various kinds the business performance. An ERP system allow an organization like Coca-Cola to synchronize all the business process (Tenhil and Helki, 2015). There are large number of issue in ERP system like implementation time, implementation cost, employee retention, investment in hardware. After the implementation of ERP system in Coca-Cola, the employee will encounter resentment. This will ultimately degrade the productivity of the process (Tanaka and Sithole, 2015). Special training should be provided to employees of Coca-Cola so that it can motivate the employees. ERP implementation in Coca-Cola will require time as it is a step by process. For successful implementation of ERP Coca-Cola needs to assign their employees for its successful implementation. Cost of ERP implementation is considered to be much more that initial cost. The total cost of ERP will depend on the cost of customization (Kilic, Zaim and Delen, 2014). Higher customization in final stage will result in higher implementation cost. After the implementa tion of ERP system in Coca-Cola many employees of Coca-Cola will leave the organization after the implementation of ERP. This can ultimately affect the growth of this organization. If the employees of Coca-Cola work on slow system, then it can result in unproductivity and frustration. In general, the ERP system requires sufficient storage and high performance of work. Low investment in software by Coca-Cola may result various kinds of software issues. Development and adaptation of accounting software packages Accounting software is a kind of software which is used by various organization inclusive of Coca-Cola for managing various and performing operation related to accounting. Accounting is considered to a systematic method of work or process for communication and recording of financial information (Nwankpa, and Roumani, 2014). After the implementation of accounting software in Coca-Cola it can save a lot of time in comparison to manual bookkeeping. This particular package can easily process front end documents as well as end kind of transaction. With the help of accounting software package Coca-Cola can easily track all kinds of financial transaction in the organization. After the successful implementation of accounting software in Coca-Cola can easily keep various of financial monitoring in organization. This software will ultimately help in overcoming various kinds of issues related to finance. With the help of accounting software Coca Cola Australia can easily keep a track of proper management of flow of cash within organization. The number of financial mistake will be reduced after the implementation of this accounting software (Mas et al. 2014). With the help of accounting software, the management of Coca-Cola can easily information regarding various customer payment by the help of invoice. This software will help in tracking of amount will be paid and the amount left to be paid to the organization. Coca-Cola is considered is to be largest seller of non-alcoholic beverage in the world. With the passage of time this organization has grown to the fullest. Coca-Cola is considered to be third most valuable brand in world. They own many kind of products and have developed internally by help of acquisition. At present Coca-Cola has more than 20 brands with a value of more than 1 billion dollars in domain of sales (Nwankpa, and Roumani, 2014). The diverse portfolio of products results in operational diversification. The broad portfolio of Coca-Cola has resulted in rewarding various kinds of investors. It has provided more than 39 billion of capital which is returned to investor of Coca-Cola by help of dividend and purchasing of share. Coca-Cola Australia is much focused to continue this trend and will help in 2 billion of purchase of share. In the figure below, the statistic focus on market share of various leading beverage organization in the year of 2015 (Boulianne, 2014). Originally Carbonated soft drink was dominated by an organization known as Coca-Cola. It claims to hold a market share of value 48.6 percent. The global market of Coca-Cola is expected at 341.6 billion dollars. During the period of 2004 to 2015 Coca-Cola is considered to be leading producer of carbonated soft drink. In the year of 2015 the carbonated soft drink market of Coca-Cola amounted to a value of 42.5 percent (Lester, 2015). Carbonated soft drink belong to non-alcoholic beverage industry. In the different regions of the world they are known by different name. The software drink containing various things like water, artificial sweetener and a favoring agent. Various multinational companies are addressing issues in soft drink market are Coca-Cola, Pepsi-Co Inc. Cola- Coal and Pepsi-Co are considered to be long term competitors. PepsiCo always have to tackle challenge so it is also called Pepsi-Challenge with rival organization name Coca-Cola. In Pepsi challenge consumers are offered two cups one containing Pepsi and another containing Coca-Cola (Blount et al., 2016). After that consumers are to check the taste of two soft drink and after that a choice is provided soft drink they prefer to use. Competitive advantage When an organization have profit which exceed the average for an industry then the firm is said to have competitive advantage over its various rivals in the market. The ultimate mission of business strategy is to achieve a sustainable business development. There are two basic kind of competitive advantage that is cost advantage, differentiation advantage. Cost advantage: A proper kind of competitive advantage exists when a firm is able to deliver same kind of benefit like its competitors (Smit et al., 2017). At a lower cost will ultimately result in benefits which can easily tackle the competitive products. Differentiation: Differentiation by an organization like Coca-Cola is achieved from competitors when it claims to provide something which is unique in nature which is valuable to buyers by offering them with products at much lower price. Account information system contains some confidential and private kind of information which can be altered if the system is left unprotected (Contractor, 2015). Unethical use of accounting information system may result in disastrous, loss of information, misuse of confidential information. Security of accounting information system is considered to be of first priority in Coca- Cola. Security of management information is considered to be a top management responsibility. Sarbanes Oxley Act that is SOX has a section named 404 which states that it is vital for management for keeping and maintaining of internal records. The Act also work on accounting system which generate a large number of reports (Upping and Oliver, 2016). There are large number of risk in accounting system which ranges from fake transaction to having someone who can easily black tape all the information. Various kinds of risk are Payment which are made to various fake vendors. Loss or deletion of data. Loss and deletion of data Losing of server and computers. Recommendation Various kinds of security measures can be easily taken for tackling issues in account information system. The security measures are known as control which can be used for preventing risk and identifying various kind of problem. Some kind of security measures are Changing password of accounting information system on regular interval. Proper encryption of data Supervision of report of vendor on regular basis Safeguarding and protecting environment of server and computers. Conclusion From the above discussion it can be concluded that this report is all about Coca-Cola Australia. This particular firm has been selected because it makes use of accounting software package. In the discussion portion of the report the current organization structure of Coca-Cola has been discussed in detail. Various kinds of operation problem of Coca-Cola due to centralized organization structure has been discussed in detail. An idea has been provided regarding the ERP implementation in Coca-Cola. Various kinds of profits have been discussed in detail which can be achieved by Coca-Cola after the implementation of ERP system. A flow chart has been created for understanding sales procedure in Coca-Cola. Various kinds of problems have been discussed which Coca-Cola will address after the implementation of ERP system. After that an idea has been provided regarding development and adaptation of accounting software package in Coca-Cola. The present market size of Coca-Cola has discussed in de tails along with graph in the above pages of the report. Various kinds of leaders like Pepsi-Co Inc. and Coca Cola has been discussed in details. An idea has been provided regarding competitive advantage of Coca-Cola like cost advantage, differentiation has been discussed in details. Various kinds of issues in accounting information system has been discussed in details. A list of recommendation against the issue of accounting information system has been provided. References Blount, Y., Abedin, B., Vatanasakdakul, S. and Erfani, S., 2016. Integrating enterprise resource planning (SAP) in the accounting curriculum: a systematic literature review and case study.Accounting Education,25(2), pp.185-202. 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