Question

Case Study- A

National Foodservice Equipment Pty Ltd is a Western Australian company. Within the hospitality and catering industry, National Foodservice Equipment is recognised as a leading supplier and distributor to the foodservice sector. The business started in 1999 and has grown to 24 employees, with locations in Perth and Busselton.

National Foodservice Equipment needed to find a solution that could cater for multi warehousing and deliver adequate stock control. In short, they had simply outgrown their current systems and felt the previous software they were using could no longer meet the company’s growing needs. As a long term user of MYOB Premier and another third party custom built system, it meant that the integration of the two systems was critical for success.

The Finance and Administration Manager, Simon Phipps project managed the assessment, selection, specification and implementation of MYOB Exonet as National Foodservice Equipment’s business management system of choice. He also had a solid hand in configuring many of the business’s reports. It was showcased as the next step up from MYOB Premier and a logical choice for the business. According to Simon, “it was the association with MYOB that sold the product.” The integrated stock handling system of MYOB Exonet also appealed to the needs of National Foodservice Equipment. Each stock item can include codes, descriptions, groups, cost & sell prices, tracking methods and stock levels for each location.

Questions

1. What are the factors must be taken into account by National Food for efficient financial administration?
2. What are the benefits National Foods could reap after successful implementation of new system?
3. What are the risk management and contingency planning National Food Service should do whilst implementing a new system?
4. What are the change management issues faced by an organization like National Food Service?
5. What are the external factors affecting the successful implementation of a system?
6. Who are the main stakeholders when in setting up and managing financial system in this case scenario?
7. Compare and contrast the manual accounting system and computerised accounting system.
8. What are the equipment, manpower and software resources needed for the implementation of the system?

Answer 1

What are the factors must be taken into account by National Food for efficient financial administration?
Answer: Factors to be taken into account by National Food for efficient financial administration:
The first and foremost thing in Food Service should be health and safety.
The supply should be always be available on demand. There should never be a shortage.
There can be unknown expenses or loss. This should be taken care of.
The profit must always be noted.
The cash flow should be noted.
The budget should be calculated beforehand.
Avoid unwanted losses.
There should be daily reports which have to be reviewed.

What are the benefits National Foods could reap after successful implementation of new system?
Answer: Benefits for National Foods after successful implementation of new system MYOB Exonet:
The MYOB Exonet is an online ERP (Enterprise Resource Planning)system. It is a business management software that is designed to integrate and streamline
the business activities, and to make them more time efficient and resource efficient.
Businesses nowadays use ERP systems to collect, store, manage and understand information from all the internal processes.
An ERP system can also manage the HR, inventory, sales and other functions. It can also give the business owners an overview of the entire business,
in realtime from a customised dashboard. Each part of the business has access to upto-date and relevant information at all times.
The new system gives businesses the ability to streamline all their workflows along with the flexibility to grow as the business expands.

What are the risk management and contingency planning National Food Service should do whilst implementing a new system?
Answer: Risk management and contingency planning to do while implementing a new system:
The Risk Management is done through 4 steps - risk identification, risk quantification, risk response development and risk response control.
The different risks associated are to be identified. They can be internal as well as external risks.
Then these risks should be quantified. They should be classified in accordance to the number of times the risk occurs.
Then these risk should be mitigated. This reduces the impact of the risk when it occurs.
Finally, the mitagtion plan should be checked for the risk and the response should be noted.
This has to be carried out in all kinds of environment. This ensures the safety of the system and minimises the impact of risk.
The Contigency plan is the one which should be carried out when an actual risk occurs.
The contingency plan is executed whenever a risk occurs. The purpose of the plan is to lessen the damage of the risk when it occurs.
Without the contingency plan, the entire impact of the risk could greatly affect the whole project.
The contingency plan will be the last line of defense against the risk.

What are the change management issues faced by an organization like National Food Service?
Answer: Change management issues faced by National Food Service:
Lack of proper communication between the employees.
Lack of proper training about the new system deployed.
Unacceptance of the new change in the system.
Risk of loss in the newly changed system.

What are the external factors affecting the successful implementation of a system?
Answer: External factors affecting the successful implementation of a system:
The economy, politics, competitors, customers, and even the weather are all uncontrollable external factors that can influence an organization’s performance.
The economic conditions shift the supply and demand to directly affect a company.
This includes the economic growth and decline, changes in interest and inflation rates.
The government can influence the economy and thereby impact organizations within a certain industry.
This includes new government policy, political stability, trade and tax policy.
The changes in the social and cultural market also affects the needs and wants.
This includes emerging trends, population analytics and demographics.
The innovation and development evolves an industry.
This includes automation, technology awareness, adoption rates, new services or products.
The ecological and environmental aspects that affect a company’s operations or consumer demand includes access to renewable resources, weather or climate changes.
The current legal allowances or requirements within different countries or territories in which an organization operates also includes health and safety requirements.
It also includes labor laws and consumer protection laws.

Who are the main stakeholders when in setting up and managing financial system in this case scenario?
Answer: Main stakeholders while setting up and managing financial system:
Directors
Creditors
Employees
Government
Owners of different food services
Unions
Suppliers
Resourcers

Compare and contrast the manual accounting system and computerised accounting system.
Answer: There can be possible errors while the whole thing is taken care by manual accounting system.
But when it is rebuild to a computerised accounting system, following are the benefits:
Easy accounting without errors.
Multiple locations support from various platforms.
Easy Management of dashboards.
Fully integrated Customer Relationship Management.
Advanced stock and foreign currency management which is made easier.
Extensive shipment tracking for precision.
Integrated project costing functionality with precision.
Payroll charts.
Attendance charts.
Human resource management is done user friendly.
Consolidation of financial transactions is easier.
Customizable accounting process flows without errors.
Process checklists is managed easily.

What are the equipment, manpower and software resources needed for the implementation of the system?
Answer: Equipment, manpower and software resources needed for the implementation of the system:

There is no need of expensive equipments or huge amount of manpower for the implementation of the new system MYOB Exonet.
But the Software resource for MYOB is required. There should be employees who can understand the working of the new system.
The MYOB Exonet can make the whole system simple and easy for accessing any kind of data. This also helps to grow the enterprise without growing the business place.

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