Value Chain Systems in Latureae Health and Wellness Company

This document discusses the primary and secondary activities in Latureae Health and Wellness Company and how they contribute to customer satisfaction. It explores the value chain systems and provides recommendations for maximizing value to customers. The company focuses on manufacturing health products, offering services such as health advice and insurance, and implementing marketing strategies. The document also emphasizes the importance of introducing new products, implementing information systems, training employees, and engaging in online marketing.

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VALUE CHAIN SYSTEMS
Name of student
Name of institution
Name of instructor
Course code
Date

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Introduction
The Latureae wellness company was established in 2000, which according to the
starters indicates a bright future in wellness. The wellness centre has national distribution,
manufacturing and advisory departments for imparting information and customer interaction.
Latureae is strategically positioned to provide healthcare needs to the Australians.
Additionally, the centre has adopted a natural outlook on health and wellness. Latureae has
great expertise in the production of vitamins, nutrients, minerals and herbal health products.
The porter value analysis enables to identify the secondary and primary activities
undertaken at the wellness center. Some of the primary activities include marketing,
manufacturing and services delivered at Latureae. On the other hand, the primary activities
include such as hospital administration, finance activities, diagnostics and therapy and the
hospital support services. The interaction of the primary and secondary activities results in
products and services that satisfy the customers.
However, the wellness center faces the opportunity to further satisfy the customers by
integrating digital methods into service delivery. Additionally, the wellness center intends to
lead in innovation and product development. Successful market leadership will arise from
creativity among the providers of both the primary and secondary services. The management
should ensure that all employees understand and work towards the achievement of the
strategies.
Primary activities
The primary activities at Latureae Health and Wellness Company include
manufacturing. The centre manufactures health products such as biosensing and wearables,
minerals, vitamins, nutrients and herbs. The company observes high-quality while producing
the products to meet customer expectations (Porter's Five Forces, 2018).
Moreover, the service department also constitutes primary activities (Porter's Five
Forces, 2018). The services offered at the health and wellness center include health advice,
health insurance, EHR clinic workflow support and population health management analytics.
The services ensure that customers get the best experience while at the centre. Additionally,
the services complement the manufacturing department due to actions such as advice on the
best drug to use for certain conditions.
Furthermore, marketing also forms the primary activities (Porter's Five Forces, 2018).
Marketing includes pricing of products, customer engagement and insurance policies. The
marketing department ensures that the products reach the market in time. Additionally,
marketing creates product awareness in the market and encourages product use.
Secondary activities
The secondary activities at Laturea health and wellness centre include hospital
administration, finance activities, diagnostics and therapy and general hospital support
services (Porter's Five Forces, 2018). Hospital administration includes the activities done by
top management, middle-level management and the subordinates. The activities include
offering health advice, treatment and administering the right medication.

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On the other hand, finance services also support primary activities (Porter's Five
Forces, 2018). The finance department allows efficiency while paying for supplies, receiving
money from debtors and paying salaries to the workers. The finance department ensures
proper handling of finances at the hospital by ensuring effective collection of revenues and
payment of expenses.
Moreover, the diagnostics also forms part of the secondary services. Diagnostics
include actions such as issuing rehabilitation drugs, medical psychiatry and dietary advice
services among others. The services ensure that customers get an all-around experience at the
centre. Additionally, diagnostics allow health practitioners to understand the best medication
to issue to the patients (Suzanne de Treville, 2018).
Furthermore, the secondary activities also include purchasing and procurement of raw
materials, housekeeping and security services among others (Porter's Five Forces, 2018). The
activities play a role in ensuring that the health and wellness centre runs smoothly. For
example, procurement assists in acquiring raw materials for producing nutrients, minerals and
herbal products.
Matching sub activities to primary activities and the value offered
The finance sub activity supports the three primary functions since the collection and
receipt of cash happens in all departments. The manufacturing department requires money to
pay the supplier of raw materials. Additionally, the finance department pays salaries and
wages to the employees working in all departments. Additionally, the finance sector provides
value to the marketing sector by enabling Latureae to pay favourable salaries to highly
experienced marketing employees (Suzanne de Treville, 2018).
On the other hand, the hospital support services offer value to the manufacturing
sector through activities such as sourcing raw materials (Porter's Five Forces, 2018). Hospital
support services ensure that the suppliers have adequate information about the production
requirements and the time of supply. Therefore, the general support activities ensure that the
manufacturing department does not stall due to lack of materials.
Moreover, the diagnostic and therapy department offers value to the marketing
department. The marketing department collects information from the diagnostics to
understand the specific customer need (Suzanne de Treville, 2018). The marketing agents use
customer-specific information to identify the products to market to the customers. The
marketing department acknowledges the power of targeting customers with health products
that match the diagnosis.
The hospital administration provides value to the services department. The services
department includes activities such as advice, health insurance and clinic workflow support
(Porter's Five Forces, 2018). The administration sub-activity provides appropriate officers to
perform the various tasks at the wellness centre. Additionally, Latureae matches the officers
with various activities based on the levels of skill and knowledge. Furthermore, the
administration ensures the smooth operation of the wellness centre, which causes satisfaction
among the employees and customers (Suzanne de Treville, 2018).

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Porter value model
Recommendations on maximising value to customers
Latureae should introduce new products to the market to increase customer
satisfaction with a high variety of products (Suzanne de Treville, 2018). The current market
trends include unpredicted changes in customer tastes and preferences. The changes happen
within a short time which calls for the provision of a wide range of products to easily satisfy
the customer demands. Additionally, the customers experience a variety of health conditions
that require the company to develop solutions. The ability to develop a wide range of health
products increases customer loyalty and product usage (Suzanne de Treville, 2018).
Therefore, the company will maintain customers for the long-term.
Additionally, the company should introduce information systems to allow proper
communication and coordination between primary and secondary activities (Porter's Five
Forces, 2018). The information system acts as an intermediary between the two functions,
which allows a quick flow of information. Therefore, the company will not face hitches in
operations caused by lack of adequate information along the value chain (Suzanne de
Treville, 2018). Furthermore, the information system will reduce the wastage of resources
since the support activities will deliver the required quantities in the right amounts and the
right time.
The company should also train the employees to equip with different skills as required
by current diverse organisational operations (Porter's Five Forces, 2018). Equipping
employees with the right skills enables quick adaptation in times of drastic change.
Additionally, an improved level of skills allows the employees to perform tasks better
PRIMARY ACTIVITIES
SUPPORT ACTIVITIES
MANUFACTURING
wearables and biosensors
vitamins
minerals
nutrients
herbal products
General hospital services
Purchasing and procuring
maintenance of security
services
housekeeping
uniform section
SERVICES
Advisory
Health insurance
EHR clinic workflow support
Population health
management analytics
Diagnostic and therapy
Laboratory services
imaging centre
customer service
medical psychiatry
MARKETING
Product pricing
customer engagement
sale of insurance policies
Hospital administration
the board of directors
medical director
chief of clinics
chief nurse

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without errors. Therefore, the company gains by reducing expenses used to correct mistakes
in the products (Suzanne de Treville, 2018). The modern-day customers have a choosy
behaviour, especially when accessing medical products and services. A small mistake might
result in the loss of a large percent of the customers. Therefore, training employees to reduce
errors will promise customer retention in the future.
Furthermore, the company should focus on online marketing of the products (Suzanne
de Treville, 2018). The current market trends require organisations to market products
through social media platforms where most customers view products. The ability to create an
online presence will enable the company to sell more units within a financial year.
Additionally, the customers will have greater awareness about the products and understand
usage levels. The creation of online marketing platforms such as a website and social media
pages will allow the company to communicate with the customers (Suzanne de Treville,
2018). A virtual assistant has the ability to constantly communicate with the customers. The
customers end up getting high-quality services by getting adequate information about new
and existing products.
Conclusion
Latureae health and wellness company relies on primary and secondary activities to
satisfy the customers. The company ensures efficient integration and flow of activities within
the departments. The company has installed proper communication procedures that allow a
quick and timely flow of information. The company acknowledges that inappropriate
communication could lead to failure of the company.
Additionally, the company fosters a culture of respect between the employees
performing secondary and primary activities. The respect culture allows the employees to
work together and improve organisational standards. Furthermore, customers get high-quality
services, which results in customer retention and brand equity.
Furthermore, the company should engage in investments that lead to the production of
new products. The new products should address the upcoming market demands since medical
trends change drastically. Additionally, health changes require better and improved attention
to ensure customer satisfaction. Failure to introduce better and improved products will cause
market failure since the customers will buy products from companies that innovate.

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References
Porter's Five Forces. (2018). Retrieved from Mind Tools: www.mindtools.com
Suzanne de Treville, T. B. (2018). Journal of Operations Management. Elsevier, 61(1).
Retrieved from
http://www.elsevier.com/wps/find/journaldescription.cws_home/523929/
description#description