Practical Solutions for Faculty

Running Head: SOLUTION PLAN FOR LATUREAE 1
FOUNDATIONS OF INFORMATION SYSTEMS
Assignment 2 – Solution Plan
Student Name:
Student Number:
Date:

SOLUTION PLAN FOR LATUREAE 2
Table of Contents
Introduction................................................................................................................................3
Primary key and supportive key.................................................................................................3
Link between keys and external sources....................................................................................7
Stockholders and relationship....................................................................................................8
Recommendations....................................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

SOLUTION PLAN FOR LATUREAE 3
Introduction
Latureae, a company of health and wellness in Australia with a lot of corporate customers.
The company collaborates with 1500 suppliers in order to serve more than 100K customers
every week. Analysis of the primary and secondary activities of the company as per Porter's
Value Chain Model enables establishing a link between them. There are several sub-activities
associated with the primary and secondary activities of the company. In the current
discussion, tested and verifiable solution to address the limitations of the contemporary
business problem will be undertaken. Principles of agile management will be used for
recommending blueprints to Latureae management.
Primary key and supportive key
The Company has several primary activities along with supporting activities. The main
primary activities of the organization comprise Inbound logistics, production, outbound
logistics, marketing and sales, and services (Costantino et al, 2012). A brief understanding of
the primary activities of the organization is necessary prior to establish link between these
activities.
The inbound logistics of the company comprises of the actions undertaken to make sure
supplies of the organization to manufacturing finished products is of particular quality and
arrives within the specified time frame. This is a primary activity as it ensures the final
quality of finished products by checking the quality of raw materials. The organization
already has existing tie-ups with several suppliers, which delivers approved quality of raw
materials to the manufacturing facility of the company (Konecka, 2010). The company’s
transportation facility ensures the raw materials necessary for production are brought into

SOLUTION PLAN FOR LATUREAE 4
maintaining appropriate standards of quality and within the specified time period. Bringing in
raw material at the appropriate time also ensures the un-hindered flow of activities at the
manufacturing hub. The warehousing facility of the company ensures that the raw materials
are kept at adequate temperatures to prevent them from getting spoilt. In order to maintain
standardized raw material from empanelled suppliers, the company maintains adequate
relation with them. Thus, it ensures delivering satisfaction to end customers hence it creates
value. The sub-activities of inbound logistics comprises of servicing trucks and parts along
with staff training procedures.
Production activity for the company includes the processing of raw materials to
manufacture finished products. In the absence of proper production, it will not be possible to
transform input into output for the organization, hence it is regarded as a primary activity in
the firm. The production processes are conducted as per standardized production processes
for health and wellness products in Australia. The production process of the company
maintains high quality to maintain customer satisfaction regarding final product quality.
Thus, it ensures delivering satisfaction to end customers hence it creates value. The
associated sub-activities of production activity include the installation of production
machinery, conducting their repairs, and overviewing the operating system that ensures
production processes at the factory.
Outbound logistics is one of the most crucial activities of the primary activities of the
company and ensures the delivery of the final product to the market. In case the product does
not reach end customers in their suitable state or quality then they will not be accepted by
customers hence this comprises one of the primary activities. The company has its own
inventory where the final products are stored in batches and sent to respective clients as per
their supply schedules. From the inventory based upon orders, the final products are
transported to respective client stores and warehouses (Kannan, & Choon Tan, 2010). It

SOLUTION PLAN FOR LATUREAE 5
enables delivering satisfaction to end customers hence it creates value. This outbound
logistics activity ensures temperature control, cleanliness, and hazards free delivery of the
final products from where the final products reach the client's medical centers.
The sub-activities for this activity encompasses order packaging and delivery charts that
are designed on the basis of customer demands. The logistics system creates value within the
company for smooth and cost-efficient deliveries. The logistics system ensures the truck
which goes on a route to pick up raw materials, delivers final products to its customers on the
same route.
The marketing and sales activities of the company ensure steady sales. The marketing and
sales department conducts its activities with contemporary styles by making use of social and
local media channels. They also have Public Relations personnel assigned to reach customers
(corporate) and explain them regarding various products. Thus, it ensures persuading clients
to make the purchase of the final products against the customers hence it creates value and is
regarded as a primary activity.
The sub-activities of this activity include searching corporate client locations on the basis
of customer demands. This ensures that the company can earn maximum profits and emerge
as a leader in the market.
Services provided by the company include building and establishing a good relationship
with clients. The company offers technical support, training for their customer groups. They
also replace products that are faulty to maintain long-term relationships with customers. This
is regarded as a primary activity as it assists in maintaining the value of the final or end
product with the customers after the purchase has been made.

SOLUTION PLAN FOR LATUREAE 6
Figure 1: Porter's Value Chain Model
Source: (Fearne, Garcia Martinez, & Dent, 2012)
The supporting activities or the secondary activities of the company for maintaining such a
stable business is discussed below;
Firm Structure is regarded as a supporting activity as it had an enormous role to play in
each primary activity done (Cabral, Grilo, & Cruz-Machado, 2012). The firm’s structure
comprises of its production facility, and service department office. This structure supports the
inbound, outbound logistics, accounting, administrative, legal and general management.
Without the structure of the firm primary activities such as its services, production or
logistics cannot be conducted. The firm’s structure acts as a support for these primary
activities.
Development in Technology relates to processing technologies and enables protecting
knowledge base present in the organization. The technology development takes place at the
company for developing a wide range of innovative technologies in medicine with
capabilities to resolve a wide range of health problems. Development of technology plays a
supporting role in the production of medicines at the company, in its absence new and

SOLUTION PLAN FOR LATUREAE 7
innovative medical technology products cannot be manufactured, hence it is regarded as a
supporting activity.
HRM consists of the management of staff and employees at the organization, who carry
out their respective duties. It is one of the most important supporting activities as in the
absence of this activity it will not be possible to conduct any operation at the organization.
Management of staff and employees allows scheduling employees for production, supply
chain, services, and marketing and sales and so on. Therefore, it is considered a supporting
actor in order to conduct multiple primary activities.
Procurement enables smooth, effective and efficient functioning of the organization by
enabling smooth flow of production process. Effective and efficient procurement also enables
providing supplies to clients and corporate customers of the company. It is one of the
secondary activities of the company undertaken for carrying out primary activities.
Link between keys and external sources
Businesses that seek competitive advantages often make use of the value chain model for
the purpose of identifying cost-saving opportunities and creating differentiation in their
production cycle. Identification of the value chain model for Latureae has enabled
understanding its primary as well as secondary activities. By way of recognizing the linkages
between structure, effective communication between direct, indirect and supporting elements
can be undertaken. Each of the primary activities is interrelated to supporting activities
(Gattorna, 2010). Such as the primary activity of inbound logistics can be performed with
assistance from the procurement department, which is a supporting activity. The procurement
provides instructions and does demand scheduling for placing an order with the supplier
company to get inbound logistics for undertaking production in the company.

SOLUTION PLAN FOR LATUREAE 8
Production at the company is a primary activity as without this activity finished products
will not be supplied to end customers. Production is supported by the firm’s infrastructure
and technological development. Outbound logistics of the company is again supported by the
firm’s infrastructure such as trucks and vans that carries finished products from the
warehouse (firm’s infrastructure) to client inventories or pharmacies. Marketing and sales of
the company is a primary activity that is supported by human resource management (HRM).
The HRM assigns people for carrying out various marketing and sales efforts to attract
customers towards the company. Services are also rendered by the HRM as the key
supporting activity. The employees at the organization provide services to their customers
and clients. Thus, the link between the primary and supporting activities enables identifying
ways in which production and sales of the company can be increased. The linkage provides
the key impact areas and interrelationships amongst the business units. This can assist in
realizing which areas need to be enhanced for increasing production or sales at the company.
Stockholders and relationship
The rich picture drawn below depicts the relationship between the varied stockholders.
The stockholders that have been depicted in the figure below includes the pharmaceutical
manufacturer, inbound processes, outbound processes and the corporate clients and customers
of the company.

SOLUTION PLAN FOR LATUREAE 9
Figure 2: Rich Picture
Source: Author

SOLUTION PLAN FOR LATUREAE 10
Recommendations
Agile methodologies enable processes that allow continuous iteration for development and
testing through the various functionalities conducted in the organization. As per the current
systems present in the company, the various processes present are not continuous in manner.
However, the company aims at the launching of more natural health products and simpler
ways of production alongside increasing sales at the company also. Hence the step-by-step
recommendations in the adaptation of agile methodologies are as follows;
 Individuals and team interactions over processes and tools: The Company's
different departments comprising of different team members and individuals need
to interact with one another regarding the processes and tools that they will use in
the manufacturing of products, getting raw materials and supplying finished
products to be delivered to end customers. Team members from inbound logistics
need to interact with team members of outbound logistics to understand the nature
of demands needed by external customers of the company. The inbound teams then
can supply the necessary raw materials accordingly to meet the demands of the
external customers and clients. Cooperating and coordinating between the different
teams Functioning software over comprehensive documentation: In the case of new
technologies and software development, all team members and individuals need to
be updated. Comprehensive training needs to be provided to them such that they
prefer functioning of the software in comparison with comprehensive
documentation. This will further assist in the functioning of various processes at
the organization in a fast and effective manner, as there will be lesser
documentation in regard to various processes.

SOLUTION PLAN FOR LATUREAE 11
 Customer collaboration before contract negotiation: Customers and corporate
clients of the organization need to be collaborated with prior to negotiating
contracts with them. The company will need to contact for understanding their
demand scheduling and understanding their specific needs. Then the company can
devise their supplies to customers, raw materials needed accordingly.
 Being able to respond to change over following a plan: While the company is
devising to increase the production of its products to increase sales, it will need to
devise a plan to adapt to the change. The new plan for accommodating increased
production of finished products, increase demands of raw materials and production
processes will require a new type of schedule. This will allow adhering to the new
changed plan and meeting the increased sales for the company as well.
Conclusion
In conclusion, the new adopted agile technologies can enable the company in the
adaptation of a continuous iterative procedure. Only in the presence of a continuous, iterative
process, it will be possible to increase production along with increasing sales of the company.
In the absence of a continuous, iterative process where one follows the other, it will be
possible to increase production while keeping coordinated with sales. This will also enable
the company to significantly reduce costs and in the development of a cost-effective and
efficient supply chain.

SOLUTION PLAN FOR LATUREAE 12
References
Cabral, I., Grilo, A., & Cruz-Machado, V. (2012). A decision-making model for lean, agile,
resilient and green supply chain management. International Journal of Production
Research, 50(17), 4830-4845. DOI: 10.1080/00207543.2012.657970
Costantino, N., Dotoli, M., Falagario, M., Fanti, M. P., & Mangini, A. M. (2012). A model
for supply management of agile manufacturing supply chains. International Journal of
Production Economics, 135(1), 451-457. DOI: 10.1016/j.ijpe.2011.08.021
Fearne, A., Garcia Martinez, M., & Dent, B. (2012). Dimensions of sustainable value chains:
implications for value chain analysis. Supply Chain Management: An International
Journal, 17(6), 575-581. DOI:10.1108/13598541211269193.
Gattorna, J. (2010). Dynamic supply chains. Financial Times/Prentice Hall, London.
Accessed from
<http://www.gattornaalignment.com/wp-content/uploads/2013/01/Dynamic-Supply-
Chains-Delivering-Value-through-People.pdf>
Kannan, V. R., & Choon Tan, K. (2010). Supply chain integration: cluster analysis of the
impact of span of integration. Supply Chain Management: An International
Journal, 15(3), 207-215. DOI: 10.1108/13598541011039965.
Konecka, S. (2010). Lean and agile supply chain management concept in the aspect of risk
management. LogForum, 6(4), 23-31. Accessed from
<http://www.logforum.net/pdf/6_4_3_10.pdf>

SOLUTION PLAN FOR LATUREAE 13