Critical Analysis of Latureae's Business Model for MIS500

This report provides a critical analysis of Latureae's business model, a healthcare organization in Australia. It begins with an executive summary highlighting the importance of linking primary and secondary business activities to enhance consumer value. The report then identifies and examines the primary activities, including inbound and outbound logistics, operations, sales, and marketing, and their respective sub-activities. It also delves into the secondary activities, such as procurement, HR, technology, and infrastructure, and their associated sub-activities. The analysis focuses on how these activities, both primary and secondary, are interconnected and contribute to value creation within Latureae. The report uses Porter's value chain model to establish links between the value-creating activities and sub-activities. It concludes with recommendations to enhance the value proposition for Latureae's consumers, such as understanding value propositions, considering current health awareness trends, and identifying and rewarding loyal customers. The report aims to provide a comprehensive understanding of Latureae's business model and its key drivers for success.

1CRITICAL ANALYSIS OF IS
Critical analysis of IS
Enter: name of the Student
Enter: name of the University
Author Note

2CRITICAL ANALYSIS OF IS
Executive Summary
Linking between the primary as well as the secondary activities of the business models with the
value creating activities is very much required in order to enhance the value offered to the
consumers of the business. The sub activities of the business models used in business
organizations are also linked with the primary and secondary activities. This report shall be
identifying the links between the primary and secondary activities of the business model
maintained by Latureae which is a healthcare organization located in Australia.

3CRITICAL ANALYSIS OF IS
Table of Contents
1. Introduction..................................................................................................................................4
2. Identification of Primary and Secondary Activities in the Business Model................................5
3. Links between Primary and Secondary Activities in the Business Model..................................7
3.1 Identify links between the value-creating activities and sub activities..................................8
4. Conclusion...................................................................................................................................9
5. Recommendations........................................................................................................................9
6. Reference...................................................................................................................................10

4CRITICAL ANALYSIS OF IS
1. Introduction
The net profitability of a business depends upon the selection of business models as it
helps in anticipating the target audiences and opportunities of the expenses. The investors of the
business usually review a business model.
As per Porter (2016), Porter’s value chain model highlighted that the primary activities of
a business model includes sales and marketing, inbound and outbound logistics and the
operations department. Whereas the secondary activities of the business model includes the HR
department, procurement activities, any kind of technological changes made in the business and
infrastructural change.
Established in the year 2000, Latureae is one of the most reputed healthcare organizations
in Australia. This health and awareness organization provides huge range of service to the
Australian citizens apart from their healthcare department; the other service provided by them is
in education sector. The prime organizational target of this organization is to provide a natural
approach to the health programs of the Australian citizens.
According to Porter & Kramer (2019), Porter’s value chain is very much significant in a
business as it can help to focus on the systems and the activities of the consumers of the
business. New business value can be created in the first place using this analysis.
However, as discussed by Başer & Bozoğlu (2018), the cost of each of the activities of
the business along with the profit can be monitored using the Porter’s value chain.

5CRITICAL ANALYSIS OF IS
2. Identification of Primary and Secondary Activities in the Business Model
This organization has a reputation of working with national as well as international
suppliers who provides then the raw materials so that Latureae can maintain their reputations of
customer satisfaction among the other similar organizations in Australia. The Enterprise
Information System (IS) which maintained in this organization helps this organization to manage
each of the business operations. The financial decision making ability of the business heads of
this organization are reviewed by the IS (Simatupang, Piboonrungroj & Williams, 2017). The
entire discussion of the secondary as well as the primary activities of this assignment shall be
based on the Porter’s value chain.
The different categories of primary activities associated with the business model of
Latureae are inbound logistics where the movement of the equipment and materials are
considered, operations department which helps in the conversion of the raw materials to output
in the form of goods, outbound logistics which is mainly managed by the IS, sales and marketing
departments who deals with the process of lead generation and dealing with the communication
process with the consumers of the business.
The prime sub activity which is associated with the primary activity is the after service
department of this organization where a dedicated team is there who resolves the issues faced by
the consumers of this business. The other sub activities associated with the primary activity are
direct activity and indirect activity (Saebi & Foss, 2015). The direct activity of this business is
advertising of the products and service offered by this organization. Management of the sales
forces and the customer records is the indirect activity which is associated with the primary

6CRITICAL ANALYSIS OF IS
activities of the business. The quality assurance department of Latureae can also fall under this
category as well.
Value Creation: The operations department who deal with the raw materials used in the
manufacturing process contributes mostly in creating a value in this business. Convenience of the
consumers of this business is maintained from this department of Latureae. Latureae also invests
hugely so that a value is created in each of the primary activities of the business model followed
in Latureae (Rihova et al., 2015). Thus, the operations department of this business provides this
organization a competitive advantage as their company successfully creates value in each of their
services.
The various categories of secondary activities associated with the business model which
is followed in Latureae are organized procurement procedure of this business which helps this
organization to maintain a good relation with each of their stakeholders such as the vendors and
the suppliers, HR departments who recruits employees on the basis on qualification and
experience so that they can understand the business strategy in the first place, technological
developments in terms of the IT systems which are there in the business environment of this
organization, infrastructure department who looks after the administrative functions of the
business along with the accountability issues which are faced by the stakeholders of this
business.
The sub activities associated with these secondary activities of the business model which
is followed in Latureae includes the accounting and the audit issues, and monitoring of the sales
activities (Bashir & Verma, 2017). Making any sort of amendments in the business strategy

7CRITICAL ANALYSIS OF IS
based on the results of auditing is also one of the most significant sub activity associated with the
secondary activities.
However, as discussed by Reim et al. (2017), identification of the secondary activities
and the primary activities of the business models are very much required in order to achieve that
organizational target.
3. Links between Primary and Secondary Activities in the Business Model
Identification of the links between the primary and the secondary activities of the
business model which is followed in Latureae is a very lengthy procedure as there are thousands
of stakeholders associated with this business both inside and outside Australia. However, it can
be said that the identification of the link can provide this organization a competitive advantage
over the other similar organizations in Australia.
Procurement procedure of this business which is one of the most significant secondary
activity is directly associated with the sales and marketing departments which is one of the
foremost activities of this business. The role of the HR department is also very much useful to
manage the flow of information in the operations department. Whereas, it can be said that the IS
which is maintained in the business environment of Latureae is very much helpful to control the
flow of operations in both the inbound and the outbound logistics (Kollenscher, Popper &
Ronen, 2018). The production of the sales and marketing department of this business is directly
linked with the procurement procedure which is followed in this organization. Thus it can be said
that both the primary as well as the secondary activities of the business model which is followed
in Latureae are very much linked with each other.

8CRITICAL ANALYSIS OF IS
On the contrary, stated that Lin & Chen (2016), the sub activities of the primary as well
as the secondary activities must be very much linked with each other. The after service
department of Latureae can play a huge role to sort the issues which are identified in the auditing
procedure of the secondary activities. Management of the customer records is very much
significant in this business as it can help this organization to address the issues which is
identified in the auditing process. Management of the sales forces of this business is also linked
with the monitoring of the sales activities in this business. Thus, along with the primary
activities, each of the sub activities associated with them are also linked with each other.
3.1 Identify links between the value-creating activities and sub activities
Creating value from each of the resources is one of the prime objectives of Latureae, as a
result an impressive value creation strategy is adopted by this organization over the years. This
organization uses IS for the creation of those strategies (Massa, Tucci & Afuah, 2017). The
strategies are created in such a manner so that it helps to address the difficulties and issues faced
by the consumers after they get their service from this business.
The value creating activities and the sub activities of the projects are very much linked
with each other and it contributes effectively for the growth of this health and awareness
program. The cost drivers of each of the activities of the business are monitored by the regional
business heads. The cost of the incorporation of any new technologies is monitored on the basis
of work hour of the labours, work speed, and rate of the wages. The strategic planner of this
organization understands that reduction in the cost of any one activity of the business may result
in the loss of other subsequent activities (Yoo & Park, 2016). The entire production cost
associated with the value creating activities and sub activities is managed in an organized manner
so that it has minimum effect on the production cost. One of the most striking of the value

9CRITICAL ANALYSIS OF IS
creating activity of Latureae is not the great service offered to the consumers but the advanced
marketing strategy adopted by the strategic planners of this organization.
4. Conclusion
Identification of the primary as well as the secondary stakeholders is very much required
for a business organization like Latureae as it can provide this healthcare organization a
competitive advantage over the other similar organizations. The prime activities of the business
model followed in Latureae are the inbound logistics, sales and marketing, operations department
and outbound logistics. The secondary and the primary activities of the business model of
Latureae are very much associated with each other. The growth of this business is maintained, as
the value creation activities of this business in terms of their exclusive marketing strategy is
linked with the sub activities of the business model followed in this business organization.
5. Recommendations
The list of recommendations for the management of Latureae to enhance the value
offered to their consumers is listed as followings:
 Value proposition must be understood by each stakeholders associated with Latureae.
 Current trends of the health awareness programs must be considered before designing the
business strategy.
 The loyal and the valuable consumers must be identified and additional discounts must be
given to them.

10CRITICAL ANALYSIS OF IS
6. Reference
Başer, U., & Bozoğlu, M. (2018). Determination of Value-Creating Activities in the Agricultural
Value Chain. Turkish Journal of Agriculture-Food Science and Technology, 6(8), 1002-
1007.
Bashir, M., & Verma, R. (2017). Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), 7.
Kollenscher, E., Popper, M., & Ronen, B. (2018). Value-creating organizational
leadership. Journal of Management & Organization, 24(1), 19-39.
Lin, Y. L., & Chen, T. L. (2016). How does strategic orientation influence intellectual capital
through value creating activities. Business Research Review, 2(1), 13-32.
Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model
research. Academy of Management Annals, 11(1), 73-104.
Porter, M. E. (2016). Competitive strategy: techniques for analyzing industries and competitors.
2004. New York: Free.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Reim, W., Lenka, S., Frishammar, J., & Parida, V. (2017). Implementing sustainable product–
service systems utilizing business model activities. Procedia CIRP, 64, 61-66.

11CRITICAL ANALYSIS OF IS
Rihova, I., Buhalis, D., Moital, M., & Gouthro, M. B. (2015). Conceptualising customer‐to‐
customer value co‐creation in tourism. International Journal of Tourism Research, 17(4),
356-363.
Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal, 33(3), 201-213.
Simatupang, T. M., Piboonrungroj, P., & Williams, S. J. (2017). The emergence of value chain
thinking. International Journal of value chain management, 8(1), 40-57.
Yoo, J., & Park, M. (2016). The effects of e-mass customization on consumer perceived value,
satisfaction, and loyalty toward luxury brands. Journal of Business Research, 69(12),
5775-5784.