Information System Critical Analysis: Latureae Business Model

This report provides a critical analysis of Latureae, a health and wellness company, examining its business model through the lens of Porter's value chain. The analysis identifies both primary and secondary activities within Latureae's operations, including inbound and outbound logistics, operations...Read More

Running head: INFORMATION SYSTEM CRITICAL ANALYSIS
Information system critical analysis
Name of the Student
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Author Note

INFORMATION SYSTEM CRITICAL ANALYSIS
Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Analysis of Latureae business model:........................................................................................3
Presentation of identified major activities and sub activities using Porter’s value chain model:
....................................................................................................................................................4
Determination of specific sub activities creating value:............................................................6
Identifying link between value creating activities and sub activities:........................................7
Recommendation for maximizing the value offered to customers:...........................................7
Conclusion:................................................................................................................................8

INFORMATION SYSTEM CRITICAL ANALYSIS
Introduction:
The report is prepared for identifying the primary and secondary activities of the
business model of Latureae. Latureae is a wellness and health company operating in Australia
with the objective of making difference amongst its clientele by optimizing the service
delivery to clients and maximum potential capacity. The company is engaged in the
development of products and services that intend to develop a natural approach to health
having an in depth expertise in minerals, vitamin, nutrients and herbs. They intend to provide
vital healthcare services to the citizens of Australia by maximizing the quality of the care
provided with resources efficiently (Ginter et al., 2018). In addition to the identification of all
the primary and secondary activities, the sub activities of each of the primary and secondary
activities are identified. Furthermore, the presentations of such identified activities along with
sub activities are done through the model of value chain of Porter. The later part of report
demonstrates the recommendations made to the management of Latureae for enhancing the
value offered to customers.
Discussion:
Analysis of Latureae business model:
The business model of Latureae is analyzed by evaluating the Porter’s value chain
model that depicts the presentation of major activities and sub activities. All the activities of
the wellness company are splitted into a sequential stream of activities that helps in
facilitating the identification of primary and secondary activities. The primary activities in
the value chain has the direct contribution to the production process and are considered more
important that supporting activities. Such activities involve operations, inbound and outbound
logistics, services, marketing and sales. Secondary activities on other hand involve any

INFORMATION SYSTEM CRITICAL ANALYSIS
procurement, infrastructure of firms, technology and human resource management (Noe et
al., 2017). The source of cost advantage enjoyed by company is determined by its primary
activities.
Presentation of identified major activities and sub activities using Porter’s value chain
model:
The primary activities of Latureae involve operations, service, sales and marketing.
 Latureae is engaged in the manufacturing and distribution of the products and
services. In addition to this, its primary activities also lie in lending arms for
supporting education and engagement of customers.
 The Latureae that relies on using a natural approach to health serves the wellness of
the needs of Australians.
 The inbound logistics of company relates to the local and national suppliers. Latureae
is engaged in gathering raw and sustainable ingredients with the integrity of
maintaining high standards.
 They intend to promote and maintain wellness of their corporate customers such as
specialist health stores, supermarkets and health care professionals.
 The products manufactured by Latureae reach customers using the platform of e
commerce income stream, health food stores, supermarkets and health care
professionals.
 Another primary activity of the company is to meet the wellness need of community.
 Enhancing the volume of online sales by increasing and developing social media
campaign.
 They are engaged into primary activity of providing service to aging population who
demand a better and extra care from the wellness company.

INFORMATION SYSTEM CRITICAL ANALYSIS
The secondary activities of Latureae involve technology, infrastructure of firms,
human resource management and procurement.
 All the primary activities of company is managed by the different heads of company
such as chief financial officer, production of sales, head of sales, head of customer
services and head of teams, chief marketing officer (Nigam et al., 2019).
 Determining the total sales generated by the company and ultimately the profit made.
The marketing and sales department of company handles the retail and supermarket
clients.
 With reference to technology, the company has adopted the technology for designing
the wearable’s and biosensing. Such wearable accessories are designed for detecting
specific biometrics, which are designated for customers (Michael et al., 2017).
 The company is engaged in activity of managing the population health by hiring the
health catalyst.
 The platform of clinical workflow is designed for recording health records
electronically and surrounding applications that comprises of augmentation and
clinical workflow support.

INFORMATION SYSTEM CRITICAL ANALYSIS
 In order to support a wide range of cases of healthcare uses, Latureae is engaged in
the analysis of data along with data integration.
With regard to the marketing and sales activities identified as the part of value chain,
it is placed in a way for attracting clients.
Determination of specific sub activities creating value:
In this section, the different sub activities with respect to the identified major
activities have been presented. The sub activities of different department of Latureae are
identified and such department of human resources comprised of chief financial officer, head
of sales, production manager and head of customer service.
The sub activities of the chief financial officer are to take decisions concerning all the
financial operations of business so that a continuous profit is generated by business. They are
responsible for engaging themselves in activities of executing payroll to the company
employees, managing and handling receivable for the sales of goods and services and making
payable for the input procured from suppliers. The head of sales department intends to
manage the sub activities of handling retail and supermarket clients. Another sub activities
managed by the chief marketing officer is creation of strategies and observing the market
(Wheelen et al., 2017). Furthermore, the different sub activities managed by the production
manager comprise of procurement of raw materials from the suppliers, maintaining the
quality of products and handling the development team for managing the production process
of Latureae. The sub activities of marketing and sales department work closely in terms of
generating income and ultimately profits.

INFORMATION SYSTEM CRITICAL ANALYSIS
Identifying link between value creating activities and sub activities:
Value chain describes the full range of activities that the business has to go through.
Since, Latureae is a manufacturing and distributor of the health and wellness products along
with providing service, the value by such companies is created when the raw materials are
acquired from suppliers to produce the products. The sub activities of the head of sales
department help in creating value by persuading them to purchase their products. The way
they communicate and benefits offered are considered as the source of value.
The human resource department who are considered as significant source of value
supports some of the primary functions. In addition to this, the good practices of human
resource would help in creating clear advantage and they add value in terms of managing
suppliers and retaining and maintaining customers (van et al., 2019). Furthermore, the head
of sales determine the amount of products generated by company. Therefore, from the
analysis of the various major activities of Latureae, it can be seen that there is a clear link
between the sub activities and value creating organization.
Recommendation for maximizing the value offered to customers:
The company values each customer with a total number of customers being served
comes to significantly large. The healthcare system is struggling due to uneven quality and
rising healthcare cost. For creating value generated to customers, Latureae should engage in
designing the programs that would enable them to offer wellness service to customers at
reasonable costs. The value of customers can also be created by developing loyalty programs
intended to retain loyal customers. Retaining customers should increase lifetime value of
customers because the cost incurred in acquiring new customers is more than the cost of
retaining existing customers. However, it is considered worthwhile for company to retain the
right customers by spending some extra amount of efforts.

INFORMATION SYSTEM CRITICAL ANALYSIS
Latureae can use range of tactics for retaining the existing customers. This might
include educating the customers on the products purchased by them and saving customers
who provide an indication of not requiring the service and products anymore. Furthermore,
moving the customers to the channel of low cost can help in adding substantial cost to
business. The customers should be recognized and rewarded for the ongoing business that
pertains to the implementation of the loyalty program. All such efforts would help the
company in creating value to the customers. One of the important points that need to be
considered is that efforts should be taken to reward the customer loyalty with the help of
implementation of loyalty programs (Hitt et al., 2016). It is so because the case study
provided specifically mentions about rewarding the customer loyalty.
Conclusion:
The analysis of the case of Latureae presents that the wellness company is engaged in
several primary and secondary activities in their value chain process. The application of the
model of Porters five force value chain helps in evaluating the major activities and the sub
activities. From the analysis of all the activities, it has been ascertained that the sub activities
in the value chain helps in creating value for organizations either directly or indirectly. The
value offered to the customers can be maximized by adopting various measures that is
intended to retain customers and rewarding their loyalty. Rewarding and retention of
customers by Latureae can be done by the implementation of some programs and efforts as
discussed above.

INFORMATION SYSTEM CRITICAL ANALYSIS
Reference list:
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health
care organizations. John Wiley & Sons.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Lim, C., Kim, K. H., Kim, M. J., Heo, J. Y., Kim, K. J., & Maglio, P. P. (2018). From data to
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Michael, S., Storey, D., & Thomas, H. (2017). Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new
mindset, 45-65.
Nigam, A., Johnson, R. A., Wang, D., & Chawla, N. V. (2019). Characterizing online health
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Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
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INFORMATION SYSTEM CRITICAL ANALYSIS
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy (p. 55). Boston: pearson.

INFORMATION SYSTEM CRITICAL ANALYSIS