MIS500: Critical Analysis of Latureae's Information System Value Chain

This report provides a critical analysis of Latureae, an Australian health and wellness company, focusing on its information systems and value chain. Utilizing Porter's Value Chain Model, the analysis identifies Latureae's primary activities, including inbound logistics, production, outbound logistics, marketing and sales, and services, along with their respective sub-activities. It also examines the secondary activities, such as human resource management, technological development, and procurement, and their contributions to value creation. The report establishes the relationship between the sub-activities and value creation within the organization, highlighting how these activities support the overall business strategy. Furthermore, the report offers recommendations for enhancing Latureae's value chain, particularly focusing on the integration of technology to improve efficiency and customer satisfaction. The conclusion emphasizes the importance of applying Porter's Value Chain Model to maximize customer value and achieve a competitive advantage within the healthcare industry.

Running head: INFORMATION SYSTEMS CRITICAL ANALYSIS 1
Information Systems Critical Analysis
Name
Institution

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INFORMATION SYSTEMS CRITICAL ANALYSIS
Introduction
All organizations, either big or small, require a system in place for collecting, processing,
storing, and sharing data. During previous generations, there was a lot of paperwork and time
associated with tasks. However, in the current society where technology has taken the center
stage, organizations are making use of modern technology in streamlining and automating their
operations. Information systems are currently playing an important role in decision making as
well as in data processing. When information systems are used correctly, they have the potential
of positively impacting a company’s overall performance, including its revenue. Such a system
provides new mechanisms for generating revenue, engaging customers, and streamlining time-
consuming tasks. This paper aims to analyze Latureau, an Australian organization, identifying
the company’s primary and secondary activities using Porter’s Value Chain Model. Besides, the
paper also seeks to identify the sub-activities that potentially add value to the organization,
including establishing a relationship between the value-creating activities and the sub-activities.
Finally, the report will provide recommendations on how the firm can enhance its value chain.
Background
Latureae is an Australian firm that is concerned with health and wellness products. The
organization obtains its supplies from at least 2000 suppliers to develop products that can
accommodate 100,000 clients weekly. The organization makes this possible due to the good
relationship that it maintains with the supermarkets, health care professionals, as well as the
specialist health food stores (Sivula & Kantola, 2014). As such, Latureae links with a wide
customer base, making it possible to manufacture products that have a high demand. The success

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achieved by this organization can be attributed to its information system that creates and
enhances good relations across its value chain. Despite providing health and wellness products,
the firm also engages in research and development as well as innovation to enhance the
company’s competitive advantage.
Primary and Secondary Activities
Latureae’s primary and secondary activities can be analyzed using Porter’s Value Chain.
A value chain consists of a company’s system which it uses to make money. Porter breaks a
value chain into primary and secondary activities (Chou, 2015). The primary activities include
inbound logistics, marketing and sales, outbound logistics, service, and operations. The five
primary activities aim at creating value which exceeds the cost of carrying the activity, resulting
in increased profits. Secondary activities as postulated by Porter include human resource
management, procurement, infrastructure, and technological development (Petter, DeLone &
McLean, 2013). The primary role of the secondary activities is to support the primary activities.
Latureae Primary Activities and Sub-activities
Inbound Logistics
Latureae makes use of several activities in creating its full range of products for the
customers. The organization sources raw materials from its clients. Using several means of
transport such as motorcycles and trucks, the firm brings the raw materials to the production
floor. Latureae uses trucks and bikes and other transport means to make sure that raw materials
arrive in the best natural condition and on time (Tanwar, 2013). Since the firm’s raw materials
are green plants, the company uses several cooling facilities to prevent them from spoiling. The
company makes sure that it maintains good relations with the suppliers because they are the main

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contributors to the company’s value chain. The sub-activities comprise keeping the trucks in
good condition but continuously servicing them and replacing the parts that were worn out.
Besides, the company trains its drivers in case there are changes in the picking routes.
Production
The activity involves the company’s process of manufacturing the raw materials to
develop the finished healthcare products. Activities carried out during production by the
company include quality management to make sure that the products are hygienic and of good
quality. The processing activity at the company includes quantity measurement in every
production (Herrera, 2015). The firm also conditions its machines to make sure that they operate
dependent on the incoming raw materials and the expected outcome. During production, the sub-
activities include maintain the machines by cleaning and repairing worn out parts, as well as
putting in place the hardware that is used in the production process. In this case, the main factor
is setting up machines because they ensure there is value creation.
Outbound Logistics
After the manufacturing process is completed, the organization makes sure that the
products reach the market. The organization utilizes a storage system where the finished products
are stored awaiting transportation and delivery (Stair & Reynolds, 2013). Latureae works on its
storage system to make sure that the temperatures are correct, it is free from hazards, spacious as
well as making sure that it is clean. Besides, the firm possesses an inventory management system
whose primary goal is to ensure that every product is stable in regards to quantity, making sure
that there are free movement activities achieved by ensuring that the storage space is not too
small (Prajogo, Oke & Olhager, 2016). Nonetheless, the company owns a fleet of trucks as well

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as pickup cars that it employs in delivering the products to the customers that order the products
through the online platform, to the supermarkets, along with the wellness centers. The sub-
activities comprise of working on deliveries and packaging the product (Davies, Dean & Ball,
2013). The company creates value at this level through its seamless and efficient delivery
system.
Marketing and Sales
Latureae invests in marketing and sales activities to expand its market reach. The firm
markets its products using its strong e-commerce platform. The marketing department is in
charge of the company’s advertisements both in the social media channels as well as in the local
media. Besides, the organization has hire sales representatives that go to the prospective markets
to assist the clients to understand as well as purchase their products (Simatupang, Piboonrungroj
& Williams, 2017). The sub-activities encompass researching the market dynamics to increase
sales and accruing high profits. The company creates value by ensuring the firm is differentiated
and stands out in the market.
Services
Latureae offers its customers services, ensuring that their relationship with each other
lasts. Examples of services that the company offers its customers include replacing orders that
are broken or those that are badly delivered, exchanging orders, as well as provide the clients
with technical advice.

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Latureae Secondary Activities and Sub-activities
Human Resource Management
Under this activity, Latureae hires staff that assists in the production process. Besides, the
organization also trains its staff to make sure that they are familiar with what is required of them
when performing their duties (Rathee & Rajain, 2013). The firm offers education as well as skill
training to its current staff to ensure that they are conversant with current developments in the
organization’s systems. Having competent employees that can serve the organization for a
prolonged period enables the firm to create value.
Technological development
The company is continuously developing innovation that enables it to have a new product
range. As a result, this creates a wide selection of products capable of handling different
customer health issues (Laudon & Laudon, 2015). Besides, the company is searching for
mechanisms to produce technological wearables. Using social media platforms, Latureae has
been in a position to market its products, thus achieving high sales volumes.
Procurement
In Latureae’s production process, several things are factored in to ensure that the process
is smooth and without delays. Therefore, as part of the company’s operations, it talks to its huge
pool of suppliers to manage the relationship. This activity involves sourcing raw materials that
are of high quality at low prices aimed to maintain a good relationship with the suppliers. The
main sub-activities include the continuous update of journal accounts as well as verifying the
inventories.

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Relationship between Latureae Sub-activities and Value Creation
Considering the company’s value chain model, the sub-activities are essential because
they support value creation. The sub-activities make sure that both the primary and the secondary
activities are effective and that they address any issue that may arise in the entire value chain.
Besides, the sub-activities aim at enhancing the company’s value chain and competitive
advantage (Burrough, et al., 2015). By analyzing trends along with determining the existence of
any loopholes, Latureae should consider enhancing its sales including reducing supply cost.
Recommendations
Healthcare activities are the company’s primary activities because they are the main
source of revenue for the firm. As a result, improvements must be made in this core activity. As
part of the recommendations to improve the organization’s healthcare facilities, they should
incorporate technology in the processes that are used to produce and deliver the products to the
final consumer. Incorporating technology will enhance efficiency, increase revenue, and enhance
customer satisfaction.
Conclusion
Based on the value chain analysis of Latureae, it can be concluded that combining an
organization’s primary and secondary activities is instrumental in helping the policymakers
create improve customer value, including gaining competitive advantage. Latureae is successful
because it develops its products by putting into consideration Porter’s value chain model,
focusing on all its primary and secondary activities. The firm is successful in the market because
it focuses on innovation as well as the manufacture of new natural health products and the fact

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that it has an efficient data management system. Hence, every company should apply Porter’s
value chain model in maximizing the value offered to clients.

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References
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