MIS500: Analyzing Latureae's Value Chain & Business Activities

This case study critically analyzes Latureae, a health and wellness company, using Porter's value chain model to identify primary and secondary activities and their sub-activities. The analysis determines which sub-activities create value and establishes links between value-creating activities and sub-activities. Recommendations are provided to enhance Latureae's customer base and maximize the value offered. The study highlights the importance of innovation and sustainable practices for Latureae to achieve its operational business objectives and gain a competitive advantage in the market. The report emphasizes the role of enterprise information systems in improving service quality and managing data effectively. The study concludes by recommending improvements to Latureae's website, supplier base, and sustainability efforts.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction................................................................................................................................2
About the company....................................................................................................................2
Primary and secondary activities in the Latureae business model.............................................3
Identifying sub activities between the primary and secondary activities...................................3
Determining the sub activity that creates value.........................................................................4
Link between the value creating activities and sub activities....................................................5
Recommendations......................................................................................................................5
Conclusion..................................................................................................................................6
Bibliography...............................................................................................................................7

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Introduction
In the modern world, enterprise information system helps in making improvements to
the functions of enterprise business processes. The enterprise information system can help in
offering high quality service and deal with large volumes of data that are capable of
supporting an organisation (Al-Mashari & Al-Mosheleh, 2015). The assignment focuses on
the application of enterprise information system in a Latureae. The analysis is based on the
application of the system as well as the requirements in the context of contemporary business
environment. The case study on Latureae is analysed in order to determine the primary and
secondary activities that are associated with the company. The sub activities associated with
the primary and secondary activities of the company is taken into account so that an
assessment can be made about the contemporary business environment in the company. In
order to ensure that a proper analysis of the enterprise information system is made, a link
between the value creating activities as well as the sub-activities of Latureae is created using
Porter’s value chain model. Recommendations are provided for the company so that it can
manage its value offered to the customers.
About the company
Latureae is a health and wellness company with a difference that brings about
wellness to every people that are associated in purchasing the services of the company. The
company was established in 2,000 and is well placed to serve the wellness of the customers in
Australia. The development of the product and services help in determining the natural
approach towards providing a healthy and wealthy lifestyle to the people. The customers are
the supermarkets that specialise in health food stores so that the company can work with
various patients and clients. It is seen that Latureae serve about 100,000 customers every
week by providing value to every customer. The suppliers of the company work together in

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order, to gain the sustainable and raw ingredients so that high product standard can be
maintained in the business organisation. This can help Latureae to understand the number of
suppliers the company has and the manner in which every supplier can be considered for
analysis. Currently, Latureae has over 2,000 suppliers with different levels of organic status.
In this regard, the primary and secondary activities of the business model of Latureae can be
considered in order to understand its presence in the market.
Primary and secondary activities in the Latureae business model
According to Tao et al. (2017), every business organisation needs to formulate
activities that help in the development and growth of the business. In the case of Latureae, it
is necessary that the primary and secondary activities of the company be identified so that
growth and development for creating customer value can take place. As stated by Mettler and
Winter (2016) it is necessary that the primary and secondary activities complement one
another so that the company can reach its goals such as becoming a leader in the market by
implementing innovative techniques and product development techniques. Hence, the
activities can be determined based on the objectives of the company and the manner in which
it can be achieved. One of the primary activities of Latureae is to ensure that value of the
customers is maintained every week and value is provided to every single person in the
market. The secondary activity that Latureae undertakes is to maintain sustainable
development in the market so that it can remain at par with the trend in the business activities.
Identifying sub activities between the primary and secondary activities
After analysing the primary and secondary activities of Latureae, a further division
can be made about the sub activities that are involved within the company. Abbasi, Sarker
and Chiang (2016) are of the opinion that the sub activities need to be considered seriously
and it is necessary that strategies for achieving the sub activities are developed to reach the

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objectives. In the case of Latureae, the primary activity is to maintain value of the customers
on a consistent basis. In order to achieve it, the sub activities that need to be developed
include analysing the demand of the customers and indulge in creating innovative products
for meeting the demand of the customers. Another sub activity that needs to be considered is
the fact that online sales volume be increased by 15% within 12 months. The secondary
activity was the development of sustainability. Subsequently, the sub activities that are
required to be considered include reduction of the use of packaging by at least 20% within the
year. The welfare of the communities also needs to be considered as one of the important sub
activities in the business.
Determining the sub activity that creates value
In order to ensure that activities of a company provide the required benefit and create
proper value, it is necessary to understand its prospects in the market. Hence, the application
of Porter’s five-force model can be taken into consideration so that value of the sub activities
of Latureae can be taken into consideration (Kumar & Rajeev, 2016). The importance of the
value chain is that it provides central attention to the customers rather than on the
departments of an organisation.
In the case of Latureae, the application of the Porter’s value chain analysis can be
done on the primary sub activity of innovation and on the secondary sub activity of reducing
the packaging of the products. Therefore, the application of the value chain of Porter can be
analysed as:

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Figure: Primary and secondary activity and sub activity
(Source: Porter, 2014)
Link between the value creating activities and sub activities
A link between the value creation activities and the sub activities can be made by the
analysis of Porter’s value chain. Porter’s value chain gives an idea about the activities that
provides an understanding of the value creation activities of an organisation. As seen from
the analysis, the infrastructure of Latureae can provide the strength to the company about its
development in the business. It is essential that the company reduce its employee turnover
rate in order to achieve both the activities so that a sustained marketing approach can be
undertaken (Porter & Kramer, 2019). The technological aspect of the company can help in
the development of innovation as well as maintain the sustainability. Latureae need to
increase the online sales volume of the company so that more customers can be approached.
At the same time, with the online development of the market, Latureae can maintain
sustainability by spreading its importance in the community. It has already been seen that
Latureae maintains a good relationship with the suppliers as the company have over 2000

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suppliers that are involved with maintaining the organic status and supplier accreditation of
the company.
Recommendations
Based on the analysis of the application of Porter’s value chain model and the
activities undertaken by Latureae, recommendations can be provided so that the company can
develop its customer base and maximise the value that is offered to each of the customers. It
is seen that the company serves more than 100,000 customers on a weekly basis by providing
them endless choices about the ways in which health dollars can be spend. It is essential that
within the next year, Latureae indulge in developing websites that can provide customers
with an ease to gain access to the company. The high production standard can be met by
maintaining a proper supplier base so that the company can meet the required demand of the
customers. In terms of maintaining the sustainability of the organisation, Latureae can reduce
complex packaging and develop ways to provide the materials by spending more on the
quality and the delivery speed. This can be done by being technically competent so that social
media campaign programmes are taken into consideration. The analyses of the value chain of
the company show that it is necessary that innovation techniques be maintained so that
Latureae can continue to develop in the industry.
Conclusion
Thus, it can be concluded that for a business to develop it is necessary that it
considers the activities that provide value to it. The application of enterprise information
system can help in identifying the quality of service that is required to be provided. At the
same time, it is necessary that every activity that is associated with the development of
quality service to the customers be prioritised so that value of the organisations can improve.
The primary and secondary objectives can help Latureae to establish a competitive advantage

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in the business by meeting the demands of the customers. Further enhancement of the
business can be done by considering the effective application of Porter’s value chain analysis
so that every business activity within the organisation can be provided with a purpose. The
analysis of the model shows that Latureae possesses the ability to strengthen its value by
improving its sustainable practises as well as by remaining innovative in the market. Hence,
the two factors can help Latureae to attain each of its operational business objectives in the
business market.

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Bibliography
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Toward an inclusive research agenda. Journal of the Association for Information
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Model-Based Generation of Enterprise Information Systems. In EMISA (75-79).
Al-Mashari, M. & Al-Mosheleh, H., (2015). Enterprise Resource Planning of Business
Process Systems. In UKAIS(p. 2).
DeLone, W.H. & McLean, E.R., (2016). Information systems success
measurement. Foundations & Trends® in Information Systems, 2(1), 1-116.
El Kadiri, S., Grabot, B., Thoben, K.D., Hribernik, K., Emmanouilidis, C., Von Cieminski,
G. & Kiritsis, D., (2016). Current trends on ICT technologies for enterprise
information systems. Computers in Industry, 79, 14-33.
Giachetti, R.E., (2016). Design of enterprise systems: Theory, architecture, & methods. CRC
Press.
Kumar, D. & Rajeev, P.V., (2016). Value chain: a conceptual framework. International
Journal of Engineering & Management Sciences, 7(1), 74-77.
Mettler, T. & Winter, R., (2016). Are business users social? A design experiment exploring
information sharing in enterprise social systems. Journal of Information
Technology, 31(2), 101-114.
Porter, M.E. & Kramer, M.R., (2019). Creating shared value. In Managing sustainable
business ( 327-350). Springer, Dordrecht.

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Porter, M.E., (2014). The value chain & competitive advantage. Underst&ing business
processes, 50-66.
Sun, Z., Strang, K. & Firmin, S., (2017). Business analytics-based enterprise information
systems. Journal of Computer Information Systems, 57(2), 169-178.
Tao, F., Cheng, Y., Zhang, L. & Nee, A.Y., (2017). Advanced manufacturing systems:
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