MIS500: Critical Analysis of Latureae's Business Model Value Chain

This report provides a comprehensive analysis of Latureae's business model through the application of Porter's value chain model. It identifies and evaluates the primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service) and secondary activities (firm infrastructure, procurement management, human resource management, and technological development) within Latureae's operations. The report further explores the links between these primary and secondary activities, highlighting how they contribute to value creation for the company and its consumers. The analysis emphasizes the importance of technological advancements, sustainable practices, and skilled employees in enhancing Latureae's competitive edge and achieving its goal of providing sustainable wellness and healthcare services. The document concludes with insights into maximizing value for consumers through the identified value chain elements.

Running head: BUSINESS MODEL OF LATUREAE
Business model of Latureae
Name of the Student:
Name of the University:
Author Note:

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BUSINESS MODEL OF LATUREAE
Table of Contents
1. Introduction..............................................................................................................................2
2. Application of the Porter’s value chain model for the business model of LATUREAE.........2
2.1 Primary activities of the value chain for LATUREAE:.........................................................2
2.2 Secondary activities...............................................................................................................4
3. Identification of the links between Primary and Secondary Activities:...................................5
4. Maximization of the value offered to the consumers through value chain model:..................6
5. Conclusion................................................................................................................................6
6. Bibliography.............................................................................................................................8

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1. Introduction
Latureae is a wellness and health care providing company. The main aim of this
organization is to bring the wellness to the people and contribute a sustainable development in
health care sector. The organization has strategic objectives as well as the operational objectives.
In order to full fill those objectives or activities, there is a need to identify the values for the
respective objectives or activities. The evaluation of the value chain for the organization is done
through the Porter’s value chain model. In this context, primary and secondary activities for the
Latureae business model has been identified. Through the value chain model the relevance of
those identified activities are determined. The conclusion is made on the basis of the factors
identified during the discussion in this paper.
2. Application of the Porter’s value chain model for the business model of
LATUREAE
Value chain is defined by the set of process those are responsible to help the company or
the organization to deliver the valuable service to the consumers. In order to determine the value
chain, the primary and secondary activities in the business organization are needed to be
identified.
The primary activities for a firm includes inbound logistics, marketing and sales, service
and operations. The secondary activity includes better management of the human resource and
making the technological development.
2.1 Primary activities of the value chain for LATUREAE:
Inbound Logistics: Inbound logistics refers to the inputs those are responsible for adding
value in the organization. Some of the inputs like good consumer base are responsible for adding

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values in the LATUREAE. The organization is currently serving 100,000 customers every week.
Every single customer is valuable to Latureae. The corporate consumers collaborate with
LATUREAE are supermarkets, health care and medical shops. Apart from that for selling the
mainstream products the organization has an e-commerce website which does not need much
professional support.
Operations: It refers to the daily operations related to production of Latureae. The
organization is operating through a hierarchy. The ingredients and the raw materials for the
productions are collected from the national and local suppliers. The collection of the raw
materials is done in a sustainable way. Currently, LATUREAE has over 2,000 suppliers those
are responsible for suppling the organic supplements and raw materials.
Outbound Logistics: This defines the activities which are need for the distribution of the
final products. The distribution of the services and the products of LATUREAE is done through
the different supermarkets, pharmacy and health care organizations. Apart from that the services
and products are available online through the e-commerce website of the organization.
Marketing and sales: This refers to the marketing and sale of the final products. The
organization is adopting the social media platform for the promotion of the products. Latureae is
expecting that this will help to increase the sale of the products by 15%. Apart from the
promotional services can be done through the e-commerce website of LATUREAE.
Service: This defines the functionalities those are responsible for maintaining the
effectiveness of the products of the organization. The main aim of LATUREAE is to provide
better health care service for the society through providing the standard services. Apart from that

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the services provided by LATUREAE includes paying attention to the aging people, brining
reform in the health care sector through the use of technology such as wearables.
2.2 Secondary activities
Infrastructure of firm: The infrastructure of the firm indicates the quality of the daily
functionality of the organization. The functioning of the organization maintains the standard and
proper method.
Procurement management: Through proper procurement management organizations are
collecting the equipment and raw materials through the local and national suppliers. Currently
the organization has 2,000 suppliers who are responsible for supplying the sustainable organic
raw materials to this organization.
Human resource management: The organization aims to improve the quality of the
employees. Apart from that the training and proper support to the employees in the organization
will be given so that they can enhance their skill and can maintain their skills. LATUREAE is
hoping that this will help the organization to mitigate the employee turnover by 15%. Apart from
that for the employee welfare and increasing the involvement of the employees in the
organization, Laturear is developing employee assistance program.
Technological development: Technological development is responsible for expansion of
the business along with increasing the productivity of the organization. The Latureae, is
technologically advanced. However, the organization is planning for redevelopment of the
managing the data and information. Apart from that with the help of technological innovation the
packaging will be reduced by 20% within 12 months. Latureae is also planning to take the
leading position in the market through the development of products and innovation.

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3. Identification of the links between Primary and Secondary Activities:
The development of the value chain can be possible if there is a connection between the
primary and secondary activities. It has been seen that the both primary and secondary activities
will help LATUREAE to expand the business. One of the inbound activity of LATUREAE is to
maintain the sustainability in the development of the business. This primary activity can be
achieved through the secondary activity of technological development in the organization. One
of main objective of the organization is the sustainable development. As a part of the sustainable
development, the organization is aiming to reduce the packaging by 20%. This can be achieved
through the advancement of the technology.
Proper procurement management will help the organization to maintain a good business
deal with the suppliers. In this case, the proper procurement management will help Latureae to
manage 2,000 suppliers. This will eventually help in the inbound logistic of the organization.
With the technological advancement the infrastructure of the organization can be
improvised. Apart from that this advancement supports the use of social media platform for the
marketing purpose. This will eventually increase the sales for the organization. Apart from that
with the technological advancement the sustainability can be achieved. In this context, the aim of
the organization of reducing the packaging upto 20% can be achieved. Apart from that with the
technological advancement redevelopment of the data and information management in the
organization can be achieved. Better management of data will help the organization to provide
better information and services to the consumers.
Value chain identifies the values in the organization. In this context, it can be said the
skilled employees are the assets for the organization. Human resource management will help the

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employees to maintain the skills. Apart from that proper training for the enhancement of the skill
of the employees will be initiated by the organization.
4. Maximization of the value offered to the consumers through value chain model:
It has been seen from the value chain analysis that the primary and secondary activities
are related to each other. The primary activities are the main activities of the organization. In
order to run the primary activities effectively, the supporting needs are delivered by secondary
activities. LATUREAE can maximize the value of the services offered to the consumers through
this model. With the help of the primary activities like using proper raw materials for
manufacturing the products will help the consumers to get the products of high quality.
The smooth running off the operations and the enhancement of the infrastructure can be
achieved through the technical advancement. The technological advancement will affect
positively in the productivity of LATUREAE. With the help of social media platform Lat can
reach to the large number of consumers, so that they can get aware about the quality of the
products produced by LATUREAE.
The skillful employees will add the quality in the manufactured products. Apart from that
they can provide the support to the consumers when it is needed. All these attributes will add the
value to the LATUREAE and will help to enhance the goodwill of this organization. This will
eventually increase the acceptability of this organization among the consumers.
5. Conclusion
The discussion is regarding the evaluation of the value chain for the business model of
LATUREAE. In this context, the classification of the primary activities and secondary activities
are done. It has been seen from the analysis that the primary activity is dependent on the

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secondary activity. For this reason, secondary activity can be considered as supporting elements
in the value chain management. It has been seen that the organization has the opportunities to
develop the technical advancements. With the technical advancements, the use of social media
can be achieved for the marketing and sale. In this context, the use of digital marketing can be
adopted. Apart from that the organization has taken initiatives like employee assistance program
in order to increase the employee engagement for the organization. All these initiatives will help
LATUREAE to make an edge in competitive market. Apart from that with the better human
resource management the employees can be trained in a proper way that will make the
organization to have skill full employees. With the skilled employees and proper collaboration
with the suppliers the collection of sustainable raw materials and the proper processing of the
products can be done. This will help the organization to achieve the goal of offering sustainable
wellness and health care service to the society.

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6. Bibliography
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Hussain, M., Ajmal, M. M., Gunasekaran, A., & Khan, M. (2018). Exploration of social
sustainability in healthcare supply chain. Journal of Cleaner Production, 203, 977-989.
Koc, T., & Bozdag, E. (2017). Measuring the degree of novelty of innovation based on Porter's
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Lombardi, R. (2019). Knowledge transfer and organizational performance and business process:
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Mkanta, W. N., Katta, M., Basireddy, K., English, G., & de Grubb, M. C. M. (2016). Theoretical
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management (pp. 1-20). Springer, Cham.

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Rollow, W., & Cucchiara, P. (2016). Achieving value in primary care: the primary care value
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