Foundations of Information Systems: Latureae Business Model Analysis

This case study analyzes the Latureae business model, a health and wellness company in Australia, using Porter's value chain model to identify primary and secondary activities. The analysis delves into sub-activities within each category, such as inbound logistics, production, outbound logistics, marketing and sales, and services, pinpointing those that create value for the company. The study examines the connections between these value-creating activities and sub-activities, highlighting how Latureae leverages its operations, supplier relationships, and technological advancements to achieve a competitive edge. The conclusion emphasizes the importance of adopting Porter's value chain model for organizations to enhance product value and efficiency, reduce costs, and differentiate themselves in the market. The analysis underscores the role of technological innovation in driving the company's success and contributing to the health and wellness of its customers.

Running head: FOUNDATIONS OF INFORMATION SYSTEMS 1
Foundations of information systems
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Case study: Latureae business model
Introduction
An information system is the most crucial tool for doing business today.
Companies cannot exist without the use of information technology as it contributes to increased
productivity. Information technology is becoming a crucial component of investment capital in
Australia and many other industrialized nations such as the United States (Zhang, Zhao and Xu,
2016).
We will limit our study to the latureae company; deals with health and wellness
products in Australia. This company gets raw materials from as many as 2000 suppliers and
creates products that protect 100000 customers per week. This is a result of good relationships
with supermarkets, suppliers, specialized food storage facilities, and wellness professionals.
The following porter’s value chain model is utilized and helps to identify the crucial and
support activities (Porter and Heppelmann, 2015).
The porters' value chain model is a business model that breaks down the operations of an
organization into five primary and four support activities, looking to each activity and analyze
how competitive advantage can be achieved.

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Initial activities
Latureae has a wide range of primary activities through its processing chain that enables the
company possible to serve customers with products that contain healthy and nutritional
increments. These activities may range from;
Inbound logistics
Latureae engages in numerous activities to ensure a wide range of products. The company gets
its products from different suppliers and uses different means such as trucks, bikes, and other
means of transport products for production. This ensures the raw materials reach the company on
time to avoid them from perishing as most are green plants. The company uses cooling facilities,
as well. This also ensures the products do not run bad as most green plants are highly perishable.

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As evidenced above, the company has 2000 suppliers of goods and services in Australia. It
utilizes and makes good relations with these suppliers, and these contribute to the value creation
of the products. Latureae engages in other sub-activities that include maintenance of trucks and
bikes, replacing worn out parts such as the brakes, and also trains the drivers on change of routes
to pick raw materials from the suppliers. This can be analyzed as the process through which the
company will convert the inputs to outputs. In the case of latureae, which is also operating as an
e-commerce platform, inbound activities may include branding and packaging that leads to value
addition.
Production
This refers to the process through which latureae convert raw materials to finished health
products. The activities in production may include; quality checking, which ensures that the
products are hygienic and contain numerous nutrient supplements. The production process in
latureae also entails measuring the quantities depending on the production amounts. Besides, the
reduction process ensures the machines are conditioned to work depending on the incoming raw
materials and the desired outcome.
The sub-activities in production include setting up production machines as well as their repairs
and cleaning. The sub-activities in this stage may involve setting up hardware to be used in the
operating systems of the machines used by latureae. Setting up of operating systems during
production is the central concept to ensure value creation in the health products
Outbound logistics.
The company has to get the products to the market after its production.
Latureae has quality storage facilities for products after production; these facilities are; spacious,
relaxed, and hazard-free to protect the health products. The company has a sound inventory

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management system that maintains a record of the goods stored to ensure that the storage space
does not run low such that it limits the movement of goods to the market (Lehmann, 2016).
The company has a convoy of trucks and Lorries that deliver the products to the supermarkets,
wellness centers, and to customers who order online. The sub-activities in this stage include
delivery charts based on the incoming orders and packaging of the product depends on the
recommended quantities.
Value creation in this stage is ensured by the maintenance of delivery systems to ensure they are
more efficient and not prone to breakdown.
Marketing and sales
The company engages in different marketing and sales activities to reach a broader audience.
Latureae utilizes its e-commerce platform to market itself as well as the target market. The
marketing department of the company takes the responsibility of advertising latureae in the local
media as well as social media platforms. They hire sales representatives to go outside the
company into the markets to understand and convince their customers to buy the products. This
includes all activities meant to convince a customer to buy. In the case of latureae, the company
may run ads on Instagram, Facebook, or even on twitter.
Sub activities in this stage involve prospecting on which methods are convertible to extreme
profits. Value creation is ensured by making the company differentiated, and this makes it stand
out of competition with other wellness products companies.
Services
Latureae offers services to the customers and ensures that the relationships
between the company and the customers are not broken. These services can be delivered in the
form of; exchange of broken delivered orders, exchange of orders, and giving technical advice to

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the customers. The staff or marketers of the organization should engage with the customers to
know which problems need to be addressed (Di Tullio, Valentinetti, and Rea, 2018). In the case
of the above company dealing with wellness products, the company should offer a warranty
according to the porters' value chain model to ensure customer satisfaction.
Value creation involves listening to customer needs and responding accordingly.
Secondary activities
The model of the company states that it is a manufacturing, distribution, and advisory firm.
These elements of company management require physical locations in which they will be run.
The physical allocations lead to support activities for these components and include; these are the
core businesses of the latereae organization.
Human resource management
Under this category, the company hires qualified employees who assist in production operations.
Besides, the company also trains its employees to ensure they understand what is expected of
them in their daily duties. Latureae offers education to the existing employees to enable them has
a clear understanding of the latest information systems developments.
The company's ability to have competent staff is what creates value in the production of wellness
products.
Firm structure
The company is innovating better ways to package their products; this ensures that
quantities of packaging materials reduce while the quality of the company's products is not
deteriorated. Value creation in this category is an environment that is favorable for work and the
employees (Geissdoerfer, Morioka, de Carvalho, and Evans, 2018).

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Technological development
The industry is continually working on developing new technologies, which will
increase the professional product range; this will ensure that the company has a wide range of
products that will cure different health problems. Latureae is innovating ideas on how to
introduce a wearable as it is at for front in the market. The company’s strategies of marketing,
such as the use of social media platforms, ensure there is an increased sale.
The sub-activities in this category include the adoption of modern information technology
software and hardware that will see through the staff come with new systems of the company.
It is evident that through optimization and innovations, latureae can develop more
technological systems that will help in the production process.
Procurement
Many activities are done by the wellness product company to ensure the products reach the
market without any delays. This is highly linked to inbound logistics. The company, therefore, in
its daily operations, should talk to a large number of suppliers. The company has to talk to its
suppliers to negotiate for the lowest price of raw materials. Sub activities in this category
include; updating delivery notices, updating journal accounts, and clarifying inventories. Value
creation in this category is ensured by a stable supply of cheap raw materials in the organization.
Connections between value creation and subsets of primary activities
Studying the business model of latereae, we can account for a few links between sub-activities
and value creation. Looking at the primary and secondary activities, it is evident that certain
implementations can only be done after evaluation and seeing through that some needs require to
be solved. Through analysis of the patterns and determining any barrier or challenge, the
company needs to increase total sales and reduce cost is only based on actual and real data.

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Conclusion
In conclusion, latureae are successful in the production of health and wellness products, as
evidenced in the porter's value chain model focusing on essential and supporting (Delmond,
Coelho, Keravel and Mahl, 2016). The value of products from this company will always remain
of high quality. It is now vividly evident that all organizations should adopt the porter's value
chain model to increase the value of products to the consumers of the wellness products. The
value of goods produced by latereae will always remain high due to technological advancement
in the company. The company will also enjoy reduced costs, and there will be a differentiation in
marketing; hence, the company does not face stiff competition. The health of individuals in
Australia and abroad will increase because there are professional products that will cure many
diseases. Organizations should copy how latereae incorporates the porter's value chain model in
the organization and management.

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References
Delmond, Coelho, Keravel, & Mahl (2016). How Information Systems Enable Digital
Transformation: A Focus on Business Models and Value Co‐Production. HEC
Paris Research Paper No. MOSI-2016-1161.
Di Tullio, Valentinetti & Rea, (2018). Integrating the business model puzzle: A systematic
literature review. International Journal of Business Research and
Management, 9(1), 1-46.
Geissdoerfer Morioka, de Carvalho & Evans, (2018). Business models and supply chains for
the circular economy. Journal of cleaner production, 190, 712-721.
Lehmann (2016). Strategy and business process management: Techniques for improving
execution, adaptability, and consistency. Auerbach Publications.
Porter & Heppelmann (2015). How smart, connected products are transforming
companies. Harvard business review, 93(10), 96-114.
Zhang, Zhao & Xu, (2016). Business model innovation: an integrated approach based on
elements and functions. Information Technology and Management, 17(3), 303-
310.