MIS500 Assignment: Analyzing Latureae's Business Model and Value Chain

This report provides a critical analysis of Latureae, a health and wellness company, using Porter's value chain model to evaluate its business model. The analysis identifies both primary and secondary activities, breaking them down into sub-activities and pinpointing those that create value. The report explores the link between these value-creating activities and their sub-components, offering recommendations to maximize the value offered to customers. The primary activities include inbound and outbound logistics, operations, marketing, sales, and services, while the secondary activities encompass technology, firm infrastructure, procurement, and human resource management. The report emphasizes the importance of customer engagement, education, and efficient resource utilization to enhance service delivery and maintain a competitive edge. Recommendations are provided to Latureae's management on how to maximize customer value by focusing on loyalty programs, customer retention strategies, and low-cost business channels. The document concludes by highlighting the importance of the value chain process and the implementation of programs for customer benefits.

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

INFORMATION SYSTEM CRITICAL ANALYSIS
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Analysis of Latureae business model:........................................................................................2
Identifying major activities and sub activities of the business model using Porter’s value
chain model:...............................................................................................................................2
Determination of specific sub activities creating value:............................................................2
Identifying link between value creating activities and sub activities:........................................2
Recommendation for maximizing the value offered to customers:...........................................3
Conclusion:................................................................................................................................3
Reference list:.............................................................................................................................3

INFORMATION SYSTEM CRITICAL ANALYSIS
Introduction:
The paper presents an analysis of the primary and secondary activities of the business
model of Latureae using the Porter’s value chain model. In addition to this, all the sub
activities of the primary and secondary activities are also identified along with determining
the specific activities that helps the organization in creating value. Latureae is a health and
wellness company with the vision of bringing wellness to everybody and was established in
the year 2000. The organization carries out its operation in Australia and is well placed to
serve their wellness needs with its strong culture of customer engagement and education and
manufacturing and distribution. It also has the objective of creating a difference by delivering
maximum potential capacity and optimizing the service delivery to their clientele. They
intend to provide the quality care by utilizing their resources efficiently and thereby
providing citizens with the vital healthcare (Visnjic et al., 2016). Moreover, the company has
an in depth expertise in minerals, vitamin, nutrients and herb and incorporates a natural
approach to health by developing its product and services. The report has been prepared for
analyzing the sub activities of all the value chain activities of the organization. Such analysis
would be directed to make recommendations to the management of Latureae on how they can
enhance or maximize the value that is offered to the customers.
Discussion:
Analysis of Latureae business model:
In this section, the Porters value chain model has been used for evaluating the
business model of Latureae as such model helps in presenting the identification of the
primary and secondary activities of the organization. The identification of the primary as well
as secondary activities of the organization is facilitated splitting all the activities of the

INFORMATION SYSTEM CRITICAL ANALYSIS
wellness company into a sequential stream of activities. The production process is considered
crucial for the supporting activities with the primary activities having a direct contribution in
the production. Primary activities of the organization comprised of outbound, inbound
logistics, operations, sales, marketing and services (Prajogo et al., 2016). On other hand,
secondary activities of Latureae comprise of technology, firms infrastructure, procurement
and human resource management.
Identifying major activities and sub activities of the business model using Porter’s value
chain model:
Considering the primary activities of Latureae, it has been found that such activities
comprised of sales, operations, services and marketing. The activities of the company intends
to contribute to the health, welfare and sustainable development of the communities.
 A natural approach is used by Latureae for serving the wellness and the health needs
of Australians.
 Organization has a national manufacturing division and is engaged in the distribution
of the products and offering the services. Moreover, engagement of the customers and
education in the organization is supported by using their primary activities (Breuer &
Lüdeke, 2017).
 Other primary activities include maintaining and promoting the wellness of the
corporate customers such as supermarkets, health stores and professionals of health
care.
 National and local suppliers of the company is related to the inbound logistics that
assist in gathering sustainable and raw ingredients by maintaining high standard
integrity (Rosca et al., 2017).

INFORMATION SYSTEM CRITICAL ANALYSIS
 Meeting the wellness needs of the community is another primary activity of the
company.
 Organization make use of the platform of e commerce stream of income,
supermarkets, health food stores and health care professionals for making the
manufactured products reach the customers.
 Development of social media campaign and enhancing the total amount of online
sales.
 Some other primary activities in which the organization is engaged is taking care of
aging population who demand extra and better care from the wellness company
(Bashir & Verma, 2017).
 There are different heads in the organization such as sales officer, chief financial
officer, head of customer services, head of sales and chief marketing officer and they
are responsible for managing all the primary activities of the organization.
 Latureae hires health catalyst that helps in engaging in the activities for managing the
health of the population.

INFORMATION SYSTEM CRITICAL ANALYSIS
 The supermarket and retail clients are handled by the sales and marketing department
of the company along with determining the profits of the company and the total
amount of sales generated.
 Latureae make use of data integration for analyzing the data for supporting a wide
range of cases of healthcare uses.
 The bio sensing and wearable are designed by the company by adopting the
technology. Such wearable accessories helps the organization in detection of
particular biometrics that is designed for specific customers.
 All the health records are maintained electronically using the clinical workflow
platform along with supporting the clinical workflow and the applications comprising
augmentations.
Determination of specific sub activities creating value:
This section presents the identification of different sub activities using the major
activities of the company. Identification of the sub activities of several departments of
Latureae are done and the human resource department comprising of head of sales, chief
financial officer, head of customer service and production manager.
All the financial operations and the decisions concerning it are handled by the chief
financial officer which is considered to be the sub activities of the organization. There are
various activities for which is supposed to be handled by the executive officer such as
handling and managing the receivables for the sales of services and goods, execution of the
payroll to the employees of company and making payments for the procurements of the input.
Other sub activities such as handling the supermarket and retail clients are managed by the
head of sales department. Market observation and strategies creation accounts for other sub
activities that is handled by the chief marketing officers (Koc & Bozdag, 2017). In addition to

INFORMATION SYSTEM CRITICAL ANALYSIS
this, the production manager is also responsible for managing other sub activities such as
maintaining the quality of products, raw materials procurements from suppliers and managing
the production process by handling team development. The sales and marketing department
of Latureae works in collaboration to generate income and which turns ultimately into profits.
Identifying link between value creating activities and sub activities:
All the activities that the business is required to go through is explained with the help
of value chain analysis. Being the distributor and manufacturer of wellness and health
products, Latureae is required to create the value by acquiring the raw material from the
suppliers and producing the products. Value is created by persuading the customers to
purchase the products and this forms the part of sub activities of the head of sales department.
The main source of value is the benefits offered to the consumers and the way they are
communicated (Pearlson et al., 2016).
The primary function is supported by the human resource department that is
considered to be the considerable value source. There would be creation of clear advantage
due to the practice of good human resource and this would help in adding value in terms of
maintaining and retaining customers and managing of suppliers (Corazza et al., 2017). In
addition to this, the total amount of products generated by the organization is determined by
the head of sales department. Therefore, it can be inferred from the analysis of several
activities of Latureae, there exist a clear connection between the organization creating value
and sub activities.

INFORMATION SYSTEM CRITICAL ANALYSIS
Recommendation for maximizing the value offered to customers:
The total number of customer served by the organization has become significant with
each of them adding value to the organization as a whole. The rising cost of healthcare and
the uneven quality has caused the healthcare system to suffer. For addressing the issues,
Latureae is required to design the program that would help in generating value for the
customers by providing wellness service at the reasonable cost. In addition to this, there could
be development of loyalty programs that would help in clearing loyal customer and thereby
adding value to the business. The lifetime value of the customers can be created by customer
retention because the cost incurred in retaining the customers is less than the cost incurred in
acquiring new customers. Nevertheless, it is considered worthwhile for the organization to
put some extra efforts for retaining the right customers. In addition to this, customers can be
retained by developing a wide range of tactics saving the customers and guiding them on the
products and educating (Lindman et al. 2016). Moreover, the sustainable cost of business can
be added by developing the channel of low cost. The fact pertaining to the loyalty program
implementation is rewarding and recognizing the customers for their ongoing contribution to
the business.
Conclusion:
The value chain process of the organization has been evaluated in terms of the
primary and secondary activities using the Porters model. From the analysis of all the
activities of Latureae, it has been found that the organization is able to create values directly
or indirectly using sub activities of their value chain. Furthermore, Latureae is recommended
to develop various measures that helps in maximizing the value offered to the customers. For
creating the value to the customers and adding to the benefits of organization, it is essential to
implement the programs as recommended.

INFORMATION SYSTEM CRITICAL ANALYSIS
Reference list:
Bashir, M., & Verma, R. (2017). Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), 7.
Breuer, H., & Lüdeke-Freund, F. (2017). Values-based network and business model
innovation. International Journal of Innovation Management, 21(03), 1750028.
Corazza, L., Scagnelli, S. D., & Mio, C. (2017). Simulacra and sustainability disclosure:
analysis of the interpretative models of creating shared value. Corporate Social
Responsibility and Environmental Management, 24(5), 414-434.
Geissdoerfer, M., Morioka, S. N., de Carvalho, M. M., & Evans, S. (2018). Business models
and supply chains for the circular economy. Journal of cleaner production, 190, 712-
721.

INFORMATION SYSTEM CRITICAL ANALYSIS
Koc, T., & Bozdag, E. (2017). Measuring the degree of novelty of innovation based on
Porter's value chain approach. European Journal of Operational Research, 257(2),
559-567.
Lindman, M., Pennanen, K., Rothenstein, J., Scozzi, B., & Vincze, Z. (2016). The value
space: how firms facilitate value creation. Business Process Management
Journal, 22(4), 736-762.
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016). Managing and using information
systems, binder ready version: a strategic approach. John Wiley & Sons.
Prajogo, D., Oke, A., & Olhager, J. (2016). Supply chain processes: Linking supply logistics
integration, supply performance, lean processes and competitive
performance. International Journal of Operations & Production Management, 36(2),
220-238.
Rosca, E., Arnold, M., & Bendul, J. C. (2017). Business models for sustainable innovation–
an empirical analysis of frugal products and services. Journal of Cleaner
Production, 162, S133-S145.
Visnjic, I., Jovanovic, M., Neely, A., & Engwall, M. (2017). What brings the value to
outcome-based contract providers? Value drivers in outcome business
models. International Journal of Production Economics, 192, 169-181.