Information Systems: Latureae Business Model Analysis Report

This report provides a critical analysis of the Latureae case study, a health and wellness company, focusing on identifying its primary and secondary activities within its business model. Utilizing Porter's Value Chain model, the report dissects the company's operations, encompassing inbound logistics (raw materials, employee skills), operations (product transformation, sustainable development), outbound logistics (delivery, storage), marketing and sales (promotion, sales growth), and services (customer service, health programs). Each activity is broken down into sub-activities, with the report highlighting those that create value for the organization. The analysis examines the links between these value-creating activities, aiming to provide insights into how Latureae can maximize and enhance the value it offers to its customers. The report emphasizes the importance of innovation, employee skills, sustainable development, and competitive strategies in achieving the organization's strategic and operational objectives, ultimately contributing to a deeper understanding of information systems within a business context.

Running head: INFORMATION SYSTEMS
INFORMATION SYSTEMS
Name of the Student
Name of the University
Author Note

1INFORMATION SYSTEMS
Introduction
The main purpose of the discussion of this paper will be to analyze the case study of
Latureae and identify the primary and secondary activities in the business model followed by
this health and wellness organization. Sub-activities will also be identified under each of the
activities which help to create value in the market places where they are running their
businesses. Porter’s value chain model will be used in this paper in identification of those
activities and sub-activities in the business model that is followed by Latureae. At last,
recommendations will be provided through which will be able to maximize or enhance the
value that they will be offered to the customers.
Porter’s Value Chain Model
The value chain analysis designed by Michael Porter aims on the activities and the
procedures where the customers are present as the central principle, and not the section s
related to accounting expense and departments within a business entity. This procedure helps
in the linkage or acts as a bridge between the activities and procedures that are performed
within that organization with each other and helps in demonstration process of the after
effects that happens on overall costs and profit of that organization. The entire analysis is
divided into five primary tasks or activities (McPhee, 2014). These are further divided into
four tasks that support those primary activities. The primary activities can be termed as
operations, service, outbound logistic, inbound logistics and marketing and sales. The value
chain model of Porter’s can be stated as a strategy tool which is used to evaluate the activities
of an organization internally. The key aim of this model is to identify the tasks or activities
which will be the most valuable to the business houses, along with the activities which needs
improvement in order to gain the competitive advantage over others (Holweg & Helo, 2014).

2INFORMATION SYSTEMS
The same thing will be done on the organization of Latureae, which was established in the
year of 2000, and serves people in the market places of Australia. The organization possess
distribution, millennium and advisory services along with a bold cultural side for customer
engagement and education through manufacturing and delivering of products as well as
services to serve the entire nation, through the wide range and in-depth expertise in minerals,
vitamins, nutrients and herbs.
Primary Activities
Primary activities or tasks of Latureae include becoming and maintaining the leading
position in the market place of Australia. This can be achieved by following innovative
methods or ways of development of their product and services as well as to reach them to the
end customers, who will be responsible to help Latureae to sustain in the competitive
healthcare market in Australia. In order to achieve all these, the basic level of skills need to
be improved through mentoring and training. In this context, all the activities will be
identified with the help of five primary tasks mentioned in Porter’s value chain model
(Sidorchuk, 2015).
Inbound Logistics
The term inbound logistics involves the overall receipt, storage and control of the
stock of raw materials of an organization. This also involves the relationship of the
management of that organization with their suppliers. From the case study of the organization
of Latureae, the raw materials can be identified as the materials that are required to
manufacture different kinds of health and wellness products that are provided by them. It also
includes the requirements like employee skills, which is essential to deliver the high quality
services for which the organization is known for. The support of the human resource
management in selection of the right candidates from the market and recruiting them is also

3INFORMATION SYSTEMS
regarded as an important primary activity of the organization. Usage of the technology is also
regarded as the primary activity and can be identified as the raw material that is used as the
raw material for Latureae for manufacturing the various kinds of products and services
offered by the health and wellness company. Providing proper training and assistance to them
as well as to the old employees in order to improve the manufacturing and delivering of the
products and services provided by the organization can be identified as the secondary activity
which is performed by the employees of the human resource department (Simatupang,
Piboonrungroj & Williams, 2017).
Operations
The term operations involve the overall process of transformation of the raw materials
into the finished products or services that are delivered to the end customers. The inputs are
changed into outputs. From the context of this case study which involves the business house
of Latureae, the involvement of the fresh and innovative methods along with the skills of the
employees who all are involved in this overall process can be identified as the primary
activity (Zott & Amit, 2013). Apart from this, the contribution of the organization towards
sustainable development along with the health and welfare of the societies where they are
performing their business operations and serving the people of Australia can be identified as
the primary activity. The human resource department operates to provide the remuneration of
each of the people on timely basis, which helps in motivating the employees, can also be
termed as a primary task which falls under operations of the value chain model of Porter
(Montgomery & Oladapo, 2014). The marketing and sales teams, who are involved in
promotion of the products and services that are manufactured by Latureae along with
providing after sales service and solving the need and requirements of the customers present
in the market places of Australia. After sales service can be treated as the secondary or sub-
activity performed by the organization of Latureae. Finance team helps in the sanction and

4INFORMATION SYSTEMS
allocation of the budget that is required to superior quality products and services along with
calculation of the budget for upcoming developments in the operational fields can also be
identified as the primary activity of the organization of Latureae. The quality of the products
that are manufactured by the organization needs to be tested by the quality department, which
can be termed as another primary activity of the organization (Kaspina, Khapugina &
Zakirov, 2014).
Outbound Logistics
This involves the storage of the products that are manufactured by the organization
along with the distribution system followed by that business entity. In one word, the
movement of the final product or service to the end customers can be termed as the outbound
logistics. In the context of Latureae, the delivery system can be identified as the primary
activity, along with the storage of the finished products in the warehouse of the organization.
This will provide as a backup process for the products which will be sold in the market places
due to huge demands, so that it will help to meet the requirements of the people who are
present in the markets of Australia (Bosch-Badia, Montllor-Serrats & Tarrazon, 2013). The
various product range of Latureae is sold from different supermarkets, mainly the health food
stores and health professionals who work with the clients and patients in order to maintain
wellness of them. So, the end products need to ne delivered at these places so that the end
customers will be able to enjoy the benefits that are provided to them by Latureae.
Marketing and Sales
This involves the activities like targeting the customers along with performing certain
strategies like advertising and promotion, pricing and others. This is the step where customers
are convinced to avail the product or services of a particular business house. In the context of
Latureae, growth in the sales of the organization along with increase in the earnings of the
organization are dependent on the activities that are performed by the sales and marketing

5INFORMATION SYSTEMS
team of Latureae. Usage of different modes of advertising and promotional strategies is
performed by them in order to reach their products and services to the people of Australia.
This will help to attract more people towards the organization and help then in performing
sustainable development towards the society (Sadovskyi et al., 2014).
Services
This involves customer service, exchange, repair, maintenance and refund, which are
performed to improve the overall experience. In the context of this case study, the health and
wellness programs that are provided to the customers are identified as primary activity of
Latureae. This will help to determine whether the organization is gaining the competitive
advantage over its rivals in the market place of Australia. As it has been mentioned that the
business entity is well placed in providing services to various wellness needs of the people of
Australia, it can be said that it is one of the major primary activity that is followed by them.
This will also help to increase the market share of Latureae along with maintaining the
competitiveness and competitive edge over other business houses (Albano, 2013).
Conclusion
From the above discussion, it can be said there are many primary as well as secondary
activities in the entire operational stricture of the organization of Latureae, which is identified
by following the value chain model of Porter. All the activities are linked with each other and
all are equally important for them to maintain the competitive advantage over the competitors
that are present in the region of Australia.

6INFORMATION SYSTEMS
References
Albano, C. S. (2013, June). Open government data: a value chain model proposal.
In Proceedings of the 14th Annual International Conference on Digital Government
Research (pp. 285-286). ACM.
Bosch-Badia, M. T., Montllor-Serrats, J., & Tarrazon, M. A. (2013). Corporate social
responsibility from Friedman to Porter and Kramer. Theoretical Economics
Letters, 3(03), 11.
Holweg, M., & Helo, P. (2014). Defining value chain architectures: Linking strategic value
creation to operational supply chain design. International Journal of Production
Economics, 147, 230-238.
Kaspina, R. G., Khapugina, L. S., & Zakirov, E. A. (2014). Employment of activity-based
costing in the process of company business model generation. Life Science
Journal, 11(8), 356-359.
McPhee, W. (2014). A new sustainability model: engaging the entire firm. Journal of
Business Strategy, 35(2), 4-12.
Montgomery, E. G., & Oladapo, V. (2014). Talent management vulnerability in global
healthcare value chains: A general systems theory perspective. Journal of Business
Studies Quarterly, 5(4), 173.
Sadovskyi, O., Engel, T., Heininger, R., Böhm, M., & Krcmar, H. (2014). Analysis of big
data enabled business models using a value chain perspective. Multikonferenz
Wirtschaftsinformatik (MKWI 2014), 1126-1137.

7INFORMATION SYSTEMS
Sidorchuk, R. (2015). The concept of" value" in the theory of marketing. Asian Social
Science, 11(9), 320.
Simatupang, T. M., Piboonrungroj, P., & Williams, S. J. (2017). The emergence of value
chain thinking. International Journal of value chain management, 8(1), 40-57.
Zott, C., & Amit, R. (2013). The business model: A theoretically anchored robust construct
for strategic analysis. Strategic Organization, 11(4), 403-411.