Detailed Value Chain Analysis of Latureae for MIS500 Course

This report conducts a comprehensive value chain analysis of Latureae, a healthcare company operating in Australia. Utilizing Porter's value chain model, the analysis examines both primary and secondary activities within the company's operations, including inbound logistics, operations, outbound logistics, marketing and sales, service, infrastructure, human resource management, procurement, and technology. The report identifies value-creating sub-activities within each category and explores the links between them. Furthermore, the report provides strategic recommendations for Latureae to enhance its value proposition, particularly focusing on technological advancements in marketing and expansion into the growing market for herbal and bio-care products. The analysis underscores the importance of stakeholder relationships and the potential for future growth within the evolving healthcare landscape.

Running head: VALUE CHAIN ANALYSIS
VALUE CHAIN ANALYSIS
Name of the Student:
Name of the University:
Author Note:

2VALUE CHAIN ANALYSIS
Introduction
The aim of this paper is to discuss the value chain of a company named Latureae that
has been operating for almost two decades in the health care industry of Australia. The
company has a very unique motto to provide wellness for everybody in the country by
providing both health care medicines as well as services through a natural means of
manufacturing and distribution. The company has a loyal customer base who depend upon
the corporation for their wellness through minerals, vitamins, herbs and nutrients. Now the
company needs to create value with the assets it has and enhance profitability. This paper will
be detailing Porter’s value chain model by analysing its Major and Sub-activities. This paper
will be concluding with some recommendations that the company needs to follow to create
more value by its own.
Porter’s value chain model:
In this highly competitive world of business, the companies try to create more value
for the customers. This value creation process is through creating an organised and efficient
values chain that can effectively understand the mechanism of supporting value creation
process. Recently the health care sector has been facing issues in different countries and at
the same time the strategic sector for more or less every economy. Now the value chain
mentions to the sequence of activities which help the companies to generate and build the
value in every stage for one particular company (Porter & Kramer, 2019). This idea of value
chain analysis had been developed by Michael Porter in his book Competitive Advantage.
This types of analysis is used for analysing some specific activities that help the companies to
separate the useful as well as effective activities and provide them a better opportunity to get
competitive advantage (Vardar, 2018).

3VALUE CHAIN ANALYSIS
The chief objective of value chain analysis to gain knowledge about which activities
can create value and surpass the cost for providing the products as well as services that
generate profit margin for the corporation. There are two types of activities that lead the
company to gain profit are major activities and the sub activities. The major activities of the
firm includes inbound logistics, operations, and outbound logistics, marketing and sales and
service. On the other hand, the sub activities of the firm includes infrastructure, human
resources, procurement and technology used (see figure 1).
Figure 1. Porter’s Value Chain analysis
(Source: Cgma.org. 2019)
Major activities:
Inbound logistics:
The inbound logistics mainly refers to the process of getting material as input for the
addition of value by process them. This includes connection with the suppliers and all the
other activities needed by the company for arranging the raw material or inputs, storing them

4VALUE CHAIN ANALYSIS
and disseminate those (Porter & Kramer, 2019). In the case of Latureae, the company has a
large number of suppliers who deliver the company all the needed raw materials for
manufacturing the products. There are more than 2000 suppliers who work both within the
country as well as outside so that the high quality of raw materials are arranged for
manufacturing medicines.
Operations:
This process relates to the process of manufacturing the end products and services.
The company gathers raw materials from the suppliers so that these materials undergo certain
processes and get transformed into the final products. In the case of Latureae, the products
are manufactured, undergo different tests and then manufactured for the sales. Now the value
here created by developing strong informed customer related culture and improving the
wellness allied propositions for the consumers of the country. These different operations of
the company all aim to serve the interests of the customers which the company serves
through its products and services.
Outbound logistics:
The outbound logistics refers to the distribution process of the final products to the
sales. This also includes every activities needed for the collection, storage and distribution of
the final products (Sharan et al., 2015). In the case of Latureae, the company depends upon
the suppliers and distributors to send the end product to the market and develop insight about
the effectiveness of the marketing and sales team of the company. The company has great
association and connection with the distributors who help the company to reach the
customers effectively. The demands and feedbacks of the customers are thus collected by the
company. This on the other hand guide the company to improve supply lines to make more
valued proposition to correspond the demands of the health care and wellness market of the

5VALUE CHAIN ANALYSIS
country. The changing healthcare needs therefore are understood effectively that helps the
company to cater all the growing needs of the Australian customers.
Marketing and sales:
Despite the fact that the sales and marketing are interconnected matters because both
of these are related to the fact of perfect promotion and selling of the products and service by
the company (Dembinski, 2017). These are some activities that require for perfect inform the
customers about the products and services. This also motivate as well as induce the customers
for purchasing their products along with facilitating the customers for their purchasing
decisions. Through marketing and selling of the products and services to the customers of the
country’s market, the company gains effective knowledge about the needs and demands of
the markets. For marketing the products, the company has initiated collaboration with the
health care professionals and practitioners who will recommend these product to the
customers to buy. The company gains customers oriented reviews for the effective
development of the idea on changing preferences of customers.
Service:
The services of the companies refer to the activities for maintaining functionality of
the products (De Soete et al., 2017). Latureae as mentioned before, has developed a customer
oriented operation which mandates proper understanding of the customers’ demands and their
response towards the service and products. Latureae’s responsibilities does not end only with
the providing the products but with the services before and after the purchase of the products.
This allows the company to gain ample amount of trust and loyalty from the customer base
and empower by establishing an informed decision making process. All of these primary
activities of the firm has created value to become a sustainable business organisation.
Sub-activities:

6VALUE CHAIN ANALYSIS
Infrastructure:
The company has been operating for more than two decades hence have understood
that the successful operation of the firm needs for proper internal and external infrastructure.
The company has fully automated manufacturing machines and warehouse for production
and storage of the products. The infrastructural activities of the firm directly helps the
employees and the distributers to work hand in hand. In addition to this, a proper connect
among the planning, finance, public affairs, governmental and legal connections, quality
assurance and management get facilitated.
Human resource management:
The organisational culture of the company helps the growth a great deal as this
facilitates the contribution of skills from all levels of the company. The employees get
facilities of working in a highly diverse organisational culture that sharpen their knowledge
amount the demands of the customers. Moreover, the management regularly upgrade the
workers’ skills by providing all the needed trainings and supports. This create value for the
most important asset of the organization.
Procurement:
This relates to the process of administering the equipment, raw material, machinery
and other needed supplies for the successful operation of the company in the healthcare
industry of Australia. By using a wide network of suppliers, the company coordinates with
the distribution agencies and manages to connect effective health care professionals or
practitioners and then sells their products through specialised health care food stores.
Technology used:

7VALUE CHAIN ANALYSIS
Technology is one of the most important factors that provide competitive advantage to
the companies. In this case, technology is involved in the R&D process and manufacturing of
the products. Technological usage in the product and service marketing, has created value for
the company because by involving the technological support, the company has effectively
enhanced the productivity of the firm.
Recommendation:
The company has effectively utilised the knowledge of the market and the demands of
the customers. Now it must increase investment in the technological up gradation of the
marketing process. This will enable the company to market their products and services online
that will enable it to reach more customer variety and base.
The company must also try to capture the market trends and invest more upon the
production of bio care products which mainly relate to the herbal products. This is due to the
fact that the need for the herbal produced medicines are growing in the country along with the
world.
Conclusion:
Therefore, it can be concluded that Latureae has a great connection with the suppliers,
employees and customers, mainly the most important stakeholders of the firm. This create
value for the company to invest more for the growth and expand its vitality to more extensive
markets of the country. The company has not started its online business yet but has all the
capabilities to serve the young generation customers who have started to show more interest
in the herbal and bio products. Therefore the future of the company can be more interesting if
these values are utilised properly.

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References:
Cgma.org. (2019). Value Chain Analysis. Retrieved 10 October 2019, from
https://www.cgma.org/resources/tools/essential-tools/value-chain-analysis.html
De Soete, W., Jiménez-González, C., Dahlin, P., & Dewulf, J. (2017). Challenges and
recommendations for environmental sustainability assessments of pharmaceutical
products in the healthcare sector. Green Chemistry, 19(15), 3493-3509.
Dembinski, P. (2017). 10 Very large enterprises, focal firms and Global Value Chains. China
and the World Economy: Transition and Challenges.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Sharan, A. D., Schroeder, G. D., West, M. E., & Vaccaro, A. R. (2015). Understanding a
value chain in health care. Journal of Spinal Disorders and Techniques, 28(8), 291-
293.
Vardar, N. (2018). “The Faster Fish Beats the Larger Fish:” Applying Porter’s Value Chain.
SAGE Publications: SAGE Business Cases Originals.