Porter's Value Chain Model: A Case Study of Laureate Company (MIS500)

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MIS500 Foundations of Information Systems
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Table of Contents
Introduction:....................................................................................................................................3
Main body:.......................................................................................................................................4
Recommendation:............................................................................................................................7
Conclusion:......................................................................................................................................8
Reference:........................................................................................................................................9
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Introduction:
The assessment based on the information system which gives an impact on the working area of
the organisation to attain the objectives effectively. The report gives the introduction with the
Latureae Company which is the well known Health and Wellness Company that established in
the year 2000. The company plan to serve the customers and get high profitability and become
the well-known company in Australia. The report provides the study of Porter’s value chain
model to fulfil the requirements of the Laureate Company and get an effective outcome through
the aid of this model.
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Main body:
The Latureae Company is a well-known company which serve the health and wellness services
to the Australian customers and improvise the service quality to create the goodwill and become
the best in the health industry. Porter’s value chain model mention in the below section which
gives aid to explain the primary and sub-activities of the company:
The Michael Porter’s mention in their book of “Competitive Advantage” about the concept of the
value chain which should be implemented in the working area to improvise the quality service
and satisfactory products for the target customers. The Latureae Company provides the service to
the customers through a set of activities so that fulfil the requirements of the customers (Bedeley,
et. al., 2018). The primary activities and sub-activities give of the company controls the cost and
variously get the profits so that maintain the value of the organisation in the health industry. So
there are two types of activities which mention underneath:
Primary activity: The primary activities are those related to the sales, maintenance, creation and
support of the medical products which are mention u8ndernath:
 Inbound logistics: The raw material which is a help to manufacture the main products
for the customers need to receive and store in the factory to produce the main medical product.
After the production, the company provides the products to the supplier, so that distributes in the
set areas so that it is essential to make the good relationship with the supplier to distribute the
products effectively.
 Operations: This activity based on into and out a process such it is compulsory to get the
quality raw material with the sources so that the outcome of the production will be good.
 Outbound logistics: This activity based on the gathering, storing and delivering the
product which is happening in the internal and external of the Latureae Company (Koc &
Bozdag, 2017).
 Marketing and sales: The Company promote their products and provides the benefits
through effective communication which increase the purchase of the customers.
 Service: This activity encourages to maintaining the quality of the service and product so
that customer gets satisfied with the purchase.
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Secondary activity: The secondary and support activities play an essential role in every primary
activity which is mention underneath:
 Purchasing: This activity support to find the vendors and make the negotiation for the
best price of the health products so that customers get attracts to purchase the products.
 Human resource management: The human resource management have the
responsibility of handling the recruitment activities, provide training, and encourage the
employees through reward so that company provides the quality service to the target customers.
 Technological development: The Latureae Company must reduce the cost of the
information technology and maintain technological advancement to higher profitability (Wang,
2015).
 Infrastructure: The daily functions of the company such as legal, management,
accounting and much more need to be maintained with the help of the operations department.
Latureae Company’s value chain:
Sub-activities for each primary activity:
 The direct activities are those that support the sale of medical products in the stores and
advertise the products on the online platform.
 The indirect activities make the record of customer sales and properly keeping the
purchase data (Rollow & Cucchiara, 2016).
 The quality assurance activities are those that analyses the standard of both the direct
and indirect activities such as proofreading.
Sub-activities for each secondary activity:
This activity identifies that secondary activity is properly creating the value to the primary
activities such as purchasing, HRM, technical development and infrastructure adds values to the
operations, logistics, outbound logistics and services as well (Lee, 2016).
Identify the links between the value-creating activities and sub-activities:
The link identifies in between the development of the sales force and sales volumes which is
happen with the investment of the HR that increase the competitive advantages. Alternatively,
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another link identifies in between the order reversal times and frequent query calls by the
frustrated customers who waited too long for the medical product delivery (Simatupang, et. al.,
2017).
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Recommendation:
According to the study of the assessment, the Latureae Company should take the aid from
Porter’s value chain model in each department, so that make the innovative changes in the
system and get the effective outcome properly. The company increase the revenue with the aid of
appoints efficient employees in the organisation, so that survive in the competitive market. The
company should serve their products at the international level, so that increase the number of
customers and enhance the profitability of the company. The company should maintain the
primary and secondary activities of the company which maintain a good relationship with the
supplier, get the effective output, effective collection of revenue and maintain the value of the
health-related products. The sub-activities support the primary activities such as maintain the
records of sales and advertise the medical products which need to be maintained by the owner of
the company to process the primary activities effectively. Alternatively, the secondary activities
should also be maintained by the employees so the company should appoint efficient and
talented employees to manage the departmental work.
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Conclusion:
It concluded from the above report that Porter’s value chain model includes five initial activities
in the model such as operations, inbound logistics, outbound logistics, service and marketing
which gives aid to accomplish the objectives of the company. The report provided the study that
Latureae Company is the health and wellness organisation that planned to grow the business
through high revenue, employment, number of sales and quality service. All the desired
requirements accomplish with the aid of the proper strategy making which is implemented in the
information system of the company.
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Reference:
 Bedeley, R. T., Ghoshal, T., Iyer, L. S., & Bhadury, J. (2018). Business analytics and
organizational value chains: a relational mapping. Journal of Computer Information
Systems, 58(2), 151-161.
 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.
 Lee, M. C. (2016). Knowledge management and innovation management: best practices
in knowledge sharing and knowledge value chain. International Journal of Innovation and
Learning, 19(2), 206-226.
 Rollow, W., & Cucchiara, P. (2016). Achieving value in primary care: the primary care
value model. The Annals of Family Medicine, 14(2), 159-165.
 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.
 Wang, L. (2015). Value chain analysis of bio-coal business in Finland: Perspectives from
multiple value chain members. Biomass and bioenergy, 78, 140-155.
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