Report: Value Chain Analysis of Latureae for MIS500 Course

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This report presents a comprehensive value chain analysis of Latureae, a health and wellness company. The analysis begins with an introduction to Latureae and its objectives, followed by a detailed examination of its primary activities, including inbound logistics, operations, outbound logistics, marketing and sales, and services. Each activity is explored in detail, identifying key components and their contribution to value creation. The report then delves into the secondary activities, such as firm infrastructure, human resource management, technology development, and procurement, highlighting their supportive roles in the overall value chain. Recommendations are provided for enhancing employee engagement and fostering continuous process improvements. The conclusion summarizes the findings, emphasizing the importance of the value chain framework in understanding Latureae's strategic approach. The report incorporates references to academic sources to support its analysis and findings.
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Running head: VALUE CHAIN ANALYSIS OF LATUREAE
VALUE CHAIN ANALYSIS OF LATUREAE
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1VALUE CHAIN ANALYSIS OF LATUREAE
1. Introduction
Latureae is an organization that is committed to bring forth disruptive innovation in the
health and wellbeing sectors. The concerned organization was established in the year 2000and
developed a range of products and services based on natural approach to health through expertise
over the use of vitamins, minerals, herbs and nutrients. The major objectives of theorganization
is to become a market leader through frequent innovations and product development. The
organization also aimed at initiatingsustainable development in the field of health and welfare of
different communities. The research will aim at exploring the Value chain analysis of
Latureaewith the objective of identifying the different primary and secondary activities.
2. Value chain analysis
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2VALUE CHAIN ANALYSIS OF LATUREAE
2.1.Primary Activities
2.1.1. Inbound logistics
The inbound logistics of an organization enables an organization in identifying the
supplier relations that are held by the same while operating in the different markets. In this
relation, the concerned organization sourced sustainable raw materials from the local and the
nationalized suppliers. The stable relations with the suppliers enabled the organization in
improving the continuous flow of raw materials for empowering the sustainable flow of
operations. Heinrich (2015) stated that the continuous flow of raw materials through improved
relation with the suppliers enables an organization in managing the inventories, the stock of raw
materials and the production process in orientation with the market demand. It has been noted
that the concerned organization source its raw materials from 2000 suppliers which greatly
contributed to the uninterrupted functioning of the business operations. Therefore, the effective
relation with the suppliers enabled Latureae in improving the production lines through
uninterrupted flow of raw materials.
2.1.2. Operations
The assessment of the operations of an organization permits the same in identifying the
loopholes in the process design. The developmental operations of the businesses are specifically
based on the efficiency of the process design. Loy et al. (2016) stated that the improvements in
the organizational processes enables an organization in maximizing the productivity to fit into
the market demand. The organization aimed at manufacturing, distributing and operating as an
advisory firm for developing strong informed customer related culture and improving the health
and wellness related propositions for Australian customers. The different operations of the
business are focused on improving the health and wellbeing related needs of the customers.
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3VALUE CHAIN ANALYSIS OF LATUREAE
2.1.3. Outbound logistics
The outbound logistics related operations of an organization aims at assessing the
different means through which the propositions that are made by the organization are delivered
to the end user. Heinrich (2015) stated that the outbound logistics related operations of an
organization enables the same in developing insight on the different distribution channels. The
assessment of the distribution channels enables an organization in improving the supply lines for
making the propositions available in the markets in correspondence with the market demand. In
this relation, the concerned organization, Latureae, developed a wider network of supplies
through coordination with supermarkets, specialist health food stores and health care
professionals. The organization is also planning to maximize its online presence with the
objective of improving its sales. The improved online presence would enable the venture in
diversifying the distribution channels (Phipps, Tam & Ashcroft, 2017). The organization closely
worked with the different health care professionals with the objective of examining the changing
healthcare needs of the Australian communities and devising innovative propositions. Therefore,
the assessment of the outbound logistics of the organization enabled the same in empowering the
distribution channels in orientation with the market demand.
2.1.4. Marketing and sales
The marketing and sales related operations of the venture are specifically based on the
assessment of the type of consumer and examination of their preferences. Athavale et al. (2015)
stated that the marketing and sales related activities of an organization are interrelated concepts
which is based on the evaluation of the needs of the target customers. In this relation, the
marketing based operations of the organization, Latureae, is based on the customer based
information. The delineation of the healthcare and wellbeing related needs of the clients are
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4VALUE CHAIN ANALYSIS OF LATUREAE
identified through collaboration with the different healthcare professionals and specialist health
food stores. It enabled the organization in developing an idea on the different changing
preferences of the customers (Phipps, Tam & Ashcroft, 2017). The objective of the organization
is to improve online sales by 15% which is again aimed at improving the sales. The online sales
of the organization is being planned through the evaluation of changing buying patterns of the
customers in Australia.In this relation, the market based knowledge of the organization enabled
the same in improving the activities as per the needs of the venture.
2.1.5. Services
The supportive services that are proposed by the organizations along with their products
enables in gaining over the trust and confidence of the potential buyers and retaining the same.
Lisna and Posilkina (2019) stated that the improve service propositions of a venture permits in
improving the levels of trust and confidence among the potential customers. In this relation, the
pre- sale and post- sale services that are provided by the organization permits a venture in
maintaining the efficiency of the operations while operating in the different markets. The
proposition of the services are based on the objective of empowering the informed decision
making of the clients (Phipps, Tam & Ashcroft, 2017). The major objective of the organization is
to make the customers aware of the propositions and the utilities that are made by the business.
Therefore, the organization established a collaborative customer support team with the objective
of providing relevant information to the consumers for empowering informed decision making.
Heinrich (2015) stated that the informed customers are more satisfied enabling a business in
retaining the same. Therefore, the pre- sale and post- sale services that are offered by the
organization aimed at developing an informed customer base.
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5VALUE CHAIN ANALYSIS OF LATUREAE
2.2. Secondary Activities
2.2.1. Firm infrastructure
The firm’s infrastructure plays an important part in supporting the primary activities of
the business relating to manufacturing and distribution. Heinrich (2015) stated that the plant and
machinery are the major infrastructural resources of an organization which permits a venture in
supporting its productivity. In this relation, Latureae’s extensive infrastructural facilities
permitted the venture in diversifying its propositions to adhere to the changing preferences of the
Australian customers.
2.2.2. Human Resource Management
Human Resource Management practices of an organization enables the same in retaining
the loyalty and trust of the employees towards the organizational processes while contributing to
the productivity of the same. Again, Phipps, Tam and Ashcroft (2017) stated that the HRM
practices of the organizations permits the same in empowering the activities of the employees
through effective induction programs. In this relation, the concerned organization aimed at
introducing a new employee assistance program with the objective of minimizing the rate of
turnover by 25%. On the other hand, the organization also aimed at developing the skills of the
employees with the objective of empowering the productivity of the business. Therefore, the
organization aimed at improving the HR management related operations for maximizing the
productivity and performance while correlating to the market demand (Hagemejer & Ghodsi,
2017).
2.2.3. Technology development
The technological developments that are initiated by organizations aim at increasing the
productivity and competitiveness. The induction of different technologies in the business models
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6VALUE CHAIN ANALYSIS OF LATUREAE
enables a firm in staying ahead of the existing players in the markets. Hagemejer and Ghodsi
(2017) opined that the technological innovations in the organizational processes permits a
business in improving the quality and productivity of the propositions in orientation with the
market demand. In this relation, the concerned organization planned to establish continuous
product innovations, develop efficient data management technologies and improve on the
existing technological innovations (Hagemejer & Ghodsi, 2017). The induction of different
technological innovations would enable the organization in improving the state of sustenance and
growth.
2.2.4. Procurement
The procurement related activities in a value chain clearly administers activities like
purchase of equipment, machinery, raw material, supplies, raw material for completion of the
organizational processes. In this relation, different organizations take the initiative of developing
informed decision making systems with the objective of retaining the efficiency. Therefore, the
concerned business have taken the initiative of developing efficient procurement based
operations for the smooth running of every other function.
3. Recommendations
Involving the employees in the different processes of the venture: The concerned
organization might take steps to develop strong bonds of communication with the
different employees with the objective of maximizing the engagement of the employees
in the different processes. The inclusion of the employees in the different organizational
processes would ensure the productivity and performance of the venture.
Empowering continuous change in the processes: The concerned organization might
empower continuous change in the organizational processes with the objective of
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7VALUE CHAIN ANALYSIS OF LATUREAE
inducing frequent innovations in the processes. The continuous learning and
modifications in the organizational operations would enable the venture in improving the
market position of the same.
4. Conclusion
Therefore, from the above value chain analysis of the concerned organization it might be
stated that the different activities that are commenced or are being planned by the firm focused
on achieving the common goals. The assessment clearly identified the primary and the secondary
activities as a part of the Porter's value chain framework for understanding the strategic discourse
of the firm.
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8VALUE CHAIN ANALYSIS OF LATUREAE
References
Athavale, A. S., Banahan, III, B. F., Bentley, J. P., & West-Strum, D. S. (2015). Antecedents and
consequences of pharmacy loyalty behavior. International Journal of Pharmaceutical
and Healthcare Marketing, 9(1), 36-55. Retrieved from
https://www.emerald.com/insight/content/doi/10.1108/IJPHM-02-2013-0003/full/html?
fullSc=1
Hagemejer, J., & Ghodsi, M. (2017). Up or Down the Value Chain? A Comparative Analysis of
the GVC Position of the Economies of the New EU Member States. Central European
Economic Journal, 1(48), 19-36. Retrieved from
https://content.sciendo.com/view/journals/ceej/1/48/article-p19.xml
Heinrich, M. (2015). Quality and safety of herbal medical products: regulation and the need for
quality assurance along the value chains. British journal of clinical pharmacology, 80(1),
62-66. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4500325/
Lisna, A. G., & Posilkina, O. V. (2019). Analysis of impact factors on the process of
implementation modern digital technologies in domestic pharmacy.
Loy, M. L., Traub, R. D., Zhang, L., Kotala, P., Roemmich, M., Breidenbach, J., & Nelson, R.
(2016). Beyond the Use of Robotics: Operations and Supply Chain Control for Effective
Inventory Management in a Health System Pharmacy. In Advances in Healthcare
Informatics and Analytics (pp. 145-155). Retrieved from Springer, Cham.
https://link.springer.com/book/10.1007%2F978-3-319-23294-2
Phipps, D. L., Tam, W. V., & Ashcroft, D. M. (2017). Integrating data from the UK national
reporting and learning system with work domain analysis to understand patient safety
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9VALUE CHAIN ANALYSIS OF LATUREAE
incidents in community pharmacy. Journal of patient safety, 13(1), 6-13. Retrieved from
https://www.ncbi.nlm.nih.gov/pubmed/24583956
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