Vitaherb: Analyzing Value Proposition and Organizational Structure

This report provides a comprehensive analysis of Vitaherb's value proposition and organizational design. It begins by outlining the proposed horizontal organizational structure, emphasizing the roles of key managers and the establishment of a network development department and a fund manager. The report highlights the benefits of this structure, including improved communication, employee empowerment, and efficient decision-making. It then discusses the location of resources and processes, emphasizing the importance of proximity to labor, raw materials, and markets. The report details Vitaherb's value proposition, focusing on its commitment to providing high-quality vitamins, supplements, and body care products through ethically sourced materials. It explores how the organizational structure, people management, marketing, and financial management contribute to delivering this value proposition. Finally, the report identifies both internal and external stakeholders, particularly customers, and explains how Vitaherb aims to meet their needs and maintain high standards. The report concludes by referencing key academic sources that support its findings and analysis.

Running head: VALUE PROPOSITION
VALUE PROPOSITION
Name of Student
Name of the University
Author Note

1VALUE PROPOSITION
Board of Directors
General Manager
PURCHASING
MANAGER
MATERIALS
NECESSITIE
S
Network
development
Fund manager
Office management
Financial director
Accountant
Cashier
Marketing Director
Marketing and
advertisement
Sales
The proposed structure the company will use
The horizontal structure
(Created by Author)
The proposed organizational design for the company is the horizontal structure. The
responsibilities of the top level managers and the executives will be defined in the horizontal
organizational structure. A separate department called as “Network development” will be
established and a separate position of fund manager will also be created. The roles of the
regional manager will be expanded and fund manager will ensure strong communication and
coordination among the departments (Steiger, Hammou & Galib, 2014). The coordination in the
cross-functional departments will enhance the success factors of the departments. Moreover,
there will be progressive decision making methods too elevated by the teamwork instead of the
individual work. The fund manager will control the financial operations and the organizational

2VALUE PROPOSITION
coordination will be enhanced. The cross –department communication will be strengthened by
the use of newsletters (Rao, 2007). The performance measurement indicators will be used for
analyzing the effectiveness of the horizontal structure. The monitoring of the progress will be
done by the fund manager.
Overall, it will be a great support for the entire business model of Vitaherb. This design
will help the organization to make important decisions. The employee empowerment will boost
up the morale and motivation which will spur creativity in the workers. The primary reason of
choosing this design is that the flow of communication will be smooth, fast and strong. Since,
there will be less barriers, the operational goals will be fulfilled easily maximum communication
and collaboration.
The location of recourses and process and how are going to be controlled
Geographic organizational structures are regularly appropriate for mass production. The
company Vitaherb needs to locate production facilities in where labor costs are cheaper and
supplies promptly accessible, yet in addition need bolster associations for businesses that are
found wherever the organization's products are being sold.
Production action ought to be found where a firm can be most beneficial, and yield the
highest incomes per unit of speculation. When it comes to finding a production facilityVitaherb
should select a location which is closer to the market, with the goal that the interest for units of
yield (and thus cost) is high in respect to expenses of making that input. Is one that is near a
talented work power? The simpler it is for the Vitaherb to draw in labor with suitable aptitudes
the almost certain it is to create high esteem production of output low expenses unit per output.
One that finds near high esteem crude materials. The additional materials needs to undertake

3VALUE PROPOSITION
every part of the lower productivity of the manufacturing plant . An organization like Vitaherb
that has created factories to serve extensive structural regions of the world needs the fixings laid
out above. It should be close to its gifted exceedingly profitable work power, on a site with space
for extension, while having simple entry for its sources of info, combined with
straightforwardness and speed of appropriation to clients(Rao, 2007).
In spite of the fact that profitability can be estimated in physical terms for example units
of yield per worker, it can likewise be estimated as far as the income yield. For instance the
estimation of the creation of every worker in AUD and so on.
For proficient, viable and efficient activity in an assembling unit of an association, it is
important to incorporate the group positioning and control structure. Group positioning and
consequent creation control pursue adaption of item structure and conclusion of a group
procedure. Generation arranging and control address a central issue of low profitability, stock
management and asset use. Generation arranging is required for booking, dispatch, assessment,
management of quality and stock, supply the executives and hardware the executives.
Manufacture control guarantees that a group can accomplish required manufacturing target, ideal
usage of assets,cost of resources and quality management.
The way in which the organization creates value
Value proposition refers to the benefit that the customers can expect when they purchase
the product of the organization. It is the main value that the company delivers to the customers
and it shows what the company stands for (Ranjan and Read 2016). It is a statement that shows
why the customers should purchase the products from this company and not any other company
and how consumption of the company product will satisfy them and provide value to them. It

4VALUE PROPOSITION
makes the customers believe that they are being able to satisfy their need or are able to solve the
problem because of the product offered by the company. It adds value for the customers.
Vitaherb provides value to the customers by providing them with the best quality goods. The
company is engaged in producing and distribute a wide range of products including – the
vitamins, nutritional supplements, of body care and minerals. It ensures that the quality of its
products is the highest by purchasing the raw material that is of high quality, organic and
ethically traded from the suppliers (Iglesias, Ind and Alfaro 2017). The company does not have
the objective if selling the goods at the cheapest price but to sell the goods at fair price and to sell
the best quality goods. The company does not considers price as their objective their main
concern is to provide the highest quality goods to the customers. The company ensures that it
produces the best quality goods by having a separate research and development department that
is working in partnership with various universities. The company works in relations to the
therapeutic goods administration department government to ensure that the goods are of the best
quality. The company provides proper training to its people such that they can help in providing
the best quality goods.
Discussion on how each dimension and their interaction supports the value
proposition
The organizational structure in the Vitaherb is horizontal that means they have a network
structure where the communication between all the departments is very goods and all the
departments help each other through cross functional activities. This can help on providing the
best quality goods because whenever there is any requirement of any department they need not
take the permission of the superiors and take decisions by themselves this helps in taking
decisions by the purchase departments as to from here the goods are to be procured so that there

5VALUE PROPOSITION
is highest quality goods procurement (Key et al. 2017). People management will help in
improving the quality of the workforce and therefore tis will help on providing best quality
goods to the customers. If proper training and development is given to the employees of the
organization regarding the quality then the quality will be maintained by them (Hardyman, Daunt
and Kitchener 2015). The more the people are trained the lesser number of defects in the goods
and the quality of the goods will be maintained and the company can provide the customers best
quality goods. Marketers are concerned about the quality if the product because of various
reasons such as if they deliver good quality goods to the customers then they will be able to
make better relationship with the customers (Zeleti, Ojo and Curry 2016). If the marketers are
able to make better relationship with the customers the sakes of the company will increase and
ultimately they will be benefited. The marketing research team is focused on creating products
that are of best quality the team is also engaged the activities to provide the best quality goods to
the customers. The financial management team can help in improving the quality of the gods
because they are the ones who allow the financial resources to various department for proper
operations of activities. If the finance department does not give sufficient funds to them the
purchase department will not be able to procure the best quality resources and then the ultimate
products will also not be of best quality. Therefore all the departments of the organization can
help to achieve the value proposition of the company.
Identification of the internal and external stakeholders and how value proposition
relates to them
The internal and external stakeholder of the company includes the government, the
customers, the employees and others. Among external stakeholders the most important are the
customers because they are the ones from whom the revenues is generated (Bryson 2018). It is

6VALUE PROPOSITION
very important to satisfy the customers and to meet their needs in order to survive in this
changing environment. The company understands the consciousness of the present generation
towards a healthy life and therefore helps the customers in achieving the same with the help of
providing different commodities to meet their needs (Payne, Frow and Eggert 2017). The
company provides products such as omega fish oil, weight loss supplements for its customers
who wish to lose their weight without negatively affecting their quality of life. The company
works in relations with the government department on order to see that their quality if goods
matches the acceptable standards of quality and others (Covin et al.2015). The organization helps
the government in their acts of providing better quality goods to the society. The government’s
duty is to provide good quality goods to the society and to avoid any form of hazards the
company can help government in achieving this objective. The company provides regular
training and development activities to improve their skills such that less number of defective
products will be produced by them. In order to motivate the employees the organization also
provides flexibility in work and helps in providing work-life balance.

7VALUE PROPOSITION
References
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Covin, J.G., Garrett Jr, R.P., Kuratko, D.F. and Shepherd, D.A., 2015. Value proposition
evolution and the performance of internal corporate ventures. Journal of Business
Venturing, 30(5), pp.749-774.
Hardyman, W., Daunt, K.L. and Kitchener, M., 2015. Value co-creation through patient
engagement in health care: a micro-level approach and research agenda. Public Management
Review, 17(1), pp.90-107.
Iglesias, O., Ind, N. and Alfaro, M., 2017. The organic view of the brand: A brand value co-
creation model. In Advances in corporate branding (pp. 148-174). Palgrave Macmillan, London.
Key, M., Clark, T., Ferrell, O.C., Pitt, L. and Stewart, D., 2017, May. Marketing’s Theoretical
and Conceptual Value Proposition: An Abstract. In Academy of Marketing Science Annual
Conference (pp. 255-256). Springer, Cham.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing Science, 45(4),
pp.467-489.
Ranjan, K.R. and Read, S., 2016. Value co-creation: concept and measurement. Journal of the
Academy of Marketing Science, 44(3), pp.290-315.

8VALUE PROPOSITION
Zeleti, F.A., Ojo, A. and Curry, E., 2016. Exploring the economic value of open government
data. Government Information Quarterly, 33(3), pp.535-551.