Download decision management and more Assignments Business Strategy in PDF only on Docsity!
Please follow the outline provided below to conduct your Case Analysis. For the purpose of this case we will be focusing on the concepts we have covered thus far in the text and class lectures. Questions to be answered in your Assignment:
- Analyze the situation using the SWOT framework. (30%)
- List 2 Problems that may arise in the next 1-5 years for Organigram. (20%)
- List 3 Strategic Recommendations and your reasoning behind them. (20%)
- Log-on and participate in your group Case Study discussion. (20%)
- (10%) of your mark will be for Writing Mechanics The rubric for this assignment can be found in the Assignment Folder.
Case Study
OrganiGram: Navigating the Cannabis Industry with Grey Knowledge MGMT- Prof. Tavia McLachlan Due Date: September 25, 2020 Value = 10%
[Name] [Course Name] Date: [Document title]
- Analyze the situation using the SWOT framework. (30%) The Cannabis has becoming a new rich potential market to the Canadian entrepreneurs because the its usages for medical and creational purposes. One of the first leader in the medical Cannabis industry is Organigram and the company has ambition to expend this market not only just for patients but also for new markets and new target customers. When it comes to SWOT, firstly, it is undeniable that Organigram process the privileges that not many companies have. They are a rich history company and was only LP ( licensed producer ) on Canada’s east coast which mean just only the company can cultivate, grow, produce marijuana into dried cannabis and cannabis oil .Other company such as Canada’s Island Garden Inc ( CIGI) , they just have licence to cultivate dried cannabis not fresh cannabis as Organigram. The weakness of this leading company is because they are based on New Brunswick so there would have problem in delivery. It caused a problem what the company cannot provide immediate their products to the clients in other provinces. Lastly, they needed to hire more people if they want to Another weakness is the capital raised for Organigram is not fully functioning, meaning it is not being used as efficiently as possible. Operating costs rising, market forecasting is not accurate enough to create proper plan. The chance to burn through the Capital is high. Regarding opportunity , they have a potential millions of markets in both Canada and the Us The threats in this case refers to competitors and general market uncertainty. Their competitors such as Tweed, Canopy Growth , Mettrum etc have good connections to big influencer in this industry – Snop Dog and they gradually had full licenses as Organigram. Another threat is about law, the law in different provinces in Canada is different so there would be serious restrictions in other provinces such as Ontario or British Columbia. Pestel analysis: Political: Canada has a stable politics in general, a democracy with a parliamentary government. When it comes to the law about new Cannabis industry, both Canada and the US, the government will have to enact restrictions to build a new healthy market so if any companies want to join this race, they should prepare good contingency plans for the future of regulation’s change Economic factor : Both Canada and the America are developed country with high living status and the growth of economic is highly stable. Social factors: people in the Canada is living in Ontario, BC mostly and the rate of the senior is quite high. Health concern is the most important factor to the Canadian, so the company need to focus on this point to produce the product that good for people’s health. Technology factor: need to install advance technology to research new products, mass produce and delivery quickly to the clients. Legal factor : the company has enough licenses to grow, produce and sell their product to clients. But they still need to follow the work safety, labor law of the province by the salary , benefit etc. Environment factor : the company is focusing on using organic product, adhere strictly to cultivating process of Cannabis by not using any pesticide or chemicals to avoid environment pollution. Moreover, Canada has good condition of weather to grow cannabis even in the winter as they grow it in the green houses.
Porter’s 5 forces : Threats of new entrants : low due to the company is rich history and the law will change in the futures , and this industry require much capital for licenses, technology, delivery etc. so there a lot of variations for new other company to join to new market. Threat of substitute products : quite high because other companies has good marketing by using endorsement or pricing strategies. So, customers probably buy others company’s products if the OrganiGram just give discount for the disability and not prepare good plans when the cost of operation changes due to the economics’ growth. Supplier Power : The company did not have many suppliers and sites for warehouse, stores etc. so if they want to expand to the globe, they need to suppliers and can produce with a huge number of products. Competitive Rivalry : not too many competitors in this new industry but their competitors are preparing really well in having more licenses, marketing plans and pricing strategies. Buyer Power : With the potential market of Canada and the Us with estimation the demands on marijuana in Colorando “was 121.4 metric tons of residents” who aged over 21 years old ( The Rocky Mountain Hight Intensity Drug Trafficking Area, 2016).
- List 2 Problems that may arise in the next 1-5 years for OrganiGram. (20%) 1.) They have Invested too much money into “producing edibles”, considering they are not legal to produce/sell in Canada at the time, and there were no future talks of it becoming legal. They will burn through their capital. The article mentions that ‘Organigram’ was “deploying fairly substantive amounts of capital and not knowing exactly what the date is that that capital should be fully functioning” according to Rogers 2, There were limited number of patients who were prescribed marijuana, and although number of patients were rising, other LP’s began to prepare as well by raising capital & developing strategic partnerships, which means forecasting could not be accurate due to the uncertainty of customers preference/choosing different products. Uncertainty in the market too new.
References : Government of Canada, “Access to Cannabis for Medical Purposes Regulations—Daily Amount Fact Sheet (Dosage),” July 2016, accessed July 12, 2017, www.canada.ca/en/health-canada/services/drugs-health-products/medical-use- marijuana/information-medical-practitioners/marihuana-medical-purposes-regulations-daily- amount-fact-sheet-dosage.html Code of Colorado Regulations, Retail Marijuana Rules , 1 CCR 212-2, 76, accessed December 28, 2016, https://www.colorado.gov/pacific/sites/default/files/Current%20Official%20Retail %20Marijuana%20Rules%20- %20Effective%2007012016.pdf. Canopy Growth Corporation, Annual Meeting of Shareholders , September 15, 2016, accessed December 28, 2016, https://cdn.shopify.com/s/files/1/0994/1238/files/160915_2016_Canopy_Growth_Corporation_A GM_Presentation_FINAL.pdf ?3923008218010883461.
