decision management, Assignments of Business Strategy

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: 1. Analyze the situation using the SWOT framework. (30%) 2. List 2 Problems that may arise in the next 1-5 years for Organigram. (20%) 3. List 3 Strategic Recommendations and your reasoning behind them. (20%) 4. 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 #1 OrganiGram: Navigating the Cannabis Industry with Grey Knowledge MGMT-1020 Prof. Tavia McLachlan Due Date: September 25, 2020 Value = 10% [Name] [Course Name] Date: [Document title] 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). 2. 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. Alternatives Pros and Cons Alternative Pros Cons Focus on their current market Become the biggest corporations, build more reputation and have capital to invest for technologies, machines for edible market later The market will create have more competitors during the time Organigram is preparing , more companies will have licences and probably develop new products. They are likely enter the new market and obviously, more competitors when the market is open. Openning more branches Build brand awareness, reputation and the clients can easily access to buy the products. When they have more customers, the law is clear , they can enter the new market with all their benefits from sufficient capitals, well- known reputation, royal customers etc Need to spend much for costs for operations, setting up warehouses, stores, hiring new employees etc 3. List 3 Strategic Recommendations and your reasoning behind them. (20%) 1, I believe Organigram should not have just “jumped” into the market, with such “grey knowledge” and uncertainty. The reason I say this is because the capital is not unlimited and there is a certain level of responsibility to the investors, to make sure that the capital raised is being properly handled. They need to do more marketing plan such as pricing strategy to draw attention of clients and increase the brand awareness. 2 The second recommendation is that they should have more branches not just in New Brunswick because obviously the demand on the richer provinces such as Ontario or British Columbia is bigger . Location is one of the most important factors determining the success of a business. If their products are good but too far to pick up promptly , the customers probably choose other similar products but closer them than that one. 3 By trying to expand into the edibles market, Organigram began to create issues for themselves that did not technically exist. In other words, their plan for expansion was moving too quickly, and they simply did not know the future, nor did they have control over it. I suggest that they focus on their current “organic” product considering all the extra government regulations that goes along with it and then can invest money on manufactures, stores, product line and also expand training programs from employers to employees. From three recommendations, I strongly believed that the company will develop sustainably and if they want to to be the new market, they need to build the firm foundation and have plans to deal with every situations. 4. Log-on and participate in your group Case Study discussion. (20%) 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.