Cannabusiness in Washington D.C. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cannabusiness in Washington D.C.
The cannabusiness case study focuses on entrepreneur Corey Barnette, owner of cultivation center District Growers and dispensary Metropolitan Wellness Center, two partially vertically integrated cannabis businesses. The case study examines the challenges facing a business owner in a new and highly regulated market, including finding access to capital, making compliance investments, and building political connections. The case also explores the history of cannabis in the United States, and how the "War on Drugs" gave rise to an uneven playing ground for minorities wishing to be a part of the legal cannabis industry - one of the fastest growing industries in the country. Barnette, an African-American, was able to overcome many of the barriers to entry facing minorities due to his MBA degree and background as an investment banker. As Barnette considers his growth strategy, he must evaluate how to leverage his influence as a visible figure in the DC community, whether vertical integration is advantageous and which segments of his businesses are value drivers, and how to more effectively compete within DC and beyond.
Swot Analysis of "Cannabusiness in Washington D.C." written by Rui J.P. de Figueiredo Jr., Jamaur Bronner, Mohsin Alvi, Deena Malaeb includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Barnette Cannabis facing as an external strategic factors. Some of the topics covered in Cannabusiness in Washington D.C. case study are - Strategic Management Strategies, Entrepreneurship, Growth strategy, Innovation, Joint ventures, Leadership, Market research, Mergers & acquisitions and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Cannabusiness in Washington D.C. casestudy better are - – increasing transportation and logistics costs, there is backlash against globalization, increasing household debt because of falling income levels, geopolitical disruptions, wage bills are increasing, supply chains are disrupted by pandemic , increasing energy prices,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Cannabusiness in Washington D.C.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cannabusiness in Washington D.C. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Barnette Cannabis, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Barnette Cannabis operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Cannabusiness in Washington D.C. can be done for the following purposes –
1. Strategic planning using facts provided in Cannabusiness in Washington D.C. case study
2. Improving business portfolio management of Barnette Cannabis
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Barnette Cannabis
Strengths Cannabusiness in Washington D.C. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Barnette Cannabis in Cannabusiness in Washington D.C. Harvard Business Review case study are -
Learning organization
- Barnette Cannabis is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Barnette Cannabis is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cannabusiness in Washington D.C. Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Barnette Cannabis in the sector have low bargaining power. Cannabusiness in Washington D.C. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Barnette Cannabis to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Barnette Cannabis is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Rui J.P. de Figueiredo Jr., Jamaur Bronner, Mohsin Alvi, Deena Malaeb can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Strategy & Execution industry
– Cannabusiness in Washington D.C. firm has clearly differentiated products in the market place. This has enabled Barnette Cannabis to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Barnette Cannabis to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Barnette Cannabis is present in almost all the verticals within the industry. This has provided firm in Cannabusiness in Washington D.C. case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Organizational Resilience of Barnette Cannabis
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Barnette Cannabis does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Barnette Cannabis has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cannabusiness in Washington D.C. Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Strong track record of project management
– Barnette Cannabis is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Barnette Cannabis has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Barnette Cannabis to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Barnette Cannabis has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Cannabusiness in Washington D.C. - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Cannabusiness in Washington D.C. Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Barnette Cannabis is one of the most innovative firm in sector. Manager in Cannabusiness in Washington D.C. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Cannabusiness in Washington D.C. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cannabusiness in Washington D.C. are -
High cash cycle compare to competitors
Barnette Cannabis has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the segment, Barnette Cannabis needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Barnette Cannabis is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Barnette Cannabis needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Barnette Cannabis to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Rui J.P. de Figueiredo Jr., Jamaur Bronner, Mohsin Alvi, Deena Malaeb suggests that, Barnette Cannabis is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cannabusiness in Washington D.C., is just above the industry average. Barnette Cannabis needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Barnette Cannabis supply chain. Even after few cautionary changes mentioned in the HBR case study - Cannabusiness in Washington D.C., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Barnette Cannabis vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cannabusiness in Washington D.C. HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Barnette Cannabis has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Cannabusiness in Washington D.C. that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Cannabusiness in Washington D.C. can leverage the sales team experience to cultivate customer relationships as Barnette Cannabis is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Barnette Cannabis has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow decision making process
– As mentioned earlier in the report, Barnette Cannabis has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Barnette Cannabis even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cannabusiness in Washington D.C., in the dynamic environment Barnette Cannabis has struggled to respond to the nimble upstart competition. Barnette Cannabis has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Cannabusiness in Washington D.C. | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Cannabusiness in Washington D.C. are -
Leveraging digital technologies
– Barnette Cannabis can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Barnette Cannabis can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Barnette Cannabis can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Cannabusiness in Washington D.C., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Barnette Cannabis to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Barnette Cannabis can use these opportunities to build new business models that can help the communities that Barnette Cannabis operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Barnette Cannabis can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Barnette Cannabis can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Barnette Cannabis can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Barnette Cannabis can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Barnette Cannabis can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Creating value in data economy
– The success of analytics program of Barnette Cannabis has opened avenues for new revenue streams for the organization in the industry. This can help Barnette Cannabis to build a more holistic ecosystem as suggested in the Cannabusiness in Washington D.C. case study. Barnette Cannabis can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Barnette Cannabis can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cannabusiness in Washington D.C. suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Using analytics as competitive advantage
– Barnette Cannabis has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Cannabusiness in Washington D.C. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Barnette Cannabis to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Barnette Cannabis to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Barnette Cannabis to hire the very best people irrespective of their geographical location.
Threats Cannabusiness in Washington D.C. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cannabusiness in Washington D.C. are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Barnette Cannabis.
Technology acceleration in Forth Industrial Revolution
– Barnette Cannabis has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Barnette Cannabis needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Barnette Cannabis can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Cannabusiness in Washington D.C. .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Barnette Cannabis in the Strategy & Execution sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Barnette Cannabis needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Barnette Cannabis can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Barnette Cannabis demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Barnette Cannabis in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Barnette Cannabis business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Barnette Cannabis needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Barnette Cannabis can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Barnette Cannabis will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Cannabusiness in Washington D.C. Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Cannabusiness in Washington D.C. needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Cannabusiness in Washington D.C. is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Cannabusiness in Washington D.C. is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Cannabusiness in Washington D.C. is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Barnette Cannabis needs to make to build a sustainable competitive advantage.
