OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge"
OrganiGram Holdings Inc. (OrganiGram), a New Brunswick-based company, was a licensed producer of medical cannabis in Canada. On April 20, 2016, the Canadian government announced that legislation to legalize recreational cannabis would be introduced in the spring of 2017 with the intention of having it become law in the spring of 2018. The announcement triggered expansion activities at all of Canada's largest licensed producers of cannabis. However, there were many unknowns in terms of how the legalization of recreational cannabis would happen. What would the timeline be? Who would be allowed to grow cannabis? In anticipation of regulatory changes, OrganiGram needed to analyze the Canadian cannabis industry and engage in a scenario-planning exercise. How could OrganiGram move through this time of uncertainty, while both creating a strategy for the anticipated recreational cannabis market and continuing to work on its medical cannabis sales? Opal Leung is affiliated with St. Francis Xavier University.
Swot Analysis of "OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge"" written by Opal Leung includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cannabis Organigram facing as an external strategic factors. Some of the topics covered in OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" case study are - Strategic Management Strategies, Supply chain and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" casestudy better are - – increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cannabis Organigram, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cannabis Organigram 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 OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" can be done for the following purposes –
1. Strategic planning using facts provided in OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" case study
2. Improving business portfolio management of Cannabis Organigram
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cannabis Organigram
Strengths OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cannabis Organigram in OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Cannabis Organigram in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Cannabis Organigram in the sector have low bargaining power. OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cannabis Organigram to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Leadership & Managing People industry
– OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" firm has clearly differentiated products in the market place. This has enabled Cannabis Organigram to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Cannabis Organigram to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Cannabis Organigram has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Cannabis Organigram is one of the most innovative firm in sector. Manager in OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Cannabis Organigram is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Cannabis Organigram in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Cannabis Organigram has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cannabis Organigram has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Cannabis Organigram digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cannabis Organigram has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Organizational Resilience of Cannabis Organigram
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cannabis Organigram does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Cannabis Organigram 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 Cannabis Organigram is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" 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.
High brand equity
– Cannabis Organigram has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cannabis Organigram to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" are -
No frontier risks strategy
– After analyzing the HBR case study OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge", it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cannabis Organigram is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Cannabis Organigram 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge", is just above the industry average. Cannabis Organigram 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge", it seems that the employees of Cannabis Organigram don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Cannabis Organigram 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.
Skills based hiring
– The stress on hiring functional specialists at Cannabis Organigram has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Lack of clear differentiation of Cannabis Organigram products
– To increase the profitability and margins on the products, Cannabis Organigram needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Cannabis Organigram 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.
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 Cannabis Organigram supply chain. Even after few cautionary changes mentioned in the HBR case study - OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge", it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cannabis Organigram vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Cannabis Organigram is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Cannabis Organigram needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cannabis Organigram to focus more on services rather than just following the product oriented approach.
Opportunities OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" | 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 OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cannabis Organigram can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cannabis Organigram can use these opportunities to build new business models that can help the communities that Cannabis Organigram operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help Cannabis Organigram to increase its market reach. Cannabis Organigram will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Manufacturing automation
– Cannabis Organigram can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
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. Cannabis Organigram can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Cannabis Organigram 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 OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cannabis Organigram to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cannabis Organigram in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cannabis Organigram 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, OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Cannabis Organigram can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cannabis Organigram in the consumer business. Now Cannabis Organigram can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Cannabis Organigram 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cannabis Organigram is facing challenges because of the dominance of functional experts in the organization. OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Cannabis Organigram can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" 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 Cannabis Organigram.
Shortening product life cycle
– it is one of the major threat that Cannabis Organigram is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Cannabis Organigram needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
High dependence on third party suppliers
– Cannabis Organigram high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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 Cannabis Organigram in the Leadership & Managing People 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. Cannabis Organigram needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cannabis Organigram with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Cannabis Organigram has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Cannabis Organigram needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cannabis Organigram can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cannabis Organigram in the Leadership & Managing People industry. The Leadership & Managing People 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.
Stagnating economy with rate increase
– Cannabis Organigram 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge", Cannabis Organigram may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Increasing wage structure of Cannabis Organigram
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Cannabis Organigram.
Weighted SWOT Analysis of OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" 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 OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" 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 OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" 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 OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" 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 OrganiGram: Navigating the Cannabis Industry with "Grey Knowledge" 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 Cannabis Organigram needs to make to build a sustainable competitive advantage.