Executive Summary: (50%)

a. What is the key challenge faced by Organigram? Provide answer in one

sentence (5%)

The key challenge faced by Organigram is to work with the “Grey Knowledge” – very

limited knowlegde of the cannabis market once it’s legalized in Canada - while

creating a strategy for the anticipated recreational cannabis market and working on

its medical cannabis sales.

b. Develop a Vision Statement for Organigram (What type of company does

Organigram want to be in the future?) Provide answer in one or two sentences

(5%)

Organigram guarantees to provide Canadian and international customers with

premium, 100% organic cannabis products for both medicinal and recreational

purposes. Proudly to be the leading cannabis company in the Maritime, Organigram

focuses on continuing to produce top-quality indoor-grown cannabis for patients and

adult recreational consumers in Canada, as well as expanding business partnerships

and the job market on the East coast.

c. Describe the Goals, Product Market Focus, Value Proposition and Core

Activities of Organigram Strategy (2-3 points per Strategy Component) (40%)

● Goals:

- To be the leader of organic cannabis company in the Maritime and be competitive

with other producers in Canada.

- To create jobs and increase employment rates at the company’s hometown New

Brunswick.

- To provide high quality, indoor-grown cannabis products to domestic consumers.

● Product Market Focus:

- To continue keeping the high standards of cannabis products selling to the

medical consumers and patients.

- To prepare necessary resources for the expansion to the anticipated recreational

cannabis market.

● Value Proposition:

- Organigram differentiates itself from other competitors by providing unique 100%

organic, in-door grown. Its products followed more stricted standards since

Organigram is a certified organic medical cannabis producer.

- Organigram offers products with competitive prices compares with other

producers (according to the case, the prices for most dried cannabis strains is

between $6 and $12 per gram, while the price offered by Organigram is between

$9.25 and $10.50 per gram).

● Core Activities:

- Organigram’s cannabis products have Maritime-themed names. Moreover, the

company offers a 25 cent discount to patients who were on social assistance or

disability program.

- Organigram focuses on manufacturing activities by acquiring more building to

create space for facilities; partner with TGS International LLC, an U.S. firm that

had experience with manufacturing. This is an important activity for Organigram to

prepare for the expansion to the recreational market.

1. Situational Analysis: (30%)

a. What are the 2-3 key assumptions of the Cannabis industry sector that

Organigram is currently working in?

● The federal government will legalize and regulate marijuana for recreational purposes

according to previous timeline announcements. By assuming this, Organigram was

planning to expand its workforce and facilities, as well as raising a lot of capital to

prepare for the entering to the recreational market.

● Edible products would be legalized to sell by LPs. By assuming this, Organigram has

purchased a new building in the summer of 2016 to crate space for edibles and

extracts manufacturing. Moreover, Organigram partnered with TGS, a U.S. firm that

has experience with manufacturing and selling edibles.

● By the time the legislation was introduced, there would be a shortage of cannabis

product domestically. By assuming this, Organigram stated that the company did not

have any immediate plans to export cannabis, and its focus would be the current

medical cannabis market and near-future recreational market domestically.

2. Understanding: (5%)

a. What is the key financial information (missing from the case) that would help

Organigram justify entering into the recreational cannabis market in Canada?

I think the missing key financial information here is the projected profit margin for

selling edible products. Since Organigram was focusing a lot of its resources (capital,

facilities) on the plan of manufacturing and selling edibles, the projected profit margin

(a long with projected revenue + costs) would justify the decision of the company on

focusing on edible products.

3. Development and evaluation of Alternatives based on your analysis (10%)

a. What are the key new products Organigram should consider? Why? (5%)

● Cannabis oil extracts: In exhibit 1 provided by the case study, cannabis oil was not

available on the market until the third quarter of 2015, but since then the amount sold

to clients rocketed incredibly (from 3 kg to 2,420 kg in the second quarter of 2016).

This shows the potential demand for this product, therfore, Organigram should really

focus on this key product for its strategy.

● Edibles products: even though at the time the company was not sure if edibles

would be legalized, Organigram had already invested in facilities and partnered with

edibles manufacturing firms, therefore there was a high probability that edibles could

become the key product that Organigram should consider. Edibles products also

have high profit margin at 13.1% of all transactions, as provided in the case study.

b. What are the key new products Organigram should not consider? Why? (5%)

● Dried cannabis: The data in exhibit 1 provided in the case study shows that dried

marijuana has a stable sales through the quarters, and this is understandable since

dried flower is a “traditional” cannabis product. In my opinion, even if Organigram

does not focus too much on this product, it would still have its current market

demand. Moreover, dried cannabis has the lowest profit margin (according to the

case study it is 53.5% on average).

● Capsule products: Organigram should not consider this as the key new product

because even though the ACMPR permitted companies to sell oil in capsules,

Organigram was only in the stage of researching and developing capsule products,

and in the market there was not exactly a demand for this product.