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Organigram

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Introduction: Any organization of the modern times is needed to follow the regulations and legislations that are implemented or imposed by the local authority or national government agency. It is vital that the organization follows all kinds of regulations as and when they are implemented by the associated regulatory body. The following discussion would focus on the manner in which OrganiGramhave been attempting on developing its business operations, while trying to ascertain that it remains within the regulations that have been implemented by the necessary legislative bodies, so as to be able to continue its operations in the cannabis industry.

Question 1: Describe the industry in which Organigram is operating.

Answer: Background Of Company And Industry Of Operation: With the release of the final report by the Task Force on cannabis Legalization and Regulation on 1st December, 2016, OrganiGram, the cannabis company based on the New Brunswick, had begun its preparation for expanding itself into the recreational market, prior to the announcement that the government was to make (As excerpted from the case study). However, there prevailed various unknown factors that were anticipated to impact the business of OrganiGram and its venture into the business of cannabis and its recreational products. The company was needed to make its decisions on the basis of ‘grey knowledge' and this was mainly because despite the release of the report by the Task Force, there remained uncertainty regarding the suggestion as to the adoption of the same by the federal government (As excerpted from the case study). The cannabis regulations in Canada is regulated as per the Controlled Drugs and Substances Act and under this the marijuana for Medical Purposes Regulations (MMPR) was also enacted in 2013. This is significant for the business prospect of OrganiGram with respect to their venture whereby they aim towards growing their own cannabis. This is majorly because OrganiGram is the first medical cannabis company that has the license of growing and selling medical cannabis and is also certified producer of these organic medical cannabis (As excerpted from the case study).

Problems Faced By Organigram And Its Leadership: As OrganiGramhass the certification of being organic, therefore, it implies that the company is needed to follow more regulation as opposed to majority of its competitors. Moreover, there are only three organic LPs in Canada and OrganiGram is the only Maritime cannabis organization that has the licenses of cultivating, producing and selling products of cannabis. OrganiGram has differentiated itself by highlighting some of the products that are considered as premium, or 100 per cent organic that implies that the company was subjected to audits and were needed to regulate soil, receive organic fertilizers as well as were needed to ascertain that certain disallowed pesticides are avoided.

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Question 2: What factors contribute to the ambiguity faced by Organigram?

Answer: Factors Contributing To The Ambiguity Experienced By Organigram: OrganiGram partnered with TGS International LLC in September 2016, because the company had the experience to manufacture and sell edibles that were yet to be legalized for sale in Canada. However, the release of the report by the Task Force had introduced several recommendations that also included comprehensive restrictions on the advertisement and branding or promotion of the cannabis products, similar to that of the tobacco products. Furthermore, it also recommended that the recreational products should not be packaged in the manner that attracted or appealed to the children. As a result, the challenge that was experienced by OrganiGramwas the deployment of substantive amount of funds without having the knowledge of the date when the finances would be completely functional.

Question 3: What possibilities currently exist for Organigram to grow? Will they change with legalization and if so how?

Answer: Possibilities Currently Prevailing For Growth Of Organigram: The Cannabis Act creates restricted legal framework associated with control to produce, distribution, sales as well as possessing cannabis all over Canada (Department of Justice, 2019). The Act has been successful in accomplishing three major goals, that is, keeping the product out of reach of the youth and keeping the profits away from the criminals, while protecting the health and safety of the public community while allowing legal access of cannabis to adults (Department of Justice, 2019). The Cannabis Regulations also regulates the manner in which an organization is to manage the manner in which the cannabis products are promoted or sold in the market (Government of Canada, 2019). By complying with these regulations, OrganiGram shall be able to sell its products in the market, while ascertaining growth in the area of cannabis producer and seller.

Question 4: What evaluation criteria should Organigram use when assessing growth options while keeping in mind the recommendations from the Task Force?

Answer: OrganiGram is needed to assess the growth options by evaluating the different regulations that are already in motion, with respect to the cannabis production and sales. The company is also required to ascertain that the evaluation be conducted by keeping under consideration the recommendation that has been presented by the Task Force. By combining the different measures, OrganiGram shall be able to develop a comprehensive method that would favor the growth of the company while ascertaining that the organization does not miss any of the regulations that are significant with respect to cannabis production and sales for the general public.

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Question 5: What would you recommend Organigram's next steps be?

Answer: Recommendation For Organigram's Next Steps: The recommendations that can be provided to OrganiGram with respect to the next steps that should be taken by the company would be to evaluate the different regulations that are already in place, with respect to the cannabis production and sales. Moreover, the company should also make financial investments in such manner that the return of investment is not affected in any manner, due to any variation in the regulations, in the future. With the anticipation of the introduction of the recreational cannabis legislation of the Trudeau government, the company shall be able to experience expansion in the domestic activities. The focus of OrganiGram should be on its existing medical cannabis market and the company should make investments in the recreational cannabis market in a calculated manner, so as to ascertain that the company does not experience much losses, if any, due to the variation in the legislations and regulations associated with the production and sales of recreational cannabis, in the Canadian markets.

Question 6: What changes may occur within the industry that may impact Organigram's growth?

Answer: Changes In Industry Affecting Growth Of Organigram: For the further growth in the cannabis market of Canada, OrganiGram is needed to make the decisions based on the ‘grey knowledge' that would facilitate the creation of a strategy that would anticipate the recreational cannabis market. This strategy would also include the existing sales of medical cannabis of the company. However, any changes in the -legislations associated with cannabis production and sales would not only affect the company but would also impact the industry as whole. This in turn may affect the profitability of the enterprise. On the other hand, if the regulations are in favor of the production and sales of recreational cannabis, then the entire industry would be benefitted but would also result in increase in competition for OrganiGram.

Conclusion: As per the discussion, it is evident that OrganiGram is needed to develop comprehensive strategy that in favor of the company in such manner that its sales or profitability or the market position is not affected in any manner. Moreover, it is also needed to ascertain that the financial investments that are made by the company is done in such manner that the overall productivity and profitability is not affected.

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