Canopy Growth Corporation Canada First And The World Next Case Study Solution

Business is presently one of the most significant food chains worldwide. It was established by Henri Canopy Growth Corporation Canada First And The World Next in 1866, a German Pharmacist who first introduced "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate.
Business is now a transnational company. Unlike other international companies, it has senior executives from different nations and tries to make choices considering the whole world. Canopy Growth Corporation Canada First And The World Next presently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

The function of Canopy Growth Corporation Canada First And The World Next Corporation is to boost the quality of life of people by playing its part and supplying healthy food. It wishes to help the world in shaping a healthy and better future for it. It likewise wants to encourage people to live a healthy life. While making certain that the company is prospering in the long run, that's how it plays its part for a better and healthy future

Vision

Canopy Growth Corporation Canada First And The World Next's vision is to offer its consumers with food that is healthy, high in quality and safe to eat. It wants to be ingenious and simultaneously comprehend the needs and requirements of its clients. Its vision is to grow quickly and supply items that would satisfy the requirements of each age. Canopy Growth Corporation Canada First And The World Next pictures to develop a well-trained labor force which would help the business to grow
.

Mission

Canopy Growth Corporation Canada First And The World Next's objective is that as presently, it is the leading business in the food industry, it thinks in 'Good Food, Excellent Life". Its mission is to supply its customers with a range of choices that are healthy and best in taste. It is concentrated on providing the best food to its consumers throughout the day and night.

Products.

Canopy Growth Corporation Canada First And The World Next has a large range of items that it offers to its clients. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Bearing in mind the vision and mission of the corporation, the company has put down its objectives and objectives. These objectives and objectives are noted below.
• One goal of the company is to reach zero landfill status. (Business, aboutus, 2017).
• Another objective of Canopy Growth Corporation Canada First And The World Next is to waste minimum food throughout production. Usually, the food produced is wasted even before it reaches the consumers.
• Another thing that Business is working on is to improve its packaging in such a method that it would help it to minimize those problems and would also guarantee the shipment of high quality of its products to its consumers.
• Meet international standards of the environment.
• Develop a relationship based upon trust with its consumers, company partners, staff members, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the technique of NHW and investing more of its profits on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW strategy. The target of the business is not accomplished as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, offered in Display H. There is a need to focus more on the sales then the development technology. Otherwise, it may lead to the decreased revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business strategy is based on the concept of Nutritious, Health and Health (NHW). This technique deals with the concept to bringing change in the consumer choices about food and making the food stuff healthier concerning about the health issues.
The vision of this technique is based upon the key method i.e. 60/40+ which simply suggests that the items will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The items will be produced with extra dietary worth in contrast to all other products in market gaining it a plus on its dietary content.
This method was adopted to bring more delicious plus nutritious foods and drinks in market than ever. In competition with other companies, with an intent of retaining its trust over clients as Business Company has acquired more trusted by costumers.

Quantitative Analysis.

R&D Costs as a percentage of sales are declining with increasing actual amount of costs shows that the sales are increasing at a higher rate than its R&D costs, and enable the business to more invest in R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise reveals a green light to the R&D costs, mergers and acquisitions.
Debt ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement instead of payment of debts. This increasing financial obligation ratio posture a risk of default of Business to its investors and could lead a decreasing share costs. In terms of increasing debt ratio, the firm must not invest much on R&D and needs to pay its present financial obligations to decrease the threat for investors.
The increasing threat of investors with increasing debt ratio and decreasing share prices can be observed by big decline of EPS of Canopy Growth Corporation Canada First And The World Next stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This slow development likewise prevent company to further invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of calculations and Graphs given in the Displays D and E.

TWOS Analysis

2 analysis can be used to derive numerous strategies based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must present more innovative items by big amount of R&D Spending and mergers and acquisitions. It could increase the marketplace share of Business and increase the earnings margins for the company. It might likewise offer Business a long term competitive advantage over its rivals.
The worldwide growth of Business should be focused on market recording of developing countries by growth, drawing in more customers through client's loyalty. As establishing nations are more populous than industrialized countries, it could increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Canopy Growth Corporation Canada First And The World Next ought to do mindful acquisition and merger of organizations, as it could impact the customer's and society's perceptions about Business. It must obtain and merge with those business which have a market reputation of healthy and nutritious business. It would enhance the perceptions of consumers about Business.
Business must not only spend its R&D on development, rather than it needs to also concentrate on the R&D spending over examination of expense of various healthy products. This would increase expense efficiency of its products, which will lead to increasing its sales, due to declining costs, and margins.

Strategies to use strengths to overcome threats

Business should move to not just developing but also to developed countries. It must widens its geographical growth. This wide geographical growth towards establishing and developed nations would reduce the risk of potential losses in times of instability in numerous countries. It must widen its circle to numerous nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It must get and combine with those nations having a goodwill of being a healthy business in the market. It would also allow the business to use its potential resources efficiently on its other operations rather than acquisitions of those companies slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon four aspects; age, gender, earnings and profession. Business produces several products related to infants i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary products. Canopy Growth Corporation Canada First And The World Next items are rather affordable by almost all levels, however its major targeted customers, in terms of earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its presence in practically 86 nations. Its geographical division is based upon 2 primary aspects i.e. average earnings level of the customer as well as the environment of the region. Singapore Business Business's division is done on the basis of the weather condition of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and life style of the customer. Business 3 in 1 Coffee target those consumers whose life design is quite hectic and do not have much time.

Behavioral Segmentation

Canopy Growth Corporation Canada First And The World Next behavioral segmentation is based upon the mindset understanding and awareness of the consumer. Its extremely nutritious items target those customers who have a health conscious attitude towards their intakes.

Canopy Growth Corporation Canada First And The World Next Alternatives

In order to sustain the brand in the market and keep the consumer intact with the brand, there are two alternatives:
Option: 1
The Business needs to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall possessions of the company, increasing the wealth of the company. Nevertheless, spending on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it stops working to implement its method. Amount invest on the R&D could not be restored, and it will be considered entirely sunk cost, if it do not give potential outcomes.
3. Spending on R&D provide slow growth in sales, as it takes long period of time to present an item. Acquisitions provide quick outcomes, as it provide the company currently established item, which can be marketed quickly after the acquisition.
Cons:
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the company to deal with misconception of customers about Business core values of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send out a signal of company's inefficiency of developing ingenious items, and would results in consumer's discontentment too.
3. Big acquisitions than R&D would extend the product line of the company by the items which are currently present in the market, making company not able to introduce new innovative items.
Option: 2.
The Business must spend more on its R&D rather than acquisitions.
Pros:
1. It would enable the company to produce more ingenious items.
2. It would offer the company a strong competitive position in the market.
3. It would enable the business to increase its targeted clients by introducing those items which can be offered to a completely new market segment.
4. Ingenious products will offer long term benefits and high market share in long run.
Cons:
1. It would decrease the earnings margins of the business.
2. In case of failure, the entire costs on R&D would be thought about as sunk expense, and would impact the business at large. The threat is not in the case of acquisitions.
3. It would not increase the wealth of company, which might offer an unfavorable signal to the financiers, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Pros:
1. It would permit the business to introduce new innovative products with less threat of converting the costs on R&D into sunk cost.
2. It would provide a favorable signal to the financiers, as the general properties of the business would increase with its considerable R&D spending.
3. It would not affect the profit margins of the company at a large rate as compare to alternative 2.
4. It would supply the business a strong long term market position in regards to the business's general wealth along with in terms of innovative items.
Cons:
1. Danger of conversion of R&D spending into sunk cost, higher than option 1 lesser than alternative 2.
2. Threat of misunderstanding about the acquisitions, higher than alternative 2 and lesser than alternative 1.
3. Introduction of less variety of ingenious products than alternative 2 and high variety of innovative products than alternative 1.

Canopy Growth Corporation Canada First And The World Next Conclusion

Business has actually remained the leading market player for more than a decade. It has actually institutionalised its strategies and culture to align itself with the market modifications and consumer habits, which has actually eventually enabled it to sustain its market share. Business has actually established significant market share and brand name identity in the city markets, it is recommended that the business should focus on the rural areas in terms of establishing brand loyalty, awareness, and equity, such can be done by developing a specific brand allowance method through trade marketing tactics, that draw clear distinction between Canopy Growth Corporation Canada First And The World Next products and other rival items. Moreover, Business should utilize its brand picture of safe and healthy food in catering the rural markets and also to upscale the offerings in other categories such as nutrition. This will permit the business to develop brand equity for newly presented and currently produced products on a higher platform, making the effective use of resources and brand name image in the market.

Canopy Growth Corporation Canada First And The World Next Exhibits