Strategic Planning for Hemp and Company's Expansion in China

Running Head: MGMT 157
Management
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1
Assignment
Introduction
The paper will provide an understanding of the business situation of Hemp and Company in
Canada. It will provide an analysis of the opportunities the company would get by expanding its
business in a new region. Therefore, the paper will provide recommendations for the company to
develop a strategic plan by setting new goals.
Background of Hemp and Company
Hemp and Company is a small specialty shop founded in 1999, in New Denver, British
Columbia (BC). Currently, it is one of the oldest eco-friendly stores in North America. The
beautiful shops of the company are located in Victoria and Granville Island in Vancouver. The
shops are easily accessible to visitors and local customers (It's Only Natural i.O.N Clothing
featuring Hemp & Company . 2019). Presently, the company carries out 50 different brands of
eco-friendly and organic clothing, accessories lines and body care.
Although the company has a successful business in the local market of BC, Vancouver, and
Victoria, still it wants to expand its business by selling its products in the new regions. The
company must expand its business in China as it provides various profitable business
opportunities for Hemp and Company to sell their natural clothing. The consumers in China
prefer western clothing brands which is a big advantage for Hemp and Company to market their
fashionable products in China. On the other hand, Chinese women spend a lot of money on body
care and cosmetics products.

2
Assignment
Analysis (SWOT Analysis)
Strengths Weaknesses
 A varied portfolio of clothing products
 China comprised of skilled labors
 Possess capability to cater for a large
order
 Chinese consumers are health
consciousness
 China possesses the most advanced
technology that encourages trading
platforms and online businesses
(Verbeke & Kano, 2016)
 The Chinese produce lower costs
products
 Limited awareness of the brand
 Shortage of classic luxury style
 Low presence of social media
 The difference in the cost of
shipping a product
 Lack of proven or developed
competencies (Wolf & Floyd,
2017)
 Unproven or weak innovation
Opportunities Threats
 Chinese expansion will help in
enhancing the company's growth
 Rather than just brand name the
customers are increasing valuing brand
quality
 Less commercial restrictions and an
open source for import and export of
 Huge competition with luxury
brands
 Higher tax on luxury products
 Change in the political climate
 Difficult to find a factory in China
 Impact of political and economic
factors (Elbanna, Andrews &