Human Laboratory Models of Cannabis Use

Notes
Business Model for Cannabisiva
The business model of distribution is structured for distributing products or services from the
manufacturers to the consumers either through intermediaries or directly (DaSilva & Trkman,
2014). The purpose of a distribution business model is to ensure that the products and services
are available in the market for target consumers to purchase in the most direct and cost efficient
manner (Joyce & Paquin, 2016). The company Cannabisiva has a lean structure which involves
the creation of value for customers using fewer resources with a particular focus on the value
stream. The various strategies used by the company for the growth of its business activities
include targeting of the customers, marketing, promotional activities such as advertisement and
public relations, sourcing of raw materials, product development, and financial administration
involving raising funds for the startup.
Market Potential in Canada
Market potential refers to the size of the market of an organization in terms of the product or
service sold by them to the target customers (Foucault et al., 2013). The measurement of market
potentiality is dependent on either the volume of sales or the value of sales. In this regard, the
market potentiality of Cannabisiva can be measured in Canada, on the basis of the number of
consumers in the country and the potential sales among the pharmaceutical companies.

Supply Chain and Value Chain
Supply chain or a business organization refers to the network formed between the company and
its suppliers for the purpose of distributing the product or service to the final buyers (Carter et
al., 2015).
The value chain of a business organization involves all the processes and activities that need to
be conducted in order to produce a product or service (Wan & Wu, 2017). The value chain of the
business organization involves various departments as mentioned in the slide.
Management Structure
Evaluation of the management structure of an organization is essential in order to determine the
method in which the business activities will be conducted (Shafritz, Ott & Jang, 2015). A
hierarchical structure of management involves different levels of authority with a vertical link or
chain of command among them from the superior position to the subordinate positions of the
company (Janićijević, 2013). The structure of Cannabisiva is hierarchical in nature with the CEO
of the company at the head and various managers operating in the different departments. The
company is segmented into different departments, each of which has an assistant leader who
directly reports to the CEO of the company. The employees have been segmented into the
different departments based on their skills and knowledge.
Breakeven Analysis
Break even point refers to the level of production where the total expenses is balanced by the
total revenues (Kampf, Majerčák & Švagr, 2016). In the case of Cannabisiva, the break even
point can be reached by the company in a period of two years. The expenses incurred by the
company involves the cost of acquiring raw materials, maintenance of technology and