Case Study: Strategic Value Chain Analysis of Canopy - Cannabis

This case study presents a value chain analysis of Canopy - Cannabis, evaluating the firm's infrastructure, human resource management, technology development, and procurement processes. It examines inbound logistics, operations, outbound logistics, marketing and sales, and service activities to assess the company's overall performance. The analysis identifies the increasing outsourcing costs as a key strategic issue deserving managerial attention, suggesting that the firm should explore internal production alternatives to reduce these costs and enhance competitive advantage. The study concludes by emphasizing the importance of strategic decision-making to improve internal and external procedures, ultimately strengthening the organization's competitive position. Desklib offers this assignment as part of its collection of solved case studies and resources for students.

Running head: VALUE CHAIN ANALYSIS
VALUE CHAIN ANALYSIS
Name of the Student
Name of the University
Author Note

1VALUE CHAIN ANALYSIS
Part 4
According to David and David (2013), the Value chain analysis can be considered to be a
crucial internal tool which goes a long way in ensuring that the overall performance of the
company on an internal basis can be examined and certain recommendations based on the
particular outcomes of the research can be presented. It can be understood from the given image,
that the overall performance of the Canopy – cannabis (formerly Tweed Marijuana) has been
relatively good in nature. The company has been adopting relative measures in order to ensure
that it is successfully able to source the goods from the suppliers and make these goods available
to the different customers in order to gain into considerable sales of the firm.
Supporting
Activities
Firm Infrastructure: The infrastructure of the firm can be stated to
be sufficient in nature as the firm has adapted well to the external
technology as present.
Human resource management: The Human resource management
of the firm can also be stated to be positively aligned to the overall
goals of the firm.
Technology development: The technology development of the firm
can be stated to be the greatly linked to the supply chain management
and the real time sales information.
Procurement: The firm is in constant communication with the
different suppliers and maintains a real time inventory.
Inbound Logistics
The firm has an access
to various resources
which allows the firm to
maintain its overall
Inbound Logistics
successfully
Warehouse
Material Handling
Trucks
Comfortable locations
Operations
The business
follows a
standardized
model of
business.
Outbound
Logistics
Makes use of full
delivery trucks
and order
processing
Marketing
and Sales
Pricing
Sales
Marketing
Promotion
Service
Delivery
Customer
Service
focus
Primary Activities
M
a
r
g
i
n

2VALUE CHAIN ANALYSIS
Figure 1: The Value chain Analysis of Canopy – cannabis (formerly Tweed Marijuana)
(Source: Created by the author)
The cost structure and the customer value proposition of the firm can be stated to be
competitive in nature as it is being able to meet the overall requirements of the company and
ensure that the customer demands are being met with (Herrera, 2015). Additionally, the cost
structure and the customer value proposition of the firm are being able to assist the firm in
gaining an edge over the different firms as present in the same industry and with respect to this,
it can be largely understood that, the Canopy – cannabis (formerly Tweed Marijuana) firm has
been performing well.
Part 5
The one strategic issue which tends to deserve the managerial attention can be stated to
be the increased outsourcing cost of the organization (Zott & Amit, 2013). It can be seen from
the different reports of the organization that the outsourcing cost of the firm has been increasing
considerably and with respect to this, it can be considered to be relatively crucial for the
management to undergo this, procedure and ensure that, they are able to take strategic decisions
and procedures so as to be able to reduce the cost of outsourcing and save up on the costs of the
firm.
Hence, the strategic concern of the firm needs to be as follows:
How to improve upon the increasing Outsourcing costs of the firm?
The outsourcing costs can be rightfully defined as the costs relating to the payment being
paid to the organization which tends to work on behalf of the firm (Marchi, Maria & Micelli,
2013). However, in the particular scenario, as the costs of the firm have been increasing

3VALUE CHAIN ANALYSIS
considerably, it might become quite difficult for the firm to cover up these costs of the
organization and instead the firm can invest in the production themselves, instead of outsourcing
them to an organization outside. Hence, for this reason, it can be considered to be important for
the firm to ensure that, they are being able to undertake an analysis of the firm and figure out the
ways in which the firm can easily save the costs of the firm and help the organization in
becoming strong competitively. Additionally, the firm would also be required to ensure that, they
are being able to deal with the issues carefully and come up with additional methods to improve
their internal as well as external procedures.

4VALUE CHAIN ANALYSIS
References
David, F. R., & David, F. R. (2013). Strategic management: Concepts and cases: A competitive
advantage approach. Pearson.
Herrera, M. E. B. (2015). Creating competitive advantage by institutionalizing corporate social
innovation. Journal of Business Research, 68(7), 1468-1474.
Marchi, V. D., Maria, E. D., & Micelli, S. (2013). Environmental strategies, upgrading and
competitive advantage in global value chains. Business strategy and the
environment, 22(1), 62-72.
Zott, C., & Amit, R. (2013). The business model: A theoretically anchored robust construct for
strategic analysis. Strategic Organization, 11(4), 403-411.