The Expansion of Canopy

Instructions:After successfully graduating from GW, you start a consulting companywith a couple of investors. Although your firm covers different areas,including government relations, the fact that GWSB has consistentlyranked at the top in international business in the last few years hashelped you score great advising projects on foreign expansion. This isone case of such an exciting portfolio of firms.Canadian company Canopy Growth Corporation has hired your firm to helpthem go abroad. They have been planning a foreign-market entry for twoyears and they want to pull the plug. Canopy is focusing on an aggressiveexpansion on a short timeline: your specialty.During a two-week period, you will be working closely with Canopy’s CEOBruce Linton. As excited and committed Mr. Linton is, he lives by theminute and requires well-structured and concise information. Canopy hascompiled data for you, but they are unclear on how to use said data.That’s not a problem for you because your second-best specialty istransforming data into relevant information. In addition, you know a fewframeworks to help you come up with relevant questions and answer themsystematically.After a board meeting with Canopy’s C-suite, you and your partnersidentify the cardinal questions and information that you will be coveringin your memorandum to Mr. Linton.These are the only questions that willdefine Canopy’s choice:1. Core competences. What are Canopy’s characteristics that are orcan become core competences? Do they past the three tests2. Why go abroad? You know very well that this implies an understandingof two related elements:a. What are the driving factors of performance in the Canada’scannabis industry? You will be using the Porter’s Diamond forit. And then:b. What is (are) the motive(s) for expansion? ADDING frameworkwill guide you here. Of importance: you do not need to listevery single ADDING motive, only the one(s) behind Canopy’sexpansion.3. Where to go? You will be building a CAGE framework with thecountries mentioned in the case.4. What to do? Recommend to Mr. Linton whether Canopy should stay inCanada and aim for domestic growth or international growth.Pursuing both may or may not be efficient given i) Canopy’sresources and ii) the trends in the global industry. It is yourcall.As customary for these types of projects, you will be producing amemorandum of no more than 2,000 words with 1.5 spacing, and Times NewRoman, font 12. The space is limited, make every word count.If you include graphs and/or tables, these do not count against thelimit.