BUS 521 Strayer University Cannabis Infused Alternatives (The CIA) LLC

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Question Description

Written Business Plan and Presentation

Note: This assignment consists of two (2) sections: a finalized written business plan and a business plan PowerPoint presentation. You must submit the two (2) sections as separate files for the completion of this assignment. Label each file name according to the section of the assignment it is written for.

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Section 1: Finalized Written Business Plan (75 points)
You are now in the final stage of the business plan development. All previous documentation must be combined into one (1) document that will serve as the statement of work for the business plan. Your goal is to have the plan approved by the executive team in the venture capital group. The business plan is very detailed. However, the executive team is only interested in a ten (10) minute summation. Therefore, you also must create a compelling executive summary, in which you justify your new product or service venture and how it would benefit the company.

1. Merge the three parts of the business plan (attached) into one final business plan.

2. Write a one (1) page Executive Summary that you will include at the beginning of your revised business plan.

2. Include a Table of Contents after the Executive Summary

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Section 2: Business Plan PowerPoint Presentation (180 points)
In addition to your written executive summary, you will provide the venture capital group with a presentation addressing all major points of your business plan.

  1. Create a nine (9) slide PowerPoint presentation (not including the title or references slides) in which you:
    1. Present the major elements of your business plan. Note: Follow the outline of your paper, starting with the executive summary and make sure to use headings to identify the sections.
    2. Provide a rationale for each major point of your business plan and justify why this venture should be undertaken.
    3. Provide a summary slide that provides your conclusion and recommendations.
    4. Create bulleted speaking notes for the presentation to the executive board in the Notes section of the PowerPoint. Note: You may create or assume any fictitious names, data, or scenarios that have not been established in this assignment for a realistic flow of communication.

Unformatted Attachment Preview

Running Head: WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – VISION 1 “Cannabis Infused Alternatives (The CIA) LLC” (The Nation’s Capital Pot Shop) Medical and Recreational Marijuana Products Dispensary Store Business Overview Although many states have legalized the use and sale of marijuana, a significant thing to note is that the business is not for the old thinker. Today’s Entrepreneur must be a visionary, and must be able to see the gold mine potential in this infant industry. This is a somewhat new industry that is legal within the state that it operates. Some older thinkers have a difficult time adjusting to the thought that marijuana is becoming legal in more and more places, not only nationally, but globally as well. These individuals are akin to the foggy thinkers of the early 1930s that couldn’t believe, or couldn’t quite grasp the concept that prohibition had ended. “Cannabis Infused Alternatives (The CIA) LLC” will invest in working efforts and make a considerable capital investment. We will also comply with the laws and regulations of Washington DC. Marijuana Business Daily projects revenues that dispensaries and retail stores generate to grow to a range between $6.5 and $8 billion by the end of 2019 (Fairman, 2016). Apart from strict rules and regulations controlling the use and sale of cannabis, banks may refuse to lend to businesses that distribute marijuana considering the federal laws (Fresthler et al, 2013). Unfortunately, marijuana is still listed as a class one schedule narcotic, next to heroin. “Cannabis Infused Alternatives (The CIA) LLC” believes that this will eventually change, but for now, it has raised enough capital for a startup without a traditional bank loan. It has a capital investment of $1.5 million, which exceeds the state minimum of $1 million cash to acquire a WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 2 dispensing license. Through sourcing of marijuana locally and selectively, while taking precautionary measures, the store ensures the products meet customer quality standards. Mission Statement The CIA, LLC’s mission is to be the National Capital Region’s leader in quality, affordability, and accessibility to the District of Columbia’s growing marijuana market; thereby, raising the perception of marijuana sales to one of high hopes, while we work jointly with local buds to bang the gong for the sales of the largest variety of cannabis infused assortments in Washington D.C. The company’s vision is to provide a unique and welcoming environment for dispensing high quality recreational and medical products. Whether one is in college, or an aging parent, seasoned weed veteran or a new user of cannabis, our stores’ professional and customer-oriented staff are ready to cater to all individuals and their lifestyles. Considering that a large population of consumers do not take an interest in products with THC (hallucinogenic), this store also provides a wide range of Cannabidiol (CBD) (all natural pain reliever) products to consumers which address several health conditions such as inflammation, anxiety, and stress (Fairman, 2016). Some of the wide variety of products that we have available are balms, lotions, oral products and cartridge-based vaporizers. However, for the THC seeker, the store has recreational varieties including smoke concentrates, smokeless edibles and drinks, as well as our infused classic cookies, brownies and cakes. The products have been made available on the company website, through which customers can order, and deliveries made to their doorstep. Instore customers enjoy the benefit of getting discounts and enjoy access to the able staff if they want to try something new; free samples. WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 3 Value Proposition One proposition for the large cannabis community is to make the CIA, LLC a legal profit cannabis delivery business via drone within Washington D.C. city limits. This also provides an opportunity to offer 1-to-1 faster service to patients at no extra costs. The store has a website which customers can log in to and view the various products, buy and have them delivered within minutes to one of our hundreds of Landing Zone Boxes (LZB) around the city. They could then just use the code that they receive online to unlock the box. This helps satisfy the target audience in that within a short time they become vast with a wide range of choices and prices without having to come to the store. Besides, through the use of web sites like Shopify to sell cannabis online, the business easily integrates with other solutions to comply with government regulations, thus ensuring the safety of not only the company but also its customers (Castells, 2002). Through this The CIA, LLC Store can deploy a practical business solution to customize the store, track sales, manage inventories and grow the business (literally). As a technical innovator, the store desires to design a product which assists medical marijuana users to ingest their medicine in a variety of ways. For example, the vape pen designed purposely for vaporizing marijuana oils and distillates. The vape pen looks like an ordinary pen but consists of a battery and cartridge which is filled with oil, containing a concentrated quantity of marijuana cannabinoids and terpenes (Murphy et al, 2015). Provision of distillate or oil cannabis can help a patient find it easy to ingest their medicine as they use a product that they desire. Through such unique genetics, the store strives to implement a standard WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 4 range of concentrates and infused products thus giving the commitment to reinvention and working together to enhance consumer cannabis experience. A visit to our store has more than a transaction; it builds on consumer experience and productive interactions that we create with each other, through which the business can increase sales and customer loyalty (Carroll & Buchholtz, 2014). The CIA, LLC Store has, therefore, adopted several communications including awareness, discovery, cultivation, advocacy and purchases, and services. This begins with the realization of the existence of the business, its product offerings, and services. Theory has ensured this through the use of social media including Facebook and Twitter, and also content strategy on the website. Through this, they can check out products, purchases, and give feedback and reviews about the whole experience. Furthermore, this helps in identifying where the business is going wrong. Thereby allowing it to change strategy, and adjust its targeted marketing, gaining more visibility. High-Level Business Model Executive Summary The CIA, LLC store will be located near DuPont Circle in Washington DC. The management is currently in the process of leasing a facility near the busiest nightlife district, with shops, clubs and restaurants, and a whole host of foot traffic from Georgetown University right next door. It hopes to buy the property once it is on sale. The store is centrally positioned and matches the ideal model of a community dispensary store. Our store will diversify in retailing of marijuana and future prescriptions of over-the-counter drugs after acquiring the required licenses. It will dispense marijuana products for medical and recreational uses at affordable prices while adhering to laws permitted by the law in Washington DC. The employees are well trained, and certified in accordance with city ordinance. They are well trained professionals to WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 5 allow accurate dissemination of cannabis products to people seeking pain relief, and also qualified enough to handle a vast range of recreational customers. The dispensary store will operate on a 24-hour basis, six days a week to serve walk-in clients, website, and mail-order customers while providing delivery services. Our store will be closed on Wednesdays, because industry research shows us that Wednesday is the least likely day of the week that our customers would purchase our products. Products Apart from dispensing medical and recreational marijuana products as the core products, The CIA, LLC store will work in the long-run retail various brands to customers based in different parts of the country, and other cities (where allowed by law), where we will open outlets later, depending on the current saturation of that city’s market. For medical purposes, the retail store will invest in literature and research in cannabis flowers, concentrates, oils, CBD oil, and low THC strains. It will also host Cannabis expos and events to enable folks to try various brands while providing information about new technology that produces quality drugs. Our company will set up a website through which it will disseminate its products to clients. The platform will also offer an online space for other businesses to connect and give considerable deals to cannabis industry customers and patients through a comprehensive list of categories provided on the web (Castells, 2002). In addition to this, the business will advertise itself on the website through the creation of a complete company profile and the menu, products, and services. This will help save on marketing costs, and also make it more convenient for potential customers to get the necessary information conveniently. Business Structure WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 6 “Cannabis Infused Alternatives (CIA) LLC” will be built on a solid foundation. From the very start, recruitment will be competence-based for the various positions in the store. We understand the rules and regulations governing marijuana dispensary; hence we hope to leverage on expertise to develop the business brand to gain state recognition. The positions that will be available include the CEO, Merchandise manager, information technologist, sales agents, cashiers, and cleaners. Market Entry In entering the market, our store’s strategy will be cutting prices to gain a share of the industry and profits in the long term. In this case, the business will target the vast market of the District of Columbia and sell cannabis products at relatively low prices, with timely delivery and excellent customer service. We may begin with super deals such as buy one get one free (BOGO). As the company continues to grow, the store will expand the product line, negotiate for discounts from suppliers and invest in technology to fasten customer-response and reduce operational wastes. This is the same business model adopted by Amazon, which has led the company to a growth rate of 27 percent per annum (Castells, 2002). The CIA, LLC store is committed to making cannabis affordable by subsidizing costs and offering discounts of up to 20% on products. Feasibility Analysis A feasibility study examines the viability of business with the goal of emphasizing possible problems that can arise after starting up the company or project, and after considering crucial factors, determines whether the business is a good idea. “Cannabis Infused Alternatives (CIA) LLC” is not focused on just operating as an ordinary dispensary, but to grow into the biggest cannabis store in Washington DC. We want the store to be the most sought for in D.C., WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 7 but achieving this goal requires building the business on a firm foundation. Basically, we want the people of D.C. to eventually and ironically think of our store when they hear the acronym “CIA” mentioned around town; which happens often. The management must follow the legal process when setting up the dispensary store. This (legal and regulatory compliance), next to supply, is one of the most critical points of failure. SWOT Analysis Strengths The 24-hour operation, six days a week offers a competitive advantage over other stores which are limited to 12-15 hours. The CIA, LLC store has multiple payment options including cash, mobile payment, and credit card, hence providing customers with better services and experience. Home delivery services and excellent customer service culture attracts a wide audience. Weaknesses The fact that the business is just starting is in and of itself a weakness. There are some financial constraints to the market for the business really take off, and patience will be the key to success. Also, it may take a while to attain the level of publicity the company intends to achieve. Opportunities There are unlimited opportunities for expanding the medical and recreational cannabis store and delivery. The firm will hence make use of every opportunity to expand. With new and emerging markets in this industry throughout the United States, our company has a great chance to expand later. Finally, both Aurora Cannabis and Canopy Growth Corporation (Canadian Marijuana growers) are seeking outlet stores in the United States. Having already contacted and WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 8 met with them, our firm is on the verge of a major partnership to achieve an almost unlimited supply of high quality products in all forms to sell. Threats A common threat in the retail business and one that our store will no doubt face is an economic downturn and unfavorable federal policies (Fairman, 2016). The economic downturn negatively impacts purchasing power hence reduces business profitability. Fortunately though, for now the U.S. economy is doing well. Another threat that our company may face is an explosion of similar shops in such a confined area as the District of Columbia. Over saturation in a very short period of time is a very real possibility, and is a situation where our company must be able to be flexible and innovative to navigate through such a competitive minefield. Sustainability and Expansion Strategy Every business is started with the hope of being successful, hence should have proper succession plans to help understand the direction the firm is going. The future of a business lies in the number of loyal customers, the competence of employees, investment strategy and business structure (Carroll & Buchholtz, 2014). At “Cannabis Infused Alternatives (CIA) LLC”, one of the methods of getting acceptance and winning customers is selling products at a slightly lower price than the market price and survive on a low-profit-margin. The company corporate culture focusses on driving the business towards training the workforce, and profit sharing will be made available to staff based on performance. This kind of motivation will help boost their performance, and they will be committed to enhancing business growth and sustainability. Market Analysis WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 9 National healthcare reforms and laws greatly influence the market trend of the retail industry in which our marijuana products dispensary business belongs. The pharmaceutical industry, for instance, receives high regulation, meaning an entrepreneur must adhere to rules or face possible fines or closure. With that said, we know the trends across the U.S. are to seek alternatives to opioids. CBD oil based products are the answer. They are safer, non-addictive, and all natural. Most importantly, they relieve pain so much more effectively than dangerous opioids. Therefore the production will continue expanding and will become profitable because of the aging generation in the U.S. who will increasingly have a demand for medical marijuana products and/or hemp based products. As legalization sweeps the nation, the rise of new adults who want to try products in the market out of sheer curiosity will grow for recreational purposes. Marijuana dispensary stores are currently adopting technology such as CRM software in the management of the business by sealing financial leakage, which has been a significant challenge in this retail industry (Castells, 2002). Target Market The CIA, LLC Marijuana Products Dispensary Store is entering into business to serve a broad customer based in our Nation’s capital. The store will ensure it targets walk-in customers, website, and mail-order customers, and self-pay customers. The target market for recreational users is unlimited individuals who have attained the legal age, and for medical marijuana products, individuals with pain, insomnia, epilepsy, HIV/AIDS, and other illnesses that benefit and find relief in the use of marijuana and its derivative properties. The customer base, therefore, ranges from households, business people, corporate executives, legal aged college students, and middle-aged persons. Competitive Advantage WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 10 In the U.S. the market is highly competitive as there is a wide range of alternatives where customers and patients can get their weed and weed byproducts. However, in D.C., there are only about twelve current shops in existence, of which most are limited in products. Most competitive dynamics in the industry revolve around the quality of marijuana dispensed, services provided, discounts offered and the business brand (Carroll & Buchholtz, 2014). So, CIA, LLC is well prepared for this relatively small amount of local competition. Its staff and employees are familiar with specialized customer service. The business is also ready to offer discounts at the store and delivery services for those who purchase online. The wide range of cannabis products and exclusive 24 working hours provide a substantial competitive advantage. Finally, in chapter five of our textbook (Entrepreneurship; A Real World Approach, 2nd Edition, Rhonda Adams) we learned of the importance of having a “niche.” In fact, we are told that “Finding a niche—and marketing to customers in it—provides a simple, fast way of distinguishing yourself from competitors and generating greater awareness of your business.” With that said, CIA, LLC is well prepared to carve out its unique niche by distinguishing and promoting itself as the most efficient and trusted place for D.C. residents to quickly and safely obtain the highest quality medical and recreational cannabis and products in the National Capital Region. WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 11 References Carroll, A., & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and stakeholder management. Nelson Education. Castells, M. (2002). The Internet galaxy: Reflections on the Internet, business, and society. Oxford University Press on Demand. Fairman, B. J. (2016). Trends in registered medical marijuana participation across 13 US states and District of Columbia. Drug and alcohol dependence, 159, 72-79. Freisthler, B., Kepple, N. J., Sims, R., & Martin, S. E. (2013). Evaluating medical marijuana dispensary policies: Spatial methods for the study of environmentally-based interventions. American Journal of Community Psychology, 51(1-2), 278-288. Murphy, F., Sales, P., Murphy, S., Averill, S., Lau, N., & Sato, S. O. (2015). Baby boomers and cannabis delivery systems. Journal of Drug Issues, 45(3), 293-313. WEEK 03: ASSIGNMENT 1: BUSINESS PLAN PART I – BUSINESS VISION 12 Running Head: WEEK 07: ASSIGNMENT 2: BUSINESS PLAN PART II – ANALYSIS 1 “Cannabis Infused Alternatives (The CIA) LLC” (The Nation’s Capital Pot Shop) Medical and Recreational Marijuana Products Dispensary Store -----------Competitive Analysis and Strategic Assessment In the marijuana business, an entrepreneur has to be a free thinker who is fast to adapt to the changing environments (legal, political, etc.) Cannabis Infused Alternatives (CIA) LLC business is making efforts to invest in the industry, through a marketing based approach. The business plan is to become accessible to a wide range of targeted audiences including ...
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EagleEye1
School: New York University

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Running Head: “CANNABIS INFUSED ALTERNATIVES (THE CIA) LLC”

“Cannabis Infused Alternatives (The CIA) LLC”
Name of student
Name of course
Date

1

“CANNABIS INFUSED ALTERNATIVES (THE CIA) LLC”

2

Executive Summary
“Cannabis Infused Alternatives (The CIA) LLC” will invest in working efforts and make
a considerable capital investment. The business will comply with the laws and regulations of
Washington DC. Although many states have legalized the use and sale of marijuana, a significant
thing to note is that the business is not for the old thinker.
Marijuana Business Daily projects revenues that dispensaries and retail stores generate to
grow to a range between $6.5 and $8 billion by the end of 2019. Unfortunately, marijuana is still
listed as a class one schedule narcotic, next to heroin. “Cannabis Infused Alternatives (The CIA)
LLC” believes that this will eventually change, but for now, it has raised enough capital for a
startup without a traditional bank loan. It has a capital investment of $1.5 million, which exceeds
the state minimum of $1 million in cash to acquire a dispensing license. Through sourcing of
marijuana locally and selectively, while taking precautionary measures, the store ensures the
products meet customer quality standards.
The target market will be the District of Columbia market, The retail stores and
medicinal shops and the dispensation to eligible people from all walks of life.
The products include dispensation of medical and recreational marijuana products as the
core products and also retailing in places with acceptable law. The business will invest in
literature for medicinal purposes, cannabis expo and e-commerce for the convenience of the
customers.
Market entry will be by cutting prices to get market share and long-term profitability. It
will also include targeting the District of Columbia market, selling cannabis with affordable
prices, timely delivery, and exceptional customer services. The company will use promotions,
expand the product line, offer discounts and invest in technology.

“CANNABIS INFUSED ALTERNATIVES (THE CIA) LLC”

3

The U.S market is highly competitive due to the wide range of dispensaries where clients
can get marijuana and marijuana byproducts. Washington DC, however, has few existing shops
whose competition depend on the quality of marijuana dispensed and services provided.
The CIA, LLC will adopt a flat organizational structure ensuring that every employee can
make substantial decisions on their own. The company will have a Chief Executive Officer
(CEO). From the overall leader, everything else will take place in the departments. CIA, LLC
plans to have four departments. There will be a human resource section, a marketing
department, a finance/accounts department, and the customer service/external communications
office. Rather than having managers, these sections formed into teams and the team leaders will
report to the CEO. The team leaders will be appointed on a rotational basis each serving six
months.

“CANNABIS INFUSED ALTERNATIVES (THE CIA) LLC”

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Contents
Executive Summary ...................................................................................................................................... 1
Business Overview........................................................................................................................................ 7
Mission Statement......................................................................................................................................... 7
Value Proposition.......................................................................................................................................... 8
High-Level Business Model........................................................................................................................ 10
Executive Summary ................................................................................................................................ 10
Products .................................................................................................................................................. 10
Business Structure................................................................................................................................... 11
Market Entry ........................................................................................................................................... 11
Feasibility Analysis................................................................................................................................. 12
SWOT Analysis .......................................................................................................................................... 12
Strengths ................................................................................................................................................. 12
Weaknesses ................................................................................................................................................. 13
Opportunities............................................................................................................................................... 13
Threats ........................................................................................................................................................ 13
Sustainability and Expansion Strategy ........................................................................................................ 14
Market Analysis .......................................................................................................................................... 15
Target Market.............................................................................................................................................. 15
Competitive Advantage .............................................................................................................................. 16
Competitive Analysis and Strategic Assessment ........................................................................................ 16
Competitive Analysis, Differentiation Strategy, and Risk Assessment ...................................................... 17

“CANNABIS INFUSED ALTERNATIVES (THE CIA) LLC”

5

Competitive Analysis .............................................................................................................................. 17
Competitive Analysis, Customer Perception Factors: ............................................................................ 18
Competitive Analysis, Internal Operational Factors ............................................................................... 18
Differentiation Strategy .......................................................................................................................... 18
Risk Assessment ..................................................................................................................................... 19
SWOT Analysis .......................................................................................................................................... 14
Strengths ................................................................................................. Error! Bookmark not defined.
Weaknesses ............................................................................................. Error! Bookmark not defined.
Opportunities........................................................................................... Error! Bookmark not defined.
Threats .................................................................................................... Error! Bookmark not defined.
Strategic Position Statement ....................................................................................................................... 20
Competitive Advantages ......................................................................................................................... 20
The Value Proposition to Target Audience............................................................................................. 20
Marketing Strategy and Distribution....................................................................................................... 21
Risks and Risk Mitigation ........................................................................................................................... 22
Organizational Structure and Management Philosophy .............................................................................. 23
Corporate Culture........................................................................................................................................ 25
Operational Strategy ................................................................................................................................... 26
Consumer-Driven Strategy ......................................................................................................................... 26
Consumer Education Material .................................................................................................................... 26
Employee Recruitment and Training .......................................................................................................... 27

“CANNABIS INFUSED ALTERNATIVES (THE CIA) LLC”

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Giving Back ................................................................................................................................................ 28
Business Technology Strategy .................................................................................................................... 28
CRM System ............................................................................................................................................... 29
Cannabis Dispensary Website SEO ............................................................................................................ 30
References ................................................................................................................................................... 32

“CANNABIS INFUSED ALTERNATIVES (THE CIA) LLC”

7

Business Overview
Although many states have legalized the use and sale of marijuana, a significant thing to
note is that the business is not for the old thinker. Today’s Entrepreneur must be a visionary, and
must be able to see the gold mine potential in this infant industry. This is a somewhat new
industry that is legal within the state that it operates. Some older thinkers have a difficult time
adjusting to the thought that marijuana is becoming legal in more and more places, not only
nationally, but globally as well. These individuals are akin to the foggy thinkers of the early
1930s that couldn’t believe, or couldn’t quite grasp the concept that prohibition had ended.
“Cannabis Infused Alternatives (The CIA) LLC” will invest in working efforts and make
a considerable capital investment. We will also comply with the laws and regulations of
Washington DC. Marijuana Business Daily projects revenues that dispensaries and retail stores
generate to grow to a range between $6.5 and $8 billion by the end of 2019 (Fairman, 2016).
Apart from strict rules and regulations controlling the use and sale of cannabis, banks may refuse
to lend to businesses that distribute marijuana considering the federal laws (Fresthler et al, 2013).
Unfortunately, marijuana is still listed as a class one schedule narcotic, next to heroin.
“Cannabis Infused Alternatives (The CIA) LLC” believes that this will eventually change, but
for now, it has raised enough capital for a startup without a traditional bank loan. It has a capital
investment of $1.5 million, which exceeds the state minimum of $1 million cash to acquire a
dispensing license. Through sourcing of marijuana locally and selectively, while taking
precautionary measures, the store ensures the products meet customer quality standards.
Mission Statement
The CIA, LLC’s mission is to be the National Capital Region’s leader in quality,
affordability, and accessibility to the District of Columbia’s growing marijuana market; thereby,

“CANNABIS INFUSED ALTERNATIVES (THE CIA) LLC”

8

raising the perception of marijuana sales to one of high hopes, while we work jointly with local
buds to bang the gong for the sales of the largest variety of cannabis infused assortments in
Washington D.C.
The company’s vision is to provide a unique and welcoming environment for dispensing
high quality recreational and medical products. Whether one is in college, or an aging parent,
seasoned weed veteran or a new user of cannabis, our stores’ professional and customer-oriented
staff are ready to cater to all individuals and their lifestyles. Considering that a large population
of consumers do not take an interest in products with THC (hallucinogenic), this store also
provides a wide range...

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