PESTEL ANALYSIS

User Generated

ex98

Business Finance

University of the District of Columbia

Description

I need to do a PESTEL Analysis on a company. I have added some info on what PESTEL analysis is but please research more if needed. "PESTEL analysis can be used to assess the strategic relevance of the six principal components of the macro-environment: Political, Economic, Social, Technological, Environmental, and Legal/ Regulatory forces". "PESTEL analysis is an analysis of how different macroenvironmental factors impact your company and the industry in which you compete". IT NEEDS TO BE SUPPORTED BY EVIDENCE WHICH IS QUANTITATIVE DATA AND RECENT FROM 2023. WE ALSO NEED TO USE PROPER ACADEMC SOURCES LIKE MARKETLINE, IBIS WORLD ETC.

BELOW IS AN EXAMPLE:

Per capita disposable income

In response to rising inflation, there has been an approach to raising interest rates. This lack of inflation control has led to a significant reduction in consumers' purchasing power, with per capita disposable income falling by 3.5% in 2022. However, in the first quarter of 2023, the Bank of Canada decided not to increase interest rates due to stagnating inflation. While a recovering economy could help improve consumers' per capita disposable income, inflation remains a major obstacle. (Business Environment Report CA101, 2023)

Impact

Cannabis products often require out-of-pocket payments from consumers. As consumer conditions improve and disposable income levels rise, cannabis producers stand to gain from this trend. (McGrath, 2023)

The company is Home - Canopy Growth

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Explanation & Answer

Attached.

1

PESTLE Analysis: Canopy Growth Corporation

Student Name
Institution Affiliation
Course
Instructor Name
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PESTLE Analysis: Canopy Growth Corporation
Canopy Growth Corporation, along with its subsidiaries, produces, distributes, and
sells cannabis products for medicinal and recreational purposes, primarily in Canada, the
United States, the United Kingdom, and Germany. The company changed its name from
Tweed Marijuana Inc. to Canopy Growth Corporation in September 2015. The firm operates
through two segments: Canopy Rivers and Cannabis, Hemp, and Other Consumer Products.
The products comprise dried cannabis flowers, oils and concentrates, and softgel capsules. It
offers its products under Deep Space, Tweed Quatreau, Spectrum Therapeutics, T.W.D., First
& Free, BioSteel, This Works, Tokyo Smoke, D.N.A. Genetics CraftGrow, Van der Pop,
DOJA, and Bean & Bud brands. The firm also provides growth capital and a strategic support
platform that pursues investment opportunities in the global cannabis sector. The firm has a
clinical research partnership with NEEKA Health Canada to examine the efficacy of CBDbased therapies as part of persistent post-concussion symptoms mitigation. The paper
provides a PESTLE analysis of Canopy Growth Corporation.
Political Analysis
The federal Controlled Substances Act (C.S.A.; 21 U.S.C. §801 et seq.) classifies
marijuana as a Schedule I controlled substance, which makes it strictly regulated by federal
authorities. On the other hand, over the last several decades, many states deviated from a
comprehensive marijuana prohibition. They enacted laws and policies allowing for some
marijuana cultivation, distribution, sale, and possession laws (Congress Research Initiative,
2023). However, despite the growth of the U.S. cannabis market at the state level, Canopy
U.S.A., which holds all the company's U.S. T.H.C. investments, faces legal constraints to
realize significant value as it must wait for federal permissibility.
Economic Analysis

3
The projections of the U.S. cannabis market opportunity stand at $50 billion in 2026.
Canopy U.S.A. seeks to capture share and return on investments through strategic
repositioning to capitalize on the gains of complete ownership and control of its U.S. T.H.C.
portfolio of assets upon federal permissibility of marijuana U.S. Securities Exchange
Commission, 2023). However, although medical or recreational marijuana has been legalized
in about 40 states across the U.S., federal law continues to prohibit the substance. Therefore,
legal marihuana companies are denied financial services access, leaving them to resort to
primarily using cash for transactions. The U.S. Senate Committee voted to advance the
SAFER Banking Act to protect banks offering financial services to legal marijuana
companies (Og...

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