A Study On The Strategic Approach And Business Strategy Of A Hemp Company In Colombia

Strategy if fundamental for a company to develop and organized and sustainable growth.Small and medium size companies(SME's)from emerging markets have to consider the importance of the strategic planning in order to exploit their potential capabilities.This business case analysis is going to be based on the company XH,that is dedicated to the hemp transformation in Colombia.The current planning of the company is leaving some doubts about performance and the strategic approach remains unclear.This research aims to understand how the business strategy of XH as company can be improved and what are the changes needed to have a more solid strategic approach for business doing.The purpose of this research is to help comprehend the current business strategy of the company and evaluate it in order to construct suggestions and improvement of the company's performance.With this aim,the paper collets a strong theoretical based on management theories and tools and proceeds to used them as framework for a case analysis.It also collects information from the company,in addition uses data from primary and secondary sources of the hemp industry.It assesses the business environment and the internal conditions to define the current strategic approach of XH and its current limitations or challenges.Finally,it posits need of a change for the company and a more structured strategic approach.This document used conventional management theories,such as the resourcebased approach and the dynamic capabilities theory,to understand the current challenges of the company and the potential changes that could improve their performance.The paper analyzed the strategic approach of XH under these tools and provide a comprehensive assessment.The research found a non-structured strategy and no strategic approach for the company.The family business mindset and the non-structured strategy are causing challenges for the company and can jeopardize the future if not resolved.The nonstructured planning causes a weak structure,a blurry organizational identity and not solid external perception of the company.Overall the non-structured planning of the company is wasting resources and having a high cost of opportunity in a highly profitable industry.The results on this study demonstrate that as SME with a family business setup,the company is currently missing growth and expansion opportunities due to their informal mindset and need a change of setup from static to dynamic in the industry.This research contributes to the literature of the strategic approach for SME's in emerging markets.In addition it provides useful insights of the current state of the hemp industry in Colombia.It also has implications for the understanding and relevance of the business strategy in SME's.Finally,this research highlights the relevance on the strategic approach for business doing.