Mormor Magda Ice Cream Case Study Analysis

This case study analysis provides an in-depth examination of Mormor Magda's ice cream business. It explores the company's internal and external environment, highlighting its strengths and weaknesses, as well as potential opportunities and threats. The study also discusses various strategies that the company can use to expand its business, such as diversification, market penetration, and acquisition. Overall, this analysis aims to provide a comprehensive understanding of Mormor Magda's ice cream business and its potential for growth and development.

CASE STUDY

Table of Contents
INTRODUCTION................................................................................................................................3
1) The company's internal and external environment.................................................................3
2) Core competencies of Mormor Magda's ice cream ...............................................................6
3) Recommendation for Future expansion strategy of Mormor Magda ice cream ....................7
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
This study is based on Mormor Magda's ice cream which is the dream of Angela Hafstrom
to produce tasty ice cream. This study will provide understanding about the external and internal
environment. Moreover, It will include core competences of the firm and the competitive advantage
gain by the organisation. Also, It will provide recommendation for future expansion strategy of
business.
MAIN BODY
1) The company's internal and external environment
The internal and external environment consist of the internal and external factors which
affect the business operations to the great extent. The internal environment consist of strength,
weakness, opportunities and threat which affect the business. The following are the internal factor :
Strength
It refers to the positive factors which help the organisation in their growth and help in
increasing the profitability of the firm. The strength of Mormor Magda's ice cream are as follows :
 The organisation has gain their customer loyalty by providing them ice- cream with high
quality ingredients (Introvigne, 2016).
 The graphic design created by the friend of Angela Hafstrom act as strength in the success
of the brand.
 The innovation in producing the ice- cream has helped the organisation in its success. For
example, Angela Hafstrom came up with the idea of providing ice cream in waffle cones.
 Maintaining strong relation with the employees and customers has assisted the organisation
in developing their brand.
 Moreover, the organisation is also committed towards socially responsible behaviour and for
this Mormor Magda works with Swedish employment agency to employ young workers.
 It is involved in producing locally- produced ingredient which is the strength of the
company and helps in attracting more customers towards the brand.
 Using social media for engaging the actual and potential customers
Weakness
It refers to the internal factors which affect the profitability of the organisation. These are as
follows :

 The organisation faced financial crises in the initial stages.
 The weakness of Mormor Magda also incudes that the business were having more profits by
selling the ice- cream in waffle cones.
 Also, There are more customers to serve and their was shortage of employees.
 The weakness faced by the company was due to lack of distribution channel available.
 Gaining customer loyalty was difficult for the firm.
 Seasonal sale of the product.
Opportunities
The opportunities for Mormor Magda ice cream includes :
 Expansion of the brand in different location.
 Providing the customers with home delivery of ice- cream.
 Using different sources of funding other than crowdfunding (Mormor Magdas Ice Cream
success story, 2015).
 Providing employment opportunities to the public.
 Innovating ideas to producing ice cream with different natural flavours.
 Growing the market share by increasing the customer base.
Threats
The threats faced by Mormor Magda ice cream which affect its various operation are as
follows :
 Increasing competition in the ice – cream industry affect the profitability and market share
of the firm. The largest competitor of Mormor Magda ice cream is Multinational Unilever
(Phadermrod, Crowder and Wills, 2019).
 People are becoming more aware about the health aspect and the consumer know that the
ice cream is not good for their health.
 Changing habit of the customer act as threat for the business.
 Changing government policies affect the business of Mormor Magda's ice cream.
 Threat of various kind of allergies which affect people health due to ice cream such as
lactose, nuts, gluten etc.
External environment of Mormor Magda's consist of those factors which are not in control

of the firm and have their positive and negative impact on the operation of company. It includes the
PESTLE analysis of Mormor Magda's ice cream that is as follows : Political factors : These are the factors which are present in then external environment of
the organisation and affect the business operation of Mormor Magda's ice cream. It includes
the changes in government polices, taxation polices etc. which affect the profitability and
market share of this company. For example, Increase in tax rate will reduce the profitability
of Mormor Magda's ice cream. Economic factors : In this context, it provides understanding about those factors which are
present in the economy and affect the business operation to the great extent. Demand for
standard and premium ice cream is increasing in the market and Mormor Magda is
providing dairy free ice cream which is produce to provide the customer with health ice
cream. The economic factors which may affect the business are inflation rate, interest rate,
unemployment rate etc. for example, increase in inflation will increase the price of ice –
cream provided by Mormor Magda which will affect the business profitability as fewer
customers will purchase the ice – cream during inflation. The company is providing
employment opportunities and for this it is engaged with Swedish employment agency. Technological factors : It includes those factors which affect the business operations and
profitability due to changes in technological systems and software (Chen, 2018). For
example, Increase in the digital marketing tools and growing demand of social media have a
great impact on business. For example, Mormor Magda is having strong social media
presence to engage with its existing and potential customers and provide them details about
the new flavours of ice cream present with the organisation. Social factors: In accordance to this, it consists of factors such as changing consumer habits,
age distribution, health awareness etc. Mormor Magda ice cream is providing natural ice
cream to protect the health of the consumers which has provided with the positive impact on
the profitability of the firm and attract more customers towards the organisation. Environmental factors : These are the factors which are related to environmental
protection. Mormor Magda has to follow the environmental protection laws and legislation
(Liu and Walsh, 2018). It is involved in ethical practices and is working towards
environmental sustainability. Legal factors : Mormor Magda have to follow various laws and regulation relating to health
and safety, consumer protection etc. it is involved in providing consumers with fair prices of
the ice cream and is using natural ingredients for making the ice – cream.

2) Core competencies of Mormor Magda's ice cream
The core competencies of the business provide them competitive advantage and help the
organisation in increasing the profitability and productivity of the firm. The core competencies of
the business are divided into the following :
 Quality : Mormor Magda is involved in providing the customers with ice creams that are
made up of high quality ingredients. The company is providing the customer with natural ice
cream which is healthier for the consumer as it is made up of fruits and natural ingredients.
For example, Mormor Magda is using Swedish strawberry cookie dough etc (Gheibi and
et.al., 2018). The firm is providing quality products which assist in retaining the customer in
business and providing them with better taste ice cream which is not available with any
other competitor.
 Value : The business create value for society by creating employment opportunities for the
people and for this the firm is engaged with Swedish employment agency. Moreover, the
brand creates value by providing the consumers with genuine, traditional, high quality,
stylish, luxuries and unique ice cream for creating value for the consumers. The organisation
is also creating value for the money of the consumer by providing them better tasting ice
cream and containing the lower amount of air in the product.
 Innovations: It consists of innovative ideas which helps the firm in providing unique
products in the market which will increase the profitability of the firm. Innovation involves
adding new flavours and developing ice cream which is dairy free and made only with
natural ingredients will help Mormor Magda in increasing their sales (Boneberger and
Kirilova, 2015). Innovation helps the firm in providing the consumers with new taste of ice
cream. For example, Mormor Magda used waffle cones for offering the ice cream which
increased their sales and profitability.
 Marketing : It includes use of the marketing tools for distribution of the ice cream. Mormor
Magda also uses social media sites such as Facebook, Instagram and the blog for advertising
of the ice cream to attract more customers towards the organisation (Bergman, 2014). It is
also involved in using distribution channel for marketing of the ice cream to attract more
customers towards the brand. Marketing strategies used by Mormor Magda help the brand in
achieving the target objective and attracting the potential customers towards the brand and
retaining the existing customer in business.
Mormor Magda ice cream is sustaining competitive advantage by using its core
competencies which consist of quality, value, innovation and marketing will help in retaining
customer with the brand and increasing the market share of the firm in the industry. Quality will
help the business in retaining the existing customers and attracting potential customers towards the

company. Value will help in sustaining competitive advantage by creating value for the money of
consumer by providing them better quality ice cream and with more quantity and taste. Moreover,
organisation by using new ideas and flavours for producing the ice cream will help in gaining
customer attention and increasing the customer base which will provide the organisation with
competitive advantage (Alexandersson and Eliasson, 2015). Marketing techniques used by Mormor
Magda such as social media sites that includes Facebook, Instagram etc. will help the firm in
gaining competitive advantage by attracting the customers through the online presence and
maintaining the strong relationship with them. The competitive advantage gain with the help of this
core competencies will help the business in its growth and will increase the profitability of the
organisation.
3) Recommendation for Future expansion strategy of Mormor Magda ice cream
The organisation in order to increase its profitability and gain more market share mist
develop its strategy to increase the sales of the organisation. The following are the various
recommendation which are made for Mormor Magda future expansion.
 The organisation should develop the products which will help the firm in expanding its
business. It is recommended to Mormor Magda ice cream to develop its ice cream flavours
which will assist in growth of the business.
 Also, It is recommended to the organisation to use various promotional tools which will
help the firm in advertisement of the ice cream made by the firm which will help in
providing information to the customers about the various flavours of ice cream available
with the company.
 Moreover, the organisation in order to expand the business can use diversification strategy in
future for expanding the business and attracting more customers towards the brand will help
in building strong brand image in the market.
 Mormor Magda for its future expansion can interact with the customers and engage them
business decision by taking their feedback for the ice cream served to them will help the
firm in developing the product.
 Also, It is recommended to organisation for increasing its sales and attract more customers
towards the brand can use market penetration strategy which will help the firm in gaining
competitive advantage in the industry.
 Furthermore, It is recommended to Mormor Magda that it can use acquisition strategy for
expanding its business in which it can purchase the smaller company in the same industry
for expanding its business and increasing the market share.

CONCLUSION
From the above it has concluded about case study of Mormor Magda's ice cream which has
serving the customers with natural ice cream. The case study has provided with the understanding
about internal and external environment of the business which has its positive and negative impact
on the business operation. It has been identified from the above study that Mormor Magda ice
cream is having strong social media presence which has helped in engaging the customers with
business. Moreover, It has provided understanding about core competencies of the organisation that
has consisted of quality, value, innovation and marketing that has helped the firm in gaining
competitive advantage in the industry.

REFERENCES
Books and Journals
Alexandersson, M. and Eliasson, M., 2015. Equity crowdfunding.
Bergman, P., 2014. Genetic and epigenetic factors shaping the transcriptome in multiple sclerosis
and its animal model. Inst för klinisk neurovetenskap/Dept of Clinical Neuroscience.
Boneberger, D. and Kirilova, B., 2015. Mumpreneurs: Motivational factors for Swedish mothers to
start their own businesses.
Chen, C.J., 2018. Analysing the Strategies of Developing the Third-Party Payment Platform in
China: A Case Study on Alipay.
Gheibi, M. and et.al., 2018. Controlling air pollution in a city: A perspective from SOAR‐PESTLE
analysis. Integrated environmental assessment and management.
Introvigne, M., 2016. Satanism: a social history. Brill.
Liu, X. and Walsh, J., 2018. Study on the Strategies of the E-commerce Implementation in
Binchuan Grape Industry of China——Based on SWOT Quantitative Analysis
Method. Proceedings of Business and Economic Studies. 1(1).
Phadermrod, B., Crowder, R. M. and Wills, G. B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Online
Mormor Magdas Ice Cream success story. 2015. [Online]. Available through :
<https://medium.com/fundedbyme/mormor-magdas-ice-cream-success-story-
925a2ae4e8e2>