Environmental analysis of Mormor Magda

management
[Document subtitle]

Contents
Introduction................................................................................................................................2
PESTLE analysis........................................................................................................................2
Value chain analysis...................................................................................................................6
Support activities....................................................................................................................6
Primary activities-..................................................................................................................7
SWOT analysis...........................................................................................................................8
Core competencies and competitive advantage.......................................................................10
Recommendation......................................................................................................................10
Conclusion................................................................................................................................10
References................................................................................................................................12

Introduction
The report brings out a discussion on internal and external environmental analysis of Mormor
Magda. Angela Hafstrom introduced the company in 2011, who was an unemployed person
and completed her degree in communication (Mormor Magdas, 2015). A year before she
decided to build her brand and finally she chose to produce ice cream inspired by ben & Jerry
Ice cream with no additive preservatives. In this report, the tools such as pestle analysis and
value chain analysis have been used to cover the external environment analysis. PESTLE
analysis deals with external factors such as political, social, economic, technological, legal
and environmental factors and how these factors in the country as well in industry affects the
organisation`s existence. The analysis of internal environment has been covered by applying
SWOT analysis tool (White, Hubacek, Feng, Sun, and Meng, 2018).
PESTLE analysis
Political factors
Political factors play important role in regulating the rules and regulations of any
organisation, which is operating in Sweden. Sweden is a safe and stable country. The country
has introduced certain rules and regulations such as CAP (common agricultural policy) to
regulate animal welfare, subsidies, and environment that can minimise the slaughtering of
cows or any other animal to foster the production of dairy products and maintain the
livestock. Ice-cream industry uses fresh dairy products. In the same way, Mormor Magda
uses natural and locally extracted fresh dairy products. For example- Sweden`s cultural dish
are meatballs. Therefore, government cannot ban but it can limit slaughtering largely to
maintain livestock (Giacalone et al., 2016).
Economic factors
Swedish economy had suffered from low-paced growth and high inflation. However,
currently, Sweden enables modern distribution system with excellent internal and external

communication system with skilled labour force. The country has learnt a lot from financial
crisis in 1990s. The lessons from crisis led to economic and social prosperity. Stable
economic conditions have combined innovation, competitiveness, and approach to make
model for economic success. It is seen that the country has a growing GDP of 4.1 percent
(Swedish Institute, 2018). The living standards of people is also considerably well because of
efficient regulatory performance and flexible market policies that improves and promotes
great flow of investment. Therefore, due to shifting of customers to high living standards,
Mormor Magda is a new establishment in 2011 has shown a considerable grown even in few
years. The country is trying to prevent long-term unemployment by promoting training
programs to the people who needs it (Swedish Institute, 2018).
Social factors
The country is considered one of the best equal maintaining standards of living around the
world. The coefficient of income inequalities remains low. It has also been reported that
labour market conditions is better enough when as compared to southern Europe. This
country has a strong and well-developed social support for the families (Giacalone et al.,
2016). A choice towards vegetarian food lifestyle can affect the sales of dairy products. By
avoiding, the conservation of livestock can lead to loss of agricultural products. Therefore,
the company might not get fresh and reviving taste of natural cream, milk and other dairy
products when importing from other countries. Moreover, the culture of Sweden is dominated
and influenced by time control with straightforward communication (Kurnik, Krzyżyński,
Treder, Tretyn, and Tyburski, 2018).