This report analyzes the organizational strategy of Marmor Magda's ice-cream company, a Swedish ice-cream producer. It examines the company's external and internal environment, identifies its core competencies, and provides recommendations for future expansion.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Organizational Strategy - Marmor magds's ice-cream company analyse
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents INTRODUCTION...........................................................................................................................1 Company’s external and internal environment...........................................................................1 Core competences of the company and their strategy for sustaining in a competitive advantage .....................................................................................................................................................3 Recommendations for the future expansion................................................................................4 CONCLUSION................................................................................................................................5 REFERENCES................................................................................................................................6 .........................................................................................................................................................6
INTRODUCTION In order to run a business there are certain factors that must be required to consider so that all he activities are performed in an effective manner.Mormor Magda’s ice cream company is taken in this report and according to the case study firm is Sweden based organisation and they sell ice-cream products to its customers. This report will include Marmor Magda's external and internal environment along with its core competences in order to know what strategies can be developed for sustaining competitive advantage in the market area. Therefore, on the basis of this recommendationsareprovidedthatarebasedonfutureexpansion(Taylor,Dohertyand McGraw, 2015). Company’s external and internal environment Mormor Magda’s ice cream company was established in the year 2010 by Angela Hafstrom and they started their business in Sweden is a small room with her husband, brother and two of her closest friends. Later in the year around 2011, Angela Hafstrom had a vertical take off and they opened their first factory in Taberg in 118 square-metre factory. While running a business there are many factors that puts an impact on business environment and this can be internal and external based on the nature of business. In order to know the factors that is putting some kind of impact on business environment SWOT and Value Chain both are taken as an example for having better understanding of the same. SWOT Analysis Strengths:MormorMagda'sice-creamcompany,deliversover500mlice-cream packages to over 700 food stores in Sweden which is one of its strengths as it has enabled them inincreasing itscustomer'sbase. Thus,company hasprovidedopportunity ofbecoming shareholder in own ice-cream factory with the help of fund by me campaign(Eason, 2014). Developing own blog and providing information related to the services and facilities provided assisted company in building better connections with customers for a longer period of time. Therefore, in few months turn-over of Mormor Magda's reached to approximately or more than SEK1mn(€95,000). Other than this, company's addition of waffle cone with ice-cream come out to be an effective thinking because without waffle cone business turnover was close to loss and revenue which was generated was halved in 2013 as compared with 2012. With the addition of 1
successfulweb-designersandartdirectorscompanyextendeditsboardmemberswhich furthermore assisted organisation in providing excellent services and facilities to its customers. Process of making ice-cream also makes the company different from others because their ice-cream contains lower amount of air which aid them in making ice-cream heavier from others. Thus, it results in better tasting ice-cream and gradually increases the value for money. Another activity that acted as a strength for the company is to work for Swedish employment agency and provided job opportunities to large number of people. Along with this,Mormor Magda's clear stand for the issues like sexuality and launching a rainbow ice-cream under social responsibility aid in enhancing reputation of the company(Grant and et. al., 2014). Weaknesses:With the change in the process of manufacturing ice-cream it has increases expenses because of which suppliers had to pay as per kilos. Other than this, during their initial year because of the lack of money company was not being able to perform well and it is considered as a weaknesses. In addition to this, while coming onto this business first owner or any of the employee was not knowing about how to make ice-cream along with this, how many workers are needed and what all resources are needed for the same. Because of the climate in Sweden this market is highly seasonal because of which company can face loss in other seasons. Opportunities:Mormor Magda company has many opportunities which they can grab from market environment. Company must not confined to making ice-cream but they can also try in confectionery. Firm can take help from web-designers and art directors for making decorative cakes and attracting large number of customers. This will help company in increasing their customer base in different sector as well. With the help of the funds collected from crowdfunding company can think of expanding its business in different areas. According to the case study provided Sweden comes under fifth per capita ice-cream consumption all over the world because approximately 100 millions litres in total ice-cream are consumed every year. Therefore, in other seasons company can think of delivering cakes and confectioneries for increasing sales and profitability in a speculated time frame. Threats:While operating business, company can face many threats which have to look after in order to run business in an effective manner(Pasquinelli, 2014). With the change in course of time there are many companies who are evolving as a new firm in the field of ice- cream. For instacnce:Ben & Jerrys, Haagen Daaz, multinational Unilever etc., because these companies are going head to head and giving tough fight to Mormor Magda. Therefore, it is 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
important forMormor Magda to make effective strategies and action plan on a continues basis in order to attract large number of customers. Another theory through which internal and external factors can be identified isValue chainwas developed by Michael Porter in the year around 1985 and with the help of this Mormor Magda’s ice cream company. This can be used byMormor Magda in order to know both internal and external factors. For example: inbound logistics which is an external element and has to looked after because if this is not appropriate than company can face issues in delivering excellent quality products under speculated time frame. Core competences of the company and their strategy for sustaining in a competitive advantage Mormor Magda's deliver products that are made from high quality ingredients because of which company is one of the leading ice-cream company in Sweden. This is popular because ice- cream is made up of fresh and pure cream(Cserháti and Szabó, 2014). Along with this, lowest content of air is making the product more tastier and unique as well. Company provides a variety of products such as Mormor Magdas Salta Karamell, Mormor magdas Glada Gubbar etc., As the company has become one of the leading firm thus, they have core competences. According to the case study provided Mormor Magda's has two of its core competences i.e. Ben & Jerrys and Haagen Daaz. But the largest competitor is multinational Unilever because company's turn over as per 2014 is more than€48.4 bn. Unilever contains a market share of around 47 percent in Swedish market. One of the famous and dominating dish is single-wrapped ice cream because this constitute 80 percent. Other than this, other brand who are competitors ofMormor Magda's is store brands such as SIA Glass which is a family owned company and constitute 20 percent of total market share. In order to sustain in the market area, company included different branding process “The ice-cream is not 'Home-made' – it is made in a factory” and it is no longer locally produced with the help of natural ingredients including straw-berries and cookie dough. Although packaging is same of all the product but Mormor Magda's has unique packaging and all the ingredients which are used in product are clearly stated on the packaging like strawberry, mint, chocolate, vanilla etc., Apart from this, as a strategy company expanded its range in the year 2015 and included eggs, nuts and preservative-free ice cream(Schlosberg, 2014). Crowdfunding helps firm in operating its business in an effective manner as it has enabled Mormor Magda's in delivering 3
high quality products. Along with this, company increased its distribution channel depending upon various locations. Therefore, with the help of effective marketing strategies Mormor Magda's is trying to sustain in the market for a longer period of time and making the company one of the leading firm in ice-cream sector. Recommendations for the future expansion Most of the companies work with the purpose of gaining maximum benefits from the services and facilities they are providing to its customers.Mormor Magda's, started this business because in Sweden there were small number of companies who used dairy-free ice cream which are entirely based on natural ingredients without any nuts in them. Company is operating its business in small area of Jonkoping but firm can now expand its business in other parts of the country as well(Drohomeretski and et. al., 2014). As with the change in course of time, new organisations are evolving with innovative ideas and establishing its business in order to sustain in the market for longer period of time. Therefore, it is crucial that Mormor Magda's think differently according to the needs and requirements of customers. There are some of the factors on which company can work are given below for better understanding: Developing a strategy and business plan:Every market has its own naunces and it depends upon economic, cultural, governmental and market conditions. Furthermore, it is crucial that company formulates strategies according to local environment. Therefore, Mormor Magda's can develop short, medium and long term goals. In addition to this, company should develop definite goals, objectives and success metrics. Business can think of formulating an annual budget which goes from top-down. Developing a Beachhead team:Formulating a team from a scratch can be risky and time consuming as well but Mormor Magda's after developing an effective team they can perform their activities in a better manner. Company can have a separate department for various kinds of actions such as finance, human resources etc., Product readiness:Mormor Magda's can identify product gap analysis and then on the basis of this certain steps and action can be taken. For this, company has to look out for external factors such as policies formulated by regulatory bodies so that effective strategies can be developed. In addition to this, Mormor Magda's should have a close attention to the products 4
required and which will be beneficial for increasing sales and profitability(Cacciolatti, and Lee, 2016). Therefore, these are some recommendations which company can follow for having better growth in business activities and they can deliver better services and facilities to its extended customers. CONCLUSION From the above report it has been concluded that both internal and external factor plays a crucial role in an organisation. For instance: having a different process of making ice-cream is making company unique in nature. Asa result, company is having increased salesand profitability in a speculated time frame. Other than this, core competences also helps a company in evaluating their performance and assist them in delivering best as compared its rival firms. Therefore, goals and objectives are developed and activities are performed for attaining the same in speculated time frame. 5
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
REFERENCES Books and Journals Taylor, T., Doherty, A. and McGraw, P., 2015.Managing people in sport organizations. Taylor & Francis. Eason, K. D., 2014.Information technology and organisational change. CRC Press. Grant and et. al., 2014.Contemporary strategic management: An Australasian perspective. John Wiley & Sons Australia, Ltd.. Pasquinelli,C.,2014.Brandingasurbancollectivestrategy-making:Theformationof NewcastleGateshead’s organisational identity.Urban Studies.51(4). pp.727-743. Cserháti, G. and SzabĂł, L., 2014. The relationship between success criteria and success factors in organisationaleventprojects.InternationalJournalofProjectManagement.32(4). pp.613-624. Schlosberg, M. D., 2014. Networks and mobile arrangements: Organisational innovation in the USenvironmentaljusticemovement.InEnvironmentalMovements(pp.128-154). Routledge. Drohomeretski and et. al., 2014. Lean, Six Sigma and Lean Six Sigma: an analysis based on operations strategy.International Journal of Production Research.52(3). pp.804-824. Cacciolatti, L. and Lee, S. H., 2016. Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power.Journal of Business Research.69(12). pp.5597-5610. Gotze, U., Northcott, D. and Schuster, P., 2016.INVESTMENT APPRAISAL. SPRINGER- VERLAG BERLIN AN. DĂaz-Fernández and et. al., 2014. A contingent approach to the role of human capital and competencies on firm strategy.BRQ Business Research Quarterly.17(3). pp.205-222. Hernaus and et. al., 2016. How to go from strategy to results? Institutionalising BPM governance within organisations.Business Process Management Journal.22(1). pp.173-195. Knight, J., 2014.Strategic planning for school managers. Routledge. 6