Organizational Strategy Analysis

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.

Organizational Strategy -
Marmor magds's ice-cream
company analyse

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
recommendations are provided that are based on future expansion (Taylor, Doherty and
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: Mormor Magda's ice-cream company, delivers over 500ml ice-cream
packages to over 700 food stores in Sweden which is one of its strengths as it has enabled them
in increasing its customer's base. Thus, company has provided opportunity of becoming
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
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successful web-designers and art directors company extended its board members which
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
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important for Mormor 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 is Value
chain was 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 by Mormor 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 of Mormor 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
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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
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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. As a result, company is having increased sales and
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.
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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. Branding as urban collective strategy-making: The formation of
NewcastleGateshead’s organisational identity. Urban Studies. 51(4). pp.727-743.
Cserháti, G. and Szabó, L., 2014. The relationship between success criteria and success factors in
organisational event projects. International Journal of Project Management. 32(4).
pp.613-624.
Schlosberg, M. D., 2014. Networks and mobile arrangements: Organisational innovation in the
US environmental justice movement. In Environmental Movements (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.
Díaz-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.
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