Analyzing Mormor Magda's Success in the Swedish Market

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Assignment Copy 2_CRISTINA – BUSINESS ASSIGNMENT
Student’s Name:
Student’s ID:
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Executive Summary
Angela developed the ice cream company named Mormor Magda and it was boomed to success
within a short time span. The reasons of their success could be seen in the way they were making
use of their strengths and opportunities to enhance their business and meet with the expectations
of the customers. Moreover, the company looked to develop strategies to combat competition in
the Swedish market. The assignment highlights the techniques used by Mormor Magda to
innovate products for their customers. The description about their flexible packaging has been
outlined for understanding their ways to attract customers in the market.
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Table of Contents
Introduction......................................................................................................................................4
Main Body Analysis........................................................................................................................5
1) Analyzing the company’s external and internal environment.....................................................5
2) What are the core competences of the company and how they can sustain a competitive
advantage?.......................................................................................................................................8
3) What are your recommendations for the future expansion strategy of the company? Why?
Discuss.............................................................................................................................................9
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................11
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Introduction
Every business company is considered as a part of the specific business environment within
which the organization conducts its business. Various factors are constantly revolving around the
business and this is the main reason behind the unsmooth functioning of the entities. The purpose
of the assignment is to provide the learner with the acknowledgement regarding the business
environmental factors and the core competences of the specified organization. In this assignment
the organization that has been specified is “Mormor Magda’s Ice-Cream Company”. In this
report, the core competences of the organization will be evaluated along with the justification of
how they can sustain competitive advantage.
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Main Body Analysis
1) Analyzing the company’s external and internal environment
The Mormor Magda’s ice cream company is Sweden is considered performing remarkably well.
In order to analyse the performance of the company in a detailed manner, it is important to
understand the impact of different internal and external factors on the overall process of business
operations in the Swedish Market. For gaining a proper understanding of the internal and
external environment, SWOT and PESTLE analysis has been done below in a specific way:
SWOT Analysis of Mormor Magda’s Ice Cream Company
SWOT analysis helps to understand the different internal factors that are responsible for the
growth and development of the ice cream industry in Sweden. This section explains the
strengths, weaknesses, opportunities and threats for the company in the course of their business
operation.
Strengths Weaknesses
Innovative ideas: While working in the market
of Sweden, it is important for Mormor Magda
to ensure that they have enough ideas to
modify their products in the market so that
they can gain the attention of the customers
and increase their sales easily (euromonitor.com,
2019). Besides this, they should look to provide
unique products to their customers with
difference in flavours.
Location: The location of Mormor Magda’s ice
cream factory is important, as it allows them to
reach out to their customers easily. They can
market their products and increase their
generation of profit in the market.
Experience: It is important for Mormor Magda’s
ice cream company to have experience people for
proper management of the business operations. Due
to lack of experience, the company is unable to
meet with their business objectives at times. The
employees are not able to perform their job roles
and responsibilities in the workplace
(marketresearch.com, 2019).
Suppliers: Getting the right suppliers for the raw
materials is important for Mormor Magda else they
will not be able to develop their products in the
right manner.
Climatic Issues: The company should consider this
major weakness during their business operations.
Winter and rainy seasons have a negative impact on
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Customer satisfaction: Mormor Magda should
ensure that they are meeting with the level of
customer satisfaction in the market. This can
be achieved with the help of developing
products according to the requirements of the
customers. They look to provide ice creams to
the health conscious people that contains lower
amount of calories and fats.
The company should stay focused on their
areas of strengths, as it will allow their
business to grow in the Swedish market.
the sales of their products in the market.
Opportunities Threats
One of the major opportunities for Mormor
Magda’s ice cream company was seen in the way
they were able to manufacture nut free ice creams
for their customers. As a result, people having
issues or nut allergies were able to taste their ice
creams and cherish the flavour (fundedbyme.com,
2019).
Moreover, the company could develop their own
factory in Taberg. This allowed their business
functions to ease down largely. This helped their
business to enter the local as well as national news.
As a result, the company was able to publicise their
products and gain a strong customer base in the
market.
The major area of threat was competition from
the other ice cream companies that operated in
the same market. They need to develop their
brand image in such a manner that it appeals to
the customers in the market. Unilever is one of
the biggest competitors of Mormor Magda. They
have to develop strategies to combat with the
competitor’s strategy.
Table 1: SWOT Analysis of Mormor Magda
(Source: created by the learner)
PESTLE Analysis of Mormor Magda’s ice cream company
Factors Impacts
Political The Swedish government develops certain policies and legislations that
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should be followed by Mormor Magda so that they can ensure smooth business
operations. According to the Code of Federal Regulation, Title 21 that states about
the composition of ice creams should contain only 10% of milk fat and the amount
of solids should be less than 20% (Dcosta and McDonough, 2015).
Economical Mormor Magda should analyse the overall economic condition of the Swedish
market. The market has a well developed economy that is ideal for conducting
business. Therefore, Mormor Magda should be able to make use of the economic
development so that their ice cream business operates successfully.
Social The impact of social media can be seen in the blogs that were operated by
the owner of Mormor Magda. It helped to gain the reviews of individuals that
were reading the blog. As a result, it helped the business of Mormor Magda to
progress in the market. This allowed them to enter the local and national news that
helped them to gain popularity (Ho, 2014).
Technological The implementation of low temperature extrusion has allowed companies to
keep ice creams stable under -20 degree Celsius. This temperature can be
easily reached with the help of freeing the products for a certain period.
Besides this, with the help of homogenisation, the overall fat droplets in the
ice cream can be reduced and it helps to create product stability.
Legal The impact of the government regulation could be seen in the way it has
affected the business of Mormor Magda’s ice cream company. Besides this, the
Swedish government takes initiative to protect the company’s norms and policies so
that they can meet with their business objectives. This allows them to conduct their
business in a secured manner (Helms and Nixon, 2010).
Environmental The Swedish government has imposed on the ice cream companies that they
should look to ensure that the cleanliness of their environment is maintained.
Moreover, the customers are often on the search of cleaner products so that
it can be considered healthier for consumption.
Table 2: PESTLE Analysis of Mormor Magda
(Source: created by the learner)
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2) What are the core competences of the company and how they can sustain a competitive
advantage?
Core competences is defined as the organization’s unique potential and capability that it acquires
or gains from its owners or founders and these competences cannot be easily imitated or
replaced. These competences are the ones that provides the organization with various benefits
and opportunities in order to develop and provide value to its potential consumers in the specific
field of the operating industry. These core competences sometimes are also known as core
potential or distinctive capabilities.
The organization possesses various core and unique distinctive competences such as marketing
and promotions, quality, services provided to the retailers, consumers, and innovation in their
products. These core competences provide the organization with the potential to create or set
goals and objectives and to communicate them in support of the business’ vision and mission.
The innovative product launch by the organization i.e. their new ice cream product made from
specific organic ingredients turned the organization into an overnight success due to its quality
and taste. This resulted in a huge success, as Mormor Magda’s ice cream was the first leading
organization to launch a specific product like this and it would not be possible for other
organization to replicate the same product and launch it in the market. The marketing and
promotional strategies of the organization are very effective and efficient as since its
establishment, the organization has been able to maintain its presence on the social media sector
by posting various blogs and posts regarding their products and services. These marketing
strategies prompted various potential consumers to buy the products. It can be said that the
organization has been able to actively involve with its actual and potential consumers
(medium.com, 2015).
The core competences provide the business organization with the opportunity to deliver value to
its potential consumers and clients. The concept of quality defines dependability and
performance. The organization will be able to increase or sustain its competitive advantage by
pricing its products at a fair or cheap price in order to distribute it to every class or level of
consumer. The threats and weaknesses analyzed needs to be eliminated or avoided by the
organization in order to gain a competitive advantage and benefits. Mormor Magda’s ice cream
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needs to explore and discover market niches that the bigger competitors or entrants are not
pursuing up with in order to improve their market share (Starkenberg et al., 2013).
3) What are your recommendations for the future expansion strategy of the company?
Why? Discuss.
In the Sweden Ice-Cream industry, Unilever Sverige is known to be the leading company with a
market share of 43%. The most commonly utilized closure type in the Swedish market is known
to be the prize off as because the potential consumers of the market tend to prefer top-quality and
value for money products and services. The opportunity present in the market for the
organization’s investment tends to be a good one for the organization and improves it valuation
at a rapid rate. Some recommendations have also been recommended to the organization to help
them further expand their strategy (statista, 2019). The recommendations are as follows:
 The organization needs to change its business system in a structured or organized way in
order to deal with the intense competition rising in the market due to the penetration of the
new entrants into the market. Along with the rising competition, comes the problem of
changing market situations and circumstances that pose as an obstacle in the way of the
organization’s business. The organization also needs to redesign or innovate its production
facilities.
 A business organization is just concerned about its productivity and profitability. Despite all
this, consumers also play an important role in the success of an organization. The ice-cream
organization also needs to acknowledge this concern point in order to deliver appropriate and
exceptional services to the retailers and consumers. Mormor Magda’s ice cream company’s
ambition is to increase its level of distribution system to over 200 food stores or outlets
(Marshall et al., 2013).
 During the recent years, the preferences and demands of the Swedish consumers have
changed a lot due to them being more health and environment conscious regarding products
and services. This is the reason many organizations are adopting the methods of different
packaging systems to address the demands of the consumers. Mormor Magda’s ice cream
needs to adopt different packaging methods and systems such as flexible packaging.
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Conclusion
In this assignment with reference to the organization “Mormor Magda’s ice cream”, the purpose
of the report was to provide the learner with the understanding regarding the marketing strategies
and operative business of the specified organization. In this report, it can be concluded that the
organization is on the way of attaining international success by adopting different business
methods and techniques to satisfy its potential consumers. In this report, the core competences of
the organization have been illustrated along with the explanation of how the organization will be
able to sustain its competitive advantage over its rivals. The different micro and macro factors
revolving around the business environment have also been analyzed and evaluated.
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Reference List
medium.com (2015). Mormor Magdas Ice Cream success story – FundedByMe – Medium.
[online] Available at: https://medium.com/fundedbyme/mormor-magdas-ice-cream-success-
story-925a2ae4e8e2 [Accessed 16 Jan. 2019].
Starkenberg, M., Åman, J. and Magnusson, K., 2013. Customer Engagement & Loyalty
Cultivation Through Social Media: A Small Business Perspective.
statista (2019). Ice Cream - Sweden | Statista Market Forecast. [online] Statista. Available at:
https://www.statista.com/outlook/40100400/154/ice-cream/sweden [Accessed 16 Jan. 2019].
Dcosta, A. and McDonough, M., 2015. Components of a PESTLE Analysis.
euromonitor.com (2019). Ice Cream and Frozen Desserts in Sweden . [online] Euromonitor.com.
Available at: https://www.euromonitor.com/ice-cream-and-frozen-desserts-in-sweden/report
[Accessed 16 Jan. 2019].
fundedbyme.com. (2019). Mormor Magdas Glass / Mormor Magdas Ice Cream. [online]
Available at: https://www.fundedbyme.com/en/campaign/5367/mormor-magda-ice-cream/
[Accessed 16 Jan. 2019].
Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management, 3(3), pp.215-251.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.
marketresearch.com. (2019). Country Analysis Report: Sweden, In-depth PESTLE Insights.
[online] Available at: https://www.marketresearch.com/MarketLine-v3883/Country-Sweden-
PESTLE-Insights-9884796/ [Accessed 16 Jan. 2019].
Marshall, R.T., Goff, H.D. and Hartel, R.W., 2012. Ice cream. Springer.
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