Q1 (7 points)

We enclose a case where the success of Mormor Magda is discussed. Please

use this case and relevant articles to discuss if and how MM Magda is an
entrepreneurial company.

Mormor Magda is a fantastic illustration of the characteristics of an entrepreneur since she

possesses an enterprising spirit. She serves as a wonderful model. Angela Hafstrom is the one
who came up with the idea for the ice cream that would eventually be referred to as Mormor
Magda. Angela Hafstrom is the one who first conceived the basic idea for the ice cream.
Even though she worked as a highly educated information officer at one time in her life, she
has always had a strong interest in the culinary arts. It has been one of her primary areas of
interest throughout her life. In a previous iteration of herself, she worked in the field of
information management at one point. When she started her maternity leave in the spring of
2010, she was already jobless since there were so few information positions available then.
This happened as a result of the fact that there were so few possibilities to get information
that was accessible. This is because she decided to take a leave of absence in response to the
restricted number of job opportunities. She divulged the information that she was going to
become a mother shortly. Because she chose to start making ice cream, this might be
considered the first step on a person's "professional path," as this is how it is often referred to
in the business world. Every business that enters a certain market does so to accomplish a
detailed list of objectives. A sizeable chunk of that business's overall success is contingent on
the strategies it implements to accomplish those goals. A company's strategy is made up of all
of the decisions and plans that it has devised to get it one step closer to achieving the
objectives it has set for itself. The entire business plan of a corporation is comprised of the
choices and plans that have been made. The strategy comprises many decisions and plans that
have been chosen and implemented. As soon as Angela saw that none of Sweden's ice cream
makers could match the level of quality supplied by their overseas rivals, she chose to start
her ice cream production firm. Angela named her company Angela's Ice Cream
Manufacturing. Angela's new enterprise will be known as Angela's Ice Cream Factory since
this is the name she has decided to give it. Her vigor and brilliance are shown by the fact that
Mormor Magda has accomplished such a high degree of success. There was a spike in the
number of consumers interested in purchasing frozen desserts between March and August.
This increase may be attributed to the warmer weather. Because of this, the southern region

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of the United States, which is home to most of the ice cream manufacturing business, has a
particularly prosperous time of the year. Angela's primary objective was to establish herself
as the industry standard within the ice cream company while simultaneously satisfying the
requirements of her customers for the highest possible product quality in the items she
provided them. She wanted to accomplish both of these objectives simultaneously. She
ensured that she would succeed by coming up with many novel approaches, carrying out a
significant amount of research on the industry, and meticulously organizing her strategy to
achieve her goals. As a direct result of this, she achieved a lot of success. She began by using
the strategy of starting a blog and gaining attention for it through a variety of social media
networks, including Facebook and Instagram. This was her first step. After that, she
established a humble manufacturing factory to produce ice creams, which she then made
available for sale to a diverse array of customers. Because of the attention given to her by the
blog, she could sell all of her ice creams in only two days. Her success may be attributed to
the blog. She was able to turn a profit as a consequence of this fact. When she finally opened
the store doors to the general public, over 650 people were waiting in line to purchase her
items on the first day she was open for business. She started selling her homemade ice cream
to local businesses so that everyone, regardless of their financial situation, would have an
easier time purchasing it. Her goal was to make it accessible to as many people as possible.
Her objective was to make it available to the greatest number of people feasible. We were
able to sell a substantial amount of items because we could price the ice cream at a place
where it was within the financial capabilities of the great majority of our consumers. As a
result of this, we were successful in setting the price of the ice cream. In addition, she was
very successful when marketing her ice cream by presenting it to customers in waffle cones,
which she then proceeded to sell to end users. Her use of this marketing technique was quite
fruitful for her business. This played a part in her total success and helped to her victories.
Thus it can be said that it had an impact on both. When the Mormor Magda firm decided to
grow, they quickly became aware that they needed more freezers to stock in the
neighbourhood stores. This was one of the factors that led to the decision. The contributions
of the corporation's stockholders, who were responsible for providing the company with
financial resources, made the expansion of the business feasible. In addition, the use of social
media by Mormor Magda had a huge role in her ascent to notoriety, which added greatly to
her renown. Because of the shenanigans she has been involved in, she has been asked to
make an appearance on a program shown on Swedish television. This is a direct result of the
shenanigans that she has been involved in. The efforts put into developing this advertising
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campaign resulted, to a large degree, in the audience that was being targeted for this
campaign developing a favorable view of the brand that was being promoted by these efforts.
Differentiating the items it was going to sell from those being supplied by rivals like Mormor
Magda allowed the business to come closer to accomplishing the objectives it had set for
itself. Because of this distinction, the firm could also separate the items it would market from
those provided by rivals like Mormor Magda. In addition, the company was in charge of
creating one-of-a-kind flavours and dairy-free ice creams created entirely out of natural
ingredients. Both of these responsibilities fell within their purview. They put a lot of
consideration into the product's branding and packaging because they know that the success
of a product in the market is dependent, to an equal degree, on both of these parts of the
product. This causes them to give a lot of thought to both components of the product.
Because it was one of the phrases provided, the term "darproducerad" is an excellent sample
of this sort of example. This is because it was one of the phrases that were provided.
According to the exact translation of the word, "all that has been created there" is one
possible interpretation of what it means to use this term. In addition, there is a fantastic
illustration of the duty one has toward the community one inhabits. Compared to the
production of other materials, the fabrication of mormor requires a much smaller amount of
air. The ice cream created by Magda's has a very distinctive texture compared to the ice
cream that other companies produce. This is because Magda uses a special recipe. As a direct
consequence, it has a more robust flavor and provides more bang for the buck in terms of its
overall value. When products are sold by kilo, the production costs go up because of the type
of packaging used. This is an unfavourable aspect of the business practice that involves
selling products because it increases the expenses incurred during the manufacturing process.
The company provided pricing that was the most competitive in the market, even though their
ice cream was better than their competitors. On the other side, this suggested that the
company was not bringing in substantial money. They cautiously approached delicate
subjects, such as sexuality, and came up with an original flavor of ice cream that tasted like a
rainbow in a cone. When items were purchased in larger quantities or from a shop that
specialized in that kind of product rather than from a general merchant, the prices of those
products were reduced, resulting in cost savings due to the decreased cost of the products. If
you purchase the item from a store, you will be required to pay a steep price for it; on the
other hand, if you get it from the manufacturer in question, you will be able to do so at a cost
that is far more reasonable. If you decide to purchase the good from a retailer, you should be
prepared to spend a significant amount on them. An essential component that played a role in
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the company's success in the ice cream industry throughout its existence as a business was the
fact that it implemented these strategies consistently throughout its business history. This was
one of the primary factors contributing to the company's accomplishments in this industry.
These approaches were employed regularly from the first day the firm opened its doors until
the last day they were active. On the very first day, the organization started opening its doors.

Q1b (7 points)

We enclose a case where the success of Mormor Magda is discussed. Please

use this case and relevant articles to discuss MM Magda's startup process.
Is it lean, following causation or effectuation?

MM Magda's startup process is lean effectuation. Effectuation may be seen as the antithesis
of causation in several contexts. Instead of centring on an enterprise's ultimate purpose and
the resources that need to be allocated to realize it, this "means-driven logic" looks inward at
the assets already at hand. The opposite view is that effectuation is "a process that accepts a
set of methods as provided and concentrates on choosing amongst different effects that might
be achieved with that set of means." Smaller, more entrepreneurial businesses with fewer
resources and more volatile settings are more likely to use effectual reasoning. Partnerships
are a common strategy for smaller businesses because they allow them to use the help of
larger competitors. The network's size and make-up change as the company develops and
expands.

Angela Hafstrom is responsible for creating Mormor Magda, a flavour of ice cream. Angela
Hafstrom created the original concept for ice cream. She formerly held the position of highly
educated information officer, but her true passion has always been the culinary arts. It has
been one of her key areas of interest throughout her life. Angela Hafström had no job to
return to following her 2010 third-child maternity leave. She had marketing and PR
experience and liked food and cooking, so she searched for a new career. Jönköping's
shortage of available jobs made job hunting tedious (a city of around 130 000 people). She
realized at home that no Swedish ice cream could compete with Ben & Jerry's. When Angela
presented him with a business concept a few days later, her husband felt he had to support her
or face a divorce. Angela, two of their best friends, and Angela's brother in Stockholm (a
successful entrepreneur) immediately began organizing this new business. Angela cold-called
market experts. A hunch led to a phone call in Jönköping, home to one of Sweden's

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wealthiest food magnates. He shocked her by spending an hour explaining the ice cream
business. He suggested she couldn't succeed since logistics was necessary. She'll sell her ice
cream in his stores if she's successful. He still sells Mormor Magda's frosty sweets after seven
years. Angela's wish came true in 2011 in Taberg, a village south of Jönköping. The 118-
square-meter factory opened successfully. Angela's blog and other endeavours attracted
national and local attention, resulting in a queue of 650 people at the factory's grand opening.
But the success caused problems. Ice cream sold out in two days. Angela and her husband
closed the factory on a Friday night, put their three children to bed, and worked on an ice
cream recipe until 4 a.m. They resumed offering handmade ice cream on Saturday.

In autumn 2011, the factory's revenues had levelled out, a few workers were hired, and ice
cream was supplied. Soon, a large quantity was frozen, permitting distribution within a three-
hour drive of Stockholm. Angela wanted to see Stockholm. It's like going home since my
brother lives there. If you wish to mainstream success, be there. Social media showed that
many Stockholmers wanted Mormor Magda's ice cream. Angela interacted with clients on
Facebook, Instagram, and her blog. Her goal was to post on Facebook/Instagram three to five
times weekly to promote the ice cream and build customer connections. In 2012, she tasted
waffle cone ice cream. A Jönköping booth generated about $95,000 in a few months. Her
sales were good, but her profit would have been slight if she had paid conventional
remuneration. As with other entrepreneurs, she poured hours into the firm. The company's
2012 annual report noted this trend and suggested that franchising may be a better
distribution route in the future. The ice cream store was doing well, although slowly. It didn't
take long for the board to grasp that to develop, and the firm wanted access to additional
financing. More advertising and branded refrigerators at grocery stores were top priorities.
Branded refrigerators promote a company and prevent space conflict in grocery stores. Then,
crowdsourcing was advocated to fund these activities. Angela, an Entrepreneur writer, writes
about a dilemma many startups face. The editor suggested I contact Daniel Daboczy, who
founded Fundedbyme. Backers may donate money for a firm share via equity crowdfunding.
In the campaign's first two weeks, 33 people gave, but that number declined. Investors poured
in just before the campaign ended (98 in the final two weeks). Angela was initially sceptical
about the team's possibilities, but she's happy to say they succeeded. The campaign collected
1.4 million Swedish crowns by April 2015. Mormor Magda now has 142 stockholders, each
with a 20 per cent ownership. Most invested between 2,000 and 10,000 Swedish crowns
(€220 and €1200). A local investor with financial controller expertise requested a board

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position, bringing the total to six. Angela believes that the investment prospectus depicted
ownership as "doing something fascinating and unusual" Angela chose to crowdfund because
she thought she could transform investors into brand champions. The great majority of the
crowdfunding campaign's investors were first-timers. Crowdfunding investors frequently
support others' endeavours. Equity crowdfunding is investing in a local firm for a return.
Angela and Micael Hafström initially owned 50% of the company, but 148 individuals
acquired a share after the crowdfunding effort. Angela regarded these investors as brand
"ambassadors," but this became negative when profits declined. The company produced
250,000 half-litre packages in 2015, earning 6.5-7 MSEK (€750 000). The company
struggled with promotion and distribution. Angela Hafström's company made news in 2015
for innovative goods. This time, they created a nut-free, dairy-free, all-natural ice cream.
Their innovation inspired several firms in Sweden. 2015 was an expensive year. 2.3 MSEK in
revenue was up 35% from 2014 but still below-installed capacity and estimated
crowdfunding potential of 5.5-5.8 MSEK. Losses climbed from 1 MSEK to 1.35 MSEK
(EBIT). Angela's maternity leaves undoubtedly affected events, along with the enormous
expenditures. According to the 2015 annual report, the firm required more money to boost
sales and distribution following late 2015 sales of new dairy products. 2016 sales grew 70%
to 3.9 MSEK. New dairy-free alternatives drove this change. 2016 losses fell to 0.8 MSEK.
The company's financial woes persisted despite attempts to build partnerships, notably in
distribution and logistics. Angela's drive to battle diminished after a Christmas 2016 accident
ruined the company truck and no funders funded growth. In April 2017, ExoTech expressed
interest in acquiring Mormor Magda for 1.35MSEK as an asset and combining it with storage
ice cream. The proposed deal sought to boost ExoTech's dairy-free position. ExoTech
ultimately backed out of its acquisition of Mormor Magda, saying, "the integration process
has revealed the manufacturing (and distribution) synergies are more difficult to materialize
than planned". Some crowdfunding contributors were disappointed with Mormor Magda's
financial uncertainty and purchase. They had been Mormor Magda brand supporters, but the
public didn't like their unexpected about-face. Due to a lack of information, internet users
expressed anxiety.