Magnum is an ice cream manufacturing British multinational company. Unilever and Heartbrand founded and produced the ice cream brand in 1988. The ice cream company is operating its business in various countries across the globe. Today, we’ll discuss the PESTLE analysis of Magnum Ice Cream; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Magnum Ice Cream
Some of the main political factors in the Magnum Ice Cream PESTLE analysis are as follows;
I-Government Regulations
Government regulations and policies for food and health safety are very strict and tight for food processing companies like Magnum Ice Cream. They focus on areas like consumer protection laws, health and food safety laws, labor laws, labeling and packaging laws, ingredient disclosure, and others. However, the objective of strict government laws and regulations is to ensure the health and safety of ordinary consumers.
II-Trade Policies
Magnum Ice Cream is operating its business in various countries across the globe. The health and food safety regulations of different countries and markets are variable, Magnum Ice Cream should be familiar with the laws of various countries. For instance, if a country doesn’t have good terms with the British government, they would impose strict regulations to reduce the trade with them, and it reduces the sale of the brand.
III-Political Stability
The stable political environment of the country plays a key role in the growth of businesses and companies. Magnum Ice Cream procures raw ingredients and materials from various countries. However, when there is political instability, roadblocks, and processions; then it disrupts the flow of material and goods reaching the production and manufacturing facilities.
Economical Factors Affecting Magnum Ice Cream
Some of the main economic factors in the Magnum Ice Cream PESTLE analysis are as follows;
I-Economic Growth
The economic growth of the country directly impacts retail sales and Magnum Ice Cream’s business growth. It is significant to mention here that ice cream is a seasonal luxury item and it is not necessary to survive and be alive. However, people would only buy a luxury food item, when they have sufficient disposable income and it would only happen with the country’s stable economy.
II-Currency Exchange Rate
Magnum Ice Cream is operating its business in various countries in multiple currencies. The currency exchange rate market is highly unstable and it keeps fluctuating regularly due to multiple economic and political factors. A small change in currency exchange rate would increase the operational costs and expenses of the company.
III-Expensive Raw Material
The cost of raw ingredients and materials for ice cream production has increased significantly in recent years. It is due to increasing oil prices, trade tariffs, high labor costs, material sourcing costs, import and export taxes, and others. Collectively, they all have increased the operational cost and ultimately impacted the retail price of the final product.
Social Factors Impacting Magnum Ice Cream
Some of the main social factors in the Magnum Ice Cream PESTEL analysis are as follows;
I-Changing Customer Market Trends
The customer market trends are highly unstable and they keep fluctuating in every season. Magnum Ice Cream should conduct thorough market research and become familiar with the flavor taste of the customer’s market. It allows them to offer the most relevant and suitable flavor and taste to the customers based on their needs and wishes.
II-Healthy Food
The consumer market has become highly cautious about their food and diet and they want low-sugar food items. Magnum Ice Cream should produce low-sugar and low calories ice cream to health and diet-conscious customers. It allows the ice cream brand to amplify its customer market reach; network and sales by satisfying the needs and demands of customers.
III-Seasonal Demand
Ice cream is a seasonal product and its demand increases in the summer and reduces in the winter. Magnum Ice Cream needs to amplify its product portfolio and offer some products and items during the winter season. Portfolio diversity would help the company to reduce the risk factor.
Technological Factors Affecting Magnum Ice Cream
Some of the main technological factors in the Magnum Ice Cream PESTEL analysis are as follows;
I-Automation Technology
Magnum Ice Cream has invested a significant amount of capital resources in the latest advanced automation technology. It allows them to smoothly and efficiently perform their supply chain, material sourcing, distribution, warehousing, and inventory management production and manufacturing processes on time without any delays and disruption.
II-Advanced Technology
Magnum Ice Cream is investing a significant amount of capital resources in the latest and advanced technology like AI, ML, and automation technology. It helps them to efficiently perform their operations with limited wastage of resources.
III-Data Analytics
Magnum Ice Cream employs data analytical technology to manage the customer database. It allows the company to accurately predict the customer demand in the upcoming and produce the ice cream in the right quantity. However, it helps the company to avoid stock out and overstocking issues.
Legal Factors Impacting Magnum Ice Cream
Some of the main legal factors in the Magnum Ice Cream PESTEL analysis are as follows;
Regulatory Compliance
Magnum Ice Cream should comply with the government regulations and policies of various countries. They comprise labor laws, health and food safety laws, consumer protection laws, labeling and packing, ingredient disclosure laws, and others. Regulatory compliance would help them to smoothly perform their operations on time without any delays and disruption.
Environmental Factors Affecting Magnum Ice Cream
Some of the main environmental factors in the Magnum Ice Cream PESTEL analysis are as follows;
Sustainability Initiative
Magnum Ice Cream needs to make a strong commitment to environmental sustainability regulations. It comprises investing in biodegradable packaging, renewable sources of energy, and ethical sourcing of raw ingredients to reduce the carbon emission rate. However, it helps them to keep up with the growing environmental sustainability trends.
Conclusion: Magnum Ice Cream PESTLE Analysis |PESTEL Analysis of Magnum Ice Cream |External Environmental Analysis of Magnum Ice Cream | Strategic Analysis of Magnum Ice Cream
After an in-depth study of the pestle analysis of Magnum Ice Cream; we have realized that Magnum Ice Cream is the leading ice cream brand. If you are learning about the Magnum Ice Cream PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
