Importance of Business Strategy in Starling Bank

Business Strategy

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1 ................................................................................................................................................3
P1 Use appropriate frameworks and analyse the impact & influence of macro environment.........3
M1 Evaluate the macro environment to determine and inform strategic management decisions . .5
TASK 2.................................................................................................................................................5
P2 Examine internal environment and capabilities of give enterprise............................................5
M2 Discuss internal environment to assess strength & weakness of firm internal capabilities,
structure and skill set ......................................................................................................................8
TASK 3 ................................................................................................................................................8
P3 Critically apply the Porter Five Force model and evaluate competitive forces .........................8
M3 Devise correct strategies to improve competitive edge and market position based on
outcomes .......................................................................................................................................10
TASK 4 ..............................................................................................................................................11
P4 Use range of theories, concepts and models and interpret and devise strategic planning for
firm ................................................................................................................................................11
M4 Develop a strategic management plan that has tangible and tactical strategical priorities and
objectives ......................................................................................................................................12
D1 Critique and interpret information and data applying environmental and competitive analysis
to produce a set of valid strategic directions, objectives and tactical actions................................13
CONCLUSION .................................................................................................................................14
REFERENCES...................................................................................................................................15
Books & Journal: ..........................................................................................................................15

INTRODUCTION
In this contemporary business environment, strategy is important without which is it is not
easy to achieve goals as well as objectives (Banker, 2018). Business strategy is to be defined as set
of actions or tactics that are used to achieve competitive advantage. Main aim of this report is to
critically understand the importance of business strategy in organisation. Starling Bank, a digital
challenger bank located in United Kingdom. It was founded by Anne Boden in January, 2014. The
bank also has its mobile application on both iOS and Android phones. Bank has also received a Best
British Bank Awards in 2018, 2019 and 2020. This report consists of influence of macro
environment, PESTEL analysis, SWOT, VRIO analysis, internal environment, Porter Five Forces,
range of theories and concepts.
TASK 1
P1 Use appropriate frameworks and analyse the impact & influence of macro environment
In business, it is essential to focus on environment so that it is easy to achieve competitive
advantages. In this flexibility of market, it is necessary to have relevant information regrading
changing market so that decisions are undertaken in proper manner (Christodoulou, 2020). Starling
Bank is British well known bank and it is too affected by macro environment at wider scale. So,
PESTEL analysis is used to examine the macro environment. It is further discussed as follows-
PESTEL analysis
It is framework which is used to determine the external factors that impact on overall
organisational structure. This is a time consuming process as because relevant information is
needed and correct type of market research analysis. It consists of several elements which are to be
considered and are mentioned as follows-

Political factors
It is component in which it focuses on factors like foreign trade policy, political stability
and instability, corruption etc. This reflects about intervention of government within economy. In
relevance of Starling Bank, due to impact of Brexit, it is postponing the expansion of Europe. This
makes it is difficult for bank to explore new opportunities or expand business in other countries.
Economic factor
This is another factor in which it focuses on elements such as inflation and deflation rate,
disposable income of consumers, etc. In context of chosen bank, due to impact of COVID 19, there
has been a decline in growth rate of economy. This limits the potential ability of firm at larger level.
The impact of economic factor is wider as well as broader which affects all banks activities (Çitilci,
2020).
Social factor
It is element which states the behaviour, attitude, taste or disposable income of customers.
With changing period of time, every has become dependent on digital transformation. With social
element, a trust and security has build up between customers as well as bank. Social factors are
critically to be consider so that it is easier for Starling Bank to access the change needs of customers
or individual towards banking industry (Cohn, 2017).
Technological
This is a factor which comprises of use of artificial intelligence, advanced software and
hardware etc. In context of Starling Bank, they have they have high intelligence and
Illustration 1: PESTEL Analysis
Source: What is a PESTEL analysis, 2020