Impact of Macro Environment on Klarna and its Strategies

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1) Discuss suitable framework to examine impact of macro environment on Klarna and its
strategies......................................................................................................................................1
LO 2.................................................................................................................................................5
P2) Examine internal environment and capabilities of Klarna adopting suitable methods. .....5
LO 3.................................................................................................................................................7
P3) Discuss Porter's Five Force Model to examine competitive forces......................................7
LO 4.................................................................................................................................................9
P4) Use appropriate range of theories, concepts and models to devise strategic plan................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business core task is to frame strategies so to remain competitive in the market. Top level
management is able to cope up with the rivalry challenges with the help of effective tactics
which are designed by them (Amran and Hashim, 2016). Before formulating the strategies it is
very essential to study the external environment so that chances of failure is reduced to a large
extent. Klarna is undertaken to complete project in the specified time duration. It came into
existence in the year 2005 and this leading organization is located in Stockholm, Sweden. In
Europe it is the largest bank and is well known among customers for providing easy payment
solution to 80 million customers across 17 countries. On the other hand this successful company
is providing various services like, pay after delivery options, direct payments, instalment plans in
smooth one-click purchase experience which helps client to pay their amount at any time they
feel free. Here, this report covers, influence of macro environment on klarna and its strategies.
Porter's Five Force model is studied in order to understand competitive forces of a given market.
Numerous theories and concepts are determined in order to devise strategic planning for klarna.
LO 1
P1) Discuss suitable framework to examine impact of macro environment on Klarna and its
strategies.
Introduction of Klarna
Klarna was founded in the year 2005 in in Stockholm, Sweden. When organization
acquired SOFORT Klarna Group was formed. It is providing its payment services to 80 million
customers across the globe in around 17 countries (About company,2020). Along with this there
are 190, 000 merchants who are working hard day and night to meet the set goals and objectives
in the specified time duration (Anwar and Hasnu, 2016). The main vision of the organization is
to make payment mode simple, safe and smooth as much as possible. On the other hand their
objective is to make online shopping easier. This report is all about business strategy and how it
gets impacted by macro environment factors. Porter's five force are studied in-depth in order to
make improvements in the loop holes. Ansoff matrix is ascertained in order to select the best
strategies from the pool of tactics. Business strategy refers to as actions plan which business
associates adopts in order to attract large targeted customers base for the goods and services. It is
1

a roadmap that leads in accomplishment of desired goals in the specified time duration
(Definition of Business Strategy, 2020).
Macro environment is explained as set of uncontrollable factors which influence business
day to day working either positively or negatively (Burlton, 2015). In the competitive era
organization can grow and flourish then they are able to cope with the external forces. Macro
factors includes, political factor, economical factor, Social factor, technological factor,
environmental factor and legal factor. All this uncontrollable factor are illustrated as under:
Political factor: Fiscal and monetary policies, taxation system, trade restrictions and
many more are involved in political factor. Klarna before expanding its services in other nation
need to better understand the political factor of that particular nation so that the service of easy
payment can be offered to the customers easily. UK political condition is stable in nature so as
well as general public welcomes are seeking for more innovation in the existing goods and
services. Moreover, Brexit cause many instability and uncertainty in UK so Klarna need to
design effective tactics in such a way that services easy payment mode services does not get
affected (Cubas‐Díaz and Martinez Sedano, 2018). Additionally, governing bodies are
supporting the companies dealing online so that safe and secure payment mode can be offered to
the customers.
2