Business Strategy: Analysis of KLARNA's Pestle, SWOT, and VRIO

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Pestel of KLARNA ..........................................................................................................3
P2Study of internal environment and capacity of a organisation using SWOT analyses......6
P3 Porter's five force analysis..............................................................................................10
P4 Theory which help in strategic planing ..........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
This report consider KLARNA as main focused company. KLARNA is a Swedish online
financing bank which provides finance to its customers. It was founded 2005 by Sebastian
Siemiatkowski, Niklas Adalberth and Victor Jacobsson. In the end of 2007, venture capital firm
Investment AB Öresund invested in the company. Three years later, KLARNA started selling
their services in Norway, Denmark and Finland It provides finance in the way of customer
services which are for online store fronts, direct payments, post purchase payments and more.
These all are the primary function of this bank.
Business strategies is a set of tools which a firm use to run there business for achievement
of their goals and objectives. These are the strategies which help business in managing its
resources accordingly for attainment of profitably in organisation. This also aid firm in choosing
proper tools and techniques by which it can bring smoothness in work and establishment of
better coordination in different departments(Bentley-Goode, Omer and Twedt, 2019). By using
good strategy firm can get competitive advantage in dynamic business environment and can
establish good image of firm in market.
In this report the business strategies of this firm is analyse that what type of tools this
firm use to survive and grow in business environment. This report is consist of different
frameworks which will help firm in analyses the market factors which can influences its
functioning these are PESTLE, SWOT and VRIO. Porter's Five Forces is also used here for
analysing competition in environment.
KLARNA bank has devised a strategic administration plan to communicate the new business
development strategy to its stakeholders, as follows:-
Aim: To bring smoothness in online shopping.
Vision: To become largest banking institution with highest number of customer and
assets.
Mission statement: To offer high quality services with with fulfilment of needs of
customers with there growth.
Goals and Objectives: To regulate the flow of money in the organisation and to decrease
in number of non performing assets.
Strategies: KLARNA will use market penetration to significantly enhance the sales and
profitability within domestic market.

P1 Pestle of KLARNA
What is pestle analysis?
PESTEL analysis is that tool which a firm use to analyse the external market forces
which have direct impact on firm business and profit earning ability. In this the external factors
impact on business will be studied and these factors are political, economic, social,
technological, environmental and legal factors.
Pestle analysis of KLARNA
Political: These factors are those factors which are related with the political environment of an
country in which an organisation is working these factors have an direct impact on organisation
business and that's what happened to KLARNA.
Free trade: Free trade is now an emerging concept in today environment as many country
are now shifting towards free trade agreements like US & China , India & China , and many
others (Brandenburger and Stuart Jr, 1996). Free trade will influence customer to buy more
which will help KLARNA in promoting its services like EMI and other because of increase
demand.
BREXIT: BREXIT is the decision of UK to leave the European Union. this political unrest have
its major effects on KLARNA, as after BREXIT there may be arise of conflicts between UK
and European union because of lack of trade agreements and restriction on free trade which will
lead in decrees in sale of customers and also impact on negative on firm as cost of their services
increase (HunTer, 2016).
Economic: The external environment factors that affect an organization more is
economic factors. They have direct effect on organisation gain in long and short run .
Exchange rates: exchange rates in economy have their outstanding impact on firm. As it
work as biggest economic factor which have direct impact on KLARNA performance. This is
because bank is working in different nations and there is different rates of exchange which
fluctuate on daily basis as high fluctuation can cause loss to firm (Chang, 2016).
Social: Social factors are those factors which consist social values, cultural practices,
morals and obligation of organisation towards the society in which company operates. This
environment factor have its impact on thinking of organisation (Chi, Zhao and Li, 2016),.