Impact of Macro Environment on Klarna's Strategies

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1................................................................................................................................................3
P1. Impact of the macro environment on a given organisation and its strategies..................3
LO 2................................................................................................................................................6
P2 Scrutinize internal environment along with capabilities of Klarna by making use of
appropriate frameworks..........................................................................................................6
LO 3..............................................................................................................................................10
P3 Evaluate competitive forces by making use of Porter’s Five Force model.....................10
LO 4..............................................................................................................................................11
P4 Strategic planning for Klarna..........................................................................................11
CONCLUSION.............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The course of action which is being devised by firm with a view for gaining a
competitive edge within the market is referred to as business strategy. Basically, it furnishes
route map which is being undertaken by organisation for reaching their objectives and goals in
stipulated time frame. Corporate strategies furnish assistance to firms around globe by
enhancing market shares by making use opportunities rendered by business environment. It is
aggregation of decisions taken as well as actions carried out for accomplishment of goals for
securing competitive edge within the market (Business Strategy: Definition, Levels,
Components & Examples, 2020).
This report is based on Klarna which was established in 2005 and is one of the largest
banks of UK by rendering payment solutions to around 80 million customers within 17
countries.
Mission: Klarna which is a global tech bank has a mission for making shopping as well
as payments as smooth as it is possible.
Vision: They want to release humanity from time which is being spent by people in
management of their money through which they can have time for what is needed most.
Objectives: Klarna emphasise on making it simpler for individuals to shop online
through the usage of latest technology in simple, safe and smooth manner.
Values: They aims at making purchasing experience smoother by furnishing relation
among merchants as well as customers along with creation of flexible experience for them.
This report comprises of external as well as internal analysis of business for
identification of interrelated opportunities as well as threats. The industrial analysis is bein done
with respect to sector to which organisation belongs to and strategic management plan is devised
for growth along with development of firm.
LO 1
P1. Impact of the macro environment on a given organisation and its strategies.
The macro environment comprises of different factors like Political, Economic, Social,
Technological, Environmental and Legal factors (Bentley-Goode, Newton and Thompson,
2017). Their influence as well as impact on an organisation can be understood by conducting
PESTEL analysis. The PESTEL analysis for Klarna is described below -

Political Factors: Sweden is a politically stable country since it is a part of European
community since the year 1995. This is the reason why it follows same rules and regulations
(Bentley-Goode, Newton and Thompson, 2017). Also, different business activities by
organisations are carried out through Swedish subsidiaries. Thus, while providing payment
solutions to customers, Klarna should have a clear understanding of different political factors
like globalisation etc. and the impact they can have on its operations.
Economic Factors: Sweden has a high GDP, which means that it is one of the most affluent
Scandinavian country. The country is highly dependent on its export industry and is thus
economically fit for an organisation like Klarna to carry out its business processes. Different
economic factors include wages, tax rates, policies etc.
Social Factors: Education level, family size, age, gender, levels of disposable income etc.
are some examples of social factors. Organisations in Sweden are looking for opportunities to
expand their business. This can act as an opportunity for Klarna as it can target young people
who use smartphones and have knowledge about online payment (Evans and et. al., 2017). If the
company fails to do, the customers will not understand its services and might not use it and
follow the traditional methods of payment.
Technological Factors: Technology is enhancing day by day which is why it has become
important for organisations to implement latest form of technology within their system. This will
help organisations like Klarna that operate in a highly competitive business environment of
Sweden to gain a competitive advantage against others in the market. This can be done by
collaborating with other businesses that have been consistently performing well. Therefore,
Klarna should invest in its R&D to implement innovative ideas in its products and services.
Environmental factors: Businesses today want to be sustainable and achieve their goals as
well as objectives successfully. With the number of people in Sweden becoming environment
conscious, it has become essential for organisations to offer products and services that are safe
for the environment and do not cause any kind of harm to it (Ghemawat, 2016). Also, since the
target segment of Klarna comprises of a large number of customers, the company can use
different environmental friendly techniques for promotions. This will help the company in
attracting more potential customers.
Legal Factors: The respective company, Klarna should adhere to various legislations within
Sweden. Legislations keep on changing from time to time and an organisation should carefully