This report assesses the external environment and internal capabilities of Klarna, a leading Swedish financial institution. It analyzes the impact of political, economic, social, technological, legal, and environmental factors on the organization. It also evaluates the valuable, rare, imitable, and organized resources of Klarna using the VRIO analysis model. Additionally, it examines the strategy, structure, systems, shared values, style, staff, and skills of Klarna using the McKinsey 7s model.