Impact of Macro-Environmental Factors on Organisational Strategy

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Impact and influence of macro-environmental factor on organisational strategy.................1
TASK 2............................................................................................................................................5
P2 Assess about internal environment and capabilities of organisation.....................................5
TASK 3............................................................................................................................................7
P3 Implement of Porters-five-forces model to evaluate competitive forces of a given sector...7
TASK 4............................................................................................................................................8
P4 Implement of various theories, models and concept that interpret and devise strategic
planning.......................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy can be defined as a long term plan that defines vision, mission and
direction to a particular business. The main concern to formulate business strategy is to develop
an effective plan, policy and strategy which leads management to accomplish organisational
goals and objectives within minimum time period. Along with this business strategy provides
visions to all departments and workforce of organisation. This report is written from perspective
of Klarna which is operating their business in financial industry by performing their in bank
sector. It was established in the year 2005 in Stockholm (Amran and et. al., 2016). Moreover,
this report highlights on macro-environmental aspects which impact on business strategy of
organisation. Along with internal capabilities will be included by implementing right models. In
the last, Porters-five-forces-analysis and Bowman's strategy is also included in the forthcoming
report.
TASK 1
P1 Impact and influence of macro-environmental factor on organisational strategy
Strategy provides essential norms that leads organisation to design and develop an
effective strategy for accomplishing company goals and objectives by monitoring and
understanding all essential aspects. This norms also helps company to measure or evaluate
success of company. In context of Klarna strategy leads company and its management for
performing all work as a continuous improvement plan.
Mission- The main mission of Klarna is to offer and provide fast and safe method to pay
bills or invoices.
Vision- Vision of Klarna is to enhance their market size at global level by providing best
and secured online payment services for providing easy payment methods to consumers.
Objectives- The first objective of Klarna is to enter into new market within a period of 3
months to increase their customer base.
Suitability is one of the most important aspect for organisation which leads management
to retain in market for longer period.
With acceptability objective it is easy for organisation to gain top position in market by
formulating products as per customer needs.
1

Feasibility is one of the most important by which Klarna management develop those
plans which are practical, feasible and flexible.
Another objective of company is to gain top position in online payment industry by
ensure and formulate safe payments application and website.
This is essential for all organisation specifically those business which are expanding there
business at global level. From the perspective of Klarna all task managed by company ensure
that they are not impacted due to macro-environment. This results it is easy for management to
perform all task within appropriate manner. So it is important for company to better results such
as sustainability in market. Strategy is one of the most effective plan which is implemented by
organisation for accomplishing company targets (Chiang, Chen and Ho, 2016). The main motive
to develop business strategy is to provide right direction to companies by leading management to
overcome form uncertainties in market. Example- to manage task and operations of organisation
in a organised and sequential manner in order to gain competitive advantage from rival
companies.
Stakeholder analysis- The stakeholder analysis work as a process which is followed by
organisation for identifying business each and every individual activity that relates with business
project (Ekuase-Anwansedo, Craig and Noguera, 2018). So by understanding stakeholder aspects
it is easy to formulate effective strategy for accomplishing Klarna goals and objectives.
Moreover, steps of stakeholder analysis are as follow:
STEP 1- It is one of the essential step that specify stakeholder which are customers,
government and suppliers. This directly influence on projects and their participation.
STEP 2- According to this step Klarna specify all stakeholder in order to engage them in
company functions and operations. Further, it is delegated as per power and interest which is
mention as follow:
High power, high interest- This is the phase under which Klarna demonstrate priority to
stakeholders because they are more interested in project and also hold more power to
complete work (McDonald, 2016).
Low power, high interest- According to this aspect stakeholders are more interest in projects
but they are not in power to involve in decision-making. Example- employees who
perform work at low level.
2