Analyzing the Impact of Macro Environment on Klarna and its Strategies

Unit 32
Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on Klarna and its strategies...............................................................................1
P2 Discuss the internal environment and capabilities within organisational context............4
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector ......................................................................................................................................7
P4 A range of theories, concepts and models, interpret and devise strategic planning for a
given organisation..................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Strategy is a plan for achieving its vision, mission and objectives to gain
competitive advantage and to achieve the goals of an organisation. In other words, it is strategy
and combination of decisions that help firm in mobilising the resources and meeting challenges
and combatting threats (Cavusgil and et. al., 2014). It is developed by the managers of company
who convert the mission and vision into concrete strategy. Klarna is a bank that provide various
financial services like direct payments, post purchase payments and so on. The focus of firm is to
provide best financial services to meet the demands of customers. It has expanded its operations
at different places like Australia, Germany, Denmark, UK, USA and other operating parts to
create a large customer base. The report comprises of the impact of macro environment in
various areas of decision making in business. Also, the internal analysis uses the firm's resources
to identify the strength and to overcome the weakness while formulating firm's policies and
procedures.
The size, nature and scope of business performs various functions like finance,
marketing, human resources and research and development(Ocasio and Radoynovska, 2016).
The report covers Porter's five force model to ascertain the industry's strength and weaknesses
and to analyse the competitive factors of a business. It is a framework of evaluating the position
of a business that determine the productivity and profitability of a business. The report comprises
of theories, models and concepts to understand the strategic action available to an enterprise. It
consists of overview of firm and its vision, mission and objectives and its position in the market
and also its unique features to gain competitive advantage within the market.
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on Klarna and its strategies.
The primary goal and objectives of any organisation helps it to achieve the desired level
of success(Mittal and Dhar, 2015). The company Klarna does also has the same objectives
which are attained by its efficient plan of actions. The strategies and decisions regarding the plan
are formed by performing particular analyses of the respective environment of company and its
stakeholder (Brewster, 2017).
By the term strategy here it is meant as the particular method which comprises of all the
factors and that is performed accordingly to bring the desired outcomes in the near future. The
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strategic practice of all kinds of arts and science for the attainment of organisational objectives is
necessary. These strategic aspects of Klarna are as follows:
Mission - The ultimate mission of the organisation is to provide the best and efficient
financial services in the country.
Vision – To become the leading financial corporation in UK and USA
Objectives – To generate more revenue from upcoming sales and enhancing the quality
and standards of customer interaction.
All these strategic factors and organisational vision can be achieved by evaluating the
macro environmental factor. This will be analysed by performing the PESTLE analyses in
relation to the Klarna.
Political factor: The political environment of working aspects in any nation affects the
business cycle of respective organisation(Bell, Bryman, and Harley, 2018). Being a financial
institution Klarna intrigues with many kinds of political and civil regulations. As per the
BREXIT system in UK the company may face a certain down in sales and international services
by the arising effect from other European networks. Whereas the stable political background of
the nation helps the business strategy of Klarna to perform effectively and smoothly by forming
more futuristic plan of actions for a long term.
Economic Factors: Foreign exchange rate and consistently growing interest rates, the
global capturing and the GDP of nation etc. are such economic factors that are effecting the
business and profitability of Klarna in a beneficial way(Brewster, 2017). In the United Kingdom
major economical drawback for the Klarna is the inflation in the costings due to Brexit criterion.
(Chen and Jermias, 2014). Thus also it gives an open and wide area for the growth and nurturing
of the financial institutions. The higher return on investment attracts the foreign direct investors
which is an opportunity for the Klarna to expand its workings and operations.
Social Factors: Social factors of environment comprises all those factors which are
rationales for interlinking of business with the society, such as demand of market taste of
consumers, moral values, habits of purchasing, and emerging trends in the lifestyle etc.
(McCahery, Sautner and Starks, 2016). The transformation of culture, social and moral values,
trends which are emerging in environment of United Kingdoms affects the financial trading of
Klarna on an extensive level. An efficient management of market monitoring is the only tool for
the survival of business from all the social factors.
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