Impact of Macro Environment on Klarna

Unit 32 Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Elaborate the impact of macro environment on a given organisation...................................1
P2 Analyse the internal environment capabilities.......................................................................3
P3 Analyse the Porter five force model......................................................................................6
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organization..............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is defined as the course of action among the various alternatives in
order to gain a competitive position within the market. The business environment in which
company carry out its operation is regarded as dynamic and it bring changes in taste and
preferences among the customers. This report is based on Klarna that provide wide range of
online services such as direct payment, post purchase payment, handling clients payment system
and so on to gain an ease of convenience among the customers (Bulatova, 2018). This report also
cover the impact of macro environment on decision making and also contain internal analysis in
order to scan the environment. This report is based on Porter's model so as to gain competitive
position and also contain various theories and models to gain a significant position within the
industry. This report also cover the strategic management plan that contain vision, mission and
goals of a firm with the help of strategic planning and thus help in completing the task in an
appropriate time.
P1 Elaborate the impact of macro environment on a given organisation
Macro environment play an important role in an economy which includes various aspects
such as national income, GDP, level of employment, competition and so on. It also help in
decision making and also affect the business in various ways such as spending, borrowing etc.
The external analysis is conducted with an view to scan the environment and also affect the
business due to various factors such as political, economic, social, technological and so on. The
manager of Klarna has conducted the PESTEL analysis which is presented as follows:
Political: This consist of various elements such as corruption, foreign trade, labour law
and trade restrictions. UK is considered as the powerful political country in the world. It is a
multi party system that consist of two parties such as labour party and conservative party. The
exit of Britain from European Union, namely Brexit has affected the political system in several
ways. This lead to increase in VAT from 17.5% to 20% and thus add the prices of various
products or services. The increase in taxation has affected the Klarna as it would not allow it
make more profit and reduces the overall efficiency of a business.
Economic: This cover aspects such as employment, exchange rates, inflation rates and
many more. UK is considered as the 5th largest economy in the world. Due to Brexit, there is an
increase in interest rates which affect individuals in several ways. This results in greater
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investment and provide growth opportunities to a firm. Therefore, increases the profit and
efficiency of a firm.
Social: This factor includes various aspects such as career attitude, diet conscious, safety
emphasise and so on. The lifestyle of people in UK is regarded as high class and are highly
educated and they are also regarded as multi cultural. The respective firm provide fast and
innovative solutions to their clients so as to fulfil the current requirements (Deligeorgiou, 2018).
United Kingdom's banking sector is continuously looking forward to raise economic conditions
of this nation, which has helped financial institutes in meeting different range of goals and
objectives in much effective and in efficient manner as well. This helped business like banks to
raise living standards of individuals through offering them with loans and other financial
benefits.
Technological: This consist of various aspects such as level of innovation, automation,
research and development. UK is considered as the most technologically advanced country in the
world. The concerned firm focuses on improvement in technology in order gain competitive
advantage within the banking industry. This saves time and cost and also ensure greater profits.
The impact of technology on firm help to increase the profits over a long period of time.
Environmental: This includes various aspects such as change in climate, weather and
various environmental policies and so on. By looking on growing awareness among the people
towards the environment, the manager of Klarna focuses on reducing the waste by adopting the
strategy of 3R's namely, reduce, reuse and recycle. This results in increase in positive reputation
of a firm in the eyes of public at a global level and thus this step provide protection towards the
environment.
Legal: This includes various factors such as consumer protection laws, discrimination
laws, anti trust laws and patent and copyright laws. It is compulsory for the manager of Klarna to
abide all the rules and regulations pertaining to the legislations of UK. The manager of respective
firm provide intellectual property laws and date protection laws so as it does not allow to copy
the products easily in order to gain a competitive position. Laws are provided to ensure a
standard quality of products in order to keep the customers safe.
Stakeholder analysis: It is described as the process of identifying the changes that has
taken place by tracking the changes in behaviour of different stakeholders. It provide the
advantage to gain more resources, such time, people and also help to make fast decisions and
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