Analyzing the Impact of Macro Environment on Klarna's Business Strategy

Unit 32 Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................1
M1 Critical analysis of macro-environment to communicate strategic decisions......................3
M2 Critical analysis of internal environment..............................................................................6
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector...........................................................................................................................................6
M3 Strategies to enhance competitive advantage and market position......................................7
P4 A range of theories, concepts and models, interpret and devise strategic planning for a
given organisation.......................................................................................................................8
M4 Strategic management plan...................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy defines as a competitive moves and actions that are duly undertaken by
organisation as to fulfil objectives and goals. Such form of action aid entity to adopt favourable
techniques and measures. It assist organisation to stimulate their performance and achieve targets
to become leader in particular industrial sector. In simple words, business strategy is a
combination of decisions with the help of which entity managers can convert organisational
mission and vision into real strategy (Brewster, 2017). Present report has been conducted on
Klarna. This entity performs their functioning as a bank and offer financial services such as post
payments, direct payments and more. In this report formative discussions have been made on,
impact of macro environment upon different sections of business decision making. In addition to
this, SWOT and PESTLE analysis is being covered in this report in order to conduct capabilities
and resources evaluation. Along with this, Porter's Five Force is also included in this project as
to determine formative insight about entity competitive environment. Lastly, available strategic
options for company is being evaluated with strategic management plan and Ansoff matrix.
LO 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies
Primary objectives as well as goals an organisation assist them to fulfil desirable set of
success. Klarna also posses certain objectives that can be duly achieved with the help of efficient
plan of actions. In order to devise formative plan it is essential to undertake strategies that can be
accomplish by conducting analysis of factors within business environment in which company
operate their functions (Blidholm and Johnson, 2018). This has been evaluated that, in order to
successfully conduct business operations successfully entity is required to continuously engage
in the function of conducting external environment analysis (Biamont, 2017). In relation with
this, Klarna manager undertakes use of PESTLE analysis in order to evaluate impact of macro-
environment:
Mission – Klarna operate their functioning with a mission of offering effective financial
services in best effective manner. It has been signified that main mission that has been hold by
Klarna is to offer best effective financial services.

Vision – Main Vision of Klarna is to emerge out as leading financial corporation in USA
and United Kingdom. This indicates that, Klarna holds a vision to become leader of financial
corporation in both United Kingdom and USA.
Objectives – Most important objective of Klarna is to generate high sales and revenue
along with enhancing standards and consumer interaction. In addition to this, it has been
identified that Klarna main objective is to maximise overall sales as well as revenue generation
capability of entity. (Goffee and Scase, 2015).
Business strategy is defined as a set of different types of techniques, measures and plans
that are being undertaken by an organisation in order to accomplish their goals and objectives on
a well defined and effective manner (Niranjanamurthy, Nithya and Jagannatha, 2019). In context
with Klarna it has been determined that entity manager undertake use of wide range of effective
strategies and measures as to gain more prosperous growth and profitability.
Organisation can effectively able to achieve their organisational vision and strategic
factors by engaging in the process of determining environmental factors. In order to conduct this
evaluation mentioned below PESTLE analysis is done:
Ilustration 1: PESTEL Analysis
(Source: PESTEL Analysis, 2019)
Political factor: