Comprehensive Business Strategy Analysis: Starling Bank's Success

This report provides a comprehensive analysis of Starling Bank's business strategy, examining its internal and external environments. The report begins with an introduction to business strategy and then identifies Starling Bank as the chosen organization. It utilizes the PESTEL framework to assess the impact of macro-environmental factors, followed by VRIO and SWOT analyses to evaluate the internal environment, including strengths, weaknesses, opportunities, and threats. The report also applies Porter's Five Forces model to analyze the external competitive landscape. Finally, the report concludes with strategic recommendations for Starling Bank. The analysis covers various aspects like political, economic, social, technological, environmental, and legal factors, along with the valuable, rare, inimitable, and organized resources of the bank. The report also includes an analysis of the bargaining power of buyers, supplier power, rate of substitute, competitive rivalry, and threat of new entrants. Overall, the report offers a deep dive into Starling Bank's strategic positioning and provides valuable insights for its continued success.

Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Impact of macro environmental element of chosen bank...............................................3
TASK 2............................................................................................................................................5
P2: Analysis internal environment of chosen bank................................................................5
TASK 3............................................................................................................................................6
P3: Analysis external competitive atmosphere of chosen bank.............................................6
TASK 4............................................................................................................................................7
P4: Theories, concepts, models which assists in strategic planning.......................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Business strategy determines action of plan that assists in achieving goal in timely manner.
It is determined as a combination of decision as well as action executed by organisation for
achieving competitive edge over rivalries at marketplace. In assistance of this, it assists
organisation to increase level of performance and achieve competitive edge in the market. The
appropriate strategy of company assists in achieving success as well sustainability at marketplace
for a longer period of time. In given assignment, Starling bank is determined as chosen
organisation. It is determined as a digital challenger bank that is located in UK. This company
was founded in year of 2014 and provide various kind of retail banking services to its user for
satisfying them.
The mission of Starling bank is to provide specific services to its user for satisfying them.
The vision of Starling bank is to developing or improving trust with user, shareholder
partners and many more.
Values the organisation possess different values which is safety provided to its user for
satisfying them.
In given assignment, PESTEL analysis related to organisation that imposes direct effect of
on performance of business organisation. Therefore, there is assessment of internal strength as
well as capability in an appropriate manner. In addition to this they adopt SWOT as well as
VRIO analysis in order to assess internal environment of organisation. In addition to this, Porter
five Force model is also described for increase in understanding regarding competition level in
the market. In addition to this, the strategic plan is also improved that assists in enhancing
performance level and accomplishing goal in timely manner (Burgelman, 2020).
TASK 1
P1: Impact of macro environmental element of chosen bank
Macro environment is considered as a situation that prevailed in economy as large rather
than specific factor. Therefore, the macro atmosphere includes inflation, spending level fiscal
policy and so on. It is important for business organisation to achieve insight regarding effect of
uncontrollable element which is external element on activity and performance of business
organisation. For this process, the management team of chosen bank use PESTEL framework
which is given below:
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Political factor this element involves political stability, taxation rate and so on. Due to
political Stability in bank helps in expand market at global level. Therefore, it is helpful for bank
to increase profit in future period of time. In addition to this, due to alteration in policies that
enforces negative effect on bank and it incurs costs as well as consuming time that enforces
directly affect on performance level of Starling bank.
Economic factor it includes income, exchange rate and many more. Thus, individual person
of UK possess higher buying power and thus it is an opportunity for Starling Bank to attract
large number of individual person in order to increase profit in future period of time. In
assistance of this, the rate of inflation of nation is increase so that the buying power of user is
reduced that enforces negative effect on profit of organisation (Corbett, 2019).
Social factor it determined social element that possess higher influence on performance of
business organisation, taste as well as preferences of individual person who live in society that
imposes direct effect on whole activity and function of organisation. The purchasing behaviour
of individual person in UK based on innovative trend so it is important for Starling bank to make
necessary changes for sustaining at market place. Thus, the Starling bank focuses on providing
appropriate or unique retailing services to its customers for satisfy them that imposes positive
effect on them. In addition to this, due to frequent change in preferences of user that negatively
affect profit margin of organisation.
Technological factors it is necessary for Starling Bank to adopt innovative technology for
providing unique services to its user. Therefore, the starling bank focuses on implementing
innovative technology for offering on-time facility and qualitative services to its user for
satisfying them. Thus, it aids assistance to organisation to strengthen market position as well as
achieve higher level of success and growth. In addition to this, due to rapidly changing
technology it enforces negative effect on organisation because due to change in technology, it
provide innovative feature that incurs cost for organisation and decline income level.
Environmental factors in present time, people focus is on using that kind of product which
is eco-friendly for protecting environment. In context of Starling bank, they adopt carbon
footprint and reducing emission rate in order to protect environment that enforces positive effect
on company. In assistance of this, it improves positive mindset of individual person in respect of
brand and increases productivity levels.
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Legal factor it is important for organisation to obey rules that is implemented by
government so that they can execute activities and functions of organisation in proper way. In
context of Starling Bank, the management making sure that they follow legislation that assists in
improving positive image in the market and performing activities appropriately. In assistance of
this, due to frequent change in law that impose direct effect on working of organisation, thus it is
needed to follow it for implementing executing activity in smooth way, it enforces negative
effect on company (Eji, 2016).
TASK 2
P2: Analysis internal environment of chosen bank
Internal atmosphere of organisation is significant as it imposes direct effect on organisation
internally. Thus, the frameworks are adopted by chosen organisation to consider factor that
imposes direct effect on organisation. Therefore, VRIO analysis is determined as a tool that is
adopted by marketed to assess internal atmosphere and to consider resources of organisation to
analyse competitive edge. In context of Starling Bank, they adopt framework for achieving goal
and objective in timely manner. This is used with motive of achieving competitive edge in the
market. It involves micro environment like human resource and many more. The selected bank
focuses on dealing with its competitive firm in an appropriate manner. This involves various
elements that are going to be mentioned below:
Valuable this factor is very important in framework as it is analysed as a resources that is
most valuable for organisation. Therefore, it is necessary to take decisions within business
organisation. In reference of Starling bank, there are different kinds of valuable resources such as
Global presence, distribution channel, brand and trained employees. Due to having Global
presence, it increases brand image of company in front of customer at market place, it is a
valuable resource for company. In addition to this, due to skilled labour, it helps in increasing
brand image of company in mind set of user at marketplace so that they both are considered as a
valuable resource for organisation. Apart from this, they provide appropriate services by using
effective distribution channel that is also termed as a valuable resource for organisation.
Furthermore, the rare element that is specified resources are determined that is not common
to its competitive firm. Therefore, the competent employee’s, brand and distribution channel is
determined as a rare for chosen banking sector. The bank possess well known brand that help in
increasing sales of company in future period of time. In addition to this, due to appropriate
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employees they focus on providing effective services to its user that is determined as a main
resource for organisation.
Imitability this is considered as how easy as well as difficult to imitate resources.
Therefore, in context of banking sector there adopt similar technology by using similar resources
in the market. In context of Starling bank, they adopt distribution channel for qualified workforce
as a inimitable resources by its competitive firm they have a efficient employees as well as good
distribution channel that is not copied by other rivalries in the market (Escobar, 2018).
Organised herein, it is assess that the resources that are valuable to organisation will
capable to adopt it in proper manner. Therefore, in reference of chosen organisation, they adopt
resources which are proper. Here in the appropriate employees is determined as an organised
resources for organisation.
PICTURE SHOWING THE VRIO MODEL
SWOT Analysis
SWOT analysis adopted by starling bank is going to be mentioned below:
STRENGTHS WEAKNESSES
 The strength of Starting bank is that it
is determined as innovative banking
along with first mover benefit is
 In addition to various strength, the
weakness is limited facility as a less no
physical presence that is determined is
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determined as strength for bank.
 The starling bank focuses on providing
outstanding feature as well as offering
to its user that help in increasing sales
of organisation in future period of time
a main weakness for company.
 Advocating Profligacy is determined as
a main weakness for Starling bank
(Wächter, 2016).
OPPORTUNITIES THREATS
 The main advantage for Starting bank
is to growing the base of user related to
an organisation and the individual
person current account is determined as
an opportunity for them.
 They also focus on expanding their
business and mobile banking that is
beneficial for them.
 Due to increasing level of competition
from different banks that is determined
as a main threat for Starling bank.
 Customer inertia is also determined as a
threat for Starling Bank.
TASK 3
P3: Analysis external competitive atmosphere of chosen bank
Porter five force model is determined as a tool that is adopted for increasing understanding
regarding five external element that is determined as a part of external atmosphere that impose
direct effect on functioning related to organisation. Therefore, the Porter five forces model
adopted by Starling bank is given below:
Bargaining power of buyers this factor is connected with different kind of option that is
provided for consumer in industry that offers large option during the period of time period (Gray,
2016). The bargaining power related to consumer is significant for organisation to enhance
quality of services that is necessary for buyer that helps in increasing sales in future period of
time. In addition to this, in context of Starling bank, their focus is on differentiating their services
and provided at reasonable cost so that buyer cannot switch their brand or services to other rival
firm.
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Supplier power herein, the Starling bank focus is on maintaining quality of their services
in order to satisfy its user. For managing better relationship with its buyer, it is significant for
bank to manage appropriate relation with its buyer by providing better services to them and also
helps in achieving competitive edge over rivalries in the market so that they can't switch to other
brand or services provided by its rivalries during particular phase of time period.
Rate of substitute this is a element connected to different kind of substitute prevailed at
marketplace so it is necessary for Staling bank to adopt latest technology to reduce or decrease
competition level. . For Starling bank, they emphasized on improvement of services that is differ
from its competitive firm that help in accomplishing competitive rivalries at Marketplace.
Competitive rivalry this is connected to various type of company which is determined as
a part of sector in which starling bank belongs. Therefore, they face international competition
from different bank that impose direct effect on performance level of organisation. In addition to
this, for decreasing competition, there are unique services provided to its customer in order to
satisfy them.
Threat of new entrants this element is connected with start-up banks that are same to
Starling bank and they are willing to take entrance in banking sector. Therefore, the Starling
bank faces threat from this kind of organisation during particular phase of time period. They
focus on providing unique quality services to its user in order to provide those services according
to their need.
Recommendation for Starling Bank
It has been analysed, from above given discussion, there are different kind of strategy that is
determined as a part related to porter's five Force model. It is assess that, it is determined as a
suitable tactics that is adopted according to current scenario in order to achieve competitive edge
over rival firm in the market. They focus on differentiate services to its user that help in
achieving objectives in timely manner (Hess, Benlian and Wiesböck, 2016).
TASK 4
P4: Theories, concepts, models which assists in strategic planning
Porter generic strategy there are different kind of strategy that is adopted for achieving
competitive edge by Starling Bank that are specifically related to strategy that is going to be
mentioned below:
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Cost leadership tactics herein, the aim or objective of Starling bank is to provide services
at low cost in comparison to other competitive firm during particular phase of time period. This
strategy is connected with providing unique services to its customers at low cost that assist in
maintaining whole profit as per current prices or cost that is provided by Starling bank during
particular phase of time period.
Cost focus strategy is connected with taking benefit at low price for small segment in the
market. In this kind of strategy, their main focus is on cost and their overall focus on achieving
appropriate strategy in order to maintain whole leadership position of Starling bank in external
environmental factors (Le Grand, 2018).
Differentiation focus it is determined as a strategy with aim to differentiate its small
segment related to market that help in satisfying specific need and want of its user. Therefore,
their focus is on niche market or contribution which is made completely unique or specific
services that is not similar to services provided by competitive firm.
Differentiation leadership it is determined as a strategy which is depend upon higher
differentiation related to services in context of quality. Therefore, the main focus is to generate
differentiation leadership that is depending upon leadership and achieve competitive edge over
rivalries in the market.
On the basis of above given discussion, it is assess that the most appropriate strategies
adopted by Starling bank is differentiation leadership they focuses on high quality services in
order to satisfy its user that help in increasing market share during particular phase of time
period.
Background
Organisation structure they adopt hierarchical structure of organisation in which
responsibility as well as duty are slow from high to bottom in vertical way.
In strategic business plan the strategic plan for chosen is going to be mentioned below:
Vision their main vision is to implement innovative technology in order to provide
innovative services to its user.
The mission is to inspiring lives of individual person by maintaining trust and loyalty with
stakeholders.
Objectives
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 This strategy and tactics which is adopted by Starling bank is enhancing whole market
share which is around 15% in upcoming time period.
 Increasing profitability of Starling bank by around 10% of enhancing revenue in year
2021.
Marketing mix
It is determined as a set of various kind of strategy connected with product, price, place
as well as promotion that assist in formulation of various strategies for accomplishing in timely
manner.
Product there is different kind of product related to retail banking in order to satisfy its
user during particular phase of time period. The main focus is to enhance sales as well as income
for current scenario. Their main purpose is to provide product related to retailing banking in
order to satisfy them (Mendelberg, 2017).
Price Starling Bank focuses on increasing contribution to put price of product or services
related to retail banking in order to capture large share of market that assists in increasing loyalty
or trust of customer. It is important to adopt superior technology that assists in offering value to
its user at reasonable cost in comparison to other competitive firm. In context of current scenario,
for accomplish objective, their focuses on increasing sales during particular phase of time period.
Place Starling Bank has a global presence and they provide services in different part of
globe. Therefore, it has been analysed that they focus is on increasing their presence in various
location in order to provide effective services to its user around the globe. Therefore, the present
network related to distribution is easily adopted for accomplishing objective in timely manner.
Promotion the Starling Bank focuses on using different kind of promotional strategy in
order to provide services according to need and wants of customer. Therefore, the main focus is
to adopt platform related to social media in order to attract them towards their services that help
in increasing sales in future period of time.
Strategy formulation
On the basis of above discussion, it has been analysed that they adopt differentiation
leadership for accomplishing competitive edge comparison to its rival firm. Their main focus is
to provide differentiate services according to needs and wants of user.
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Implementation it is determined as a plan that is connected with adoption of strategy for
accomplishing objective in timely manner. In addition to this, it is useful in improving
understanding regarding how different activity help in accomplishing goal of business
organisation.
Evaluation is determined as a last which help in whole monitoring as well as evaluation
that help accomplishing goal in timely manner. In addition to this, their main focus is to provide
services according to need and want of customer in order to satisfy them (Lonsdale and Kane,
2019).
CONCLUSION
On the basis of above given information, it is assess that business strategy determines action
of plan that assists in achieving goal in timely manner. It is determined as a combination of
decision as well as action executed by organisation for achieving competitive edge over rivalries
at marketplace. In assistance of this, it assists organisation to increase level of performance and
achieve competitive edge in the market. The appropriate strategy of company assists in achieving
success as well sustainability at marketplace for a longer period of time. . In addition to this they
adopt PESTEL, SWOT as well as VRIO analysis in order to assess internal environment of
organisation. In addition to this, Porter five Force model is also described for increase in
understanding regarding competition level in the market. In addition to this, the strategic plan is
also improved that assists in enhancing performance level and accomplishing goal in timely
manner.
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REFERENCES
Books and Journals
Burgelman, R.A., 2020. Strategy is destiny: How strategy-making shapes a company's future.
Free Press.
Corbett, J.S., 2019. Some principles of maritime strategy. Good Press.
Eji, E., 2016. Rethinking Nigeria’s counter-terrorism strategy. The International Journal of
Intelligence, Security, and Public Affairs, 18(3), pp.198-220.
Escobar, A., 2018. The making of social movements in Latin America: Identity, strategy, and
democracy. Routledge.
Gray, C.S., 2016. Strategy and politics. Routledge.
Hess, T., Benlian, A. and Wiesböck, F., 2016. Options for formulating a digital transformation
strategy. MIS Quarterly Executive, 15(2).
Le Grand, J., 2018. The strategy of equality: redistribution and the social services (Vol. 13).
Routledge.
Lonsdale, D.J. and Kane, T.M., 2019. Understanding contemporary strategy. Routledge.
Mendelberg, T., 2017. The race card: Campaign strategy, implicit messages, and the norm of
equality. Princeton University Press.
Wächter, M., 2016. Mobile Strategy. Springer Fachmedien Wiesbaden.
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