Business Strategy Report: Macro and Micro Analysis of Starling Bank

This report provides a comprehensive analysis of Starling Bank's business strategy. It begins with an introduction to business strategy and the chosen organization, Starling Bank, a digital challenger bank in the UK. The main body of the report is structured into four tasks. Task 1 analyzes the macro environment using PESTLE and stakeholder analysis, and examines Starling Bank's vision, mission, and objectives. Task 2 evaluates the company's internal environment and capabilities using the Resource-Based View, and McKinsey's 7S model, and VRIO analysis. Task 3 employs Porter's Five Forces model to assess the competitive forces within the market sector. Finally, Task 4 explores strategic planning, applying different models and concepts to interpret strategic planning for the organization. The report concludes with a summary of findings and recommendations, providing insights into Starling Bank's strategic positioning and future prospects.

Business
Strategic

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1. Applying appropriate framework analyse the impact and influence of macro environment
of given strategies. .....................................................................................................................1
Task 2...............................................................................................................................................4
P2. Evaluate the capabilities and internal environment of company by using appropriate
framework:..................................................................................................................................4
Task 3...............................................................................................................................................7
P3. Illustrate Porter Five Forces model to evaluate the competitive forces of given market
sector for an organisation............................................................................................................7
Task 4...............................................................................................................................................8
P4. Apply different model, theories and concept to interpret strategic planning for
organisation.................................................................................................................................8
Strategic Planning:....................................................................................................................10
CONCLUSION..............................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Business strategic is a frameworks that describe about decision taken which is based
through over strategies and decision which makes benefits in relation to aims and objectives
which set towards and organisation (Basalamah and et. al., 2020). Moreover, it is refers about as
master plan that tend to implemented through an individual in order to attain competitive
position within market. Many models and theories related with management and business are
implies to scrutinise optimum practise for business that attain competitive goals (Bocken, Smeke
Morales and Lehne., 2020). It is defined as master plan which implemented by the individual that
a high competitive position can be accomplished within marketplace.
In this report, organisation is selected is Starling bank is a digital challenger which is
situated in United Kingdom. It focuses on current and business accounts products. Starling bank
is originally owned licensed to regulate bank. Further the report is based upon micro
organization within business strategies within an organization. Also analysis is been done upon
micro environment factors and Porter’s five force is covered for making evaluation. In the end
various methods, models and theories in relation to make strategic decision developed within an
organization.
MAIN BODY.
Task 1.
P1. Applying appropriate framework analyse the impact and influence of macro environment of
given strategies.
Vision, Mission and Objectives of Starling Bank.
 Vision: The statement vision of strategic is to develop for global standard in relation to
both national and international organisation over measuring performance.
 Mission: For Starling bank having mission for allocating monetary funds and contribute
for customer within first priories through utilise from technologies for better transferring
money.
 Objectives: The main purpose of Starling Bank is to provide quality of financial services
to organisation and peoples (Centobelli, Cerchione and Ertz, 2020). This makes their
identity as well provide optimum direction to compete within their rivals.
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Strategic planning which conduct for Starling Bank that undertaken which having better
organisational goals is been accomplished in effective manner. It helps to formulating effective
business strategy that performs over attaining of high advantages in comparison within
competitors. Further, it major increases of revenue and sales that helps to strategic towards an
organisation within Starling bank.
Different strategic planning techniques:
 Benchmarking: It is depicts for differentiate which belong those metrics that entire
industry upon operating an organisation (Crick and Crick., 2020). It makes Starling bank
for sustain position in competitive marketplace to comparing its performance.
 Business analysis: To measuring about business and its activities towards an appropriate
manner along with Starling Bank to acknowledge their strength and weakness through
efficient way for enhance right form of decision that helps to provide expectancy
outcomes.
Various Analysis of macro environment:
Stakeholder Analysis: This is an framework that demonstrate procedure of identification
impacts performance before starting a project. It is a more supportive Starling bank in grouping
that shareholders as per interest level within project. In following analysis explained as follows:
Step 1: To focus in relation with stakeholder that accomplished through support about
preparing lists of potential stakeholders. Within case of Starling bank, potential stakeholder will
be customer, government, investors, business man, employees, shareholder etc.
Step 2: As it is important about stakeholder is been listed manager of an organisation
requires over essential in under to various which are as follows:
 High power, high interest: It is most important for Starling Bank and helps to
organisation which perform in business activities as flexible and better manner.
 High power, low interest: These stakeholder mainly affect working and does not having
high rate of interest within Banking sector.
 Low Power, high interest: Such of these stakeholder provide information about project
in relation to Starling Bank.
 Low power, Low interest: As per they have no interest in activities about Starling bank
and there is does not influence power.
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Macro environment: It is condition that exists within economy as whole which is rather
than in specific segment or task (Erlangga., Salam and Mas’adi., 2020). In general terms, the
macro environment includes general business cycle as opposed to the performance about an
individual business sector.
Pestle Analysis:
As per this strategic framework allows to use business organisation on the basis of
acknowledge about external business environment and market in proper manner. This tool is
only used when business wants to establish their venture in international market.
 Political factors: This kind of factor consist about rules and regulations such as tariffs,
tax rules and stability on the central government. The United Kingdom is having better
stability and tax rates about business organisation at the time of operating which will get
positive outcomes Starling Bank effectively.
 Economic factor: These factor involves growth rate, GDP, interest rate, recession and
inflation rate and purchasing power of people in United Kingdom (Fraser., 2019).
Growth rate in Unitd Kingdom where high people earns enough disposable income on
which people are earning which increase their affordable capacity to access financial
product of Starling bank. But there is uncertainty of recession and inflation on which
Starling Bank gets negative impact.
 Social Factor: There is different aspect are concerned within attitude, analysing
behaviour along with perception about product or other factor. UK is one of open and
democratic country in which Starling bank can provide modern product to their customer
as per sales and revenue will be high outcomes.
 Technological factor: In perspective of United kingdom where advanced technological
advanced where people are actively use internet and artificial resources. It is an
opportunity for Starling Bank to attain these technology positive outcomes.
 Legal factor: This macro factor involves all legal rules and norms which are introduced
through United Kingdom for making assure about people welfare (Garcia-Sanchez and
et. al., 2020). Manager of Starling Bank is needed to follows all legal procedure so that
Starling Bank is pay heavy penalties if the laws are not follows properly.
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 Environment factor: These factor are connected with protection of environment in
terms of society welfare and ecology from major hazardous activities of business firms.
Following environmental laws will be provide enough benefited business firm.
Evaluation
From above Pestle analysis in context of Starling Bank there is positive and negative
outcomes generates in which Positive factor consider in Technological factor as many advanced
resources are available in United Kingdom. Through which Starling bank can assort to sustain
and implement to enhance their financial services effectively basis. Thus, negative factor is
economic factor as there is uncertainty of recession and inflation to creates high tide of
productivity downfall.
Task 2.
P2. Evaluate the capabilities and internal environment of company by using appropriate
framework:
Strategic capabilities and key components:
This is defined about those valuable strategies which support to attain high merits for
organisation in against of competitors (Guerrero and Martínez‐Chávez, 2020). As such these
strategies majorly involves capabilities that develop to help with six main components that is
strategic purpose, key goals, action planning, tools for analysis.
Resource based view strategy:
In this segment, which is utilise about managerial framework that utilise by organisation
in determining about better strategies and resources which has been explained in order to gain
sustainability. For scrutinise information to mapping strategy there two resources required which
use in tangible and intangible aspect. Tangible assets are physical and intangible are those which
felt these resources to Starling Banking.
McKinsey's 7s period:
It is an framework is a tool which supportive to analyse for organisational design a firm
through identifying with seven key internal components (Habib and Hasan., 2020). Such of
component that makes alienation over business like Starling Bank accomplishing its goals and
objectives. There are seven components which explained below:
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 Strategy: As under this plan it is been performed through an organisation which makes
competitive edge to be attained systematic manner. The Starling Bank will not
presumes their banking strategy until issues not solved which faces by customers.
 Structure: This comprise about banking business that division are systematic
organised and proper sharing of information within each other. In perspective of
Starling banking, if their management and operation team will not reform proper
structure there is chances to lacking in performance effectiveness and competitors
would gain positive advantages.
 System: According to this process of company that having aims to constant basis
activities through which undertakes effective decision making for company growth
perspective. As to maintaining systematic will having benefits a business manager
implementing organisation change properly.
 Skills: It is involves components and having capabilities of employees in Starling Bank
while performing within organisation work. The capabilities of Starling bank allows to
provide effective training and development along with better guidance in effective
manner.
 Style: It represents about manner in which firm is managed through management and
top authority or manager in which they interact with their employees (Kembauw and et.
al, 2020). In Starling banking is having participative style is utilised for better opinion
as per given consideration.
 Staff: It is specification that related with type and number of employees that are
working in Starling banking is having creative and high competency employees and
their administrative use to hire them only.
 Shared Values: This is core of elements of Mckinsey's 7s model that involves standard
and having norms which guides actions of organisation such as Starling bank of
employees in systematic proper manner.
VIRO Analysis:
It is an analysis is describe as values, rarity, imitability and organisation. This is an
strategical tools that is used by companies that having identifies for their available resources
towards internal capabilities.
Resources Valuable Rare Imitable Organised
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Human Resource
management
Yes No No Yes
Technologies in
online banking
Yes No No Yes
Expertise in
financial
Services
Yes Yes Yes Yes
Diversification Yes Yes Yes No
Evaluation:
 Valuable: It is important factor for organisation in which Human resource management,
technologies, Expertise in financial services and diversification are more valuable aspect
for Starling Bank.
 Rare: According to this aspect, it generate benefits towards organisation understanding if
the product is prepared is rare or not. The rare product offered by Starling Bank to
gaining customer loyalty due to sales and revenues will increase is considerable manner.
There is not rare specification of human resource management and technologies in online
banking. But there is probability in rare elements experts in financial services and
diversification for Starling Bank.
 Imitable: For Starling Bank is required offered about those product which can not be
copied through competitor in organisation. In perspective of Starling Bank human
resource management and technologies in Online services are not consider specification,
because most of banking business are follows the similar kind of technologies (Majid and
et. al, 2020). Whereas, expertise and diversification strategy which implement by Starling
bank would be rare as it can be different from other bank in terms of suggestion and
planning related with business productivity growth.
 Organised: This is vital about business organisation such as Starling Bank that helps to
manage within existing resources towards optimal manner. In situation of Starling bank
there is well organised of human resource management system in terms of norms and
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polices within workplace and expertise regarding with financial services. But in another
phase diversification is properly systematic stabilise.
Task 3.
P3. Illustrate Porter Five Forces model to evaluate the competitive forces of given market sector
for an organisation.
Overview of Porter Five Forces:
It is an strategical framework which is undertakes strategic decision making decision that
consider mapping future outcomes or uncertainty. There are five main factors of porter five
framework mentioned in Starling Banking are:
 Threats of new entrant: For Starling bank, there is low level of threat new entrant
which creates renowned organisation over global level (Met, Uysal and Orç., 2020).
This is not possible about new generation which enhance to invests as much as Starling
Banking that performing business operation activities effectively.
 Bargaining power of suppliers: There are various large organisation in banking which
deal within banking sector such as HSBC and World bank. Due to such bargaining
power of suppliers in high level as supplier are not fixed of banking such as financial
institution, insurance companies and other institution that deals with Starling Bank.
 Bargaining power of buyers: In this case of bargaining power of buyers where it is
also having high level for Starling Bank as competition in banking sector. If the
company is quality of financial product in terms of loan that enhance satisfactory
product their preferences towards financial service.
 Threat of substitute: In perspective of Starling bank the threat of substitute depicts
high level as small finance bank can attain more customer in terms of provide better
financial services such as better loan facilities with less interest rate.
 Rivalry among existing competitors: There are different kind of retail organisation
that has been operating within United Kingdom (Onufrey, K. and Bergek, A., 2020).
The makes competitors are very influence that rivals such as HSBC and World bank.
This makes competitors influence high level of chance which ahead of Starling Bank.
Evaluation:
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As per above Porter five forces related with Starling Bank where the focus is to threats
which bank have to faces in further competitive market. For Starling Bank the major threats are
threats to substitute and new entrant in competitive marketplace. To make planning and
overcome from this Starling Bank need to make their financial product more effective manner in
which they could easily sustain customer for long time period (Peng., 2020). Thus, some small
finance bank could overtake banking market which nit sustain effective competitive busness.
Task 4.
P4. Apply different model, theories and concept to interpret strategic planning for organisation.
Porter Generic Strategic:
It is a process which provide detail information about how specific company pursue their
competitive advantages on the basis of chosen market scope. There are three or four generic
strategic either having lower cost, differentiate or focuses are elaborates in below:
 Cost leadership: As per this strategy, it depicts about having sensitive which is focus on
easy target manner in business organisation. Under this strategy, Starling Bank offer
financial services in affordable manner on which customer easy to access it. Along with
that company also facilitates different types of offer, discounts which will enhance trust
and it increase sales and revenue with high profit which can be earned.
 Differentiation: According to this strategy, where company usually offers innovative and
unique product which is differ from other organisation. Through this strategy, Starling
Bank, can provide their new product in financial that enhance some uniqueness which
directly increase sales as per systematic manner.
 Focuses: As per this strategy it involves two aspect which means company can determine
either cost focus or differentiate focus. In cost focus Starling bank would provide their
financial or banking service in less price involved (Umadia and Kasztelnik., 2020).
Therefore, maximum people can buy as per their preferences. Whereas, in differentiate
focus, Starling Bank need to determine about their product uniquness that creates
differentiate from other bank.
Bowmen's Strategy Clock:
According to this strategic clock is a type of model that help better appropriate strategic
positioning. In perspective of Starling Bank can mapped their position so that they could enhance
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better high advantages from rival companies in proper manner. In following there are some
major aspect within related to this framework effectively which mentioned below:
 Low price: In this aspect, Starling Bank can position mapped through low cost leader
in market by using minimisation cost procedure. Thus, in this situation profit of each
financial services that enhance low but due to high sales volume, overall profit will be
more.
 Hybrid: According to this strategy, it involves factor of low price and product
differentiation. This particular strategy will be effective enough for Starling Bank.
 Differentiation: As per strategy, it involves focuses on product differentiate in terms of
certain creativity to their clients that sales considerably.
 Focused Differentiation: The product are placed with the higher price with level of
customer can purchase product due to highly perceived value. This strategy is assort
through luxurious brands which operates at global level.
 Risk high margins: As per this strategy, company which they have faces high risk that
can also results in business failure. Thus, Starling Bank can set towards high price
without offering anything extra on perceived value.
 Monopoly pricing: In market monopoly where only business offer product, as per this
strategy as monopoly business is concentrated about the prices or having innovative
feature (Yasir, Majid and Qudratullah., 2020). If the customer is having needs that
product, on which customer need to buy when the prices or having innovative features.
 Loss of Market shares: As per this strategic position is a type of disaster within
competitive market. In this a company is required about to set standard price middle
range of product. As per basis of market shares company would faces less productivity.
Evaluation:
As per Starling bank, the analysing two model of strategic direction where company can
adopt differentiation strategy that intend to having unique product will offered to customer that
company can attain high profit and revenues. Through the helps of this strategy, better innovative
product facilitates customer due to having less interest. It would allows the company to increase
their sales and revenue on basis of market shares of company will enhance.
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Strategic Planning:
The planning is depicts about helpful or supportive for organisation perspective if the
various activities that responsibilities to mapping opportunity and challenges towards common
goals. In following there is strategic planning is elaborates as they are planning to bring Starling
Bank has been explained as follows:
Product The product planning of Starling Bank is enhance E-bank account in mobile
phones. This product emphasis that customer can directly deals their banking
work through their mobile phones.
Price It is an phone application in which the subscription that need to subscribed by
people is necessary around 100 pounds. Starling bank is using Penetration pricing
strategy to access E-bank account application.
Place It is having near by store for updating KYC and expertise volunteer are provdied
by bank that will facilitates enough understanding about how to operate E-bank
account.
Promotion The promotion mix is assort by Starling bank which is direct marketing, viral
marketing etc. But there is developing about market that need to advertise through
television and magazines on social income group which they want to target
specific audience .
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Implementation:
On the basis of above strategic plan about Starling Bank that is formulated for which they
particular used and also need to allocate resources. In perspective of Bank they have to make
arrangement about their technical experts as per the marketing budgets. While control about
performance in various situation that adapted by Starling bank for inbuilt specification to launch
E-bank account online Application.
CONCLUSION
On the basis of above report, it can be concluded that without adopting appropriate utilise
business strategies as it is possible for specific business in organisation to accomplish desired
success and outcomes. Analysis such as Pestle, stakeholder analysis, Swot, Ansoff Matrix which
generate benefits through generate acknowledging describe external environment within detailed
perspective. Within help of VIRO framework, organisation capabilities which can be
investigated. Through using of Porter's Five forces, company which can acknowledge within
edge in market. By using different theories Bowmen Strategic clock and Porter Generic through
better implement strategic planning themselves.
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