Strategic Agility in the Hospitality Industry: A Case Study of Oak Tree Inn

This report examines the concept of strategic agility in the hospitality industry, focusing on Oak Tree Inn. It provides a brief overview of the company and its objectives, identifies external threats and opportunities using suitable frameworks, and critically evaluates potential strategic choices. The report also discusses the importance of effective HR policies and better offerings in achieving strategic objectives. The analysis is based on a SWOT analysis and SAFe analysis.

Strategic Agility

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Brief overview.............................................................................................................................3
Identify external threats and opportunities which company face using suitable frameworks.....3
Create and critically assess two potential options from SWOT analysis.....................................5
Critically evaluate two strategic choices......................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic agility is defined as one of the significant concept which could lead in
responding change in significant manner by managing flexibility in appropriate manner. This is
highly essential as this is regarded as the base of business due to which creativity can be attained
by workplace employees (Gao and et. Al, 2020). Strategic agility is creating effective business
market and aspects under which innovation can be exerted in respect of reaching to new
customers. This report is covering various aspects of strategic management in respect of Oak
Tree Inn which is a business running in industry of hospitality and located in UK. The place is
regarded as the best and suitable natural location which is attracted by tourism. This is a well
known restaurant which provides accommodation services and award winning show facilities. In
order to carry out this report brief overview of major accommodation activities and along with
this several threats and opportunities are also examined which is helpful in managing several
tasks. At last evaluation of two strategic options with the help of SAFe analysis.
MAIN BODY
Brief overview
Oak Tree Inn is regarded as well established tourism business and this is located in
Balmaha which is a village and do not have such high population and this is regarded as the most
iconic location along with Scotland’s first national park as well. The sales of Oak Tree Inn for
the year of 2018 was 3 million and the company is running for the major objective of growing at
around 10 million by the year end of 2025. Besides this, it is being observed that around 14
million visitors are visiting the country in annual basis due to which 5% of overall GDP is
enhanced. Around 7% employment is generated in this sector due to which direct link is
established in enhancing overall economy (Lungu, 2020) . Moreover the major aim of Oak Tree
Inn is to intensify their sales in the year gap of 2018 to 2025. On the other hand after determining
number of visitors this is concluded that in the year of 2016 the maximum number of visitors
have visited the hotel and increased their revenue.

Identify external threats and opportunities which company face using suitable frameworks
PESTLE Analysis
Political: The political stability is one of the major aspect which is helpful in managing
success within business of hospitality. Due to implication of Brexit heavy opportunities are being
rendered to hospitality business and so to Oak Tree Inn. Besides this UK is having prominent
relationship with US which provides appropriate opportunities to the businesses running in UK.
These opportunities are providing positive implication to global economy and political aspects of
UK (Priyono, Idris and Abdul Halim Lim, 2020) . On the other hand the company is facing
revenue downfall due to implication of COVID-19 but at the same time the company is
managing the same by considering different laws and norms so that to minimise impact of this
pandemic in their business operations. This is the major time in which hospitality industries are
required to focus on health and safety measures.
Economical: By undertaking huge number of visitors in the year of 2016 higher
opportunities are being rendered to Oak Tree Inn and this is the reason that the company earned
highest revenue in this year. Besides this the company has attained sustainable growth
opportunities as well which is helpful for the organisation to deal with major complexities. By
increased number of visitors the company is aligned with their strategic objectives and by
implementing effective strategies positive impact is received in sales and other objectives. There
are various policies propounded by Scottish Government and the same are helpful in providing
positive impacts as well. UK is regarded as one of the most significant location in which FDI is
also promoted and the same is helpful for the industry to grow.
Social: In order to align with needs and demands of their customer Oak Tree Inn is
taking help of social media so that to understand their customers and align their service offering
in the same manner. For getting prominence in global level and tourism sector of Scotland social
factors are playing significant role as this industry is driven by customer. So customer is the only
asset held with the company in which they can meet with growth and sustainable options.
Technological: These factors are associated with using emerged technological movement
in business due to which positive impact over growth and sustainability can be received. In the
industry of tourism these factors are keeping high impact as new features are added on daily
basis which impacts the industry in significant manner (Nurcholis and Cahyono, 2019). As in
Scotland Oak Tree Inn hotel is providing online booking services in order to provide ease to their

customer in booking. On the other hand advanced technology is opted out by Oak Tree Inn in
which they are adopting Wi-fi services to their visitors.
Legal: The legal environment of UK is wholly dependent on political stability existed
within country. After the implication of Brexit the country is facing higher fluctuations and
alteration in law and policies which is the major reason that these factors are impacting business
within tourism industry. Alterations in existing policies may provide negative implications and
this is the major reason of changes in needs and facilities given by Oak Tree Inn.
Environmental: These factors are linked with using such practices by which impacts
over environment can be minimised and up keeping of environment can be exerted. The
condition of UK are favourable in this aspect as the country is trying to adopt environment
friendly techniques due to which standards of environment is enhanced (Hajli and et. al, 2020).
Oak Tree Inn is located in a village so they are managing environmental standards in optimal
manner. In this manner the local government is taking various initiatives in order to eliminate
issues within environment and aligning environmental growth as well. Besides this environment
awareness is primarily handled by the inheritance people due to which more than 127 billion
contribution is given.
Porter’s five forces
Threats of new entrants: Oak Tree Inn is offering services which are reliable and
suitable for their customer in appropriate manner. This is assisting them to eliminate their threat
of new entrants as this is not an easy movement for business to get entered into hospitality
industry. On the other hand as market is growing in tremendous manner so this is giving higher
opportunities for Oak Tree Inn to expand their business in easy manner.
Bargaining power of customers: Within this factor Oak Tree Inn is facing low
bargaining power as customers are highly attentive in paying for those services for which they
are desired. In the current time within environment customers are pertained with high bargaining
power as they have lots of options to get shifted. In this manner government is trying to develop
tourism sector in which various technologies are being inserted (Munteanu and et. al, 2020).
Bargaining power of suppliers: Bargaining power of supplier's is low as people are not
willing to take help from guides at the time of booking and exploring new places as well. Besides
this suppliers within this hospitality industry is associated with travel agents and other labor
those are working within hotel.

Threats of substitute: This is categorised as the substitution which arises due to change
and needs of customers get changed. The threat for substitution is providing lesser attraction
within profession existed in industry of tourism. The threat of substitution for Oak Tree Inn is
high as there are verity of businesses existed due to which customers get shifted.
Competitive rivalry: After arriving of new entrants competition for existing hotels get
increased. As Oak Tree Inn is located at village location so due to this reason competitive rivalry
is negatively impacting the organisation. On the other hand retention policies are being
introduced by the company in order to retain employees for longer duration of time.
SWOT Analysis
Strengths Weaknesses
Oak Tree Inn is an organisation with high
reputation and the company is offering
diversified services to their customer. This
provides them distinct identity within
marketplace which is highly suitable to
them to expand their business to longer
territory (Lu and et. al, 2019)
Oak Tree Inn is associated with poor strategic
management and conflict management due to
which processes are taking long time to get
finished. Besides this the working of the
business in highly dependent on rich families
and travelers.
Opportunities Threats
The organisation may develop such policies
in which Scottish government's plans can be
aligned. This will help them to increase
visitors and enhance attractiveness of hotels
as well.
The major threat is associated with reducing
in attractiveness due to which competitive
rivalry may be increased. There are various
competitors existed which is the major reason
of creation of sustainability threat.
Create and critically assess two potential options from SWOT analysis
Effective HR policies: With the help of SWOT analysis this is being identified that Oak
Tree Inn is having lesser effective HR policies so that they are not able to retain their staffs for
longer duration of time and this may impact the overall productivity in negative manner. In this
manner the owners of the organisation are required to provide training and development sessions

to their employees so that manager can assign duties in significant manner to them. This may
help the employees to stay motivated due to which employees can be retained for longer duration
of time. This will boost employee potential and resultantly overall brand image of the
organisation can be enhanced.
Better offerings: In current time market is having fierce competition and the same is
recognised by Oak Tree Inn so they are aligning with efforts exerted by their competitors. In the
location in which Oak Tree Inn is running their business so many other competitors are also
existed so in order to gain competitive advantage the company is required to offer distinctive
services. In this way they can attract higher customers and receive higher edge in competitive
market. For Oak Tree Inn they are developing appropriate strategies by which objectives of the
organisation can be achieved in which tough competition can be given to rivals. Along with this
Oak Tree Inn is willing to attain higher benefits and in this case they are intensifying business
offerings due to which profits and sustainability can be attained (Lamberg and et. al, 2019) . By
increasing sales employees can be motivated and in the current business environment
sustainability can be received by them.
Critically evaluate two strategic choices
SAFe Analysis: The strategic choice is being recognised by the hotel as in current
competitive market various competitors are running business which are impacting business of
Oak Tree Inn in direct manner. Suitability: This is regarded as the most important factor which is directly linked with
environment suitability and their fuller capabilities. As in context of Oak Tree Inn the
company is undertaking various strategies so that to fulfil appropriate requirements in
prominent manner. Acceptability: In this factor Oak Tree Inn is measuring risk and return provided to
shareholders in respect of used strategies. For instance when developed strategies are not
aligned with objectives this will lead to bear losses in sales and revenues as well. Feasibility: This is defined as the vital strategy which is propounded by the company in
which various capabilities are addressed in order to address business objectives in
significant manner. In the context of Oak Tree Inn the company is managing their
feasibility in order to address expansion plan (Hwang and Kim, 2019).

Employee motivation: By undertaking employee retention issues SWOT analysis is being
conducted by Oak Tree Inn and in which it has been recognised that employees are required to
be motivated. Employees of Oak Tree Inn are assigned with their roles and responsibilities
which provides them higher motivation and power of retention as well (Lorenz, Bäckert and
Heck, 2020). There are different ways in which motivation to employees can be rendered such as
Maslow’s need of Hierarchy. These are the ways which are helpful for providing motivation to
employees and fulfill their needs and demands in equitable manner.
CONCLUSION
From the above discussion this can be analysed that there are various strategies which are
playing prominent role in attaining goals and objectives aligned with efforts. Agility is defined as
the responsiveness towards various performed activities in respect to a business organisation. In
this regard appropriate frameworks are followed by the company in order to develop significant
strategies in which effective results can be attained in goals objectives.

REFERENCES
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