Strategic Analysis of Oak Tree Inn's Business

This project analyzes the situations of Oak Tree Inn's business and recommends two types of strategies to decrease threats and take advantage of opportunities for competitive advantages.

Module code and title:
BM633 Strategic Agility

Executive Summary :
Oak Tree Inn is situated on the east shore of Loch Lomond. Its location provides great
view for the customers which pay a visit to that inn. Oak Tree Inn's business is also very famous
for its delicious cuisines and specially there breakfast which is the favourite of many customers.
Management strategies are series of techniques which are used for controlling and directing
business and its activities. These strategies include setting goals leadership business
administration and activities of operation. This project will analyse the situations of Oak Tree
Inn's business for producing two types of strategies. First strategy would include external factors
which act as threats or opportunities for the company. In the second strategy would recommend
the show how the company can decrease the threat and take advantages of the opportunities and
provide the firm with competitive advantages. This project will conclude with recommending
one of the two strategies suitable for the business.

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Overview......................................................................................................................................4
Identification of external threats and opportunities.....................................................................4
Analysation of competitive advantages of the business..............................................................6
Identification of Strength and Weakness of the firm...................................................................7
Two potential strategic options....................................................................................................8
Analysis of the two strategic options...........................................................................................9
Recommendation.......................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management strategies are series of techniques which are used for controlling and
directing business and its activities. These strategies include setting goals leadership business
administration and activities of operation. This project will analyse the situations of Oak Tree
Inn's business for producing two types of strategies. First strategy would include external factors
which act as threats or opportunities for the company. In the second strategy would recommend
the show how the company can decrease the threat and take advantages of the opportunities and
provide the firm with competitive advantages. This project will conclude with recommending
one of the two strategies suitable for the business.
MAIN BODY
Overview
Oak Tree Inn is situated on the east shore of Loch Lomond. Its location provides great
view for the customers which pay a visit to that inn. This name of Oak tree inn was given to this
business because this inn is situated below a 500-year-old Oak tree which is magnificent
(Booking.com, 2021). This is a perfect inn for customers for going out of their daily struggle in
the modern life. Oak Tree Inn's business is also very famous for its delicious cuisines and
specially there breakfast which is the favourite of many customers. Facilities of food is available
throughout the day in this Inn. Couple are the most common customers for this Inn, and they
seem to enjoy this place the most. This company is looking forward to gain competitive
advantages in this business by implementing new strategies. Two strategies will be derived by
the analysation of models and theories of the company and recommended to the business of Oak
tree inn for improving its performances (Livingstone, 2019).

Identification of external threats and opportunities
This strategy uses the Best way of identifying external threats with Pestle analysis,
Political :
Political factors will play an important role for determining those factor which might be a
threat or an opportunity for Oak Tree Inn. Political risk for a resort/hotel would be that Lodging
industries experiences a lot of interference and bureaucracy by the government. The company
can turn this as an advantage if it follows all the rules and regulations influenced by political
factor their Inn would be considered safe and legal thus customers will give more preferences
(Dobberstein and et.al., 2017).
Economic Factor :
Macro factors like inflation, savings rate, interest rate and all other macro economic
factors do affect the companies business output by determining aggregate demand and
investment. But the micro economic factors like competitive norms only provides the firm with
competitive advantage. Proper analysation of these factors may turn in opportunities for the
company and if they are neglected business usually suffers loss.
Social :
Social factors affect the business by the shared beliefs and attitude of the population of
society. Oak Tree Inn Business is influenced by the structure of the society, educational level and
class of the customers. This is an opportunity for the business as the location of its Inn usually
attracts people with high standard of living (Kallmuenzer, 2018).
Technological :
Oak tree Inn can use this opportunity for introducing new technologies in their, which
can be used for multiple purposes. Like online booking, or CCTV camera in common halls and
new and exciting appliances which attracts the customers.
Environmental :
This factor already affect the company in a very positive as the Inn is situated in a very
natural location, which has been the reason for its success. Opportunities which the company
take it can plat more trees which show the effort to the customers and result in good reputation
better future environment (Widya Yudha, Tjahjono and Kolios, 2018).
Legal :

Legal factors influences Resort/Inn business depending on the country in which it
operates. That is why legal factors should be proper understood before entering the market
otherwise these factors can turn into threats. These factors are Law of discrimination, consumer
protection and health safety. If the following factors are properly followed and maintained it
becomes an opportunity for the company.
Identification of Strength and Weakness of the firm
This strategy of identifying the strength and weakness of Oak Tree Inn uses SWOT
analysis,
Strengths :
One of the biggest strengths of this Inn is that it is located in a very natural place which
has 500 year old Oak tree, after which it is named. This gives the company an upper hand for its
business as the customers visit this place for enjoying services in the nature. It is a couple
friendly place due to which couples are the most common customers of this Inn. Biggest strength
of the company has been its employees who have performed well for building a good reputation
of the business in the market (Singh, 2018).
Weakness :
Weakness of this business is mainly about its size and magnitude. This business is limited
to a certain area due to which it cannot expand its capacity. Result of this is seen directly on its
reputation and brand name. This inn is still not very popular in UK. It is too much dependent
over its employees as a result it becomes weakness, if the employees show high demand of
wages the company will not be able to replace them and that might turn out to be risk of
stoppage of the business activities.
Opportunities :
This business has presented many opportunities for grabbing. The company can advertise
its business and the customers experiences, it can easily gain more customers. The best ways of
advertisement will be through social media, online websites and also using social media
influencers for building the brand name in the society. Some other opportunities presented to this
business is that it can utilize the market segmentation for analysation of its customer. This helps
the company develop segmented services for different types of customers.
Threats :

Some threats faced by this business are mainly from its competitors which can steal the
customers of Oak tree inn by providing cheaper services and might even try to copy the services
provided by the Oak tree inn. Along with these threats some other threats which can be faced by
the business could be about losing its employees due to some reason. Employees are very
essential for this business and have high demands. No company wants to lose their employee to
its competitors.
Analysation of competitive advantages of the business
Strategy of analysation of competitive advantages for Oak tree inn Porter's five forces are
used,
Competition in hotel industry :
Oak Tree Inn is a country side inn which provides services of pleasant food and other
services in the shade of an Oak tree which gives it a very natural view. Even though this inn is so
different but still there are competition to its business nearby for example Glenlaird, The Drymen
Inn. Determining their profitability as a competitor would provide the company with sustainable
advantage (Das, 2020).
New Entrants :
The profit making capacity of hotel business always attracts new entrepreneurs for
investing in this industry. This is always a threat for Oak Tree inn, but the best way to nullify this
problem is to keep secrecy of own strategies and keep on performing well at the optimal level in
order to maintain good business without the affect of new competition.
Power of Suppliers :
Suppliers in hotel industries are the employees, staff and every personnel involved in the
business activities of the Inn. It is the staff which is the most important asset of such company.
Thus, they should be treated and managed properly. And the company should hire only talented
new staffs with required skill for improving its production (Adamkasi, 2017).
Power of Buyers :
Buyers are customers who visit the Oak Tree Inn, customers are divided into various
segments which is determined by there age, income status or lifestyle. According these
segmentations the company should have strategies in their inn. Couples have been seen most in
this type of business that's the reason why the company should focus on making more services
for couples.

Threat of Substitution :
Threat of substitution in this industry is about customers choosing any other hotel due to
reason like fewer prices better services and other factors. The Best way of avoiding is to be
updated with activities of the competitors and along with that keep on improving on the existing
strategies.
Viro Analysis is used for uncovering the sustainable competitive advantages of the
company. This analysis consists of four components which are,
Value :
According to this analysis the value here is refereed to the value of services which is
provided by Oak Tree Inn. For neutralizing the competition the company must exploit
opportunities within itself. Oak Tree Inn is a country side inn which provides services of pleasant
food and other services in the shade of an Oak tree which gives it a very natural view. All these
factors suggest that this company provides good value to its customers (Kaushal and Srivastava,
2021)
Rarity :
In this analysis rarity is the special feature that the company has which separates it from
its competition. Oak Tree Inn is a country side inn which has 500-year-old Oak tree below
which its inn is situated this provides the organization with a special feature for its hospitality.
Thus, it can be said that the company is in competitive advantage.
Imitability :
Imitating the resources of the Oak Tree Inn can be little difficult because it contains a
natural environment which favours its business. The 500-year-old Oak tree in the shade of which
the customers can enjoy nature is one of the most important and inimitable feature of the
organization (Liu, and et.al., 2017).
Organization :
This component states about the organized management system which the company
consists of structure capabilities and capitalization of resources. The biggest strength of the
company has been its employees who have performed well for building a good reputation of the
business in the market. This provides the company a competitive edge.

Two potential strategic options
From the above analysation two types of strategies can be derived, First strategy which
about the external factors which affect the business in different external factors which include,
Political, Economic, Social, Technological, Environmental and legal factors can affect the
business of Oak tree inn. In the second strategy which gives emphasis over the competition faced
by it. Existing competition, new competition are also explained with the importance of
employees and customers as the power of suppliers and buyers. Both the strategies of the
Explained above have their own positive and negative impact over the business. Factors in the
first strategy do have their opportunities and threat, but they affect business on a large scale
which do not always affect the daily activities of the business. In the second strategy which gives
emphasis over the competition faced by it, through existing competition, new competition and
also explains the importance of employees and customers as the power of suppliers and buyers.
This strategy is more related toward the daily activity of the business and also determines the
importance of employees and customers. Both the strategies are important in their own ways.
With the help of SWOT analysis the business can understand about its strength,
weaknesses, threats and opportunities. This analysis shows that both the strategies cannot be
used with understanding these factors and thus determining there threats and opportunities.
Advantages of following the first strategy would be that it would create a positive impact over
the business on a long time due to the consideration of macroeconomic factors. These factors
prove to be very essential for setting up a business or expanding the business in a new market.
Whereas, in the second business strategy is told about the daily ways of affecting its activities
through micro economic factors including competitors suppliers and customers. This strategy
affects the daily activities of the business for improving its performances.
Analysis of the two strategic options
For critically analysing the two strategic option safe analysis is used. Safe
analysis is done after the consideration of these points.
Strategies First Second
Sustainabili
ty
The first strategy talk about the macro
economic factors of the business which
provides opportunities which arises on a
The second strategy talks about the
competition faced by it, through
existing competition, new competition

large macro scale. Failing to grab the
opportunities presented for small scale.
and importance of employees and
customers as the power of suppliers
and buyers. Because of the following
this strategy provides more
opportunities for this particular
business.
Acceptabilit
y
This strategy does not meet the
expectations of the stakeholders. In this
strategy only the risk of macro economic
factors are explained which means it fails
to cover the competitive level of risks.
Due to these factors the stakeholders of
the company will not consider this
strategy for daily usage in their business.
This strategy does meet the
expectations of the stakeholders.
Strategy talks about the competition
faced by the company and importance
of employees and customers as the
power of suppliers and buyers thats
why it covers all the risks this business
will suffer in an operational level. Due
to these factors the stakeholders of the
company will consider this strategy for
daily usage in their business
(Neganova and Tonkikh, 2019).
Feasibility This strategy can only work in practice if
the company decides to enter a new
market. This strategy might require a lot
of finances. The employee and managers
of this company are not skilled enough
for applying this strategy as it involves
entering new market. Considering the size
and the types of business it's unlikely to
for this company to attain the resources.
This strategy can work in practice
because it helps the business to run and
rectify its daily business activities
with explanation of threats and
opportunities presented by the factors
discussed in this strategy. This
organization is more than capable for
financing this strategy. The employee
and managers of this company are
perfectly skilled for implementing this
strategy. It won't be much difficult for
the business for attaining the resources

for this strategy as it already a similar
strategy to this.
Recommendation
After, criticizing both the strategies mentioned above Oak Tree Inn needs to be
recommended with a strategy. According to the business of the company the best strategy it can
use would be the second strategy, because it helps the business to run and rectify its daily
business activities with explanation of threats and opportunities presented by the factors
discussed in this strategy. Understanding the competition is very important for this business as it
the biggest threat to it. This strategy also suggests some opportunities for the business and how
to nullify the threat caused by the competitors.
First strategy is rejected because it only suggest the external factors and how they affect
the business, which is important for setting up a new business but for an existing business this
strategy does not have much application to in. This is the reason why Oak Tree Inn should use
the second strategy which gives emphasis over the competition faced by it, through existing
competition, new competition and also explains the importance of employees and customers as
the power of suppliers and buyers.
CONCLUSION
With this project it can be concluded that the second strategic option which is chosen for
Oak Tree Inn will provide the company necessary advantages and upper hand in the competitive
market. This strategy also suggests the various opportunities and threats according to the factors
of macro economy. With the help of Porter's five model this project help the company to
understand the competition better. The main aim of this project was the chose a strategy and
analyse it strengths and weakness along with the threat and opportunities.

REFERENCES
Books and Journals
Das, B., 2020. An Analysis of Strategic market positioning of Bangladesh Hotel and Hospitality
Management: A study on The Palace Luxury Resort.
Dobberstein, M., and et.al., 2017. DAYTA Marketing: Hospitality and Leisure.
Kallmuenzer, A., 2018. Exploring drivers of innovation in hospitality family firms. International
Journal of Contemporary Hospitality Management.
Kaushal, V. and Srivastava, S., 2021. Hospitality and tourism industry amid COVID-19
pandemic: Perspectives on challenges and learnings from India. International journal
of hospitality management. 92. p.102707.
Liu, C.H., and et.al., 2017. Analysis of tourism and hospitality sustainability education with co-
competition creativity course planning. Journal of Hospitality, Leisure, Sport &
Tourism Education. 21. pp.88-100.
Livingstone, R., 2019. Oak Tree Inn: growth challenges facing a family-run tourism business.
In Exploring Strategy: Text and Cases (pp. 723-730). Pearson Education.
Neganova, V. and Tonkikh, N., 2019, January. Study on Strategic Priorities in Goods and
Services Markets of a City With the Population Exceeding One Million on the Basis
of SWOT-Analysis. In International Scientific Conference" Far East Con"(ISCFEC
2018) (pp. 238-242). Atlantis Press.
Singh, N., 2018. SWOT Analysis of a Boutique and Lifestyle Hotel-Uncle Ming Retreat.
Widya Yudha, S., Tjahjono, B. and Kolios, A., 2018. A PESTLE policy mapping and
stakeholder analysis of Indonesia’s fossil fuel energy industry. Energies, 11(5),
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Online
Booking.com, 2021., Oak Tree Inn, [Online]Available through:
<https://www.booking.com/hotel/gb/oaktreeinn.en-gb.html>.
Adamkasi, 2017., Porter's Five Forces model of hotel, [Online]Available through:
<https://www.porteranalysis.com/porters-five-forces-model-of-hotel-industry/>.