Strategic Ability in Oak Tree Inn: SWOT and PESTLE Analysis

This report explores the strategic ability of Oak Tree Inn through SWOT and PESTLE analysis. It discusses the overview of the hotel, assessment of external factors, and critical assessment of potential strategic options. It also suggests two strategic choices for the hotel to gain a competitive advantage.

Strategic ability

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
An overview of Oak Tree Inn.................................................................................................3
Assessment of PESTLE, five forces model and SWOT analysis for Oak Tree Inn...............4
Critical assessment of two potential strategic option from SWOT for Oak Tree Inn............7
Two strategic choices available to Oak Tree Inn...................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic ability plays a crucial role in organisational development, it is referred to the
capability of management to formulate an appropriate business plan for a company. To handle
various hurdles in a business, it is necessary to formulate an effective business plan which
facilitate running of a business (Chelikani, 2019). Strategic ability is also a major ability of the
management personnels at the company in order to achieve business goals. In this report
Strategic development for Oak Tree Inn is taken into consideration with PESTLE analysis and
porter's five forces model. This report contains an overview of the firm and its activities along
with SWOT analysis and also contains two potential strategic options as a result of SWOT
analysis. This report also covers various strategic tools that facilitate a business to gain
competitive advantage in the market.
MAIN BODY
An overview of Oak Tree Inn
Oak Tree Inn hotel is situated in Balmaha village at United Kingdom, the hotel is having
a good restaurant which provides multiple cuisines to customers. Oak Tree Inn mainly serves
Scottish food and drinks to its customers which are very famous. The hotel also has a Mocha
coffee shop for serving best coffee to customers, Oak Tree Inn has also a separate ice-cream
parlour which serves quality ice-creams and candies to its customers. The hotel is 500 hundred
years hotel of UK and also provides good accommodation to its customers. The major advantage
of the hotel is that, it serves a huge crowd of customers with quality (Hotel Oak Tree Inn,2021).
Oak Tree Inn also organises private parties at the hotel on customer's demand at very cheap rates.
To maintain quality of food in its functioning there are professional food quality managers
present at the hotel.
Oak Tree Inn also has separate online portal which offers purchase of an online gift card, through
that gift card customers can enjoy drinks and food at heavy discount in the hotel. Rooms for stay
at the hotel are well maintained and ventilation system is also proper to ensure a quality stay.
Management staff of the hotel is very co-operative and takes care of every customer with full
fledge responsibility. The hotel has also installed a proper feedback system for improvement in
its services, after the feedback from its customers the hotel always takes necessary and
appropriate actions to increase customer satisfaction. The hotel also handles grievances and

conflicts which arises during the operations with optimum utility. Oak Tree Inn has also good
customer support as the hotel provides an email address which handles all queries of customers
in an effective manner (Evert, and et. al., 2018). Oak Tree Inn has also hired professional waiters
who serves good quality food to customers, the waiters are very polite and patient in performing
various tasks and handling the customers. For serving Scottish drinks to customers, hotel has
hired several bartenders who serves various drinks with politeness. At Oak Tree Inn a
professional surveillance system is installed to monitor all its operations and security staff is also
hired to look for various operations. Oak Tree Inn hotel has also adopted all the necessary
measures to deal with the situation of COVID 19 pandemic. The hotel has also installed a proper
sanitisation system to avoid any casualty related to the disease. For handling emergency
situations at Oak Tree Inn, the management of hotel is always ready with appropriate measures.
Assessment of PESTLE, five forces model and SWOT analysis for Oak Tree Inn
PESTLE analysis:
PESTLE is an important tool which is universally accepted by many major organisations
of this world. This analysis derives an overview of several external factors which impact a
business. PESTLE analysis of Oak Tree Inn is given below:
 Political- Political factors include government's regulations which are imposed on
business and effects in the functioning of a business. These factors majorly includes the
interference of all the government in a business. Oak Tree Inn is majorly influenced by
UK's government rules related to hospitality industry.
 Economical- Economical factors include the standard of living, purchasing power of
customers and national economy rules (Pratiwi, 2019).. Oak Tree Inn's revenue
generation depends on the economical factors which are present in the country.
 Social- Social factors are the factors which includes the inclination of society towards a
business, these factors mainly focus on demographic situation of a country (Schreuder,
2019). These factors affect the operations of Oak Tree Inn in various ways and hotel
should analyse all aspects of society to understand its functioning.
 Technological- Information and technology impact every business in an economy to
maximum extent in this world. Oak Tree Inn hotel has deployed computer systems and
software to handle major data operations in an effective manner.

 Legal- Legal factors include the rules and regulations imposed by the local authorities on
a business (Gilles, 2018). Oak Tree Inn Hotel is majorly influenced by major factors
related to its working legally in business environment.
 Environmental- Environmental factors include various elements which are present in
external environment of a company. Oak Tree Inn hotel keeps in mind all the major
factors which present in external environment of country.
(Source:PESTLE,2021)
Illustration 1: PESTLE factors vs SWOT factors

SWOT analysis:
SWOT analysis helps in formulating a precise business strategy for achieving future goals
(SWOT analysis,2021). The SWOT acronym stands for Strengths, Weaknesses, opportunities and
threats which are available to a business. SWOT analysis of Oak Tree Inn is given below:
 Strengths- Strengths are related to capability of a business to overcome various
challenges in market. The strengths of Oak Tree Inn hotel are many like prime location,
good management, cuisine speciality, Scottish drinks and food. These factors make hotel
unique in market to overcome various hurdles in market.
 Weaknesses- Weaknesses are the drawbacks and limitations which are present in the
business environment (Guelev, 2017). The hotel is although capable enough to stand
strong in market but it is having several weaknesses like strong competition, pandemic
situation handling and lack of performance management.
 Opportunities- Opportunities provides the chances of expanding a business in the
market as well in increasing the revenue of a business. In hospitality industry, there are
various opportunities available which are beneficial for Oak Tree Inn hotel in providing a
good market opportunity.
 Threats- Threats are present in every business situation and determines various factors
which affects performance of a business in the market. Threats play a major role in
evaluation of performance for every business (Zhou, 2019). Oak Tree Inn has limited
threats at the marketplace like threat from various rival hotels, threat from governments
policies on hospitality industry.
Five forces model:
Porter's five forces model was proposed in 1980s and is very helpful in providing an in depth
analysis of various factors that are affecting a business. Five forces model of Oak Tree Inn with
explanation is given below:
 Bargaining power of suppliers- Bargaining power of the suppliers affect a business in a
multi-dimensional manner. The bargaining power of suppliers in hospitality industry
mainly relates to availability of raw material and grocery (Konnikov, and et. al., 2017).
The bargaining power of suppliers for Oak Tree Inn is low as the hotel maintains its
suppliers precisely.

 Bargaining power of buyers- Bargaining power of buyers relate to the capacity of
customer that helps in purchasing products and services for a company. Bargaining
power of buyers is a key factor in hospitality industry that fixes price of its products and
services.
 Threat of substitutes- There are various substitutes available to the customers in
hospitality industry, so the threat of substitutes in hospitality industry is present with high
degree. Threat of substitutes is there for Oak Tree Inn as major hotels are present in UK
market.
 Threat of new entrants- Many different companies perform in the market as well as new
companies try to enter marketplace with full efficiency. For Oak Tree Inn, there are new
several companies available in the marketplace to enter which is a major threat for the
business.
 Rivalry among existing competitors- In hospitality industry, there is a stiff competition
in market which majorly determines different dimensions for the hotel to compete in
market. Oak Tree Inn hotel makes a realistic approach by accessing its competitors in
order to compete in the hotel industry.
Critical assessment of two potential strategic option from SWOT for Oak Tree Inn
From the above stated SWOT analysis, two best strategies available to Oak Tree Inn are
explained below:
 Expansion strategy- Oak Tree Inn hotel should expand its business in the market by
opening more similar hotels. It is recommended for the hotel to open a chain in the
marketplace of UK to increase its revenue generation. Oak Tree Inn hotel is performing
with optimum level in the marketplace, therefore it is necessary for it to expand its
business as soon as possible (Lieberman, and et. al., 2020). Expansion is a good strategic
option available currently to the hotel, Oak Tree Inn should deploy professional
management in order to expand its operations in the marketplace to develop a large chain
of hotels.
 Performance management strategy- Oak Tree Inn hotel should deploy professional
management in order to develop a precise performance management. This would increase
the efficiency of a business and would effectively lead in developing an intelligent

workforce for the hotel. This strategy would also develop a performance oriented
business in hospitality industry for Oak Tree Inn hotel.
Two strategic choices available to Oak Tree Inn
Oak Tree Inn hotel has various strategic choices available as per its competency strength.
The hotel should conduct various operations in marketplace related to its development and
strategy and deploy the following two strategic choices in its operations:
1. Deployment of information and technology- The information and technology play a
major role in hospitality industry. In order to increase the competency power of a
business it should deploy all the necessary tactics and tools which are helpful in
formulating smooth operations. Oak Tree Inn hotel should deploy various measures to
deploy use of IT and artificial intelligence in its operations to gain efficiency and avoid
human errors (Lombardi, and et. al., 2020). In customer handling, information and
technology plays a major role as it eases the workload which is there on mind of
management. Oak Tree Inn handles several number of customers in its day to day
business which will be facilitated by IT and its engagement.
2. Increasing variety of food- The hotel should increase the available variety of dishes in
its menu to engage more and more customers in the business. The hotel management
should also look for maintaining a quality in its food and drinks of global standard in
order to satisfy the needs of various customers (Mu, 2017) This will also attract several
customers form various countries and it will also increase the revenue of business. There
is increasing demand for multi-cuisine food at the hotel which is essential to be fulfilled
with quality. So the hotel management should develop a comprehensive approach in
deploying good and effective cooks for Oak Tree Inn.
CONCLUSION
From the above stated report, it can be concluded that Oak Tree Inn Hotel is one of the
oldest hotel in UK which is having key attention of various local people as well as of major
tourists which come to UK. With the help of SWOT and PESTLE analysis a good future strategy
for the hotel is formulated. This report also contains two major strategic choices for the hotel in
order to gain competitive advantage in hospitality industry. Two potential strategic options
available to hotel can also lead to develop its business in the market and can take hotel to heights

in hospitality industry. This report also concludes various opportunities which are available to
the hotel which are helpful in developing its operations and also defines several objectives for
the hotel.

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