Challenges and Strategies in the Tourism Industry: A Case Study of Oak Tree Inn

Case Study
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTEL Analysis........................................................................................................................3
5 Forces models...........................................................................................................................3
Strategic capabilities on the bases of SWOT analysis................................................................3
Evaluation of two strategic choices through the application of theories....................................3
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
Oak Tree Inn was founded by Fraser family (Sandy and Lucy) in year 1997. The place is
located in the beautiful village of Balmaha, Loch Lomond. Balmaha is one of the most popular
tourist destination and Oak tree Inn is dealing in tourism business. Balmaha is a small village
with less population but it is beautifully covered by nature which attract the tourist to visit. Oak
Tree Inn have successfully established their business which provide holiday
accommodation ,restaurant ,artisan coffee,ice creams shops etc. In 2018 the oak tree inn had a
turnover of £3m and the owner director of the business have the aspiration to grow its business to
£10m by 2015. Tourist comes to visit another place so that they can feel relaxed and experience
the new environment. Oak tree inn provides new experience and great hospitality to the tourist
who are coming to visit their place so that the demand of the organisation can be increased in
market because If tourist will be happy with the services provided by the company then they will
recommend it to their friends and relatives which will help the business to grow and earn profit.
In this report we will analyses the challenges which oak tree inn faces and how they plan their
strategies in order achieve their goals.
MAIN BODY
PESTEL Analysis
Pestle analysis is a part of marketing strategies which shows how a business should
execute in various environmental changes. Pestle stands for Political, economical, social,
technological, legal, environmental These are the various factors which effect the working of the
organisation.
POLITICAL ENVIROMENT
These are factors which include government policy, high tax rate, unemployment rate,
economic condition of a country where a business is operating. High tax rate will effect the
profitability of the business. Stability of government is very important in order to achieve the
growth in the tourism industry. Because government has the liability to impose tax which can
affect the organisation also it will lead to decrease in the no tourist who are coming for a visit.
ECONOMIC FACTORS
Inflation rate is one of most important factor which effect the revenue generating power
of the organisation. If there will be high inflation rate in the economy then automatically there
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