Strategic Report: Oak Tree Inn

This strategic report provides a detailed analysis of Oak Tree Inn, a hotel located in Scotland. It includes an overview of the firm, assessment of the external environment using PESTEL analysis and Porter's five forces model, SWOT analysis, strategic options, and evaluation of the strategic choices. The report aims to provide recommendations for the future growth and success of Oak Tree Inn.

Strategic Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of the firm....................................................................................................................1
Assessment of the external environment.....................................................................................1
SWOT analysis............................................................................................................................4
Strategic options...........................................................................................................................4
Evaluation of the strategic choices..............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A Strategic Report is a report in which there is a detailed discussion on the use of the
various types of strategies and methods so that the deriving of the recommendations for the
future can be done (Agarwal and Somaini, 2018). For this assignment, Oak Tree Inn has been
chosen. It is a hotel which is located in Scotland and provides different types of services to the
people. In this project, a detailed focus will be made on the Overview of the firm, identification
of the external threats and opportunities. Additionally, detailed analysis of assessment of the
strategic options will also be made as a part of this project.
MAIN BODY
Overview of the firm
In the year 1997, The Fraser Family started Oak Tree Inn. This business has a opened the
door for the wide variety of opportunities for the family (Cave and ÓhÉigeartaigh, 2018). This is
so because it offers premium rooms to the guests along with the facilities of access to Bar and a
Restaurant. Therefore, In this way the guests are provided with more convenience and comfort
which therefore is quite helpful for them in ensuring that the business proposition can be made
successful which will thereby lead towards the attainment of the goals and objectives.
The traditional design of the Inn is helpful in attracting the visitors towards it (Esser and
Chalaczkiewicz-Ladna, 2018). Thus, it can be said that the family business is running quite well
and is making a lot of profits. However, due to the influence which is created by the various
types of factors within the business environment it becomes important that the management is
able to determine the strategy to be applied so that the goals and objectives in the short-term,
medium-term and long-term can be attained. Thus, In this manner it can be said that the
businesses are required to consider a total overview of the strategy which will be helpful in the
forming of various types of recommendations.
Assessment of the external environment
The assessment of the external environment of an organization is quite essential so that
the deriving of the appropriate conclusions and recommendations can be done (Wynne and et.al.,
2016). Therefore, for this purpose the use of the following models will be made-
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PESTEL analysis-
It is an analysis which is concerned with taking into account the influence which is
created by a lot of external factors (Galliana and Del Moro, 2018). Therefore, In the context of
Oak Tree Inn, the PESTEL analysis is as follows-
Political factors- These are the factors like Government policy, Political stability,
Foreign trade policy etc. It is important for the organizations to consider them as they create a
particular influence on the situation in which they are operating. In Oak Tree Inn, these factors
are important because the organization has to consider the political situations of the country in
which they are operating.
Economic factors- Factors like Economic growth, Interest rates, Disposable income etc.
can be considered under it. It is crucial for the firms that they are able to consider the influence
which is created by these particular factors before determining the action which has to be taken.
In the context of Oak Tree Inn, it is essential that they are considered so that the decisions
regarding profitability can be made.
Social factors- These are the factors like Population growth rate, Lifestyle attitudes etc.
The organizations are required to ensure that the consideration to these factors is provided. In
Oak Tree Inn, it is essential that the influence created by these particular factors can be
considered. This will help it in ensuring that the appropriate decisions are taken according to
social needs and requirements.
Technological factors- Factors like Technology incentives, Level of innovation etc. are
considered under it. The firms have to make sure that they can consider them so that the
adjustments can be made quickly according to the level of technology. Oak Tree Inn has to
consider the wide variety of changes can be implemented in technology so that the attainment of
the goals and objectives can be done in the right manner.
Environmental factors- Factors like Environmental policies, Climate Change etc. are
considered under it. Therefore, it is important that the organizations are able to consider them
which will be quite helpful in leading towards the attainment of the environmental goals and
objectives. In the context of Oak Tree Inn, it is important that they are given importance so that
the organization can work according to the environmental laws, rules and regulations.
Legal factors- These are the factors like Discrimination laws, Consumer Protection laws
etc. It is crucial for the firms to consider them because the organizations have to ensure that they
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give importance to these laws. Oak Tree Inn therefore needs to make sure that it is able to abide
with the legal rules and regulations of the countries where it has presence so that it maintains its
profitability level.
Porter's five forces model-
It is a model in which the overall analysis of the different types of forces which are
operating in the external environment can be made (Gomes, Barnes and Mahmood, 2016).
Therefore, for Oak Tree Inn it is essential that the analysis of the following factors can be made-
Competitive rivalry- This refers to the level of competition which is present within the
business environment (Johnson, 2019). In the hospitality industry there is higher-level of
competition which therefore affects Oak Tree Inn and thus this force has a higher-level of power
for the organization.
Supplier power- This refers to the influence which is created by the suppliers on the
business environment. In the hospitality industry there is no influence which is created by the
suppliers. Therefore, In the context of Oak Tree Inn this force has a lower-level of power.
Buyer power- This refers to the influence which is created by the buyers on the business
environment. In the context of hospitality industry the buyers refer to the customers of the hotels.
In the context of Oak Tree Inn this force therefore generates a higher-level of power.
Threat of substitution- This refers to the threat which is created by the substitute
products in the market. In Hospitality Industry, this means the particular influence which is
created by substitutes for hotels. For Oak Tree Inn, this force creates a higher-level of power
because there are many substitutes which are available.
Threat of new entry- This means the threat which is created by the new players in the
market. In the context of Oak Tree Inn, this force creates a higher-level of power because there
are many new players who can enter into the hospitality industry.
Justification- 4 out of 5 forces create a higher-level of power and only 1 force creates a
lower-level of power. Therefore, it is quite important for the management of Oak Tree Inn that it
is able to ensure that it formulates the appropriate strategic directions on the basis of the power
generated by these forces.
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SWOT analysis
The use of SWOT analysis is crucial so that the overall assessment of the Strengths,
Weaknesses, Opportunities and Threats can be done in a proper manner (Kawamura and et.al.,
2019). Therefore, it becomes quite important for the management of Oak Tree Inn that it is able
to make sure that it uses it so that it is able to assess its internal situation effectively and
efficiently and can raise the overall profitability level.
SWOT analysis
Strengths Weaknesses
 Wide variety of facilities- Oak Tree
Inn offers a wide variety of facilities to
the customers in the market.
 Reasonable prices- Oak Tree Inn
charges reasonable prices for providing
its rooms to the different types of
customers in the market.
 Lack of application of proper
marketing strategies- Oak Tree Inn
does not applies marketing strategies in
a proper manner.
 Lack of penetration in certain areas-
Oak Tree Inn is not able to penetrate in
certain areas and therefore this creates
an overall level of impact on the hotel.
Opportunities Threats
 To target higher-level of
profitability- Oak Tree Inn has an
opportunity to target higher-level of
profitability.
 To target other segments- Oak Tree
Inn can make sure that the other
segments are targeted in a highly
effective manner.
 New players in the market- The
increase in the new players in the
market is creating a threat for Oak Tree
Inn.
 Higher-level of taxes- Higher-level of
taxes which are charged by the
government are creating a threat for
Oak Tree Inn.
Strategic options
From the SWOT analysis, it can be analysed that the use of a wide variety of strategic
options can be made so that the attainment of the short-term, medium-term and long-term goals
and objectives can be done (Lee, 2018). The consideration is required to be given to the strategic
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choices because they can help a lot in ensuring that the overall goals and objectives in the short-
term, medium-term and long-term can be done. The determination of the strategic choices is
quite crucial so that the Therefore, the strategic options which can be used by Oak Tree Inn are
explained in the following manner-
 Targeting other segments in the market- It is important for the management of Oak
Tree Inn that they are able to target other segments in the market. Therefore, In this way
they can be able to make sure that they are able to enhance their overall level of
efficiency and effectiveness.
 Increasing the number of services- For the management of Oak Tree Inn it becomes
important that there should be an increase in the number of services which they can
provide to the different types of customers and clients. Therefore, it is important for the
managers of the hotel that they focus on this option so that the wide range of customers
and clients can be attracted.
Evaluation of the strategic choices
The evaluation of the strategic choices can be made so that the organization is able to
ensure that it is able to evaluate the wide variety of strategic options which can be used by it
effectively and efficiently (Qiao and et.al., 2020). The strategic choices which are available for
Oak Tree Inn are explained as follows-
Suitability- This refers to the assessment of the suitability of the strategy to be applied
within the organization. Therefore, In the context of Oak Tree Inn it can be said that the
suitability of the targeting of other segments in the market is better than the strategy of increasing
the number of services. This is so because targeting other segments in the market will help in
increasing the level of revenues.
Acceptability- This refers to the assessment of the acceptability of the strategy in the
organization. In the context of Oak Tree Inn it can be said that it is important to consider it so
that the determination of the strategy can be made effectively and efficiently. Thus, In this way it
can be said that the strategy of targeting other segments in the market is more acceptable than the
strategy of increasing the number of services because it can be more profitable.
Feasibility- This refers to the assessment of the feasibility of the strategy because this
will be helpful in ensuring that the conclusions and recommendations can be drawn. In the
context of Oak Tree Inn it can be said that the strategy of targeting other segments in the market
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is more feasible as compared to strategy of increasing the number of services because it can be
helpful in ensuring that the achievement of the goals and objectives can be made and therefore
the attainment of the strategic edge can be made in a right manner.
CONCLUSION
From the above report, it can be concluded that Strategic Report refers to a particular
report in which the overall assessment of the various types of strategies can be made effectively
and efficiently. Thus, it is important for the organizations that they are able to make sure that
through the application of a wide range of methods and techniques they are able to derive the
appropriate conclusions and recommendations which will be useful in the short-term, medium-
term and long-term in the future.
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REFERENCES
Books and Journals:
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