Consultants Strategic Report and Recommendations for Oak Tree Inn Case Study

This report provides a strategic analysis of Oak Tree Inn, a three-star hotel in Scotland. It includes a SWOT analysis, PESTLE analysis, Porter's Five Force Model, and two potential strategic options evaluated using the SAFe model.

Consultants strategic
report and
recommendations for
Oak Tree Inn case
study

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Overview of the firm:..................................................................................................................3
SWOT analysis of Oak Tree Inn:................................................................................................3
PESTLE analysis of "The Oak Tree Inn"....................................................................................5
Porter's Five Force Model:..........................................................................................................6
Two potential strategic options...................................................................................................7
Evaluate two strategic choices using SAFe model.....................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic agility means to the method by which flexibility of the business company which
is increased by understanding consideration in regards of the business environment in which
every functions of the company operates. The provided method takes thought of innovation in
the manner to give better standards of the working in the organisation. The following report is
based on the organisation The Oak Tree Inn which is the three star hotel, situated in the east side
of the Glasgow, United kingdom. The following report will cover about the consideration of the
external as well as internal environment and also the efforts will be done in order to give
appropriate output of the outcomes with the investment of the coherent resources combined with
the efforts of the people.
TASK
Overview of the firm:
Oak Tree Inn that works in the hotel industry and hotel is having their headquarter in
Scotland. It was founded in 1998. The company works in a hospitality sector in several global
market area. The respective firm provides services of accommodation to their guests and also
make sure that they give maximum luxury and satisfaction to them with providing quality
services as well (LI, 2020). The respective hotel is a owned by the family with having the
turnover of around £3m and plans to grow their business by the year 2025. Company is award
winning hotel which comprises of the holiday place by making 90 guests at once. Hotel is having
a Scottish bar, restaurant, ice cream parlour and artisan coffee in their premises and brand is
having the staff of more than 90 workers.
SWOT analysis of Oak Tree Inn:
The following framework makes sure accomplishment of the goal and objectives with the
help of the evaluation of internal as well as external analysis which is there in the business firm.
Managers of the Oak Tree Inn takes support of this strategic method in order to evaluate those
factors impacting functions of the business organisation. The following SWOT analysis of the
respective company is mentioned below briefly:
Strengths Quality services: The main strength for
Weaknesses
 Tax rates: Company is operating in

the hotel The Oak Tree Inn shows
towards giving top quality offering to
their consumer or guests. This strength
of the firm supports in the making of the
brand reputation of the regarding firm in
their functioning market area.
 Trained staffs: Hotel makes sure
providing effectual training and
development campaigns in order to
enhance the skills of the workers which
is helpful for the business company. It
supports the firm in neglecting and
minimising their wastages of the hotel
that shows towards appropriate
performance for the functions of the
company (Shaw, 2021).
the high taxation system which
obligatory by the government of their
working segment. It shows one of the
mojor weakness for the company, as
even after maintaining normal sales
revenue which are need to be adjusted
because of the taxes. It can lead to the
low profits margins of the company.
 Organisational disputes: Internal
conflicts are the main reasn for the
low profit making of the company so
it is acting as the weakness of the firm
because it can lead to impact
negatively on the growth as well as
success of firm.
Opportunities Technological factor: Management of
the respective firm are adopting several
methods of the automation and
innovation in their services which can
act as the major opportunity to enhance
their sales as well as in providing quality
services that can lead to the more
consumer base in the market area,
 Environmental concern: This factor can
work as the opportunity for the firm in
order to increase their goodwill in the
market area. The organisational
functioning of the firm focuses on the
Threats
 Competition: In this sector
competition is the major threat to the
company as there are several
competitors in the market area of the
same sector who are providing better
quality hospitality in lower price than
of The Oak Tree inn.
 High power of consumer: As because
of the high consumer power
respective company cannot easily
manages their stability in their daily
tariffs for their guests. Hence, it is the

betterment of the environment as well as
on the social welfare. Moreover,
company is following several corporate
social responsibilities.
threat to the company because of their
unstable financial operations.
PESTLE analysis of "The Oak Tree Inn"
PESTLE analysis is strategic tool that are utilised in “The Oak Tree Inn” to measure macro
environment factor that will have an impact on functional working of the management. The
fundamental factor will considered in this analysis that are as follows -
 Political - Such elements involves laws and norms of a section that are related by a
political body by functioning that are being focuses. In relation to the respective
hospitality management, managers of the corporate have to finance effective term of
resources to overcome the faults of political body of structure in the managerial region.
 Economic – It involves the situation of economical rates like inflation, deflation,
currency exchange rates and so on, it will have an impact on efficient performance of the
business. In context to the hospitality functions that are get affected by variation in
economical state of being in inflation or deflation (Kicová, and Poniščiaková, 2021).
 Social – As there are various social factors that are being managed into consideration by
executives at the chosen management that are intended towards fulfilling of social aims
of the management. The social factor will make sure effective goodwill of the
management while working that offers that offers functional market place.
 Technological – The respective management offers technological factor that will linked
with several sort of the technological factor that are utilised in the functional section to
make sure efficient completion of management's desired targets and aims. Managers at
respective management have to maintain their factors that will overcome their issues and
manage their potential of the business in forthcoming to management targets.
 Legal - This section of environment of the management will linked to the legal laws and
legislation that any management will maintain their nature, size or any other nature that
have to follows their divisions in legal laws. In context to the functional working at

respective hotel, managers of the business will take consideration of legal elements that
offers services and as well as facilities to govern managerial plan of action towards right
direction (Karakece, 2021).
 Environmental - It will relates to the governing of managerial functional by
consideration of environmental factor such as eco friendly organisational techniques. By
following the consideration to functioned working at respective business like factors will
plays essential role to make sure better trust of consumers and develop efficient goodwill
in their functional field of the market place.
Porter's Five Force Model:
 Competition in the industry- It refers to the numerous of the competition and the ability
of the firm in order to capture the market area. In context to The Oak Tree Inn, company
is have the goodwill in the market because of their long existence as well as because of
their services. Threat of the competition to the company is bit moderate as there are
several rivals in the same industry segment but also the respective firm is having the good
brand image in the market and company also focuses on the needs and wants of their
guest in order to maintain their brand image which can give them competitive edge .
 New entrants in the market- This factor refers to the entry of the new competition in the
same industry. In relation to the hotel The oak Tree, have the low threat in this segment
as in order to start a hotel it requires strong management team, large capital as well as
proper goodwill so it will be hard for the new entrants in order to operate in this sector.
 Power of suppliers- It refers to the negotiation power of the suppliers in the industry in
order to dominate the company in accordance to their price. There are several of the
suppliers in the hotel industry for providing them with the raw material or other products
which the firm need. So, in context to the The Oak Tree, power of their suppliers is low
so this is why suppliers need to agree on the prices offered by the company until it is
negotiated.
 Power of customer- Growth and success of the firm is majorly impacted by the power of
the buyers. The large base of the consumers can easily influence the working of any
company. In relation to the hotel The Oak Three Inn, that has a brawny consumer
acquisition which reduces the threat of the bargaining power of the consumers
(Hambrick, and Wowak, 2021).

Two potential strategic options
By considering of TOWS matrix it will be evaluated at the time of involving in managerial
strategic functions. Organisational authority of “The Oak Tree Inn” will identifying two strategic
functions in respective market place. For the given model, executives of the management can
take consideration of issues that are faced by management and manage it with managerial
strength and as well as weaknesses with effective opportunities. As there are various strategic
options that are accessible to the present management in order to their threats and as well as
weaknesses with two of them are as discussed -
Strategic option 1 – By reflecting to management's position as an effective strength,
opportunities to regulate managerial functions by utilisation of digital techniques can prove to be
effective. By this management will develop efficient skills when involving their functions in
unsure market conditions. Hence, it can be termed that respective management can be presented
efforts and deduct combination of natural and techniques that are experienced to their consumers.
Strategic option 2 – By taking consideration of qualitative facilities that are offered in the given
business that acts as one of an effective strength for business. Managers at the business can copy
their functions with taking consideration of situations. It will allow management to tactics their
working and create efficient values by brand value that can be maximised (Garrod, and Almeida,
2021).
Evaluate two strategic choices using SAFe model
SAFe model is an efficient techniques by that strategic choices for the respective management
can be increase their section for suitable outcome. Managers at “The Oak Tree Inn” manage their
possible strategic options with such model. Valuation of the SAFE model in order to functional
performance at respective management that are as follows -
Suitability - The strategic section will segmented 1 suits at effective firm by which they can
adapt it on the basis of their relevance to managerial functions. By this section of the tactics
option 1 manager of the respective business can involves managerial functions by the utilisation
of digital techniques. It can prove to be a creative manner to maximise the sales revenue by
maximising of consumer base that will also help them towards lowering the consumer power for
the respective management. (Filobokova, and Zhdankina, 2021).
Accessibility – From presenting various sort of strategic model such as SWOT, PESTLE and
Porter's, it can be termed that strategic option 1 proves that it will have lower risk as compared to

strategic option 2. The presented argument can be justified as lower term of resources that will
be utilised with effective management system in the business that can satisfy the needs for
respective strategic option.
Feasibility - It can be termed that presented factor can be relates to the strategic option 1 due to
its high feasibility as compared to another factors. It can be termed that, by following the above
section of suitability and accessibility given stages will favours towards strategic option 1 that
are to be chosen.
SAFe Matrix score table
SFA Matrix Strategic options
Strategy 1 Strategy 2
Suitability 4 3
Accessibility 5 1
Feasibility 3 4
Total 12 8
From the above table it can be understood that both the strategies has their own optimistic
aspects and potential of the respective hotel in which opportunities as well as strength to gain an
edge over their competitors in order to overcome several threats at the time of the functioning of
the business in the market area. It is also recommended to the firm that it mus utilise the first
strategic option which can be better for the firm in case of their productivity, performance as
well long term profitability (Alvarez-Figueroa, 2021).
CONCLUSION
From the above report it is concluded that, managers of the respective firm in the
hospitality industry to adopt many different strategies which can assist firm in effectual working
of their business for the long term. Moreover to this, it is known that management of the
respective company focuses on the attainment of their objectives as well as goals of the company
by managing effectual business atmosphere by understanding internal as well as external
elements.

REFERENCES
Books and Journals
Alvarez-Figueroa, M.F., 2021. Cultural characteristics of Chilean and Brazilian workers and
strategic management: An integrative literature review. Cultural Values in Strategy and
Organization, pp.279-325.
Filobokova, L.Y. and Zhdankina, A.Y., 2021. Strategic Management of the Agro-Industrial
Complex in the Territories of Rapid Socio-Economic Development and Its
Methodological Support. In The Challenge of Sustainability in Agricultural Systems
(pp. 33-40). Springer, Cham.
Garrod, B. and Almeida, A., 2021. On the strategic management of an events portfolio to extend
tourists’ length of stay: a LASSO approach. Current Issues in Tourism, pp.1-18.
Hambrick, D.C. and Wowak, A.J., 2021. Strategic leadership. Strategic Management: State of
the Field and Its Future, p.337.
Karakece, E., 2021. To Be Strategic or Not to Be Strategic for the Energy Investments: That Is
the Question. In Handbook of Research on Strategic Management for Current Energy
Investments (pp. 284-299). IGI Global.
Kicová, E. and Poniščiaková, O., 2021. Specifics in strategic management of non-profit
organizations in the globalization process. In SHS Web of Conferences (Vol. 92). EDP
Sciences.
LI, Z.Q., 2020A Study of Breakthrough Innovation of Strategic Management: from the
Perspective of Risk Investment. Contemporary Finance & Economics, (09), p.1568.
Shaw, J.D., 2021. The resource-based view and its use in strategic human resource management
research: The elegant and inglorious. Journal of Management, p.0149206321993543.