Consultants Strategic Report and Recommendations for Oak Tree Inn Case Study
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This report provides a strategic analysis of Oak Tree Inn, including SWOT and PESTLE analysis, evaluation of two potential strategic options, and recommendations using the SAFe model.
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BM633 Strategic Agility
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Table of Contents Introduction......................................................................................................................................3 Overview of the firm..............................................................................................................3 Main Body.......................................................................................................................................3 SWOT analysis of Oak Tree Inn............................................................................................3 PESTLE analysis of "The Oak Tree Inn"...............................................................................5 Two potential strategic options..............................................................................................7 Evaluate two strategic choices using SAFe model.................................................................7 Conclusion.......................................................................................................................................8 References........................................................................................................................................9
Introduction Strategic agility refers to the technique through which flexibility of organisational firm is being enhanced by taking considerations of given business environment in which all the operations of the firm takes place. The given technique takes considerations of innovation as the way to facilitate better standards of working in the business firm. For the given report document, operational working at, "The Oak Tree Inn" will be taken into consideration. For the given report document considerations to internal and external business environment will be focused and efforts will be made to deliver better output of results with investment of rational resources compiled with human efforts(Margherita, Sharifi and Caforio, 2021). Overview of the firm Oak Tree Inn operates as a SME which is headquartered in Scotland founded in 1998. The given firm operates as a hospitality industry in various international markets. The said company provides accommodation services to their clients and ensures maximum satisfaction to them with their quality operational working.The business is a family-owned business with a turnover of £3m ($3.8mand €3.4m) and aspirations to grow to £10m ($12.8mand €11.3m) by 2025. The award-winning Oak Tree Inn business comprise of holiday accommodation (sleeping 90 guests a night), an authentic Scottish bar, restaurant, artisan coffee and ice cream shop (both home produced) and a popular village shop. It employs 100 staff (some seasonal)(Saechao, 2018). Main Body SWOT analysis of Oak Tree Inn The provided strategic analysis ensures completion of organisational goals with taking consideration of internal as well as external factors present in business market. In the given context of SME firm taken into consideration i.e. The Oak Tree Inn managers of the firm use this strategic technique to analyse both internal as well as external factors affecting operations of the business firm. The SWOT analysis of respective firm are as follows; StrengthsQuality services: The foremost strength for "The Oak Tree Inn" reflects towards Weaknesses Tax rates: Managers at "The Oak Tree Inn" have to manage working under
providing quality of services to their customers. The given strength of the company aids towards establishment of betterbrandimageofrespective company in their operational markets. Trained staffs: By ensuring effective training and development programs in the workforce professionalof efforts being produced is being facilitated in the business firm. This aids towards avoiding wastages in business which reflects towards better productivity for the operational firm(Shams and et. al., 2021). high taxation system imposed by the government of operational region. This reflectstowardsoneofthegreatest weakness for the firm, as even after managing decent sales profit margins are to be adjusted by paying taxes. Organisational disputes: It has being observed that respective organisation's turnover is reduced which could be the due to internal conflicts in the given hospitality company(Skopyk, 2020). OpportunitiesTechnological factor: It appears that managers at, "The Oak Tree Inn" are adopting to innovative technologies are takingconsiderationsofdigital technologiesintheiroperational working.Thisactasthegreatest opportunity for the given company to tapdemandsofcustomersinfuture online markets. Environmentalconcern:Thegiven companyhavegoodopportunityto frame its brand image. The operational working at respective hospitality firm reflects towards taking considerations ofenvironmentalconcernsin operationalmarketsofgiven Threats Competition: One of the greatest threat for "The Oak Tree Inn" is in relation to competitiveforcesoperatinginthe similarmarketsofsaidfirm.This manipulatesoperationalstrategyand decision-makingofthegiven hospitality firm. High power of consumer: Due to high power of consumers, given hospitality firmcan'tmaintainstabilityintheir prices of products and services offered tovariouscustomers.Thusactsas another threat for the firm as, it dis- balances firm's financial performance (Ting, 2018).
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organisational firm(Thrassou, Vrontis and Bresciani, 2018). Therefore, through analysis of SWOT analysis it can be said that, managers of the firm havetoconcentrateoneffectivemanagementandcoordinativestrategiesinthefirm. Furthermore, appropriate marketing techniques can be implemented in the organisational firm to derive firm with strong customer base. PESTLE analysisof "The Oak Tree Inn" PESTLE analysis is a strategic tool used in "The Oak Tree Inn" to analyse macro environment factors influencing on operational working of the business firm. Key elements considered in this analysis include; Political: Such factors includes rules and regulations of a region being defined by a political body operating is being concentrated. In regards to the chosen hospitality firm, managers of the corporate have to invest high resources to overcome problem or issue of political instability in firm's operational region. Economic: Given factors are an inclusion of economic rates such as inflation, deflation, currency exchange rates etc. that affects effective working of the organisational firm. In relation to said hotel operations are being affected through fluctuations in economic state of being in inflation or deflation. Social: Several social factors are being taken into consideration by managers at the chosen firm which are aimed towards fulfilment of social objectives of the business firm. The provided factors ensures better goodwill of the business firm while working in provided operational market. Technological: Provided factors relates to variety of technologies used in the operational firm to ensure effective completion of firm's desired goals and objectives. Managers at chosen firm haver to take considerations of such factors that will foster true potential of the firm in approaching to business goals. Legal: This environment of the business firm relates to legal laws and legislation which any business irrespective of their nature, size or any other characteristic have to follow such legal laws.Inregardstooperationalworkingatchosenhotel,managersofthefirmtakes considerations of legal factors that facilitates firm to govern business strategies towards right direction.
Environmental: It refers to governing of business operations by considerations of environmental factors like eco-friendly business techniques. With considerations to operational working at given firm such factors plays a vital role to ensure better trust of customers and establish effective goodwill in its operational marketplace(Tooranloo and Saghafi, 2019). Porter's Five Force Model Competition in the industry: Moderate The first of the five forces refers to the numbers of competitionand there capability of capturing the market. "The Oak Tree Inn" which its long existence has a decent numbers of customer and a brand value. The company is listed in the London stock exchange. Since the market is evolvingrapidly and the taste of people for quality living is also being enhanced. So for fulfilling the wants of the market there are so many brands available with great quality product and eye catchy prices. New entrants in the market: LOW The next factor addresses the force of new entrants in the market. Since"The Oak Tree Inn" has a renowned identity in the market which lower down their risk from new entrants. They focuses on the age group and has a brand value between the youth of the region. They offers wide range of variety with the combination of natural and technological services and product which develops unique identity in the market. Their unique products and marketing making a barrier for the new entrants. Thus, their unique approaches of product designing lowers the threat of new entrants. Power of suppliers: Moderate The next factors which includes in the porter's 5 forces addresses the power of supplier. The number ofsupplier in the hospitality industries are very high. Companies like "The Oak Tree Inn" has various option from choosing the quality to finalize the raw materials. That's why supplier can't make any price enforcement on raw materials delivered to respective company. But at the same time it is a well established brand with a market value, any change in quality of raw material can affect their sales. So it could be a little bit risky for them to switching the supplier Therefore it concludes that "The Oak Tree Inn" saves extra buckson their operations, which helps them out in taking good margins on their product(White, 2018). Power of customer: LOW
The company workings affect by the power of consumer. The size of the customer derives their power. "The Oak Tree Inn" which has a strong number of customer acquisition lowers down the customer power. Threats of substitute products: Low The last of the five forces shows the power of substitute product. The availability of substitute can manipulate the price as well as the sale and vice-versa. Since the brand is using their unique design and different varieties. They have their registered trademark which not allows other to imitate, it leads to eliminate the fear of substitution. Thus it derives their unique product which leads to give them an exposure in sales(Whittington and et. al., 2020). Two potential strategic options Considerations of TOWS matrix will be evaluated when engaging in firm's strategic operations. Management authority at, "The Oak Tree Inn" determines two strategic operations made available to the given firm when engaging their operations in respective marketplace. For the given model, managers of the firm can take considerations of threats faced by firm and adjust it with company's strength also weaknesses with possible opportunities. Several strategic options are made available to given firm in respect with their threats and weaknesses, two of them are as follows; Strategic option 1: Reflecting to company's location as the greatest strength, opportunity to regulate business operations through use of digital technologies can prove to be useful. Through this company will build effective abilities when engaging their operations in uncertain market situations. Furthermore, it can be said that, given hotel can perform efforts and derive combination of natural and technology derived experience to their customers. Strategic option 2: Taking considerations of quality services provided in the given company that acts as one of the greatest strength for company. Managers at the company can replicate their operations with taking concerns of environment. This will enable firm to strategies their working and develop effective standards through which brand value can be increased. Evaluate two strategic choices using SAFe model SAFe model is an effective technique through which strategic choices for the given company can be enhanced their reference to appropriate results. Managers at "The Oak Tree Inn" filters their possible strategic options with this model. Evaluation of the provided model with respect to operational working at given firm are as follows;
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Suitability: The strategic option 1 suits at the best given firm can adopt on the basis of their relevancy to business operations. Given that through strategy option 1 managers of the given firm can engage firm's operations through use of digital technologies. This can prove to be an innovative way to increase sales revenue through increased customer base which will also aid towards lowering the customer power for the given company. Accessibility: From performing several strategic models like SWOT, PESTLE and Porter's, it can be said that strategic option 1 proves to be less risky when compared to strategic option 2. The given statement can be justified as less resources will be used and proper management system in the company can fulfil the requirements for given strategic option. Feasibility: It can be said that given elements can be classify strategic option 1 as highly feasible when compared to the other. This can be said that, by classifying the above stages of suitability and accessibility given stage favours towards strategic option 1 to be selected. SAFe Matrix score table SFA MatrixStrategic options Option 1Option 2 Suitability32 Accessibility43 Feasibility53 Total128 From the above mentioned table it can be said that, both the strategy has its own positive areas and potential to provide Oak Tree Inn a strength and opportunity to exploit to gain competitive advantage and to overcome various threats while operating in business market. But from the score it is recommended that company should use the first strategic option is best for the company in terms of profitability and productivity (Luo, Maksimov and Bu, 2021). Conclusion From the analysis of above report document it can be concluded that, managers at given hospitality firm opts to several strategic strategies and tools which favours business organisation in terms of effective working. Furthermore, it can be said that management at the provided firm
accomplish goals and objectives of the firm through devising effective business environment through considering internal and external business factors.
References Books and Journals Luo, Y., Maksimov, V. and Bu, J., 2021. Making geographic dispersion work for emerging market MNEs.Journal of international management,27(3), p.100800. Margherita, A., Sharifi, H. and Caforio, A., 2021. A conceptual framework of strategy, action andperformancedimensionsoforganisationalagilitydevelopment.Technology Analysis & Strategic Management,33(7), pp.829-842. Saechao, M., 2018.The Aftereffect of the Laotian Civil War Four Decades Later: Examining the Stressors and Protective Factors of Elderly Iu-Mien Refugees(Doctoral dissertation, The Wright Institute).. Shams, R., Vrontis, D., Belyaeva, Z., Ferraris, A. and Czinkota, M.R., 2021. Strategic agility in international business: A conceptual framework for “agile” multinationals.Journal of International Management,27(1), p.100737. Skopyk, B., 2020.Colonial Cataclysms: Climate, Landscape, and Memory in Mexico's Little Ice Age. Latin American Landscapes. Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: A strategic marketingmulticulturalmodelforfamilybusinesses.InternationalStudiesof Management & Organization,48(1), pp.105-120. Ting,M.G.Y.,2018.InstitutionalTransformationthroughDigitalPlatforms:Enablersand InhibitorsofGrowthinEmergingEcosystems(Doctoraldissertation,National University of Singapore (Singapore)). Tooranloo, H.S. and Saghafi, S., 2019. Investigating the impact of using knowledge management on organisational agility through competitive intelligence and strategic thinking.Journal of Information & Knowledge Management,18(02), p.1950016. White, G.H., 2018.Singles and Smiles: How Artie Wilson Broke Baseball's Color Barrier. Rowman & Littlefield. Whittington, R., Regnér, P., Angwin, D., Johnson, G. and Scholes, K., 2020.Exploring Strategy Text and Cases. Pearson UK.