Strategic Ability for Oak Tree Inn: SWOT and PESTLE Analysis

This report provides a SWOT and PESTLE analysis of Oak Tree Inn, a small-scale enterprise in Scotland that manages the hospitality industry. It also presents two potential strategic options and evaluates them using the SAFe model. The report concludes that the company should opt for strategic option 1, which involves maintaining digital advancement to enhance revenue generation and customer base.

Strategic ability

Table of Contents
INTRODUCTION ..........................................................................................................................3
Overview of company.................................................................................................................3
TASK ..............................................................................................................................................3
SWOT Analysis of Oak Tree Inn company................................................................................3
PESTLE analysis of "The Oak Tree Inn"....................................................................................5
Two potential strategic options...................................................................................................6
Evaluate two strategic choices using SAFe model.....................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic ability is generally a method through which the organisation enhance their
flexibility by maintaining all the considerations for the business environment and also to
maintain all the operations in the company. It is an important technique which evaluates and
manage all the innovation in order to manage the standard of all the business firms (Adem,
Çolak. and Dağdeviren, 2018). In organisation chosen in this report is The Oak Tree Inn which
helps in managing all the operational working. This report will provide the external and the
internal analysis in the businesses and will also provide the rational resources and the efforts
which are been taken by the company for delivering better outputs. Further it will also cover the
strategic choice of the SAFe model.
Overview of company
Oak Tree Inn is a small scale enterprise which is established in Scotland in 1998. it
manages the hospitality industry of different international markets. This company manages all
the accommodation facilities to all their customers and also maintains the satisfaction by
attaining and managing the quality operational working. The annual turnover of this company is
£3m ($3.8m and €3.4m) and their major aspiration is to uphold and expand it to £10m in the
coming 2025. this company has establishes its award winning image by maintaining all the
holiday accommodation with around 90 guest sleeping facility a night. Along with this there is
been given artisan coffee, Scottish bar, ice cream shop which are all home produced. And they
also manage the village shop. They are having around 100 staff employees being working under
them some of them are on seasonal basis (Khaba and Bhar, 2017).
TASK
SWOT Analysis of Oak Tree Inn company
It is been ensured that the strategic analysis manages and ensures all the targets and the
organisational goals which are being undertaken in order to manage the external and the internal
factors. In all the companies there is been seen that it is served out to be an important factor that
all the analysis are being made of the operational activity of company. The SWOT analysis of
the firm is being given as under:
Strength Weakness

 Prominent quality- This is mainly the
major strength of the "The Oak Tree
Inn" as they manage to provide the
better quality of services to their
customers. Company also focus on
managing the brand image with all the
operational activities and the markets
by ensuring that they serve all optimum
quality of services. Well managed staff- the company
maintain a training session in order to
make their staff to be well managed and
skilled in all the activities in business.
It focus on managing the wastages and
also attain the operational and the
productivity of the business firm
(Yang, Wang and Kang, , 2018).
 Disputes in company- Their is been
seen that all the disputes which are
been seen in the company and their
internal conflicts generated and this is
the major drawbacks through which all
the turnover is being affected.
 High taxation- "The Oak Tree Inn"
impose usually high taxation system
through which ball the government
regional and the operational activities
are being affected. And due to high tax
rates the firm analyse the loss even they
manage the proper and stable profit
margins which are required to be
attained through paying taxation.
Opportunities Environmental management- the
company can there by manage the good
brand image as by maintaining the
hospitality to be environmental friendly
with all the firms and their working.
This is the major opportunities as the
company when focus on suitability will
attract the customers. Technical advancement- "The Oak
Tree Inn"can opt the technical facilities
and the innovative approach as by
applying the digital advancement in all
their operational working their can be
Threat
 High authority of consumers- their is
been seen that as there is seen
reluctantly increase in the power of the
consumer the stability is not being able
to manage and this is major threat for
the company in their financial aspects.
 Competition- "The Oak Tree Inn" has a
major threat with the rise in the
competition as there is been seen that
the operational working and the
strategy with same facilitates are
creating a major stress in the market
(Mytilinou, Kolios and Di Lorenzo,

seen that the customers will be attracted
and the future market with online
facilities can be enhanced.
2017)
Thus, with this SWOT analysis their can be implied that the managers in the firm should
try to maintain all the coordination and the proper strategies through which al;l the
implementation of the task are being applied and help to gain the custom er base.
PESTLE analysis of "The Oak Tree Inn"
It is an external tools which helps in managing the macro environmental factors in all
their operational activities and working there is been seen that some of the main elements are
been given as under: Political- This is mainly the policies and the regulations which are been attained and
managed by the company. This maintain all the operating areas and the political bodies .
"The Oak Tree Inn" can manage the high investment in order to remove all such barriers
with all the instability in their operational areas. Economic- It provides all the inflation, recession and other deflation rates along with the
change in the currency rates. "The Oak Tree Inn" is effected by the hotel operations and
also by the economic instability and deflation. Social- it implies all the demographic changes and the trends which are been opted by
the companies in order to gain the effective management. Their is been seen that the "The
Oak Tree Inn" should imply the goodwill through which all the operational market are
applied (Chen and et.al., 2019).. Technological- it applies all the digital and the technological advancement through
which the goals and the targets are being achieved. "The Oak Tree Inn" managers apply
all the technical facilities through which they regulate and manage the foster through true
potential. Legal- This applies all the laws and the rules which are being managed by the company
in order to manage the business in systematic manner. All the legal laws are needed to be
regulated, "The Oak Tree Inn" governs and manages all the business strategies through
the laws and the legal rules with applicability.

 Environmental- It provides all the ecological and the sustainable factors through which
all the protection the environment is managed. This company should try to manage and
regulate to manage the protection to the environment and also by applying the
sustainability in the environment.
Porter's Five Force Model Threat of New entrant- As the "The Oak Tree Inn" have a renowned name across the
market there is been seen that this threat to the company is comparatively Low. As they
manage all the youth to be focused in all such sectors and there is applied that they focus
on inventing and provide different innovations with the digital and the technological
environment. They maintain all the unique products in the markets due to which their ios
the low threat for the company. Competition- "The Oak Tree Inn"is a well known company and it is being listed in the
London stock exchange due to which they carry a positive image in the market their is
been applied that the threat of the competition is Moderate as the market is majorly been
evolving and there is the rise of same hotels and facilities with lower pricing which
attracts the consumers towards their brand and the company. Bargaining power of customers- this company carries the strong customer base as they
created the loyalty and management of all the work due to which the size of the
customers is being managed and this threat is low for the company. Bargaining power of suppliers- there is been seen that in all the hospitality sector there is
varies and the emergence adaptability and options for the hotels for taking the suppliers.
As there are so many suppliers being available for the company. Their implies that in all
such areas where as the raw material is being given so the "The Oak Tree Inn" is not that
effected. But along with it there is rapid change in the supplies and the general demand
through which the threat for the company is comparatively Moderate (Obaidat, AlTaani,
B. and Ailabouni, 2017).
 Threat of substitute- This is Low for "The Oak Tree Inn" as the company is using the
different and unique branding through which all the products and their varieties are being
managed. It helps in managing the unique impositions and also helps in sales and the
eliminating the substitute nature.

Two potential strategic options
By applying the TOWS matrix their is been seen that all the engagement of general
strategic operational activities are managed. "The Oak Tree Inn"maintains the operational
strategies as by managing the strategic implications through all the market place. Their are
certain options which are available for the company they are like: Strategic option 1- Their is been seen that as the "The Oak Tree Inn" is been made in the
prime location there is been evaluated that they can also manage the strength of the
company by engaging in the operational activities and by applying the digital
advancement as this will attract and help in connecting with more customers and this
implicates to enhance performance efforts in order to maintain the technology and the
natural experience in the customers.
 Strategic option 2- The company can maintain the quality and also the environmental
concerns through which the customers can be attracted and all the development of the
brand value can be maintained (Zhang and et.al., 2018)
Evaluate two strategic choices using SAFe model
SAFe model implement and manage all the strategies through which they can gain and
maintain the appropriate results through which the operational working can be applied and
maintained. "The Oak Tree Inn” can apply it as under: Suitability- In this the option 1 of strategic can be applied as the managers can maintain
the digital advancement through which they can enhance the revenue generation and can
also maintain the strong customer base. With digital advancement the company can also
opt new innovative approach. Accessibility- By analysing SWOT, PESTLE and Porter's there is been seen that
strategic option 1 is more productive and good as competed to the 2nd . As this will apply
and manage all the concerns with the strategies and their opinions. Feasibility- The strategic option 1 is highly manageable and feasible by applying the
suitability and the accessibility (Salehi, Yao and Dani, 2019)
SAFe Matrix score table
SFA Matrix Strategic options

Option 1 Option 2
Suitability 3 2
Accessibility 4 3
Feasibility 5 3
Total 12 8
Through this above table their can be seen that both the applied strategy considers to have
their positive and potential elements which helps the Oak Tree Inn in order to manage the
business market and the operational activities. It can be recommended that the company should
opt the strategic option 1 in order gain the production and the profitability (Bastani, 2019).
CONCLUSION
From this above report it is concluded that, all the companies and the sectors should
apply the strategic tools in order to maintain the effective working of the organisation. The
company should focus on all the external and the internal factors with which they can attain and
manage the effective production and the growth in the company. The Pestle analyses helps out to
know that the company is applying all the laws and the legal regulations with been working in
global manner.

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