Strategic Agility: Enhancing Competitiveness in the Tourism Industry

This report explores the concept of strategic agility and its importance in the tourism industry, focusing on Oak Tree Inn, a successful tourism business in the UK. It provides a brief overview of the company and identifies external threats and opportunities using suitable frameworks such as PESTLE analysis and Porter's five forces. The report also critically assesses two potential options from a SWOT analysis and evaluates strategic choices using SAFe analysis. Overall, it highlights the significance of strategic agility in enhancing competitiveness and achieving business objectives.

Strategic Agility

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Brief overview.............................................................................................................................3
Identify external threats and opportunities which company face using suitable frameworks.....3
Create and critically assess two potential options from SWOT analysis....................................6
Critically evaluate two strategic choices.....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic agility is a concept that represent the ability to prominently respond to words the
change while maintaining flexibility within an organisation. It is important because it is the base
for the key business issues and also create effective workplace for the employees. Strategic
agility also creates effective business market and products in terms of reaching towards their
customers and develop suitable innovation (Ahammad, Glaister and Gomes, 2020). To carry
forward the study Oak Tree Inn is considered which is a successful tourism business situated in
United Kingdom and considered as the Most iconic natural location. Moreover, it is a popular
restaurant and bar with overnight accommodation services and also with award winning
facilities. To carry forward this report a brief overview of the company with its prominent
activities is described and also identify external threats and opportunities which company face
with the help of prominent frameworks. Lastly it prominently evaluates the two strategic options
with the help of SAFe analysis.
MAIN BODY
Brief overview
Oak Tree Inn is the well-known tourism business which is situated in a village called
Balmaha and does not has much population at the place and it is the Most iconic natural location
with the Scotland’s first ever National Park. The turnover of respective company in 2018 is of
approximately 3 million and the objective of director towards the growth of around 10 million by
2025. Along with this around 14 million people visit the country every year as the tourist spend
around 5% of the GDP add the whole sector accounts for around 7% of the employment.
Moreover the objective of Oak Tree Inn is to increase their revenue within 2018 and 2025.
Besides this after analysing the number of visitors it is examined that the maximum number of
visitors are in 2016 which leads to increase the sales and revenues of the hotel.
Identify external threats and opportunities which company face using suitable frameworks
PESTLE Analysis
Political: The political stability is the prime factor for the success of Tourist destination
and Brexit open doors for the immense opportunities for Oak Tree Inn. Along with this UK
maintains strong relationship with us in terms of having great power that prominently influence
the Global economic and political affairs. Besides this currently company face downfall because

of covid-19 but very soon Oak Tree Inn try to overcome it by considering various laws and
norms which is created by tourism government of UK including health and safety of people.
Economical: By undertaking the number of visitors within 2016 depicts that Oak Tree
Inn has immense opportunities in terms of increasing its sales and revenues by committing
towards the sustainable growth. Due to increase in visitors company set strategic objective for
the effective increment in its sales and the prominent policies which are developed by the
Scottish government put positive impact on company in terms of achieving its objective (e
Cunha and et. al., 2020). Besides this UK has well known destination because of foreign direct
investment and also has variety of industries regarding their interest.
Social: In terms of accomplishing their prominent objective it is important for the Oak
Tree Inn to take help from the social media which is helpful in gaining Global presence in the
world. For this the social popularity regarding travel put positive impact on the tourism sector of
Scotland which it is helpful for respective company for its sustainable growth and moving with
the help of social media.
Technological: The transportation and Accommodation services provided by Oak Tree
Inn leads to put positive impact on the growth and development on the tourism industry. As in
the Scotland respective Hotel provide faster and cheapest services with the help of effective
Technology and online booking. Besides this hotel also opt advanced technology in terms of
offering services to their customers including charging ports Wi-Fi contactless delivery and
many more.
Legal: The legal environment of UK depends on the political stability of the country and
after the impact of Brexit somehow country face prominent fluctuations in the rules and
regulations and due to this tourism industry face immense change is in its policies (Arbussa,
Bikfalvi and Marquès, 2017). Changes in existing policies put negative impact on the
functioning of Oak Tree Inn as due to this Hotel need to change various facilities and services
regarding its sustainable growth.
Environmental: The economic activities have major impact on the environment and UK
made prominent standards and norms regarding the enhancement for the environmental
condition. As the Oak Tree Inn is situated in a small village of Scotland and also well known for
the National. By undertaking the environmental standards for the prominent improvement in the
environmental factors. For this government charities local councils and others take significant

initiatives and also create environmental awareness in terms of eliminating negative impact on
the economic growth on the environment (Xing and et. al., 2020). Away with this after the
environmental awareness tourism industry face Boom and contribute around 127 billion annually
towards the economy.
Porter’s five forces
Threats of new entrants: By undertaking the sustainable growth of Oak Tree Inn and its
offered services it is identified that company offer reliable and suitable services which is helpful
to Boycott and eliminate the threat of new hotels as its competitor. Besides this the growth in
outdoor activities among the population become opportunity for Oak Tree Inn to have effective
expansion.
Bargaining power of customers: As per this factor the bargaining power of customers is
low because Oak Tree Inn target rich and average customers who are willing to pay for the
offered services off hotel. Somehow people also avoid bargaining by considering the trend of
environment Heritage culture and wildlife (Doz, 2020). Considering the various positive points
including well reputation and High-Quality Services proper ethics within the staff members the
positive government policy of Scottish government leads to develop the tourism sector and the
advanced Technologies within the online sales and promotions considering the use of VR and
many more.
Bargaining power of suppliers: Considering this the bargaining power of suppliers is
low because in present time most of the people does not want guide and travel agents as they
want to explore new places without any help. Along with this the suppliers in this industry
include property owners travel agents and the labor who work in the hotel.
Threats of substitute: It is identified that threat of substitution remain high because the
requirements and preferences of customers gets changed. Most of the people does not visit same
place after one visit that financially impact the revenues and sales of Oak Tree Inn. The threat for
substitute includes less attraction towards the tourism sector as a profession and the prominent
airports towards the channel visitors of other areas for the National Park (Clauss and et. al.,
2019).
Competitive rivalry: After the arrival of new entrants and existing large hotels it is
identified that effective competition is developed into the location of Oak Tree Inn that
negatively impact the current operation and the future plan of respective Hotel regarding the

enhancement of its revenues and sales. Besides this hotel also have poor stuffing retention
policies as they do not have the ability to retain their talented employees.
SWOT Analysis
Strengths Weaknesses
Oak Tree Inn has well-known reputation and
image in the market because of its high-
quality offering and products and services
which is politely offered by them (Hemmati
and et. al., 2016). Besides this hotel also has
strong acid base and suitable opportunity is
regarding its expansion with full potential and
commitment in terms of having sustainable
growth.
Oak Tree Inn has poor strategic management
and conflict developing decision making
process. Besides this hotel also prominently
depend on the rich and reputed family
members as the does not focus on the
travelers couples and other groups. Besides
this hotel also does not has well knowledge
HR management in terms of retaining their
talented employees.
Opportunities Threats
The prominent policies which are developed
by the Scottish government needs to increase
positive price with the tourism sector and
prominent friends leads to increase the
number of visitors in terms of having
authenticate destination experience.
The prominent thread includes the reduction
in attractiveness of tourism sector and the less
competency of HR management of Hotel in
terms of retaining their staff members. The
promoting brands and stock position of other
products and competitors including coffee
near ice cream and others (Morton, Stacey
and Mohn, 2018).
Create and critically assess two potential options from SWOT analysis
Effective HR policies: By undertaking the above SWOT analysis and its discussion it is
identified that Oak Tree Inn has less competent HR policies and strategies in terms of retaining
their staff members and it leads to negatively impact the overall performance of Hotel. For this
the owner of Oak Tree Inn need to focus on its HR department especially for the staffing profile
in terms of retaining their staff members by prominently motivating them towards their

performance. Along with this HR manager also need to provide proper training and development
in terms of fulfilling their assigned duties and responsibilities. Along with this it is identified that
a motivated employee is effective in terms of performing with its full potential which is
beneficial for Oak Tree Inn to increase its brand image sales and revenues.
Better offerings: Considering the increasing competition within the tourism industry it is
identified that Oak Tree Inn also has new competitors and business Rivals who moved towards
the location of Scotland in terms of gaining competitive advantage and attracting customers
towards them by offering better services (Vagnoni and Khoddami, 2016). It leads to negatively
impact the current operations revenues and profitability of respective hotel and somehow the
motivate them in terms of giving competition. For this Oak Tree Inn need to develop prominent
strategies and objectives which is useful for them in terms of giving tough competition to their
Rivals. Along with this respective Hotel also need to provide additional benefits and its offerings
in terms of gaining of customers which is useful in making effective sales and profitability of
hotel and also motivate them to make effective policies to operate within the competitive
business environment.
Critically evaluate two strategic choices
SAFe Analysis: The strategic choice is identified is effectively running hotel within the
competitive business environment as many new competitors arrived at the same location of the
Oak Tree Inn and also leads to impact their current operations.
 Suitability: It is important to consider because it is related with the suitability of
environment and its overall capability. As in this Oak Tree Inn need to identify that the
strategy which is considered by them is suitable for or their strategic objective or not and
also reflect the particular requirements of Hotel.
 Acceptability: As per this factor Oak Tree Inn need to measure the prominent risk return
and reaction of other stakeholders towards the specific strategy (Sampath and
Krishnamoorthy, 2017). For example, if the developing strategy will not work out then it
leads to become any financial loss for the company that impact its objective sales and
profitability.
 Feasibility: It depicts that the prominent strategy which is developed by company has
with capability to address and accomplish the significant objectives of Oak Tree Inn like

it is feasible or not. Therefore, it depicts that the expansion strategy of Hotel will work
out or not.
Employee motivation: By considering the retention issues from the swot analysis it is
examined that Oak Tree Inn need to prominently motivate Their employees in terms of their
assigned roles and responsibilities and also guide them to fulfill with full potential (e Cunha and
et. al., 2020). Besides this there are various ways and theories is helpful in terms of motivating
employees like Maslow’s need of Hierarchy in which manager need to identify the significant
requirements of their employees’ step by step and also try to fulfill them in terms of making
them feel satisfied.
CONCLUSION
By considering the above discussion it is identified that strategies are important in terms of
completion prominent goals and objectives. Agility depict the response towards the activities. In
regard of this prominent frameworks are helpful for company to develop significant strategies
and also helps in identifying capabilities which is useful in achieving effective goals and
objectives.

REFERENCES
Books and Journals
Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human resource
management. Human Resource Management Review. 30(1). p.100700.
Arbussa, A., Bikfalvi, A. and Marquès, P., 2017. Strategic agility-driven business model
renewal: the case of an SME. Management Decision.
Clauss, T and et. al., 2019. Strategic agility, business model innovation, and firm performance:
an empirical investigation. IEEE Transactions on Engineering Management.
Doz, Y., 2020. Fostering strategic agility: How individual executives and human resource
practices contribute. Human Resource Management Review. 30(1). p.100693.
e Cunha, M.P and et. al., 2020. Strategic agility through improvisational capabilities:
Implications for a paradox-sensitive HRM. Human Resource Management
Review. 30(1). p.100695.
Hemmati, M and et. al., 2016. Development of fuzzy two-stage DEA model for competitive
advantage based on RBV and strategic agility as a dynamic capability. Journal of
Modelling in Management.
Morton, J., Stacey, P. and Mohn, M., 2018. Building and maintaining strategic agility: an agenda
and framework for executive IT leaders. California Management Review. 61(1). pp.94-
113.
Sampath, G. and Krishnamoorthy, B., 2017. Is strategic agility the new Holy Grail? Exploring
the strategic agility construct. International Journal of Business Excellence. 13(2).
pp.160-180.
Vagnoni, E. and Khoddami, S., 2016. Designing competitivity activity model through the
strategic agility approach in a turbulent environment. foresight.
Xing, Y and et. al., 2020. Entrepreneurial team and strategic agility: A conceptual framework
and research agenda. Human Resource Management Review. 30(1). p.100696.