Strategic Agility for Oak Tree Inn: SWOT Analysis and Two Potential Strategic Options

This report discusses the importance of strategic agility for businesses and provides a SWOT analysis of Oak Tree Inn, a three-star hotel in the UK. It also presents two potential strategic options for the organization, namely innovation and market development, and evaluates them using the SAFe analysis model.

Strategic Agility

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Overview of firm and its activities providing pertinent data and information............................1
SWOT analysis............................................................................................................................2
Create and critically assess TWO potential strategic options......................................................3
Critically evaluate the two strategic choices with the help of SAFe analysis.............................4
CONCLUSION................................................................................................................................6
References........................................................................................................................................8
APPENDICES.................................................................................................................................9
Pestel analysis..............................................................................................................................9
Porters five forces model.............................................................................................................9
VRIO model...............................................................................................................................10

INTRODUCTION
Strategic agility refers to ability that helps to remain flexible in order to face new development
for adjusting strategy direction of company in continuous manner and also develop different
ways to create values. It helps an organisation to develop an ability that allow them to shift inside
business as well as outside (Asil, 2019). It helps firm to staying competitive through recognition
as well as capitalisation of different opportunity to identify threat and mitigate them from
materialising at first place. This report includes study of Oak Tree that is a three-star hotel
located in UK. It is one of organisation that is getting growth and wants to made changes in their
strategies. This report consists study overview of firm and its activity that provide information
and data to company. It consists SWOT analysis of firm on basis of internal and external
analysis. Moreover, it consists strategies option for company that helps them to mitigate threat in
business and allow them to exploit opportunities.
MAIN BODY
Overview of firm and its activities providing pertinent data and information
Oak Tree Inn is one of hospitality organisation which is located on Loch Lomond’s Bank. It is a
family business that is focusing on B2B accommodation. It consists bar, coffee shop, restaurant,
ice cream parlour, village shop, in house artisan roastery. It is a business that offer space for
business events, small events, staff appreciation day and also for training day. It was founded in
the year 1997 and is also a privately held organisation (Chan and Muthuveloo, 2020
Ehiorobo, 2020). This organisation has around 51 to 200 employees who are working
dedicatedly for success and growth of organisation. Due to these skilled employees, service of
this organisation is effective. There are different amenities services offered by this business in
order to enhance experience of customers. It is offering, café, bicycle parking, hiking trails, golf
course, ATM and others.
There are various competitors of Oak Tree organisation in UK including Catnip Inn, Azalea Inn,
Inn on the river, Deluxe INN and suites. All these competitors are adopting different strategies in
order to compete with Oak Tree INN. This organisation on basis of its excellent services and
other things making efforts to differentiate its products and service from competitors that allow
them for maintaining its competitive position in market. This organisation is earning revenue of
around $5 Million. Due to covid-19 pandemic, this organisation has faced many problems that
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create impact over sales of company. Some of issues faced by company is decrease in sales,
decline in profit, a smaller number of customers and others. It creates impact over survival of
company, in order to overcome of these, this organisation is planning to adopt new strategic
options.
SWOT analysis
SWOT can be described as internal external analysis which can be used by firm for purpose of
identifying factors present in business. It is important as it allow firm to identify strength in
market that allow them to take various opportunity in market (Kwon, Ryu and Park, 2018). It
also helps firm to identify weakness and work over it in order to reduce threat in market.
Explanation of this SWOT analysis in context of Oak Tree Inn is mentioned below:
Strength Weakness
 Oak Tree Inn can be located in Loch
Lomond, Scotland which is a location
that attract attention of tourist.
 Oak Tree is providing excellent
customer service to its customers that
enhance customer satisfaction.
 This organisation is serving needs of
local people and does not have global
present due to which they have limited
marketing share.
 It is facing problem related to retention
of employees that create problem for
business.
Opportunity Threat
 Government is providing support to
business in order to helps them to
overcome of negative impact faced by
business from covid-19.
 There is political stability in UK that
also provide opportunity to Oak Tree as
it allows them to invest among in
different products (Lungu, 2018).
 This business is also adopting
sustainability in their organisation that
allow them to get competitive
advantage in market.
 There is increase in competition in
market as various competitors are
providing same services that create
negative impact over products and
service of company.
 Economic recession is also creating
threat as it does not allow people to
spend money for tourism activity.
 There are changes occur in taste and
preference of people that also create
impact over this business. It is a result
of technological advancement as due to
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this, business is facing problems.
On basis of SWOT analysis, it can be analysed that there are some areas where Oak Tree inn is
strong in market whereas some area where they need improvement. It provides various
opportunity to Oak Tree Inn as sustainable responsible, stability in political environment of UK
and government supply. There are also various issues faced by this organisation in market due to
which competition in market has released. Other threat for business is changes in taste and
preference and economic recession.
Create and critically assess TWO potential strategic options
As per above conducted SWOT analysis, it is cleared that Oak Tree Inn is required to create
some effective strategic options that enables business to attain determined goals and objective in
appropriate manner (Lungu, 2020). This strategic options help business to perform operations
with efficiency and lead business towards growth and gain success in competitive business
environment. There are two significant strategic options that needs to be adopted by the
organisation in order to solve defined problems in appropriate manner are mentioned below:
Innovation
As per the SWOT analysis, it is determined that there are regular change are happened in
customer’s taste, needs, demands and preferences, Oak Tree provides variety of products as per
customers’ demands that help business to attract large number of customers. Along with that,
there are various chances and advancements are happened in technological that help business to
provide better quality experience to customers. It is the main reason that organisation has
adopted it as the option of strategic option. Innovation is determined as the key of success and
Oak Tree Inn is required to innovate its amenities and services on regular bases that helps
business to stand out from the competition and get competitive advantages (Lyn Chan and
Muthuveloo, 2021). It enables organisation to satisfy customer’s needs and demands that lead
business operations towards gaining success. Oak Tree Inn, need to created potential changes in
their services as well as their employees' behaviour that facilitates business to provide quality
experience to customers and retain them with organisation for longer period of time.
Organisation should adopt latest technologies to provide training to employees in order to
enhance their skills, capabilities and that enables them to take efficient decisions and lead
business operations in right direction in the absence of leaders and managers. On the other hand,
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in order to implement innovation in business, high investment is requited that enhances financial
burdon on business. But Oak Tree Inn has efficient financial resources so it can implement
innovation in business to attain the objective of growth and development.
Market development
Market development is considered as the effective strategic option that enhances
organisational capability to stay competitive in competitive business environment. As per the
economic slowdown, hospitality industry is declining as well as creates negative impact on Oak
Tree Inn. Market development helps business to diversify its market and handle situation in
appropriate manner. Oak Tree Inn uses market development option that help business to expand
their market through providing existing products and services (Nyamrunda and Freeman, 2021).
It is important for the Oak Tree Inn to concentrate on enhancing overall organisational sales
through conducting new promotional and advertising strategies that enhances awareness of
business product in market. Through adopting the strategic option of market development, Oak
Tree can attain their strategic objective and overcome specific challenges in suitable manner.
Respective organisation conducts market research in order to analyse potentiality and
effectiveness of market. It is important for the organisation to analyse all current market trends;
customers demand and other aspects such as business capability and resources that enables
business to take efficient decisions and implement strategies in appropriate manner. Oak Tree
Inn has wide and recognised market and it can be enhanced through conducting different
marketing and promotional strategies.
Critically evaluate the two strategic choices with the help of SAFe analysis
SAFe model is defined as the strategic framework that is undertake by the organisation to
that in which extent strategies that are developed by organisation help to maintain efficient
market positioning in market and attain higher market share. Through implementing SAFe
framework organisation can evaluate the effectiveness of strategies that are executed in
competitive business environment (Reed, 2020). Oak Tree Inn, uses two strategic options that are
evaluated with the help of SAFe analysis modal. SAFe model in the context of strategic option is
explained below:
SFA Matrix Innovation Market development
Suitability Suitability is defined as the most Market development is the strategic
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important aspect that helps
business to gain competitive
advantages in current business
environment. This aspect help
business to analyse whether
strategies option such as
innovation is suitable for
organisation or not. Oak Tree
organisation has adopted latest
and innovative technologies that
is quite suitable for the
organisation that enables
organisation to serve
differentiate products and
service to customers and attract
then towards organisation.
Innovation helps organisation to
offer new products in market
that maintains organisational
unique positioning.
option that in which organisation
provides its exiting products in new
market place. It is the suitable market
strategy for Oak Tree because it
provides chance to enhance market
share and customer base towards
organisational offering. Market
development also help business to
expand market at international level
that provides various advantages to
the organisation (Vidmar, Rosiello
and Golra, 2020).
Feasibility The strategic option of adopting
innovation in organisation is
feasible for Oak Tree Inn as it
enables business to differentiate
from others. Oak Tree created
innovation in organisational
working process and in the
methods of providing training to
employees. Innovation in these
aspects helps business through
enhancing employee’s
Market development is also another
feasible strategic option that is
adopted by the Oak Tree to perform
its operations in efficient manner. As
the Oak Tree Inn is financially sound
company and conducts operations in
different types of services. it not only
helps business to expand its market
share but also maintains unique and
strong brand positioning in market
place that attracts more number of
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productivity and functionality. It
enables employees to provide
better experience to customers
that retain them with
organisation.
customers towards organisation.
Acceptability If organisation crates some
innovations or changes in
business procedure and other
things than it common to face
resistance from employee’s side.
As innovations are not excepted
by the employees easily. Oak
Tree Inn organisation’s manager
communicate all innovations
and their benefit to organisation
in appropriate manner to
employees as well as provide
them training and development
opportunities that make
employees agree to adopt or
implemented changes in proper
way.
The Oak Tree Inn is reputed and
well-established hotel. It has large
number of customers who are
satisfies with its products and
services that maintains strong
position of organisation in the mind
of customers. If Oak Tree adopt the
strategic option of market
development in which it provides its
existing products to new customers in
new market than they will easily
accept by the market. This strategic
option not only helps organisation to
enhance their profits but also helped
to improve organisational
sustainability in new market place for
longer period of time.
CONCLUSION
From above mentioned project report, it can be concluded that Strategic agility is important for a
business as it allow them to prepare to face challenges in business. It is important for firm to
adopt various strategies that allow them to ensure long term survival of business. In order to
identify factors that create threat for business, it is important for them to consist SOWT analysis,
PESTEL analysis and also porters five forces model.
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References
Books and Journals
Asil, A., 2019. Design and implementation of strategic agility evaluation model with structural
equation modelling approach. Academy of Strategic Management Journal, 18(1), pp.1-
16.
Chan, J.I.L. and Muthuveloo, R., 2020. Vital organisational capabilities for strategic agility: an
empirical study. Asia-Pacific Journal of Business Administration.
Ehiorobo, O.A., 2020. Strategic agility and AI-enabled resource capabilities for business survival
in post-COVID-19 global economy. International Journal of Information, Business and
Management, 12(4), pp.201-213.
Kwon, S.J., Ryu, D. and Park, E., 2018. THE INFLUENCE OF
ENTREPRENEURS'STRATEGIC AGILITY AND DYNAMIC CAPABILITY ON
THE OPPORTUNITY PURSUIT PROCESS OF NEW VENTURES: EVIDENCE
FROM SOUTH KOREA. Academy of Strategic Management Journal, 17(1), pp.1-17.
Lungu, M.F., 2018, May. Achieving strategic agility through business model innovation. The
case of telecom industry. In Proceedings of the International Conference on Business
Excellence (Vol. 12, No. 1, pp. 557-567).
Lungu, M.F., 2020, July. The influence of strategic agility on firm performance. In Proceedings
of the International Conference on Business Excellence (Vol. 14, No. 1, pp. 102-110).
Lyn Chan, J.I. and Muthuveloo, R., 2021. Antecedents and influence of strategic agility on
organizational performance of private higher education institutions in Malaysia. Studies
in Higher Education, 46(8), pp.1726-1739.
Nyamrunda, F.C. and Freeman, S., 2021. Strategic agility, dynamic relational capability and trust
among SMEs in transitional economies. Journal of World Business, 56(3), p.101175.
Reed, J.H., 2020. Strategic agility and the effects of firm age and environmental
turbulence. Journal of Strategy and Management.
Vidmar, M., Rosiello, A. and Golra, O., 2020. Resilience of new space firms in the United
Kingdom During the early stages of COVID-19 crisis: The case for strategic
agility. New Space, 8(4), pp.172-178.
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APPENDICES
Pestel analysis
Political factors Economic factors
There is political stability of UK that reduce
threat for business of Oak Tree Inn.
Government support is also creating
opportunity to business.
Due to pandemic, there is economic recession
in UK that create threat for business of Oak
Tree Inn.
Social Factors Technological Factors
There are various changes occur in taste and
preference of customers which create threat for
business.
UK is developed country that has various
technological tool that create opportunity for
people.
Legal Factors Environmental Factors
There are different hospitality laws which are
consider by Oak Tree Inn that provide
opportunity to business of Oak Tree Inn.
There is increasing environmental awareness
among people of UK and oak Tree is
contributing for environment that will improve
image of company in minds of consumer.
Porters five forces model
On basis of porters five forces model, it can identify that Oak Tree business has various suppliers
in UK due to which threat of this factor is low. Customers of this organisation has various
choices due to which, threat of this factor is high. There are less number of competitors in
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business, that less threat for business. Threat of new entrants for Oak Tree is high whereas
substitute products is low.
VRIO model
On basis of VRIO model, it can be analysed that Oak Tree Inn has valuable reosruces including
talent to manage legal oblgation, brand awaresss global present and finacial reosriced. It has rare
reosruces like finacial roesuces, brand awarenss and others.
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