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

This report discusses strategic agility for Oak Tree Inn, a three-star hotel in Glasgow, UK. It includes a SWOT analysis, PESTEL analysis, and potential strategic options of innovation and market development. The report evaluates the feasibility, suitability, and acceptability of these options using the SAFe analysis framework.

Strategic Agility

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Overview of the firm..............................................................................................................4
Present SWOT analysis..........................................................................................................5
Create and critically assess TWO potential strategic options................................................6
Critically evaluate the two strategic choices with the help of SAFe analysis........................8
CONCLUSION .............................................................................................................................10
REFERENCE.................................................................................................................................11
Appendices:....................................................................................................................................12
PESTEL analysis..................................................................................................................12
Porters Five Forces model....................................................................................................12
VRIO model.........................................................................................................................13

INTRODUCTION
Strategic agility is defined as the ability of business to see shifts that take place inside and
outside of business environment in which it operates its operations. It is related to staying in
competition through recognising and capitalizing opportunities and identifying threats of
business in efficient manner. Organisation takes various actions to mitigate and prevent threats in
organisation that help business to gain sustainable competitive advantages. Strategies helps
business to achieve determined goals with resources. It is general direction set of company that
enable business to achieve desired state in future. In this report chosen organisation is Oak Tree
Inn that is three star hotel and it is located in east side of Loch Lomond i.e. Glasgow, United
Kingdom. This report covers Swot analysis, pestle analysis and porter's five forces. Along with
that two potential strategic options from swot analysis and SAFe analysis regarding the strategic
options are mentioned in this project report.
MAIN BODY
Overview of the firm
Oak Tree Inn is the family run three star hotel that is located in Glasgow, UK. It has 36
bedroom inn, pub, cafe, restaurant, cafe and village shops in Balmaha that is situated on the
shores of Loch Lomond. Headquarter of Oak Tree Inn situated in YORK, YO61 2PH, UK and it
was started in the year of 2011. Respective hotel provides various amenities as well as services
like on site restaurant, cafe. Fire sprinkles system, bicycle parking, Wi-Fi internet, ATM facility,
golf courses, hiking trials and non smoking properties that attracts number of customers towards
organisation. Organisation also have walking trail named as West Highland Way (The Oak Tree
Inn). Oak Tree Inn has pubs and cottages that provide facility of stay to customers and enhance
their experience through providing some additional services.
Oak Tree Inn organisation faces competition from various organisations that impact
organisational performance and profitability. These competitors are Catnip Inn, Azalea Inn Bed
and Breakfast, Inn on the River, Deluxe Inn and Suites, etc. Respective organisation analyses
activities and strategies of these competitors and frame own strategies accordingly that help
business to gain competitive advantages.
Oak Tree Inn organisation revenue is US$ 288,553. organisation has 7 employees who
plays important role in managing and performing business operations in efficient manner.

Organisation follows the values of enhancing customer experience through provide them quality
services on time with efficiency.
In the period of Covid-19, there are various issues and problems are faced by Oak Tree
Inn organisation such as less number of customers in marker, decrease in sales and profits that
impacts organisational overall performance and sustainability in competitive business
environment (Rademakers, Scheepstra, and Stokes, 2019). Organisation also faces issues after
pandemic as well such as competition and regularly changing demands of customers that unable
business to survive in environment.
Present SWOT analysis
SWOT analysis is defined as the strategic framework that help business to analyse
internal and external factors in the form of strengths, weaknesses, opportunities and threats.
Business develop effective strategies through considering these factors that help business attain
sustainable competitive advantages (Attar, and Abdul-Kareem, 2020). Factors of swot analysis in
the context of Oak Tree Inn are explained below:
Strengths Weaknesses
 Oak Tree Inn is located in the 500 year
old oak tress that make it unique from
other competitors and attract number of
customers that is the strength of
organisation.
 Oak Tree Inn run business from many
years so organisation has strong
financial resources and organisation has
skilled and talented employees that
enable business to gain competitive
advantages.
 Oak Tree Inn has less employee
retention rate that impacts on overall
operations of business. Organisation
has less motivational factors that
enhance employee turnover rate.
Organisation do not have much presence in
other country as compared to its competitors
that limits business performance.
Opportunities Threats
 Political stability is the factor that
create opportunity for Oak Tree Inn.
Stability in country political
 Advancement in technology is the
factor that impact business operations
and improve organisational cost. It

environment enable business to expand
operations and invest in adoption of
strategies.
 Business idea of Oak Tree Inn is highly
sustainable and attractive that helps
business to gain opportunity of
competitive advantages.
 Low competitive rivalry is the factor
that help business to attract customers
and improve market share.
enhance threat through impacts on
business sustainability (Baie, Kordnaij,
and Delkhah, 2020).
 Economic slowdowns impacts
hospitality and tourism industry
negatively. The pandemic of COVID-
19 create threat for business through
reducing customer base.
 Regular changes in customers taste,
needs and preference impacts
performance and functionality of Oak
Tree Inn negatively.
From the above SWOT analysis, it is analysed that organisation has strong and weak
areas tool that helps in identifying the areas. Oak Tree Inn identify these factors and consider
them in business policies to gain opportunities and reduce the level of threats.
Create and critically assess TWO potential strategic options
From the SWOT analysis, it is recognised that Oak Tree Inn needs to develop some
strategic options that help business to gain growth and success in specific market place. There
are two significant strategic options are undertaken that enable business to resolve problems and
gain competitive advantages. These strategic options are mentioned below:
Innovation
It is analysed from the SWOT analysis that, Oak Tree Inn faces the issues related to
regular changing needs, demands, taste and preferences of customers. Innovation is the strategic
option that help business to attract number of customers towards it's services. Bring innovation in
organisation products and services that make them unique and differentiated from other
competitors. Implementing the aspect of technology and upgrade it on regular bases is the
requirement of organisation to gain competitive advantage (Frey, Hund, and Beimborn, 2021).
Innovation is the factor that mitigate business threats, exploit opportunity as well as
strengthening the strong areas so, it the appropriate strategic option for Oak Tree Inn. Respective
organisation bring innovation in business amenities and services on regular bases that enable

business to maintain strong positioning in market and gain competitive advantages. Organisation
conduct research in market than analyse customers needs and demands and provide them
innovative services accordingly that enhance their satisfaction level with organisation and retain
them for longer period of time. Organisation provide training to employees that impact on their
behaviour and allow to accept changes in efficient manner because satisfies employees provide
better services and experience to customers. Oak Tree Inn understands that it is important for
business to bring innovation in employee's skills and knowledge that enable them to take quick
and effective decisions in difficult situations. In the process of bring innovation in business
products, services strategy and process high investment is required that improves cost of overall
organisation. In the case of Oak Tree Inn, it can afford the cost of innovation due to having
strong financial position.
Market development
Market development is another strategic option that is adopted by Oak Tree Inn that
facilitates business to stay in competition for longer period of time. As per the situation of
Covid-19, country faces the condition of economic slowdown. In this situation, hospitality
industry performance is declined that impacts Oak Tree Inn in negative manner. Market
development is the suitable strategic option because it enables business to enhance
diversification. Market development is the effective strategy of Ansoff matrix. It helps business
to expand business operations in other market through providing existing products to customers.
It improves organisational customer base and market share (HAJJAJ, and LECHHEB, 2020).
Adoption of this strategic option helps business to reduce threats of economic slowdown,
improve strengths and gain market opportunities.
It is important for Oak Tree Inn to concentrate on improving organisational sales through
using different promotional strategies. Through adopting market development strategic option
help business to attain its strategic objectives and overcome upcoming challenges. Oak Tree Inn
conducts market research to assess the potentiality of market that help business to enhance sales
and profitability. Respective organisation evaluates market trends, customers needs and business
capability to serve market with effectiveness (Luo, Maksimov and Bu, 2021). Organisation has
recognised market so, it requires less resources and promotional activities to expand market.

Critically evaluate the two strategic choices with the help of SAFe analysis
SAFe model is defined as the framework that is used by business to identify strategies
that are developed by them are suitable, acceptable and feasible. The two strategy choices that
are used by Oak Tree Inn with SAFe analysis is explained below:
SFA Matrix Innovation Market development
Suitability This factor of SFAe analysis
help business to identify that
strategies that are developed by
organisation is suitable or not.
Oak Tree Inn adopts the strategy
of innovation is suitable for
business to attain the objectives
of growth and development
(Menon, and Suresh, 2020).
This strategy help business to
attract customers through
provide them innovative
products and services but it so
not help to overcome other
weakness like high turnover and
global presence.
Market development is considered as
the suitable and important strategic
option for Oak Tree Inn. It helps
business to develop presence in other
markers and attract customers
through using various promotional
strategies.
Feasibility Oak Tree Inn adopts innovation
strategy which is feasible for the
organisation. Organisation bring
innovation in the process of
providing training to employees
through adopting latest
techniques that improves
employees skills, competencies
Strategy of market development is
feasible for organisation as Oak Tree
Inn is financially strong organisation
that deals in various services. It helps
business to expand operations in
different market place and improve
organisational products and services
among customers.

and productivity (Pichel, 2018).
Through acquiring specific
skills, employees provide better
services to customers that
improve overall performance of
business.
Acceptability Employees of organisation resit
the changes that are
implemented in business. Oak
Tree Inn bring innovation in
organisation that is accepted by
the organisation due to
implementing it in effective
manner. As innovation in
training process is for the
betterment of employees that
improve their skills,
performance and productivity.
So, employee adopts it easily.
Oak Tree Inn provides quality
products and services that has strong
image in the minds of customers.
Organisation takes decision to expand
business operations in other through
provide existing products that are
easily accept by the customers
because products has good image in
market (Ngo, and Vu, 2020). It
improves organisational profits and
sustainability of business.

CONCLUSION
From the above report, it can be concluded that development and implementation of
strategic agility helps organisational leaders to recognise market changes that may be good or
bad for business. Strategies are the general plan that help business to attain overall goals and
objectives under conditions of uncertainty. Proper strategies lead business in right direction and
attain determined goals and objectives in efficient manner. There are various models like pestle
analysis, swot analysis, VRIO and porters five forces help business to access internal and
external environment factors that help business to develop effective and suitable strategies.

REFERENCE
Book and journal
Attar, M. and Abdul-Kareem, A., 2020. The Role of Agile Leadership in Organisational Agility.
In Agile Business Leadership Methods for Industry 4.0. Emerald Publishing Limited.
Baie, S., Kordnaij, A. and Delkhah, J., 2020. Strategy Agility in Iran Banking and its Influence
on Efficiency. Commercial Strategies, 13(8), pp.44-58.
Frey, J., Hund, A. and Beimborn, D., 2021. Scaling Agility: How Organizations Balance
Tensions in Scaled-agile Organizations.
HAJJAJ, M. and LECHHEB, H., 2020. When the pandemic makes us aware of the importance
of agility. In Acte de conférence (p. 45).
Luo, Y., Maksimov, V. and Bu, J., 2021. Making geographic dispersion work for emerging
market MNEs. Journal of international management, 27(3), p.100800.
Menon, S. and Suresh, M., 2020. Factors influencing organizational agility in higher
education. Benchmarking: An International Journal.
Ngo, V.M. and Vu, H.M., 2020. Customer agility and firm performance in the tourism
industry. Tourism: An International Interdisciplinary Journal, 68(1), pp.68-82.
Pichel, K., 2018. Strategility: Agility in strategic decisions. In IABE-2018 Munich Conference,
Munich, Germany, 14-16 June 2018.
Rademakers, M., Scheepstra, S. and Stokes, P., 2019. Organizational Agility and Value
Creation. Journal of Creating Value, 5(2), pp.106-110.
Online
The Oak Tree Inn. [Online] Available through: <https://www.theoaktreeinn.co.uk/>

Appendices:
PESTEL analysis Political factors: UK is politically stable country that help Oak Tree Inn to operate its
operations in efficient manner. Political stability enables business to gain opportunities
and expand business operations efficiently. Economical factors: The pandemic of Covid-19 impact on economical conditions of
county negatively that create threat for Oak Tree Inn. Due to pandemic customers
purchasing power and transportation of tourists has reduced. Social factors: Customers needs, demands and preferences has changed on regular bases
that become an issue for business and impacts its operations. Technological factors: Advancement in technology and innovation are the factors that
impacts business performance and functionality. Oak Tree Inn implements innovation in
process that help it to attain goals and objectives. Legal Factors: Changes in laws and regulations impacts Oak Tree Inn operations. So,
respective organisation analyses these laws and consider them in strategy formation.
 Environmental Factors: Oak Tree Inn uses waste management techniques that make
important role in protecting environment from harmful impacts.
Porters Five Forces model
Five Forces High Low
Bargaining power of suppliers ✓
Bargaining power of buyers ✓
Competitive rivalry ✓
Threats of New entrants ✓
Threats of substitutes ✓
From the above model, it is analysed that Oak Tree Inn faces low bargaining power of
supplier because it organisation has number of suppliers. Bargaining power of buyers is high for
organisation due to less buyers and low switching cost. Competitive rivalry is low for
organisation and threats of new entrants is high because the industry generates higher profits and

less regulations are imposed by industry. Threat of substitute products is less for organisation
because Oak Tree Inn provides unique and innovative services to customers.
VRIO model
Resources Value Rare Imitate Organisation
Talent to manage legal
obligations
Yes No Easily initiated Yes
Global and local
presence
Yes Yes Easily imitated Yes
Financial resources Yes Yes Not easily
imitated
Yes
Brand awareness Yes Yes No Yes
From the above VRIO model, it is analysed that talent to manage legal obligations,
financial resources, strong brand awareness and global and local presence that are have value for
organisation. Instead of talent to manage legal obligations all resources are rare that provides
competitive advantages to organisations. All these resources are not easily imitable and there
organisation is so efficient that help business to sustain in competitive environment for longer
period of time.