Strategic Agility for Oak Tree Inn: SWOT, PESTLE and Five Forces Analysis

The report analyzes the potential strategic options for Oak Tree Inn, a successful brand in the hotel, tourism and hospitality sector. It includes SWOT and PESTLE analysis for internal and external factors affecting the firm, and evaluates the cost leadership and differentiation strategies through SAFe analysis. The report also highlights the challenges faced by the firm, such as limited physical capacity, availability of staff, and increased competition.

STRATEGIC AGILITY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
A. Overview ................................................................................................................................3
B. Presenting factors affecting internal and external working of firm .......................................4
C. Creating and critically assessing potential strategic options ..................................................6
D. Critically evaluation of strategic choices................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................11

INTRODUCTION
The report gives details of 'Oak Tree Inn' which is based in U.K. Analysis shows about
brief overview of firm along with SWOT and PESTLE analysis for knowing factors.
Furthermore, report gives details about critically potential strategic options. Lastly, it shows
about evaluation of choices and recommend on that.
TASK
A. Overview
Strategic Agility is basically defined as the capabilities of firm for continuous
improvement of performance for the betterment. It also aims at providing study of qualitative
and quantitative data for firms. The report shows about 'Oak Tree Inn' which is very successful
brand in the hotel, tourism and hospitality sector. Being situated at the east bank of Loch
Lomond, one of the most famous and iconic places to visit in Scotland, company tend to face
many successes (Ahammad and et.al., 2021). Apart from that organization being placed in
village of Balmaha also known as the picturesque village provides enterprise to expand and grow
in the market. With the aid of that company faces success and being able to grow a turnover of
£3 m in the year 2018. Having staff of 100 seasonal workers brand aims to achieve their mission
about growing to £10 m by the year 2025. With having very restricted physical capacity in the
growth area as well as new provisions on business success company faces many problems.
Furthermore, being situated at one of the main and effective places Oak Tree Inn gains
and able to expands. After their success new and many other hotel industries also tend to start
their business which most likely results in company in getting less reach of customers resulting
in lowering down of profits. Apart from that brand may faces many issues regarding profit
earning of firm as, in the first year business being able to plan an income projection of £300,000
gross profit. After, that enterprise may face many problems with their finances their results
shows about increase of Gross Profit every year along with costs like bank loan and interests.
This costing tends to impact the Net Profit decrease earning resulting in higher costs, like in year
2016 company tends to face an exponential decrease with 12.9% to 12.5% which causes
organization to face many challenges. Not just that but in year 2017 Net Profit earning of
company decrease from 12.5% to only 12%.
Apart from that company also, most likely to face issue regarding the working
personnels. As, business majorly relies on various seasonal staff for increase the effectiveness

and efficiency as well as boost in competitive advantage of acquiring customers in the peak
tourism months majorly from May to August. Under this the major challenge faced by firm in
form of acquiring and sourcing of appropriate and traditional staff members (Lungu, 2020).
Many working personnels in 'Oak Tree Inn' may tend to return to their home Eastern European
countries after the work. Along with that another challenge faced by firm in UK relations with
rest of Europe, with huge drop in the availability of working people. Having highly trained and
developed staff provides hotel the facility to grow.
B. Presenting factors affecting internal and external working of firm
SWOT Analysis Includes (SWOT Analysis, 2021):
Strengths Weakness
1. Providing customers with high quality
products and services.
2. Market analysis and trend setting another
strength which aid firm to grow in market.
3. High standardized quality of products for
their consumers.
4. Brand itself have high value in the market
for attracting more profits and consumers.
1. In-availability of staff in non-seasonal
months causes other customers to face
problems.
2. Lack of impactful decision-making which
may help company to grow.
3. Over excessive range of products and
services causes customers for getting annoyed
and confused.
Opportunities Threats
1. Growth in tourism sector by Scottish
Government policy aids in expansion.
2. Traditional variety results in increase
visitors seeking good experiences.
3. Utilization and adaption of new & improved
technologies results in improving working and
growth.
1. Increased competitors in the same area of
operating aims less customers.
2. High number of retention rate of working
personnels.
3. Limited availability of resources to expand
in area of operating.
PESTLE Analysis (PESTLE analysis, 2021):

Political: Government chooses tourism industry for investment in nation's growth and
boosting the sector. Laws implemented aids in improving the growth expansion and increase
customer growth.
Economical & Social: Enhancing visitors experience for promoting both social and
economical development. This leads to increase in effectiveness and efficiency for firm.
Technological: Proper utilization of digital communication and social media along with
SEO and newsletters impacts the effectiveness.
Legal: New legislations by Government in establishing of first ever National Park in
village.
Environmental: Sustainability in the field of environmental effectiveness and company's
own grown products.
Five Forces Model includes (Porter's Five Forces Analysis, 2021):
Competitions in industry: Refers to the number of competitors. Larger number of
competitions results in lesser working and profitability. For example in village existing
competitions results less profit.
New entry of firms: Aims at less cost and time ion new entry results lower competitive
advantage of home firm.
Power of customers: Provides information regarding customer having ability to drive
rates of products. Smaller and more powerful client areas results in varying of prices of products.
Power of supplier: Refers as the ability of suppliers in driving up the cost of various
inputs.
Threats of substitute products: Goods or services that may be utilized instead of
company's ones. Like customers may chooses other hotels instead of Oak Tree Inn.

C. Creating and critically assessing potential strategic options
The potential strategic options helps in getting to know about how company may pursues
towards competitive advantage in the market segment operating. The strategies that Oak Tree Inn
may incorporate for their betterment includes:
Cost Leadership: This method or strategy aims to focus on grabbing and acquiring new
and bigger market share as well as getting competitive advantage over other firms. For this to
occur brand tends to focus on increasing the profit earning along with lowering costs. As, for
incorporating that company aims to focus on fully utilizing the 'Strengths' with using several
techniques for producing high standard products (Arokodare, Asikhia and Makinde, 2019). Not
just that but Oak Tree Inn also try to properly focus on opportunities which most likely to aid in
reducing cost of the brand and improve their working operations. Enterprise also, try to adopt
new technologies and various techniques which may results in lowering down their cost incurred
as well as improve their efficiency. This helps in improving the operations and gaining
Illustration : Porter's Five Forces Analysis
(Source: Porter's Five Forces Analysis, 2021)

competitive advantage over other firms. With properly incorporating this strategy organization
may able to over come their weakness and being able to convert them into opportunities to grab.
As not just that but with lowering down company's weakness leads to better and efficient
working resulting in lowering down cost induces and improve their efficiency. Not just that but
this strategy helps in removing threats like increased competitions and lowering down the labour
retention rate (Dutse and Aliyu, 2018). So that organization may able to effectively manage and
assist costs as well as increasing competitive advantage of firm. Furthermore, various pestle
analysis factors also may provide cost-effectiveness and efficient working. For example, with
new laws and policies by the government regarding high investment from them, most likely to
help in boosting their work and lowering the part of cost. Apart from that provides various relief
cost with utilizing the new techniques and technologies like social media, virtual reality and
many more helps in effectively manage the outer costs. As, this help industry in managing their
costs and expenses most effectively so that they may able to grab large market share, acquiring
new customers with attracting them and gaining competitive advantage over other firms.
Differentiation: This strategy aims to focus on providing the 'Oak Tree Inn' more of
using various techniques for providing their customers with differentiated products and services.
As, the organization needs to incorporate such or an additional value or feature that not any other
competitor may provides. With the utilizing of differentiation brand may able to change their
weakness as well as their opportunities into strengths and also optimize their already existing
strengths. With the properly incorporating and using this firm may able to build brand loyalty.
Along with obtaining consumers who most likely to exhibits less price sensibilities along with an
increase in the profit margins (Sitanggang and Absah, 2019). Strategy may easily pass on the
price increases with their customers because they might more willing to pay the increased prices.
With this strategy company may being able to also over come their threats. Like introduction of
new techniques and improved quality products may result in organization to gain more
customers which leads in overcoming the threat of increased competition in same area. For
example, if 'Oak Tree Inn' properly and effectively utilize their opportunity of technologies may
able to produce some impressive and unique products and services to their customers.
Furthermore, this will leads to firm in providing their customers with such type of final
good that they may find suitable. Not just that but this also tends to improve the profit earning of
brand and attracting new customers. On the other hand this also have its own downside like

many products having new details and different things may not become success for the brand. As
customers may not find that suitable enough for them to use and this may leads towards in
lowering down of profit earning of firm. Apart from that another negative impact it does on the
operations and production function of company. For utilizing new methods or ways results in
firm for wholly changing their processes and working conditions which leads towards increase in
cost and l;lowering down profitability of enterprise.
With properly utilizing these strategies or options 'Oak Tree Inn' may tend to improve their
operation and working while also easily and effectively managing the cost incurred. Not just that
these strategic choices also tend to increase customer base, attracting new people and gaining
competitive advantage over other firms.
D. Critically evaluation of strategic choices
SAFe analysis is generally described as the method for evaluation of various strategical
choices of firm to find out the better one.
Analysis Strategic Options
Cost
Leadership/Effectiveness
Differentiation
Suitability 79 85
Feasibility 83 90
Acceptability 90 70
Total 252 245
From the above analysis it has been concluded that both of the strategies utilized by 'Oak
Tree Inn' plays an important role and helps in doing their work effectively and efficiently. But on
the other hand company requires to focus the cost effective one the more.
The brand requires to, focus and incorporate the Cost Leadership/Effectiveness strategy
the more as it tend to have more of the total rating than Differentiation one. Not just that but cost
effective one most likely to aid firm in putting more focus on the cost incurred and what are the
major areas that firm may lack (Njuguna, Namada and Muchara, 2019). Apart from that also
tends top provide detail regarding how to manage the cost and what new strategies as well as
new techniques along with technologies brand may utilize. With the help of that organization

may not just maintain their cost but also improve their operations, production functions and
several other functions. Apart from that also tend to provide the assistance in the gaining a large
market share of customers with attracting them as well as aiding in gaining competitive
advantage over companies (Cho and Rhee, 2018). Apart from all this also helps firm in
increasing the business stability as when the costs of business being low, reduce the financial
threats for company. Implementing cost leadership method tends to create different types of
market size for every product. As, if managed in an, effective way most likely to bring brand
recognition in market that help in long run for organization.
CONCLUSION
From the report it has been concluded that overview gives details about firm and their
working, values issues. Moreover, report shows about SWOT and PESTLE as well as five forces
for internal and external environment. Lastly it shows two strategies options along with their
evaluation with SAFe analysis.

REFERENCES
Books and Journals
Ahammad, M. F.and et.al., 2021. Strategic agility, environmental uncertainties and international
performance: The perspective of Indian firms. Journal of World Business. 56(4).
p.101218.
Arokodare, M. A., Asikhia, O. U. and Makinde, G. O., 2019. Strategic agility and firm
performance: The moderating role of organisational culture. Business Management
Dynamics. 9(3). pp.01-12.
Cho, H. R. and Rhee, M., 2018. Analysis of vertical differentiation strategy of a monopolistic
company under network externality. Journal of the Society of Korea Industrial and
Systems Engineering. 41(2). pp.159-166.
Dutse, A. H. G. and Aliyu, M. S., 2018. Cost Leadership, Market Orientation and Business
Performance: An Empirical Investigation. Journal of Quantitative Methods. 2(2). pp.28-
42.
Lungu, M. F., 2020. The influence of strategic agility on firm performance. In Proceedings of
the International Conference on Business Excellence (Vol. 14, No. 1, pp. 102-110).
Njuguna, J. N., Namada, J. and Muchara, M., 2019. Differentiation strategy, firm structure and
performance of star rated hotels. International Journal of Research in Business and
Social Science (2147-4478). 8(6). pp.08-14.
Sitanggang, C. H. and Absah, Y., 2019. The influence of innovation, cost leadership strategy and
customer orientation on competitive advantage and its impact on customer satisfaction
at container depot of Pt Masaji Tatanan Container Branch of Belawan. International
Journal of Research and Review. 6(1). pp.34-46.
Online
PESTLE analysis. 2021. [Online]. Available Through:
<https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-
analysis-factsheet#gref>
Porter's Five Forces Analysis. 2021. [Online]. Available Through: <https://www.visual-
paradigm.com/tutorials/five-forces-analysis-tutorial/>
SWOT Analysis. 2021. [Online]. Available Through:
<https://www.mindtools.com/pages/article/newTMC_05.htm>

APPENDIX
VRIO is an analysis basically designed for aiding organizations in safeguarding resources
so that company may utilize effectively and gain competitive advantage. The analysis delivers
details regarding :
Valuable: The strengths of 'Oak Tree Inn' is the most valuable terms that firm may utilize
for improving their effectiveness.
Rare: Company able to control the resources of weakness which tend to help in
improving.
Inimitable: Majorly focusing on opportunities so that company may acquire them and
gain effectiveness.
Organized: With the help of Organized management system orgqanization may able to
overcome threats.