Strategic Agility: SWOT and PESTLE Analysis of Oak Tree Inn

This report discusses strategic agility and its application to Oak Tree Inn. It includes a SWOT and PESTLE analysis, two potential strategic options, and their evaluation using SAFe model. The report concludes with a recommendation for the best strategic option.

Strategic agility

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT analysis of Oak Tree Inn :...............................................................................................3
Two potential strategic options :.................................................................................................7
Evaluate two strategic choices using SAFe model :...................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES:.............................................................................................................................10
Books and Journals:..................................................................................................................10

INTRODUCTION
Strategic agility is the ability to identify the required chances that can help in the growth
process of an organisation according to its related market conditions. It also involves the skill of
implementing these changes in the operations of the company efficiently and quickly when
necessary. Building of better standards of operations are worked upon through using innovatory
methods in this technique (Lyubenov, 2018). The following report will focus on identifying
opportunities and threats of a firm. The chosen business firm is Oak Tree Inn. Strategic modals
Pestel and swot are used to analyse the external and internal environment of the company.
Recommendations of two potential strategies are given for using in the operations. These
strategies are then evaluated using SAFe model.
MAIN BODY
SWOT analysis of Oak Tree Inn :
SWOT is a strategic management tool. It can help the related company in completion of
its goals through analysing its external and internal environment. Following is the swot analysis
of the Oak Tree Inn in a tabular form :
Strengths
 Quality services – The foremost
strenghts of the brand is its nature of
providing quality services to the
customers. The qualified products
builds satisfied customers and this
helps in enhancing the brand image in
the market (Jadhav, 2021).
 Trained staff – The company ensures
that its workforce is trained through
providing them training programs on a
regular basis. These training programs
works in making the employees
knowledged about the products of the
company and give ways for dealing
Weakness
 High tax rates – The company
operates in many different parts of the
world. This makes it to be aware of and
pay taxes according to each of the
operating country. The current
accounting statement of it shows that it
is facing high amount of money flow in
paying taxes. This reduces the
profitability of the firm.
 Organisational disputes – In the
recent past, many internal disputes of
the company have came in the market.
The conflicts and disputes of it works
in negatively harming its image in front

with the customers. This provide the
customers with clear specification of
the products and more value.
of the customers (Herliana, Lawiyah
and Aina, 2018).
Opportunities
 Use of technology – The hospitality
sector involves of different activities
that can be made efficient using some
innovatory technological equipments.
The company can research and identify
some related technological upgrades
and innovations from the market which
when implemented in the operations,
can lead to making activities efficient
and provide the customer with more
value. This can also help it in attracting
the customers from online platforms.
 Environmental concern – One of the
greatest opportunities for the related
company is the concern towards
environment (Gontier, Wong and Teo,
2021). For capturing this opportunity it
can use tools and activities that
promote the environment sustainability.
This can help in forming a good brand
image of the company in the
marketplace.
Threats
 Competition – The related industry in
which Oak Tree Inn works is filled with
a high competition and is also prior tom
increase the competition due to new
entrants. It is one of the greatest threat
for it. This factor can work in dividing
the customer base into smaller groups
and decreasing the profitability of it.
 High power of buyer or consumer –
Due to the high level of competition in
the market, there is a high power of the
consumers. This makes the power of
making changes in price a matter of
risk. The high power of consumers tells
the ability of them to shift to other
companies in case they find cheaper
price for the same type of services in
any other company. Thus this tells
about the another threat of it.
Therefore, the SWOT analysis of the Oak Tree Inn tells about the areas on which the
company must focus to build its strong presence in the marketplace.
PESTLE analysis of "The Oak Tree Inn" :

Pestle analysis is a framework or tool that help a company in its strategic management. It
analyses the external business environment through using various elements that have impact on a
business organisation. Following is the detailed Pestle analysis of the Oak Tree Inn :
 Political – This tells about the extent to which the government bodies can interfere in
the operations of a business organisation through its policies and regulation. In context
of the chosen hospitality firm, the mangers have to invest high resources which include
money and focus of employees, for reading and managing the policies of the
government that relate to the company as it operates in many different countries which
needs the considerations of the government policies of all the operating countries
(Kitayama, Yanai and Nakao, 2020).
 Economical – This factor involve the elements of a economy such as the rate of interest,
foreign exchange rate, employment or unemployment rate and inflation. The difference
between the exchange rates of different countries and inflation or deflation rate affected
the related hotel industry on a large basis.
 Social – These are the people related issues that form the goodwill of a company in eyes
of the costumers. Some examples of social related considerations are based on –
religion, demographics and behaviours. For the the Oak Tree has to consider the
demand of people on a global basis which is a hard activity due to the changes in the
taste and preference of different people globally. It works in providing services that do
not the beliefs of its consumers and people of the society.
 Technological – This relate to the use of innovatory tools and techniques in the
operations of a business entity to make certain processes easy to use and efficient. The
must an analyse the demanded technology equipments from the customers and even new
types of machineries that can help in making the complicated hospitality processes easy
and provide the customers with more value through new and high level experience (Li,
Ouzia and Scrivener, 2018).
 Legal – These are the factor that tells about the limits of business entity that can be
followed by it according the rules and regulations of the legal bodies. The hospitality
sector needs a lot of consideration of the legal bodies and the Oak Tree faces a lot of
interference by these bodies bodies. When any of the rules and regulations by legal body

of any country gets flexed due to the operations of the firm, it will be liable to face
certain issues such as monetary fines and punishments.
 Environmental – It refers to the maintenance of the environmental responsibility of a
business firm by considering different ecological aspects. There are a lot of
environmental issues that are faced by the related company in both of its sectors –
hospitality and tourism. The operations of hospitality sector includes use of various
plastic and other polluting elements which can be replaced by it with sustainable types
of items. It must also regard that its hotel industry also practices environment friendly
methods and keeps cleanliness.
Porter's Five Forces :
This is modal that tells about the competition related situation of a company by analysing the
business environment through five of its elements. These elements are discussed in the following
points in context of the Oak Tree Inn :
 Competition rivalry – This is the factor which tells about the analysation of the present
competition in the market in relation of the industry of a business entity. Hotel and
hospitality industry has a high level of competition (Atherton, 2019). This tells about the
ability of other competitors in the market to attract the customers of the market. The firm
can perform activities that can provide it with a competitive edge in the market. The Oak
Tree Inn have high threat to this force.
 Threat of new entrants – This is the element of which tells about the chances of new
companies that can come in the related industry and attract a base of customer and
building more intense competition for the enterprise. This depend on the difficulty level
of operations, expertise knowledge and investment needed in establishment. It is an
efficient way for earning passive but needs a lot of investment and some expertise
knowledge, thus the threat of this factor for the Oak Tree Inn is moderate.
 Power of suppliers – This is the ability of the suppliers of a company to make changes in
the prices and amount of supplied products. There are a lot of suppliers in the market for
supplying products for hospitality and hotel industry. So if the current supplier make any
changes in the price the firm can shift to another supplier, but being a big brand any
change in quality of product can effect it greatly. SO the Oak Tree Inn has a moderate
threat of this factor.

 Power of buyers – This is the factor which tells about the power of consumers to make
changes in prices and quantity demanded. The Oak Tree has a strong base of customers
with them, but when these customers will find the alternative source that provide the
same type of service in less prices, they can shift to them (Škare and Soriano, 2021). Due
to this, the company has a moderate threat to this element but it must maintain and build
loyalty in its customers.
 Threat of substitute goods - This are the goods which can make certain type product to
be replaced with them when the satisfaction provided is similar in relatively low prices.
The Oak Tree is a well known brand with unique designs and different quality of
services. It also have its own trademark, logo and recognition which can not be imitated
by others. This leads to low threat of this factor.
Two potential strategic options :
 Strategic option 1 – The location of various presence the company is beautiful and
demanded by the customers, it can use this strengths of its for building a strong base of
customers with high income spendings. It also have a opportunity of using the
technological innovation in its operations.
 Strategic option 2 – The strength of the company of providing quality service of its
customers must be maintained to hold the group of customers with regulating and
implicating the sustainable environmental activities in its operations. Through this Oak
Tree Inn can avoid related issues and gain brand awareness.
Evaluate two strategic choices using SAFe model :
SAFe modal is an effective method which can be used to evaluate the chosen strategic
choices and enhance the results. Managers and higher authorities of the Oak Tree Inn can use
this model for filtering the available strategic options and choosing the best. Following is the
evaluation of the strategies with the help of SAFe models :
 Suitability – This elements tells that the strategic option 1 is more suitable for building
profitability of firm. Through this, the mangers can adopt the digital technologies in the
operation that can ,make the management easy and effective.

 Accessibility – Through analysing the several strategic management models used above
(swot, pestle and porter's five forces), it is analysed that option 1 is less risky than the
other one (Sultana, Akter and Kyriazis, 2022). Feasibility – The given elements states the strategic option 1 is highly feasible than the
strategic option 2. Through using the model and classifying suitability and accessibility,
this can be said that strategic option 1 must be selected.
SAFe Matrix score table
SFA Matrix Strategic options
Option 1 Option 2
Suitability 3 2
Accessibility 4 3
Feasibility 5 3
Total 12 8
From the above mentioned table it can be said both the strategic option has their own
benefits and demerits. But analysing all the benefits and disadvantages, it is mentioned that the
second option will prove to be more successful.

CONCLUSION
From the above report it has been concluded that strategic agility is the process that can
be sued to analyse the best strategies that can prove to best for a company and help it in its
growth process. There are different types of models that can be used in strategic management
such as swot, pestle and porter's five forces. These help in analysing the externally and internal
environment of a company accordingly.

REFERENCES:
Books and Journals:
Lyubenov, L., 2018. SWOT analysis of the Bulgarian beekeeping. Journal of Mountain
Agriculture on the Balkans. 21(4). pp.50-72.
Jadhav, M., 2021. SWOT analysis.
Herliana, S., Lawiyah, N. and Aina, Q., 2018. SWOT ANALYSIS APPROACH ON SME'S
ENTREPRENEURIAL COMPETENCY. Academy of Entrepreneurship Journal. 24(2). pp.1-6.
Gontier, J.C., Wong, P.S. and Teo, P., 2021. Towards the implementation of immersive
technology in construction–a SWOT Analysis. Journal of Information Technology in
Construction (ITcon), 26(20), pp.366-380.
Kitayama, R., Yanai, J. and Nakao, A., 2020. Ability of micaceous minerals to adsorb and desorb
caesium ions: Effects of mineral type and degree of weathering. European Journal of Soil
Science. 71(4). pp.641-653.
Li, X., Ouzia, A. and Scrivener, K., 2018. Laboratory synthesis of C3S on the kilogram
scale. Cement and Concrete Research. 108. pp.201-207.
Atherton, J., 2019. Social media strategy: A practical guide to social media marketing and
customer engagement. Kogan Page Publishers.
Škare, M. and Soriano, D.R., 2021. A dynamic panel study on digitalization and firm's agility:
What drives agility in advanced economies 2009–2018. Technological Forecasting and Social
Change. 163. p.120418.
Sultana, S., Akter, S. and Kyriazis, E., 2022. How data-driven innovation capability is shaping
the future of market agility and competitive performance?. Technological Forecasting and Social
Change. 174. p.121260.