Strategic Agility: Expanding Global Presence and Enhancing Digital Services

This document explores the strategic agility of Oak Tree Inn, focusing on its ability to think ahead of the market and adapt to market shifts. It provides an overview of the company and its initiatives to keep the city clean. The document also includes a SWOT analysis, PESTLE analysis, and VRIO analysis of Oak Tree Inn. It discusses potential strategic options for the company, such as expanding its global presence and enhancing its digital services. The SAFe analysis evaluates the suitability, acceptability, and feasibility of these options. Overall, the document offers insights into the opportunities and challenges faced by Oak Tree Inn in achieving strategic agility.

Strategic Agility

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Brief overview of Oak Tree Inn.......................................................................................................3
EXTERNAL THREATS AND OPPORTUNITIES OF OAK TREE INN.....................................4
SWOT Analysis...........................................................................................................................4
Pestle analysis..............................................................................................................................4
VRIO analysis..............................................................................................................................5
POTENTIAL STRATEGIC OPTIONS FROM SWOT ANALYSIS.............................................6
SAFe Analysis on Two potential strategic options..........................................................................8
CONCLUSION & RECOMMENDATIONS................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic agility deals in the ability of the organisation to think ahead of the market so that it
can quickly mobilize itself, adapt to the market shifts, captures new revenue ahead of the
competition, fill capability gaps and create new markets. The report will shed light on the
strategic agility of Oak Tree Inn including the management strategies of the company. It will also
focus on the business situation in which internal, external and competitive factors will be
elaborated. Furthermore, two strategic options will also be proposed and among them one will be
chosen for adoption by the company.
Brief overview of Oak Tree Inn
The Oak Tree Inn is a major accommodation in Balmaha, Scotland. The company helps
in featuring a popular bar and restaurant which serves Scottish food and drink. Along with this,
the company also has B&B accommodation which is a village shoe and St Mocha Coffee Shop
and Ice Cream Parlour. This is considered to be ultimate and beautiful destination in Scotland on
the route of West Highland Way. The company takes various initiatives to keep the city Balmaha
beautiful by reducing litter. It has launched new campaign named Keep Balmaha Clean which
encourages the visitors to collect litter pickers (Oak Tree Inn Balmaha Loch Lomond, 2021).
The company also strives hard to recycle waste as much as possible. Special menu is provided by
Oak Tree which is completely Gluten free including soups, bread, salads, mains pies, beef cheeks
and curry. Various homemade ice creams are also offered by the restaurant. Not only this, the
chefs also take care of the dietary needs of the people and offers them menu accordingly. The
company also serves the food especially on occasions such as in February the company was
serving a special sharing taster platter and a bottle of bubbly with every shared occupancy. The
accommodation at Oak Tree is also very nice as the visitors can live in the beautiful village of
Balmaha on the Loch Lomond banks with B&B rooms which are both nearby the cottages and
above the inn (Livingstone, 2019). The rooms in the hotel are also deluxe for all types of visitors
which make their stay enjoyable and comfortable. The visitors can have everything they need for
during the stay including bar, restaurant, coffee shop etc.
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EXTERNAL THREATS AND OPPORTUNITIES OF OAK TREE INN
SWOT Analysis
Strength
The biggest strength of Oak tree inn it is one of the oldest hotel and it has Global presence as it
operates in most of the countries so this hotel has won the hearts of passengers and travellers.
Weakness
Consumer distrust and improper of marketing and promotional activities area the major
weakness of this hotel. This hotel did poor positioning so the future of this hotel gets impact.
Opportunities
As this Hotel already operated in various countries but there is an opportunity to operate globally
(Kusumaningtyas, 2020). This hotel can enter to those countries where it doesn’t have any
presence. Another opportunity which is present in front of this hotel is that it can provide Digital
Services to their consumers with the help of their online website.
Threat
Currently the Global pandemic has become one of the threat for this hotel due to the pandemic
and lockdown the overall profitability of this Hotel is continuously decreasing. Apart from this
competition has become one of the major write as many big hotels such as Hilton and Marriott is
giving tough competition.
Pestle analysis
Politicalfactor
Political factors which can impact the overall working of oak hotel and resorts is the threat of
terrorism and the overall relation of the country with other countries. One of the biggest political
factors which impacts the overall profitability of this hotel is terrorism attack and conflict of
military between different countries create a hurdle for tourist and travellers to visit different
countries.
Economic factor
The main economic factor which affects the business of this hotel is the economic growth of
different countries where this hotel is operating. Covid pandemic has also impacted the buying
behaviour of Travellers and tourist apart from this that crisis in Europe has also impacted the
profit and revenue of this hotel.
Technological factor
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Technology puts a huge impact on the overall business of this hotel as providing all the details
about the room availability, time of visiting etc. need to be updated by the hotel.
Legal factors
This hotel is operating and most of the countries that is the responsibility of the management that
they must follow all the legal laws and regulations so that Hotel does not have to face any kind
of Criticism. If the hotel does not follow any low then it will directly impact on the goodwill and
reputation.
Environmental factors
Environmental factors also impacting the revenue this hotel as the cost of electricity is
continuously increasing apart from this the greenhouse gases also increasing so the hotel has to
make sure that they do not use much electricity and do not harm the environment as well.
VRIO analysis
Valuable
Oak tree inn has brand image in the entire globe so this is the responsibility of this hotel that the
most indulge in corporate social responsibility and do something for the Welfare of society
(Anagblah, 2019). For that this hotel is continuously engaged in various CSR activities, which is
valuable for the organisation and heart to copy by competitors
Rare
This hotel has problem solving culture therefore the situations of dispute and conflict is less in
this organisation which is rare for other hotels. Apart from this employee also indulged in
teamwork thus they provide High Quality Services to their guest so this thing is there what is
organisation and new entrants can’t copy them.
Imitable
This hotel offers High Quality Services to their consumers which are imitable and hard to copy
by other metals. Apart from this location of this hotel is also imitable as it operates in most of the
countries. Along with this it works on Economics of scale and offers affordable prices to their
consumers so that they may easily visit today’s hotel. This hotel also invest a lot of money in
technology so that they can provide better quality services to the consumers which is also
imitable resource for this hotel. Unique customer experience is also one of the important
resources for this organisation.
Organisation
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This organisation is financially strong and explores opportunities and provides better services to
their customers. The financial strength of this organisation allowed them to go for merger and
acquisition as well so that there is a organisation can operate in all the countries of this globe.
This hotel provides best training and development to their employees so that they can achieve the
desired goal of this hotel. This hotel is continuously investing in research and development so
that they can grab the market share around the globe.
POTENTIAL STRATEGIC OPTIONS FROM SWOT ANALYSIS
SWOT analysis is considered to be a proven management framework which helps in
enabling a brand like Oak Tree Inn for benchmarking its business and performance as compared
to the industry in which it operates and the competitors who develop and implement various
strategies to compete with the company in various aspects. This can be observed from the SWOT
analysis of Oak Tree inn and its strengths, opportunities that the company already operates
globally in various other countries but still there are various countries and cities where the
company is not established now but can earn a greater profitability after getting established in
those countries as well. This can be evaluated from the strengths of the company that it has the
potential to serve the customers worldwide which means the company is aware of the
considerations which must be considered while expanding it in many other countries (Fyfe, Bent
and Seaman, 2020). The world is becoming globalized rapidly day by day and the travel is
becoming cheaper, faster and more convenient. The hospitality industry is found to be thriving
with travellers from various countries across the world. In order to expand its operations and
functions in other countries, Oak Tree Tin needs to develop and implement various strategies.
Internal business audit must be done which helps in ensuring the internal offerings such as
service types, product offerings along with ensuring that the overall brand and its products are
market ready (Redjeki, Narimawati and Priadana, 2021). These factors in the audits are tailored
and multifaceted to the parent organisation which is in Scotland.
The company must make use of the frameworks like SWOT, market segmentation regularly so
that it can be aware of the updated strengths, weaknesses, growth areas, differentiating value
propositions and many more other things. Thorough research is needed regarding the country in
which the company is to be expanded. This can be analysed that all the countries have different
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rules, regulations, laws and policies which is why the companies like Oak Tree Tin needs to
analyse those changes and must develop and implement the strategies accordingly. Furthermore,
another strategic option available for the company is to perform competitive analysis in which
the business offerings and operations need to be verified against the industry competition in the
new market. Oak Tree Tin when expanding the operations and business in other new countries
must also analyse the market including the landscape and health of new target market
(Ahammad, Glaister and Gomes, 2020). This includes analysing the market size and growth
potential, consumer attitudes, market investment analysis, consumer bases, market channel
research, state of the economy and many more. These factors will help the company in devising
the appropriate strategies according to the market of the new country. This can also be examined
that when the company will operate in new country; this becomes a major challenge for the
company to promote its goods and services. This is why; the company needs to develop many
marketing strategies such as brand positioning, products and services delivery, marketing
channels, marketing KPIs, evaluation of the prices according to the economic environment of the
new country along with organising various marketing programs. Localised infrastructure plan
must be developed for outlining the desire, need and methods for building a compliant regional
and local presence (Shams and et.al., 2021). This will include hiring of the international
employees and executives, determining legal, tax and regulator statuses, finding local vendors
and positioning a physical facility or base.
Among the strategic plan, top down budget must be established which must begin with six to
twelve months of dedicated launch resources which must be aligned with the overall business
plan. Timeline needs to be created with competitive, feasible and commitment dates for mapping
the entire expansion around. This must be ensured that the timeline syncs with the existing
business objectives and initiatives of expanding the business in other countries. Along with this,
another strategy which can be made by analysing the opportunity of providing digital services to
the customers can also be used by Oak Tree Inn which can help in facilitating the customers who
prefers visiting the hotel through online platforms and then decide to book the accommodation or
restaurant of the hotel. The Internet of Things can be used by Oak Tree Inn which can help the
hotel to save energy costs and also optimising hotel rooms without the interference of humans.
The company can also facilitate the customers through digital apps for check-ins, customer
oriented digital interactions, room services (Goh and Okumus, 2020). The company can invest in
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systems and technologies which can help in personalising the experience of the guests. The
company can also make use of digital services for the people who wish to experience the hotel
before booking its services through its established website. The website of Oak Tree Tin must
contain all the information which is required by the clients and visitors regarding various aspects
including the products, location, services, offers etc. of the company. Oak Tree Tin can also
provide digital cards which can help in making use of various services provided by the company.
Biometrics can also be used for benefitting the hotel processes and customer purchases. This is
how; the strength of the company to expand globally and the opportunity to make use of digital
services can be used by the company Oak Tree Tin o gain competitive advantage and to enhance
its profitability.
SAFe Analysis on Two potential strategic options
SAFe Analysis can be done for strategic options available for Oak Tree Inn by focusing on
the factors like Suitability, Acceptability and Feasibility of the strategic options (Todorov and
Akbar, 2018). There are two major options available for the company Oak Tree Inn which
includes expanding the business and operations in other countries and also enhancing its digital
presence by providing digital services to the customers and visitors.
1. The expansion of the company in other countries
The suitability of this strategic option can be well defined as the proposed strategy
helps in addressing the key opportunities and constraints faced by the organisation. This is
how; it will be suitable for the organisation from every aspect. The strategy will meet the
expectations of the stakeholders as their trust in the company will increase after seeing its
expansion in other countries so they will invest more. This is why; they will accept this
strategy as the risk level is though not acceptable but by analysing the company’s
achievements and history the level of risk is acceptable (Starcevic and Konjikušić, 2018).
The feasibility can be ensured as the strategy can work in practice and also it can be
financed. The people and their skills also exist in the company which can help in making the
proper use of available resources.
2. Increasing the digital presence
All the three factors of SAFe analysis can be justified for this option as well because
this strategy also addresses the major opportunities faced by the company. This can also be
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accepted by the stakeholders as they will also be facilitated by the same. The feasibility can
also be ensured by implementing this strategy in practice and also employing the people
who can make use of their skills to implement this digital strategy (e Cunha and et.al.,
2020).
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CONCLUSION & RECOMMENDATIONS
The above report concluded about the internal, external and competitive analysis of the Oak
Tree Inn. It also examined and evaluated two major strategic options available for the company.
Among the two strategic options, the most viable and feasible option is to enhance the digital
presence for the products and services as compared to expanding in other countries. This can be
evidenced by the use of SAFe analysis. Both the strategic options will help the company in
achieving the strategic objectives and gaining competitive advantage but better one is to make
use of digital services because less risks are associated with this as compared to the other one.
This strategy can even help in running the business in the pandemic of COVID-19 (Shams and
et.al., 2021). This is how; this is better strategic option if to be chosen from both of them as less
investment and resources will be needed leading to greater profit margin.
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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.
Anagblah, D.A., 2019. Strategic marketing plan for Hill View Guest Centre, Abokobi.
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.
Fyfe, J., Bent, R. and Seaman, C., 2020. Business internet use in small, family owned and
managed hotels in Scotland. International Journal of Business and Globalisation. 24(2).
pp.256-274.
Goh, E. and Okumus, F., 2020. Avoiding the hospitality workforce bubble: Strategies to attract
and retain generation Z talent in the hospitality workforce. Tourism Management
Perspectives. 33. p.100603.
Kusumaningtyas, A., 2020. Promoting Luminor Hotel Pahlawan, Sidoarjo to Its Target Market
Using a Marketing Booklet. Kata Kita.8(3). pp.248-261.
Livingstone, R., 2019. Oak Tree Inn: growth challenges facing a family-run tourism business.
In Exploring Strategy: Text and Cases (pp. 723-730). Pearson Education.
Redjeki, F., Narimawati, U. and Priadana, S., 2021. Marketing Strategies Used by Hospitality
Businesses in Times of Crisis of the COVID-19 Pandemic: Case Study. ENDLESS:
International Journal of Future Studies. 4(1). pp.121-131.
Shams, R. and et.al., 2021. Strategic agility in international business: A conceptual framework
for “agile” multinationals. Journal of International Management. 27(1). p.100737.
Starcevic, S. and Konjikušić, S., 2018. Why millennials as digital travelers transformed
marketing strategy in tourism industry. Starcevic, S., &Konjikusic, S.(2018), Why
Millenials As Digital Travelers Transformed Marketing Strategy in Tourism Industry,
International Thematic Monograph Tourism in Function of Development of the
Republic of Serbia-Тourism in the Era of Digital Transformation, University of
Kragujevac, pp.221-24.
Todorov, K. and Akbar, Y.H., 2018. Strategic Management in Emerging Markets: Aligning
Business and Corporate Strategy. Emerald Group Publishing.
Online
Oak Tree Inn Balmaha Loch Lomond, 2021. [ONLINE]. Available through :<
https://www.theoaktreeinn.co.uk/>
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