Strategic Analysis of Oak Tree Inn

This report provides a strategic analysis of Oak Tree Inn, a hospitality industry. It includes an overview of the company, external threats and opportunities, PESTLE analysis, Porter's Five Forces Model, VRIO analysis, and SWOT analysis. The report also discusses potential strategic options and provides recommendations for the business.

BM633 Strategic Agility

EXECUTIVE SUMMARY
The presented report will give a key discussion about performance of an organisation
considering various uncertainties in its given marketplace. Managers and leaders of various
business firm introduced various innovative strategies and plans to overcome such
uncertainties. There are various factors, could be internal or external that affects effective
working of a business enterprise in given business conditions. The following report will
include various strategic analysis conducted in an organisation to analyse its key strengths
and weaknesses of business and also to evaluate competitiveness of a given firm.

Contents
EXECUTIVE SUMMARY...................................................................................................................2
A brief overview of Oak Tree Inn.........................................................................................................4
External threats and opportunities chosen firm is facing from both macro and micro environments.....4
PESTLE.............................................................................................................................................4
Porter’s Five Forces Model...............................................................................................................4
VRIO analysis...................................................................................................................................4
SWOT analysis..................................................................................................................................4
Two potential strategic options from SWOT analysis...........................................................................4
SAFe analysis on two potential strategic options...................................................................................4
RECOMMENDATIONS AND CONCLUSIONS.................................................................................4
REFERENCES......................................................................................................................................5

INTRODUCTION
Managers and leaders develops or formulate effective strategies and plans with a
motive to maximise profits of the firm in given marketplace of the business firm. The present
report is developed by taking operational working of “Oak Tree Inn”. It will include
strategies adopted by managers of chosen firm to overcome various difficulties faced by them
to implement plans for attainment of desired objectives and goals of the business firm.
A brief overview of Oak Tree Inn
Oak Tree Inn can be categorised as a hospitality industry which provides luxury
comforts to its various customers and has its good presence in domestic markets been
followed up with its excellent brand image in international markets. Currently, respective
hospitality industry is being owned by Alexander Fraser. The business firm provides luxury
facilities to their valuable customer which includes, restaurant, bar, B&B accommodation,
village shops and Ice cream parlour. It is situated at the hearts of Balmaha on East side of
Loch Lomond in route of iconic West Highland Way Walk. Respective firm got its name by a
500 year old tree which is still decorated at the premises. The restaurant serves tradition
Scottish food which is very famous and have got an award in excellence in delivering quality
services and products to their customers (Asseraf, Lages and Shoham, 2019).
External threats and opportunities chosen firm is facing from both macro and
micro environments
Considering various changes and fluctuations in business environment of an
organisation, which makes it difficult to managers of various business organisation to
implement respective plans in structure to attain desired objectives of the workforce.
Therefore, certain analysis and deep study of given market of a business firm is being done
by concerned department of an organisation, in order to ensure effective functioning up of a
business firm. With relation to chosen firm i.e. “Oak Tree Inn”, managers of the firm
conducts deep study of its business environment, before organising planning structure in the
firm. For this purpose, various external as well as internal factors that affects effective
working of the firm is being analysed (Debellis and et. al., 2021). Managers of respective
firm makes use of various models to ensure better productivity of the firm. Various models
being considered by concerned authorities of chosen firm are as follows:

Macro Environment Analysis
PESTLE
It is a strategic tool which is used by various management departments in business
firms for analysing their external or macro environment. Operational department of chosen
firm uses this tool for analysing various external factors that causes loophole towards
attainment of desired objectives of the firm. PESTLE analysis of Oak Tree Inn are as follows:
Political factors
 Various travel bans being imposed by government of respective region may result in
downfall in sales activities of the company.
 Another factor i.e. Taxes which are imposed by political body of that region, could
lead to payment of additional charges, which may result in increasing prices of
various products and services being offered by company to its valuable customers.
Economic factors
 Economic changes such as inflation, recession or any rise in interest rates of
borrowing in given region.
 Strength of currency can support the industry.
Technological factors
 Any new technologies available in market of business firm.
 Effective designing up of company’s website, can be useful to attract demands of
customers.
Environmental factors
 It includes various climatic factors which might impact on demand of hotel.
 Any natural calamity which might cause lower sales of firm in particular region and
time period.
Legal factors
 Crime rates in respective region of firm’s operation ma impact on performance of
given firm.
 Hotel have to follow innkeeper law, which relates to safety and wellbeing of various
guests of the firm.

Porter’s Five Forces Model
It is a powerful tool which is used to analyse the competitive strengths of various
business organisation in the given marketplace (Dehmolaee and Rashnavadi, 2019). This is
another external tool which is used my operational management department of selected firm
to analyse competitive strength of respective firm in a given marketplace. Porter’s Five Force
model of “Oak Tree Inn” are as follows:
Competitive rivalry: This refers to various competitors available in similar market of
operations of the business firm. Some of it major competitors are, Catnip Inn, Hotel Eden
Palm and Derrick Inn.
Supplier power: This power tends to be low when there is large number of suppliers
available to an industry and vice versa. In regards to chosen firm, this power tends to be low,
as firm has large number of suppliers from which it gets supply of raw materials. Suppliers of
company can’t make changes in prices of various commodities being delivered to the
company.
Buyer power: This power tends to be high when buyers of company’s product or
service is large in number and vice versa. In case of selected firm, this power tends to be
high, as there are huge count of customers of company’s products and services. Buyers of
chosen hotel have the potential to make changes in prices of various commodities offered by
company.
Threat of new entrance: The chosen firm has high threat of any new similar business
opening in same area of operation of respective industry. As it would lead to distribution of
demands in that particular region.
Threat of substitution: There is higher threat of substitution to the chosen hospitality
industry, as due to availability of similar products and services in various regions of
operations of business firm.
Micro Environment Analysis
VRIO analysis
It is an analysis which is a complement to a PESTLE analysis. This analysis is used to
evaluate company’s resources and then relates it with strategies being implemented in the
firm. With context to chosen firm, managers of the firm make use of VRIO analysis to give

competitive advantage to firm in its given marketplace. VRIO analysis of Oak Tree Inn are as
follows:
Value: Managers of the firm uses best quality resources/ raw materials into
production process of the company. It helps in attracting large number of customers in its
given market region.
Rareness: It can be analysed that, respective company’s products and services are less
rare. Therefore, there are huge chances for substitution of its products and services from any
other business in similar marketplace.
Imitability: The Company’s products and services are hard to imitate, as production
activities are taken place with pure professionalism of work.
Organisational support: It can be analysed all the work being produced in
organisational structure is well managed and organised.
SWOT analysis
This is another micro analysis tool which is used by managers of various firms to
analyse internal factors that affects effective working of a business firm (Hesselberg, 2018).
Managers of the firm by using this analysis, are able to analyse company’s strengths,
weaknesses, future opportunities and upcoming threats to the firm. SWOT analyses of Oak
tree Inn are as follows:
Strengths Weaknesses
 Established brand.
 Good communication channel.
 Fails to control fluctuations in prices
due to high buyer power.
 Internal conflicts in firm is causing
issues in effective coordination.
Opportunities Threats
 Company has decent place in online
market. Therefore, it has good
opportunities in conquering future
market demands.
 It already has better brand image in
international market. Therefore,
company is all set for growth.
 There is a huge threat of substitution
of company’s products.
 Threat of competitors in respective
region of operations.

Two potential strategic options from SWOT analysis
As by conducting various analytic tool on operations of chosen business firm i.e. Oak
Tree Inn, various strengths on regards to brand value of company’s products and services in
given marketplace, weaknesses in context with its internal failure due to lack of coordination
or failure in establishing communication between its respective departments and
opportunities which are being evaluated from various analytical approaches that are being
conducted by considering operational working of the chosen hotel industry.
SAFe Analysis
The SAF Matrix is a tool for evaluating your strategic choices and deciding which one
to pursue. Suitability, Feasibility, and Acceptability are acronyms for Suitability, Feasibility,
and Acceptability. These are the SAF Analysis criteria areas that are used to evaluate and
rank each approach (Wang and Zhao, 2017).
SAF analysed of Oak Tree Inn is presented in below table;
SAF Matrix Strategic option 1 Strategic option 2 Strategic option 3
Suitability 6 4 1
Feasibility 4 7 5
Acceptability 3 7 9
Total 13 18 15
Evaluation of Matrix in regards with Oak Tree Inn
Suitability
Suitability examines whether a plan can help the company achieve its objectives. It's
an interesting question as, at the end of the day, you're creating a plan to achieve specific
goals and objectives. Therefore, it could be analysed that strategic option 1 should be chosen
from the prospective of suitability of a plan.
Feasibility
Feasibility is critical as it determines whether or not the company can successfully
implement the development vision. When assessing this part of the SAF Analysis, you can

consider capital, skills, positioning, market shifts, fiscal incentives, and other factors. Thus,
chosen firm should stick to strategic option 2, if its wants more feasibility of working
conditions in business firm.
Acceptability
Acceptance in the SAF The emphasis of the analysis is on the perspectives of the
stakeholders. Stakeholder management is critical in policy, not least since an individual must
ensure that everybody is on the same page. As a result of evaluating the matrix, strategic
option suits best to employee of respective employee in terms of acceptability in the
workforce.
Managers and concerned departments of chosen firm undertake various strategic
approach towards ensuring effective working of the firm considering various uncertainties
and factor of competition in the given operational environment of the business firm.
Managers of the firm uses the following strategies to overcome fear of various threats to an
organisation and also builds strong potential of respective firm for dealing with respective
weaknesses as being analysed of the given firm (Martínez-Caro and et. al., 2018). Strategies
used for dealing with weaknesses as well as threats and will helps in grabbing the next
opportunities to the given firm are as follows:
Strategic management monitoring
This approach of management department of chosen firm will helps in diving out
better productivity of the respective firm by dealing effectively with various fluctuations in
given business environment of the business firm. As per this strategic approach, various
individuals are appointed by the firm to monitor up respective performances of various staffs
or employees working in an organisational structure. This work is being conducted in step
wise manner.
Step1: Assignment up of various job tasks.
Step2: Clarity of job roles.
Step3: Operational activity.
Step4: Best alternative to perform specific task.
Step5: Performing after task formalities.

Step6: Appraisal.
By evaluating the above mentioned tasks, in step1, an organisational tasks are being
divided into various individual task who are working in a business enterprises. Here are all
the activities such as researching on desired goals and objectives that is to be achieved by the
business firm and market in which business firm is going to operate is being analysed by
conduction of deep study. Moving forwards to the next step, in this step, clarity of respective
job tasks and roles assigned to various individuals are being done. It is to be ensured by
managers of the firm that various job roles of individual staff comply with organisational
goals or objectives. In step3, conduction of operational activity and efforts are being
produced by various individuals working in the firm (Shahzad and et. al., 2020). Followed up
with the next step, in the process of conduction of respective activities by employees working
in an organisation. It is to ensure by respective managers of the firm that various activities in
an organisation is being produced with the best efforts and by using the correct technique
which is required in the given market of the business firm. Lately, after completion of
respective job roles it is to be assured that everything which is provided by company is
returned back or not and it also includes responsibilities of each individual to solve feedback
issues after performing job activity. In last but most important step, in this step dedicated
employee or staff is being awarded with rewards or monetary rewards for its good
performance towards attainment of desired objective of the organisation.
Strategic control
This is another strategy which is adopted by managers and leaders of respective hotel
industry. In this it is to be ensured by various managers of the firm that each and every
activities which are produced in the business firm are as per pre decided plan or not. In the
process being it is to determine by management department of the firm that every actions and
efforts produced by respective individual staff working in the firm is as per code of conduct
of the organisation (Škare and Soriano, 2021). It is an inclusion of conduction of various
activities in a firm by following various legal and social rules as imposed by governing body
of that region. Therefore, by establishing strategic control in respective business activities of
the firm, managers are able to dedicate effective productivity of firm being produced in
concerned business environment of the organisation.
Therefore, by adopting to such strategies managers of Oak Tree Inn are able to
develop better potential of the business firm for dealing with various uncertainties and

fluctuation in business environment of the firm. With addition to that, various weaknesses
which were drawn out of the concern firm i.e. of internal conflicts and fluctuations in prices
of various commodities being delivered by the firm are being solved by adopting to such
strategies. As such strategies aims at drawing out effectiveness of various operational work
being conducted in an organisation and also helps in forecasting demand of various
individuals, thus by maintaining enough stock, firm is able to deal with rise in demands of
various customers of the firm in its given markets. Lastly, such strategies are also helpful to
the firm to effectively grab future opportunities to the firm, which will ultimately contribute
to growth objectives of the hotel industry (Teece, 2019).
RECOMMENDATIONS AND CONCLUSIONS
From the above report, it is concluded that various business firms has to go through
variety of business conditions in their respective region of operations. Respective managers
and leaders of chosen firm take use of various models and strategic tools to analyse and
develop perfect plan and strategy that suits best to respective operational environment of the
business firm.

REFERENCES
Books and Journals
Asseraf, Y., Lages, L.F. and Shoham, A., 2019. Assessing the drivers and impact of
international marketing agility. International Marketing Review.
Debellis, F. and et. al., 2021. Strategic agility and international joint ventures: The
willingness-ability paradox of family firms. Journal of International
Management, 27(1), p.100739.
Dehmolaee, S. and Rashnavadi, Y., 2019. Strategic agility in telecom industry: the effective
factors on competitive advantages. Middle East Journal of Management, 6(1), pp.1-20.
Hesselberg, J., 2018. Unlocking Agility: An Insider's Guide to Agile Enterprise
Transformation. Addison-Wesley Professional.
Martínez-Caro, E. and et. al., 2018, September. Technology assimilation, absorptive capacity
and organisational agility: Their combined effect on firm performance. In European
Conference on Knowledge Management (pp. 512-XXII). Academic Conferences
International Limited.
Shahzad, M. and et. al., 2020. Exploring the influence of knowledge management process on
corporate sustainable performance through green innovation. Journal of Knowledge
Management.
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.
Teece, D.J., 2019. 2 Strategic renewal and dynamic capabilities. Strategic Renewal: Core
Concepts, Antecedents, and Micro Foundations, p.21.
Wang, J. and Zhao, T., 2017. Regional energy-environmental performance and investment
strategy for China's non-ferrous metals industry: a non-radial DEA based
analysis. Journal of cleaner production, 163, pp.187-201.
Online
Oak Tree Inn: growth challenges facing a family-run tourism business, 2021. [Online].
Available through: <https://research-portal.uws.ac.uk/en/publications/oak-tree-inn-
growth-challenges-facing-a-family-run-tourism-busine>