Strategic Agility for Oak Tree Inn: Consultant Strategic Report

This strategic report focuses on the concept of strategic agility and its application in the case of Oak Tree Inn, a family-owned business in the tourism industry. It analyzes the external and internal factors affecting the company and critically evaluates two potential strategic options using SAFe analysis. The report concludes with a recommendation for the preferred strategy.

Strategic agility /consultant strategic report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Overview of the firm and its activities........................................................................................2
Presenting the external and internal factors that affect the Oak Tree..........................................2
Critically assess two potential strategic options..........................................................................5
Critically evaluate the two options by using Safe analysis..........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic agility is an organization’s ability to think ahead within a market and quickly
adapt the changes in order to stay ahead within a business. Similarly, the present study will also
focused upon decision took by the company in order to make better decision for the welfare of a
business. The present report is based upon the case study of Oak Tree Inn which is a family
owned business offer accommodation facilities to tourist. For that, the report will describe the
key activities used by the firm and also by using effective tools and theories, study evaluate the
internal and external environmental factors. Moreover, it critically evaluates two strategic
options which will mitigate threats, exploit opportunities to stay ahead in competition. After that,
by using SAFe analysis, study will recommend the preferred strategy for the company.
Overview of the firm and its activities
The Oak Tree Inn is one of the most successful tourism within is Balmaha, which is run
by the family owned business with Sandy and Lucy Fraser. It offer the accommodation facilities
to their customers along with different variety of food products. Moreover, it also offer the
artisan products with high quality and in 1997, the owner expand the business activities and
grown income by purchasing six different houses. Recently, in 2018 the company also opened up
a village shop, artisan coffee and ice cream parlour for their customers in order to attract then
towards a business (Livingstone, 2019). However, it has been identified that the business run by
old people and their children such that there is no board of directors who make quick decision.
Therefore, it is reflected that there is no strong organization structure followed by the business
and that is why, there is no proper flow of communication between the stakeholders. Overall, it
is reflected that with the change in the market needs, the owners of the company have a passion
and commitment to adapt the changes and sustain the brand image at global level.
Presenting the external and internal factors that affect the Oak Tree
In order to determine the external environment of the company, it is suggested to use the
Pestle and Porter five force models.
PESTLE analysis:
Political factor: The business will be run effectively when the political situation of the
country is stable. In the context of Oak Tree Inn, its financial performance may affect due to

Brexit. As a result, the spending of the tourists may decreases which causes opposite impact
upon the business. However, due to pandemic, the countries also ban travel and this in turn
somehow affected the overall performance in adverse manner.
Economic factor: The factor deals within economic stability of the country. Such that
changes in the inflation rate might affect the overall performance of the business. However, Oak
Tree Inn is expected to grow in different segments in order to meet the defined aim and
objectives of the company (Perera, 2017). But, due to decrease in the economic performance of
the country also affect the overall performance in adverse manner and tourist did not spend
amount for traveling that affect opposite impact upon business performance.
Social factor: Customer preference always changes with the market change and as per
the current trend, the want privacy, unique features within hotels that attract them. In the same
way, Oak Tree also develop an opportunities in order to grab attention of customers. Also, most
of the customers are looking for the heritage hotels and the same will be applied by the business
to order to draw attention towards them.
Technological factor: This factor deal with the technologies used by the companies in
order to meet the defined aim. Such that uses social media platforms in order to make booking so
that it increase the brand image. Further, it also must encourage the customers to share their
reviews in order to draw attention of many customers towards it.
Legal factor: there are many laws that affect the overall performance of the company and
that is why, company must use employment laws in which they have to pay minimum salary to
their employees (Nandonde, 2019). Further, during advertisement, it also ensured that the
advertisement does not mislead the customers. Through this, it helps to meet the defined aim of
the company and sustain the brand image as well.
Environmental factor: In order to run in ethical and sustainable manner, it is necessary
for the company to make sure that it complied with sustainable act. As, Oak Tree Inn is already
established in forest area and that is why, it is necessary for the company to ensure the
environmental factors so that it does not causes negative impact upon environment.
Porter five force model:

 Rivalry (high): There is a high competition faces by the company with their rivals. Such
that there are many competitors within Balmaha. As the industry is growing and there is a
high capital cost as well as pressure to sell the capacity by price cutting is high. Thus, it
can be stated that due to low cost of product differentiation and switching cost, there is a
high competition within the industry.
 Bargaining power of suppliers (low): Due to having low pressure form the competition,
it also has a low and indirect pressure on their competitiveness. Oak Tree Inn is only
subject to power of labor, trained staff and personnel and that is why, customers are
attracted towards it (Mak and Chang, 2019). Moreover, to maintain image at global level,
it is necessary for the company to maintain a cost advantage over the rival and offer
innovative services to their customers
 Bargaining power of buyers (high): It has been analyzed that there is a high demand of
tourist regarding to hotels. Such that if hotel is cheaper and have high quality products
and services that it attracts range of customers (Leyva and Parra, 2021). Similarly, in the
context of quoted business, it also tries to meet the demand of customers and this in turn
assist to generate high margin as well.
 Threat of substitute (moderate): there is no threat of substitute, however, customers are
attracted when hotel offer innovative services by using the techniques (Analysis of hotel
industry with porter five force, 2021). Thus, with an emerging market of the
digitalization, most of the hotels uses such products like Artificial intelligence, online
websites etc. Thus, there are no major facilities available that considered as a substitute of
the hotels.
 Threat of new entry (low): It has been analyzed that it is a growing industry and that is
why, most of the business wants to establish into such. However, it has been analyzed
that there is a high cost of investment required within the business and there is no surety
of return. That is why, the threat of entrance is low within this industry.
SWOT analysis
Strength Weaknesses
 It is a family based business and the
owners uses knowledge of the area
 Due to poor organization structure,
company do not have strong decision

and market.
 The company has a strong brand
reputation within a market due to
offering high quality artisan products.
 The company keeps complying with
technologies and generates the
opportunities for expansion.
 Owner has a strong passion and
commitment that assist to make the
essential changes within market
(Voss, 2021).
making skills.
 Oak Tree Inn also have a weak
systems and preparedness in order to
make sure that business resilience in
time of crisis.
 The company also have poor staff
retention that affect the overall
performance.
Opportunities Threats
 Having a brand image assist company
to invest upon the technology in order
to offer the products online to their
customers.
 It also offer outdoor activity
including in packaging offers to
attract customers.
 Scottish government policy to grow
the tourism sector that helps to
increase the customers range.
 Level of retention of staff within a
sector.
 Restricted physical capacity on the
east side.
 Reduce the attractiveness of tourism
sector.
Critically assess two potential strategic options
From the SWOT, it has been analyzed that the company can develop two strategic
options which are as mentioned below:
Strategic option 1: Through the weakness, it has been identified that the Oak Tree Inn do not
have a strong organizational structure and that is why, it is not able to making the decision. That
is why, using hierarchical organization structure is the first strategic option available for the

company. It has been evaluated that due to not focusing upon the organization structure, the
company decreases its productivity and high employee turnover through which the company is
actually suffers.
Strategic option 2: By using Ansoff growth vector matrix, it has been evaluated that market
penetration is another strategic option available that assist to mitigate the threat and increases the
opportunities. Moreover, it has been identified that through this option, quoted business will be
attracted new range of employees. Such that, using advance technologies and uses online
facilities to their customers also attract the range of customers and increases the productivity of a
business.
Critically evaluate the two options by using Safe analysis
In order to evaluate two strategic options, SAFe analysis has been used in order to
determine the analytical and planning method for the firm (Grigoroudis, Kouikoglou and Phillis,
2021). In the context of the chosen business, there are two strategic options offered and by
applying SAFe analysis, Oak Tree Inn will select the best in order to mitigate the threat.
Suitability: As per the strategic option 1, company must change the organization
structure but it does not consider any factors that affect the business performance. However,
strategic option 2 comply with technology factor and as per the emerging trend, it will be
beneficial for using the market penetration within a company (Haveland and Islam, 2021). Also,
the business is family owned business and that is why, introducing new services is considered a
good option rather than changing the organizational structure.
Acceptability: Another criteria stated that if company chooses the 1st strategic option then
it assist to increases the management and derive better results as well. However, 2nd strategic
option is far better because it assist to attract range of new customers and creates a social media
presence within a market. With the change pattern of booking, company is able to draw attention
of many customers and increases the profitability of a business. Whereas, it is not possible in the
case of strategic 1, such that it has been evaluated that changing organization structure helps to
reduce the absenteeism problem. Thus, it does not help to increase the financial performance of
company.

Feasibility: It has been analyzed that company has a problem of staff retention and if
they opted strategic option 1, then it does not solve the problem, but only convert the flat
organizational structure to hierarchical. On the other side, as per the strategic option 2, it can be
stated that company has a brand image and that is why, it has an ability to convert its strength
into an opportunities (Bozkurt, Wang and Pajic, 2021). Thus, it can be stated that it will be more
beneficial for the company to invest into strategic option 2.
Recommendations:
From the above, it has been recommended to use the second strategic option in which
company is able to meet the demand of customers. It is preferred over other because as per the
market need, company must introduce new product and service which complied with advance
technology like, online booking, use social media platforms like Facebook in order to attract the
customers and let them know about the new offers.
CONCLUSION
By summing up above, it has been concluded that Oak Tree Inn is a family owned
business who offer best and high quality of artisan product to their customers. With the help of
Pestle and Porter five force model, company is able to determine the external environment factor.
Whereas by using SWOT analysis, company determine the internal environment and its
capabilities. Moreover, from both strategic options, company preferred to choose option 2 as
compared to 1 because it offer range of facilities and improve the financial performance of the
company as well.

REFERENCES
Books and Journals
Bozkurt, A.K., Wang, Y. and Pajic, M., 2021. Model-Free Learning of Safe yet Effective
Controllers. arXiv preprint arXiv:2103.14600.
Grigoroudis, E., Kouikoglou, V. S. and Phillis, Y. A., 2021. SAFE 2019: Updates and new
sustainability findings worldwide. Ecological Indicators. 121. p.107072.
Haveland, S. and Islam, S., 2021. Key Considerations in Ensuring a Safe Regional Telehealth
Care Model: A Systematic Review. Telemedicine and e-Health.
Leyva, E. S. and Parra, D. P., 2021. Environmental approach in the hotel industry: Riding the
wave of change. Sustainable Futures, 3, p.100050.
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.
Mak, A.H. and Chang, R.C., 2019. The driving and restraining forces for environmental strategy
adoption in the hotel industry: A force field analysis approach. Tourism Management. 73.
pp.48-60.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Voss, B. L., 2021. Documenting Cultures of Harassment in Archaeology: A Review and
Analysis of Quantitative and Qualitative Research Studies. American Antiquity, pp.1-17.
Online
Analysis of hotel industry with porter five force. 2021. [Online]. Available through:
<https://bezla.com/blog/f/an-analysis-of-the-hotel-industry-with-porter%E2%80%99s-five-
forces>.