Consultant Strategic Report: Oak Tree Inn Business Strategy Analysis

This consultant strategic report provides a comprehensive analysis of the Oak Tree Inn's business strategy. It begins with an executive summary and introduction to the business, which specializes in Scottish cuisine and premium whiskies within the hospitality and leisure sector. The main body of the report includes an examination of external factors using PESTLE and Porter's Five Forces analyses, followed by an assessment of internal strengths, weaknesses, opportunities, and threats via SWOT analysis. Furthermore, the report evaluates strategic capabilities and proposes two strategic directions using the Ansoff Growth Matrix and Porter's Generic Strategies to enhance competitive advantage and address market challenges. The report concludes with recommendations based on the analysis.

CONSULTANT
STRATEGIC REPORT

Table of Contents
EXECUTIVE SUMMARY ...........................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
LO 1.................................................................................................................................................4
Various external factors affecting the business .........................................................................4
LO2..................................................................................................................................................6
Strategic capabilities- ..................................................................................................................6
LO 3.................................................................................................................................................7
Strategic directions ......................................................................................................................7
CONCLUSION/RECOMMENDATIONS .....................................................................................9
REFERENCES................................................................................................................................1

EXECUTIVE SUMMARY
The above report has analysed with various external and internal factors that affect the
business functioning which is being understood with the helps of PESTLE analysis, porter five
force model and with the help of SWOT analysis and has assessed various strategic direction
with the helps of Ansoff growth matrix and porter generic strategy and provided
recommendations for the same.

INTRODUCTION
Business environment is being referred as all external and internal factors that affects
how business runs its operation under various business dynamics and which affect the ability of
the firm to maintain successful relationships with the customers. It can also be referred as sum of
collection of external and internal factors such as employees, customers expectation and needs
and various other which serves as the foundation for the company. Oak tree inn which stands in
the shade of a magnificent 500 years old oak tree is located on east side of Loch Lomond where
the highland boundary fault line separates the lowland and highlands which specialises in selling
premium whiskies and providing traditional Scottish food which constitutes company serving in
the industry of hospitality and leisure sector. The present report will outline the management
strategy of the Oak tree Inn where it will consist of the assessment and analysis of business
situation of Oak tree Inn which takes into consideration various external factors and internal
factors by taking into consideration PESTLE analysis, porter five force and SWOT analysis and
will account to provide additionally with two strategic direction with the company that will helps
in assessment of strategic capabilities and will lead to company gaining competitive advantages.
MAIN BODY
LO 1
Various external factors affecting the business
External factor analysis can be done with the helps of PESTLE analysis and Porter five
force model which is being mentioned as below.
PESTLE analysis- it includes factors such as
Political factors- This factors affect the business functioning of Oak tree Inn in a manner as it
accounts to various government instability wherein which can affect the business functioning as
government in power can any- day can come up with policies which are non favourable for Oak
tree Inn and can also lead to various taxation policies whereby it is being required to pay high
taxes as a result will lead to fewer margins in business operation. It is being also affected as there

are various trade regulation imposing various restriction which might affect the operations of
Oak tree Inn(Pan, Chen, Zhan, 2019)
Economic factors- This factors affect the business operations of Oak tree Inn as it accounts to
provide employment to various individuals which serves as the means of catering there needs
and wants and accounts to removal of unemployment in economy. It also accounts to
contribution by the company in GDP which accounts to the growth of the economy.
Social factors- This factors accounts to catering needs of different population and upgrading
with the trends and culture and accounts to various changes in the lifestyle which serves with the
leisure and pleasure of the community which leads to business generating profits and boosting up
sales.
Technological factors- this factors affect the business functioning as a result Oak tree Inn using
advanced technology accounts with effective functioning in terms of getting valuable insight
about the customers , which also helps in removal of methods that has become obsolescence and
accounts to wide reach to multiple customers at a given point of time (Nurmi, Niemelä, 2018).
Legal factors – This are the laws and regulation prevailing in the region where Oak tree Inn
operates and are subject to be similar with political factors and non fulfilment of which may lead
to various restriction and discontinuation of business of Oak Tree Inn.
Environment factors- this factors affect the business functioning as it accounts with company
operation that takes measures in avoiding waste and pollution and adopting to various means to
dispose of the same in hygienic means as a result leads to positive brand image (Pupo
Kairuz,2020).
PORTER 5 forces- It includes
Competition in the industry – It refers to the number of competitors and there ability to slow
down operations of Oak tree Inn where it suggests larger number of competitors offering huge
products and services lessor the power of the company where buyers and supplier seek with
association of the company if best deals are being offered to them.
Potential of new entrant- it accounts with force of new entrants in marketplace which affect
business operation as it take less time and money to enter into market by the new competitors
which as a result can come up with policies that may lead to loss of market share in terms of
customers (Almeida, 2020) .

Power of suppliers- it refers to suppliers can drive up with the costs of inputs , where is being
affected by number of suppliers of key inputs and how much its cost company to switch to next
supplier, wherein if industry has fewer supplier that power of them is high as company is being
depended on them where they can charge high prices.
Power of customers- Threats of substitutes-it refers to the ability of the customers to drive
prices lower which states that how many customers or buyers company has and how significant
each one is, A smaller number of client base means more powerful each customer where it is
being of high power to lower prices and negotiate for better deals.
Threats of substitutes- it is being referred as company that produce good and services for which
there are no close substitutes (Non-similar) helps the company to increase prices and accounts to
high margin but if Oak tree Inn has close substitute for its products and services than buyers are
at more power to purchase products of competitors where it might accounts company with
decreasing its prices as compared to competitors (Rahma, Pradhanawati, 2018).
LO2
Strategic capabilities-
this could be understood with the helps of
SWOT Analysis
Strength and Weaknesses
Strength of the company is it employees are highly qualified and trained which knows
how to deal with the customer in various business dynamics and accounts to catering there needs
and wants by meeting with there expectation. Companies strength also lies with the quality of
products and services they are being provided which helps in deriving customer satisfaction and
accounts to there loyalty and trust building and which helps the company to spread positive word
of mouth. Its weaknesses lies with its prices which are not affordable on the part of consumers
who are middle class where it hinders target customer and as a result leads company with not
getting wide reach to customers and satisfying the same (Sarsby,2016).
Opportunities and threat
the opportunity of the company lies with updating and having technology which helps in
getting valuable insight about the needs and requirements of its customer and adopting means
which encounters the same. It also lies with opening into new places and regions where it does
not have its operation as a result leads to enhanced profit margin and recognition of the business.

Its threats are its competition whereby company needs to closely monitor its competition as it is
being never known what they can come up with in terms of there offering and various others
which will as result leads Oak tree Inn to face harsh time(Abdel-Basset,Mohamed,
Smarandache, 2018).
LO 3
Strategic directions
The two strategic option for the company which will help company to gain competitive
advantage and exploit to various opportunities and encounter with meeting to threats are
Ansoff's Growth matrix
This being also termed as market or product expansion grid which is tool that can be used
by the company in order to ensure plan and analysis of strategies for growth. It includes
Market penetration-
this strategy focuses on increasing sale in the existing market by the use of existing
products where the company tries to increase its market share by market penetration where
company can account to decrease prices of its offering in order to attract the large pool of
customer as prices serve as the basic source which highlights on customers part whether to avail
the offering of the company or not (Loredana, 2017). It could also be by the means of increasing
company efforts in relation with its marketing , promotion and efforts related with its distribution
that helps in wide reach and get to know on the part of target audience of what are the offering of
the company and how they can get to add on with their experiences. It could also be by the
means of acquiring competitors in the same marketplace as a result to increased size in market
base.
Product development
it refers to the strategy of launching new products in existing marketplace where the
company accounts to extensive research and development and expansion of range of company
offering which can caters with the needs of existing customers. It is being employed when
company has strong understanding of existing markets and able to provide innovative solution
which accounts to catering the needs of the same. It can be the means of acquiring products of
the rivalry and merging the resources to create a new product that meets with the needs of
existing markets of Oak Tree Inn (Dawes, 2018).
Market development

It refers to strategy of entering new market by the help of existing offerings which relates
to expanding into new regions, geographical markets various customer segments and others. It is
suitable when the company has the technology which can be leveraged into new markets,
secondly potential customers are highly profitable and lastly consumer behaviour in new markets
does not vary too much in context to consumer in the current markets.
Diversification
this strategy refers to launching new product in entirely new market and is the riskiest of
all as it relates with both products and market which can be highly uncertain that whether it will
work or not. It offers the greatest potential for increased revenues as it opens entirely new
revenue streams which were not being understand earlier (Martins,2020). Related diversification
identifies potential synergies between the existing business and the new market and product
being launched. Unrelated diversification accounts no potential synergies being realised between
the existing business and the new product or market for Oak tree Inn.
Porter generic strategy it includes
Cost leadership- it is the strategy of winning the market share by appealing to price sensitive
and customers that are being highly cost conscious which is being achieved by the company by
having prices that are lower and cheaper or can be said as prices which are being affordable for
the customers (Islami, Mustafa, Latkovikj, 2020). For company to succeed by offering at the
lowest prices and account to high margins it is required on the end of company to operate at a
cost which is lower than that of its competitors which gives an aided advantage of winning in the
marketplace. It can be depended on various factors such as technology, economies of scale and
access to various raw material and others. It is required to exploit all cost advantage and account
to strategy that is being highly beneficial.
Differentiation- this strategy is being related with when the company seeks to be unique in
industry along with various dimensions that are being highly valued by its customers
(Viltard,2017). It relates to attribute being selected by the company that are important for the
customers and accounts to positioning uniquely to meet the needs of customer serves as
differentiation on part of company.
Focus- it can be cost focus where a firm seeks cost advantage / benefits in its target segments
wherein differentiation focus Oak tree Inn tries to seek differentiation in segment to be targeted.

Both the variants of this strategy rest upon differences between target segment of the focuser
with different segments in the industry (Kabure, Ragui, 2020).
CONCLUSION/RECOMMENDATIONS
From the above report it is being concluded that company needs to account to various
factors which can affect the business factors such as factors related with PESTLE analysis and in
relation with porter five force by taking into consideration various strategic capabilities which is
being assessed with the help of SWOT Analysis . It is being recommended on the part of Oak
tree to adapt to that strategic direction which is being highly beneficial where company can opt
for cost leadership strategy as it relates to offering of the company at prices which are being
affordable and which helps to attract large audience as prices are the means which are being
considered on the priority by the customers and all other being considered after this which helps
in building customer loyalty and helps in spread of positive word of mouth. This accounts to
suitability of strategy to be implemented in various manners which satisfy the needs of company,
accounts with the accessibility which helps in assessment of various risk, returns, shareholders
expectation and various other and finally accounts to feasibility of implementing the same in
terms of resources being available that relates with whether the strategy of cost leadership will
work out or not.

REFERENCES
Books and journals
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry. 10(4).
p.116.
Almeida, F. and Santos, J.D., 2020. Annex I–Porter Five Forces.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies to firm
performance. Future Business Journal. 6(1). p.3.
Kabure, L. and Ragui, M., 2020. Porter’s Generic Strategies and Performance of Selected
Automotive Firms in Nairobi City County, Kenya. International Journal of Business
Management, Entrepreneurship and Innovation. 2(2). pp.49-63.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Martins, A.M.A.R.D.L., 2020. Scenarios and Ansoff Matrix(Doctoral dissertation).
Nurmi, J. and Niemelä, M.S., 2018, November. PESTEL analysis of hacktivism campaign
motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer,
Cham.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Pupo Kairuz, A.R., and et.al, F.S., 2020. PESTEL analysis of environment state responsibility in
Ecuador. Neutrosophic Sets & Systems. 34.
Rahma, A.N. and Pradhanawati, A., 2018. STRATEGI BERSAING PRODUK UKM LUNPIA
DENGAN MENGGUNAKAN ANALISIS FIVE FORCES PORTER DAN SWOT
(Kasus pada UKM Lunpia Kings Semarang). Jurnal Ilmu Administrasi Bisnis. 7(2).
pp.171-185.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Viltard, L.A., 2017. Strategic mistakes (AVOIDABLE): the topicality of Michel Porter’s generic
strategies. Independent Journal of Management & Production. 8(2).pp.474-497.
1