BM633 Strategic Report and Recommendations for Oak Tree Inn's Growth

This report provides a comprehensive strategic analysis and recommendations for Oak Tree Inn, a family-run business in the hospitality sector. It begins with an overview of the organization and its aspirations for growth. The report utilizes various frameworks, including PESTEL, Porter's Five Forces, and SWOT analyses, to evaluate the company's current market position, considering political, economic, social, technological, environmental, and legal factors. It identifies key strengths, weaknesses, opportunities, and threats. Two strategic options, market expansion and organizing activities, are presented and evaluated using a Strategy Evaluation Framework and SFA analysis. The report recommends market expansion as the preferred strategy, offering a path toward achieving the company's growth objectives.

Strategic
Report and
Recommendati
ons

INTRODUCTION
Strategic Report and Recommendations refer to the use of different types of frameworks
through which a proper evaluation can be carried out about the strategy of an organization and
ensuring that the right recommendations can be provided so that the progress can be made in the
future (Agoas, 2020). This report is based on Oak Tree Inn. It is a family-run business which
provides a wide range of facilities to its different types of customers in the market. In this report,
a detailed focus will be made on using various frameworks to evaluate the position of the
organization in the market. Additionally, strategic recommendations will be provided as a part of
this assignment.
MAIN BODY
Overview of the organization- Oak Tree Inn is a family-run business which provides a
wide range of hospitality services to the customers in the market. Therefore, the organization has
made goodwill for itself in the market and is able to make sure that it earns optimum level of
profits effectively and efficiently in the right manner. The organization is looking to make sure
that it makes use of the available strategic options which will help it in targeting growth in the
future so that it is able to attain a strategic edge over the competitors in the market.
PESTEL analysis- It is a framework which can be used by the organizations in order to
make sure that they are able to carry out a thorough assessment of the firms can be carried out in
detail in a proper manner (Cirillo and et.al., 2020). The various factors under it are explained as
follows-
Political factors- These are important factors to be considered because the political
situations keep on changing (Gelfgren and Högbom Brinkmann, 2020). Oak Tree Inn’s
management therefore needs to account for these changing political situations and make use of
the strategy of the company in the right manner.
Economic factors- These are also crucial factors which are required to be given a
consideration because the economic situations keep on changing which creates an overall level
of impact on the economy. In the context of Oak Tree Inn, it can be said that these factors create
a particular level of influence on the organization’s profitability.
Social factors- They are also important factors because the changing needs and
requirements of the people in the society has to be given an appropriate consideration (GS and
Soemantri, 2020). Therefore, for the managers of Oak Tree Inn they are crucial and thus
appropriate attention is required to be given to them in a proper manner.
Technological factors- These are also quite important and have to be given appropriate
consideration because the technology in the market keeps on changing quite frequently. For the

managers of Oak Tree Inn it is thus important that they are able to consider them and prepare a
strategy to be applied accordingly.
Environmental factors- These are also important factors because nowadays the
customers have increased their awareness level about the environment. Thus, in the context of
Oak Tree Inn it is crucial that these factors are given consideration and the strategic decisions are
taken accordingly.
Legal factors- These are also crucial factors to be considered because the organizations
are required to fulfill legal obligations in the country where they are conducting their business
operations (Han, 2020). Therefore, for Oak Tree Inn it is important that these factors are given an
appropriate consideration which will help the organization in taking a strategic action in a proper
manner.
Porter’s five forces- The application of this model is explained as follows-
Competitive rivalry- This force has a high power for Oak Tree Inn because there is a
high-level of competition which is prevailing in the hospitality industry (Indrayudi, An and
Ozali, 2020).
Supplier power- This force has a low power for Oak Tree Inn because in the hospitality
industry there is a very less role which the suppliers have.
Buyer power- This force has a high power for Oak Tree Inn because in the hospitality
industry the customers are quite important to be considered and their needs and requirements are
quite important (Purba and et.al., 2020).
Threat of substitution- This force has a low power for Oak Tree Inn because in the
hospitality industry the substitute products create a very low influence because it is mainly a
service-based industry.
Threat of new entry- This force has a high power for Oak Tree Inn because in the
hospitality industry new players can make an entry in the market and therefore can create an
impact on the operations of the organization.
Justification- 3 out of 5 forces has a high power and the remaining 2 forces have a low
power. Thus, Oak Tree Inn’s managers have to make sure that they consider the outcomes of this
analysis to prepare a strategic growth strategy for the future effectively and efficiently.
SWOT analysis-
Strengths Weaknesses
 Strong customer base in the market.
 Strong application of marketing
strategies.
 Low penetration in certain market
segments.
 Lack of advanced facilities in rooms.

Opportunities Threats
 To identify the segment where growth
can be made.
 To identify the opportunity of bringing
innovation in the market.
 High-level of prevailing competition in
the market.
 High-level of tax rates which are being
levied by the government.
Strategic Options- The use of the appropriate strategic options is quite essential for the
organizations in ensuring that they are able to target the attainment of strategic growth in the
future quite effectively and efficiently in the right manner. This will be quite helpful for the firms
in ensuring that they are able to attain growth in future so that they are able to achieve the short-
term, medium-term and long-term goals and objectives in a right way.
The strategic options which can be considered by the management of Oak Tree Inn are as
follows-
 Market expansion- In this strategy, the managers of Oak Tree Inn are required to make
sure that they are able consider expanding within the different markets and ensuring that
they are able to attain the wide range of goals and objectives effectively and efficiently in
a proper manner (Telyatnikova and et.al., 2020). For this purpose, the management of
Oak Tree Inn can make sure that they identify the right market where the expansion can
be done and make a strategic move so that the operations can be expanded there in a
proper manner. This will be quite helpful for the organization in ensuring that the market
situation are considered and thus the growth is made effectively and efficiently to attain a
much-required strategic edge over the competitors in the market.
The management is thus required to conduct a detailed market study and identify the
needs and requirements of the market segment where the expansion can be done. This
will be quite helpful in ensuring that the expansion is carried out in a proper manner and
these needs and requirements can be fulfilled. Therefore, overall it can be said that it is
the responsibility of the management of the organization that it is able to ensure that a
right market is selected for the purpose of making an expansion which will help in getting
a competitive edge over the wide range of competitors who are present in the market.
This will help in enhancing the overall level of profits.
 Organizing of activities- Through the use of this strategy, Oak Tree Inn’s managers can
make sure that they are able to organize the different types of activities in a proper
manner so that they can ensure that they can effectively and efficiently enhance their
revenues and profitability level (Wajeetongratana, 2020). Thus, it can be said that this
will mean offering of diversified offers which will help in promoting the hotel and thus
this will contribute in the enhancement of its image in the market.
This is a useful strategy because by making its use the management of the hotel will be
able to open up its hotel for organizing these activities. This will help in marketing and
promotion of the facilities and services which are offered by it to the customers in the

market. Thus, in this way it can be said that the management needs to make sure that it
capitalizes on the opportunity of organizing such kind of activities for the different
organizations and therefore enhances its image and goodwill in the market. This will
surely benefit it in the future and in this way the attainment of a higher-level of
profitability can be done in a right manner.
Evaluation of the strategic options- It is quite important that the evaluation of the
strategic options can be carried out so that the recommendations related to the use of the
right strategic option can be made (Yanti, Sofyanty and Ong, 2021). This can be done by
making the use of the following theories-
Strategy Evaluation Framework- This is a framework which can be used in the
organizations because this helps them a lot in ensuring that a proper evaluation of the various
types of strategies can be carried out quite effectively and efficiently in the right manner. This is
especially helpful in ensuring that the correct decisions can be taken in a proper manner. The
steps which are involved in it are explained as follows-
 Reviewing strategy- It is important to review the strategy which the organization is
planning. Thus Oak Tree Inn has to evaluate both of the strategic options which it is
considering so that it is able to identify the right strategic action to be taken.
 Measuring organizational performance- It is also necessary to measure the
organizational performance so that the assessment of the appropriate actions which are
required to be taken can be made in a proper manner. This can help the management of
Oak Tree Inn to make sure that they assess the performance before taking a decision
related with making the use of a suitable strategy after evaluating both of the strategic
options.
 Taking corrective actions- It is also very important that the corrective actions are taken
so that the organizations are able to make sure that they are able to attain their particular
goals and objectives in a proper manner. Therefore, for the management of Oak Tree Inn
it becomes necessary that all these corrective actions are taken so that the decision related
to selection of strategy can be taken after the evaluation of both the strategic options.
SFA analysis- It is a useful framework which can be used for the assessment of the
strategies. The application of this framework can be made in the following manner-
 Suitability- This refers to the suitability of the strategy which is being used. The
management of Oak Tree Inn therefore needs to ensure that the strategy which it is using
is suitable for being applied.
 Feasibility- This means the feasibility of the strategy which is being used. The managers
of Oak Tree Inn are required to make sure that the assessment of the level of feasibility
can be done so that the correct decisions are taken in a proper manner effectively and
efficiently.

 Acceptability- This refers to the acceptability of the strategy which is being used. The
management of Oak Tree Inn is required to ensure that the assessment of the acceptability
of the strategy can be done so that the right decision is taken.
Recommendations- From the use of Strategy Evaluation Framework ad SFA analysis, it
is recommended to the managers of Oak Tree Inn that they make use of the Market
expansion strategy because this will help them in expanding their range in the market and
thus ensuring that the attainment of the future goals and objectives can be done.
CONCLUSION
From the above report, it can be concluded that Strategic Report and Recommendations
refer to the way in which the use of appropriate strategies can be made and thus their application
can be made so that the growth can be attained. It is thus important for the managers of an
organization that they are able to make sure that they make their use which will be helpful in
ensuring the attainment of the strategic edge over the competitors in the market.

REFERENCES
Books and Journals: