Oak Tree Inn's Strategic Agility: External Analysis and Choices

This report provides a strategic agility analysis of Oak Tree Inn, a hospitality organization based in Scotland. It includes an overview of the firm and its activities, an identification of external threats and opportunities using PESTEL and Porter's Five Forces models, and a SWOT analysis. The report critically evaluates two strategic choices for the company: the use of artificial intelligence and big data technology. It also discusses the BCG matrix and customer relationship management (CRM) as potential strategies. The analysis aims to provide insights into how Oak Tree Inn can enhance its competitiveness and adapt to changes in the business environment. Desklib provides access to similar solved assignments and past papers for students.

Strategic Agility

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Overview of firm and its activities providing pertinent data and information.......................3
Identification of external threats and opportunity .................................................................4
SWOT analysis ......................................................................................................................6
Critical evaluation of two strategic choices ..........................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic agility can be defined as ability of a business to analyse shift in business as well
as in business environment in that they operate. It is an important component of business that
helps them to remain competitive by recognising as well as capitalising different threats,
opportunity through mitigating and preventing these threats in business (Ahammad, Basu, and
Shoham, 2021). It is important for leaders to develop strategic agility as it helps leaders for
recognising different changes in market that is creating favourable condition for business with
implementation of new ideas. In this report, analysation of Oaks Tree Inn which is Scotland
based hospitality organisation that provide leisure and hospitality services to their customers. It is
providing different types of customer service to their customer which helps them to enhance
satisfaction of customers. This project report include overview of firm along with its
information. It consist different internal and external analysis which helps them to identify threat
and opportunity of firm. It also consist different types of strategic options along with SWOT
analysis that helps to exploit opportunity and also to mitigate risk present in market.
TASK
Overview of firm and its activities providing pertinent data and information
Oaks hotel is an organisation which is providing accommodation service to their
customers and has around 60 properties in different countries like Australia, New Zealand,
United Arab and other countries. Oaks Tree Inn is an organisation which is located in Scotland
and providing hotel and leisure services to their customers (Debellis, Massis and Del Giudice,
2021). It is a hotel where a person can enjoy things and can also have adventure. It is also
providing place for business meeting and also a home base for vacation. It is providing services
according to needs of customers and for this, they are providing three different types of room.
These room types includes two queen beds, regular room with king bed and deluxe room with a
king bed. It is providing different options like handicapped accessibility as well as free breakfast
along with booking. It is offering different amenities where a business can get access of Wifi,
workstation desk and other things. For entertainment of guest, they are offering flat screen, free
access for premium cable channels and other things. It is a convenient hotel that is located near
different attraction at Scotland. It is an organisation which is providing their service to
customers in effective manner in order to increase satisfaction of customers. Their main focus is

on customer services which enhance experience of customer and also ensure revisit of customers
in an organisation. This organisation is using different in order to make their operation process
more smooth and also to enhance quality of customer service (Denning, 2017). This organisation
is using effective tools of marketing in order to increase sales of company and also to increase
awareness of company. Oak Tree Inn is adopting digital marketing in order to promote products
and service of their organisation. This organisation is also providing their service on their
websites which allow customers to book their services on online platform. It is also offering
different method of payment to their customers for their convenience like debit card, credit card,
Paytm and other methods.
Identification of external threats and opportunity
PESTEL analysis: PESTEL is an external analysis which is used by companies for purpose of
identification of different risk present in market. In order to overcome of these risk, managers of
Oak Tree Inn needs to identify these factors which are mentioned below:
Political Factors: Political factors are creating serious impact over business of Oak Tree
Inn as it includes factors like rules and regulation of government over business. Due to covid-19,
government of different countries including Scotland create regulation over hospitality industry
which results in huge loss for business.
Economic Factors: Economic factors are those which create impact over cost of
business of Oak Tree Inn. Due to impact of covid-19, economy of many countries is facing
recession due to which purchasing power of people has decreased. It crate serious impact over
business of company and due to which it results in huge loss (Kohtamäki, Heimonen and
Heikkilä, 2020).
Social Factors: Social factors are those factors which are related to culture, values and
demographic factors. There is increasing health awareness among people due to covid-19 that
create opportunity for Oaks Tree Inn. This organisation is adopting all precautions related to
covid-19 which increase trust of people over this company and allow them to differentiate their
service from those of competitors.
Technological Factors: Technological factors are related to technological advancement
and up-gradation which provide competitive advantage to business like Oak Tree Inn. This
organisation is adopting different types of technology for promoting products and service and
also for payment options.

Environmental Factors: Environment is another important components for business
which create impact over survival for business. Oak Tree Inn is adopting different regulation of
government related to environment and adopting sustainable practices for purpose of promotion
of their products and service.
Legal Factors: Legal factors are those factors that consist laws and regulation in
business. Managers of Oaks Tree Inn is an organisation which is adopting all rules and regulation
in business which helps them to improve their image in market (Kurniawan, Budiastuti and
Kosasih, 2020).
Porters five forces model
It is another model which is used by companies for purpose of analysation of competition
present in operating environment in company. There are five forces that helps managers of Oaks
Tree Inn model to analyse competition present in industry. These forces in context of Oak Tree
Inn in mentioned below:
Bargaining power of suppliers: There are various suppliers present in market from
where managers of Oaks Tree Inn can purchase different supplies required in business. It reduce
threat of supplier to bargain with company for products and service offered by them. So, there is
moderate threat of this factor present in market for Oaks Tree Inn.
Bargaining power of customers: Bargaining power of customers are another important
factors which create threat for business. There are various marketing players providing their
products and service present in business. But Oaks Tree Inn is differentiating their products with
providing effective customers service. So, there is moderate threat from this factor to business of
Oaks Tree Inn.
Threat of new entry: It is not easy for new entrants to enter in this industry as it require
huge cost to enter in this industry and also it require knowledge and information regarding this
industry (Kwon, Ryu, and Park 2018). This factors reduce risk for business as there is less threat
from this factor for business of Oaks Tree Inn.
Threats of substitute: Substitute are those product which has similar attributes as same
as products provided by company. These products can be easily exchanged by customers as there
is not switching cost of these products. It create high threat for business of Oaks Three Inn as
customers can easily switch to substitute products.

Competition inside business industry: Competition create serious impact over
profitability and marketing share of company. It is important for company to earn profit to
overcome of competition. There are large numbers of players providing their services in
hospitality industry which create impact over business of Oaks Tree Inn. So, there is high threat
of this factors for business of Oaks Tree Inn.
SWOT analysis
SWOT is an important tool used by business for purpose identification of different threat
and opportunity present in market (iang, Kuusisto, and Kuusisto, 2018). With use of this tool,
business can exploit opportunity and overcome of threat that allow them to get success and
growth in market. SWOT analysis of Oaks Tree Inn is mentioned below:
Strength Weakness
It is providing effective customer service
which attract guest towers their organisation. It
is providing safe and clear atmosphere to
customers. It is also providing additional
customers service to customers which helps
them to retain customers for long term.
Consist different environment protection laws
which provide them support from government.
It require huge set up cost for company as in
order to establish this organisation, company is
bear huge cost. It is also providing renovation
in their interior in order to follow trend present
in market which increase cost of company.
There are different types of tax to be impose by
government on hospitality industry which
create negative impact over profit of Oaks Tree
Inn.
Opportunity Threat
There is huge scope for technology in this
industry as on basis of technology, Oaks Tree
Inn can attract more customers (Lyn Chan and
Muthuveloo, 2021).
There is increasing trend of travelling and
tourist among millennials which create
opportunity fro business Oaks Tree Inn as they
can target these customers.
Pandemic create worst impact over hospitality
industry like covid-19 results in shut down of
many hotels. It create negative impact for
business of Oaks Tree Inn.
There is changes in travel pattern among
customers as there is increasing demand of
hotels and bag packers among customers which
create demand for customers.

Strategic options
Use of artificial intelligence: Use of artificial intelligence can be a good options for
company in today's world. Oaks Tree Inn can use robots in their organisation which allow them
to avoid physical contact among customers. It helps them to differentiate their products and
service form those of competitors.
Big data technology: It is another strategy which can be adopted by managers of Oaks
Tree Inn in which they can use customer data in order to develop products and service according
to requirement of customers (Nurjaman, 2020). This data helps them to develop new products
and service along with making changes in existing products and service.
Critical evaluation of two strategic choices
BCG matrix is one of matrix that was introduced by Bruce Henderson in the year 1968. It
is a tool that helps companies to prioritise different business. This analysis on context of Oaks
Tree Inn is mentioned below:
Dogs: There are some products which has lower marketing share as well as growth in
market. It includes continental food as there are less demand of this type of food in Oaks Tree
Inn.

Cash Cow: Some products are those which has low growth and large market share in
market. In Oaks Tree Inn, laundry services are included in Cash Cow category.
Stars: It includes products which has high growth and high market share in company. It
includes room services as there is huge demand of this service in Oaks Tree Inn.
Question Mark: There are some products which has high growth and low market share.
In Oaks Tree Inn, food and beverage service is considered in this category.
CRM: Another strategic choice can be a customer relationship management which helps
company to develop and maintain good relationship with customers (Shams, Vrontis and
Czinkota, 2021). It is important for company to implement this types of software as in
competitive world, it helps company to get competitive advantage for business. It is also
important to retain existing customers for company and also to attract new customers towards
their business.
CONCLUSION
From above mentioned project report, it can be concluded that there are different types of
strategies to be used by companies for purpose of getting competitive advantage. Strategic agility
is one of important concept used in business that helps them for purpose of analysing changes in
business environment. For this, different tools can be used by managers of company like
PESTEL analysis, SWOT analysis, Porter's five forces model and others. These tools helps
companies for purpose of analysing environment in which company is operating. There are
different types of strategies to be adopted by companies for purpose of overcome of threat and
risk present in market.

REFERENCES
Books and Journals
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innovation: The case of the Finnish public service sector. Theoretical Issues in
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organizational performance of private higher education institutions in Malaysia. Studies
in Higher Education, 46(8), pp.1726-1739.
Nurjaman, R., 2020, March. The Framework of Strategic Agility in Small and Medium
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Publishing.
Shams, R., Vrontis, and Czinkota, M.R., 2021. Strategic agility in international business: A
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