BM633 Strategic Agility: Oak Tree Inn Strategic Options Report

This report provides a strategic analysis of Oak Tree Inn, a Scottish SME in the hospitality sector, using SWOT and PESTLE analyses to evaluate its internal and external environments. It identifies two potential strategic options: leveraging digital technologies and focusing on environmental concerns. The SAFe model is then used to evaluate these options, concluding that integrating digital technologies offers a more suitable, accessible, and feasible path forward. The report recommends that Oak Tree Inn capitalize on its location and combine natural experiences with technological advancements to enhance customer engagement and increase revenue. Desklib offers a variety of similar solved assignments and past papers for students.

BM633 Strategic Agility

Table of Contents
Introduction......................................................................................................................................3
Overview of the firm..............................................................................................................3
Main Body.......................................................................................................................................3
SWOT analysis of Oak Tree Inn............................................................................................3
PESTLE analysis of "The Oak Tree Inn"...............................................................................5
Two potential strategic options..............................................................................................7
Evaluate two strategic choices using SAFe model.................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
Strategic agility refers to the technique through which flexibility of organisational firm is
being enhanced by taking considerations of given business environment in which all the
operations of the firm takes place. The given technique takes considerations of innovation as the
way to facilitate better standards of working in the business firm. For the given report document,
operational working at, "The Oak Tree Inn" will be taken into consideration. For the given report
document considerations to internal and external business environment will be focused and
efforts will be made to deliver better output of results with investment of rational resources
compiled with human efforts (Margherita, Sharifi and Caforio, 2021).
Overview of the firm
Oak Tree Inn operates as a SME which is headquartered in Scotland founded in 1998.
The given firm operates as a hospitality industry in various international markets. The said
company provides accommodation services to their clients and ensures maximum satisfaction to
them with their quality operational working. The business is a family-owned business with a
turnover of £3m ($3.8m and €3.4m) and aspirations to grow to £10m ($12.8m and €11.3m) by
2025. The award-winning Oak Tree Inn business comprise of holiday accommodation (sleeping
90 guests a night), an authentic Scottish bar, restaurant, artisan coffee and ice cream shop (both
home produced) and a popular village shop. It employs 100 staff (some seasonal) (Saechao,
2018).
Main Body
SWOT analysis of Oak Tree Inn
The provided strategic analysis ensures completion of organisational goals with taking
consideration of internal as well as external factors present in business market. In the given
context of SME firm taken into consideration i.e. The Oak Tree Inn managers of the firm use this
strategic technique to analyse both internal as well as external factors affecting operations of the
business firm. The SWOT analysis of respective firm are as follows;
Strengths Quality services: The foremost strength
for "The Oak Tree Inn" reflects towards
Weaknesses
 Tax rates: Managers at "The Oak Tree
Inn" have to manage working under

providing quality of services to their
customers. The given strength of the
company aids towards establishment of
better brand image of respective
company in their operational markets.
 Trained staffs: By ensuring effective
training and development programs in
the workforce professional of efforts
being produced is being facilitated in
the business firm. This aids towards
avoiding wastages in business which
reflects towards better productivity for
the operational firm (Shams and et. al.,
2021).
high taxation system imposed by the
government of operational region. This
reflects towards one of the greatest
weakness for the firm, as even after
managing decent sales profit margins
are to be adjusted by paying taxes.
 Organisational disputes: It has being
observed that respective organisation's
turnover is reduced which could be the
due to internal conflicts in the given
hospitality company (Skopyk, 2020).
Opportunities Technological factor: It appears that
managers at, "The Oak Tree Inn" are
adopting to innovative technologies are
taking considerations of digital
technologies in their operational
working. This act as the greatest
opportunity for the given company to
tap demands of customers in future
online markets.
 Environmental concern: The given
company have good opportunity to
frame its brand image. The operational
working at respective hospitality firm
reflects towards taking considerations
of environmental concerns in
operational markets of given
Threats
 Competition: One of the greatest threat
for "The Oak Tree Inn" is in relation to
competitive forces operating in the
similar markets of said firm. This
manipulates operational strategy and
decision-making of the given
hospitality firm.
 High power of consumer: Due to high
power of consumers, given hospitality
firm can't maintain stability in their
prices of products and services offered
to various customers. Thus acts as
another threat for the firm as, it dis-
balances firm's financial performance
(Ting, 2018).

organisational firm (Thrassou, Vrontis
and Bresciani, 2018).
Therefore, through analysis of SWOT analysis it can be said that, managers of the firm
have to concentrate on effective management and coordinative strategies in the firm.
Furthermore, appropriate marketing techniques can be implemented in the organisational firm to
derive firm with strong customer base.
PESTLE analysis of "The Oak Tree Inn"
PESTLE analysis is a strategic tool used in "The Oak Tree Inn" to analyse macro
environment factors influencing on operational working of the business firm. Key elements
considered in this analysis include;
Political: Such factors includes rules and regulations of a region being defined by a
political body operating is being concentrated. In regards to the chosen hospitality firm,
managers of the corporate have to invest high resources to overcome problem or issue of
political instability in firm's operational region.
Economic: Given factors are an inclusion of economic rates such as inflation, deflation,
currency exchange rates etc. that affects effective working of the organisational firm. In relation
to said hotel operations are being affected through fluctuations in economic state of being in
inflation or deflation.
Social: Several social factors are being taken into consideration by managers at the
chosen firm which are aimed towards fulfilment of social objectives of the business firm. The
provided factors ensures better goodwill of the business firm while working in provided
operational market.
Technological: Provided factors relates to variety of technologies used in the operational
firm to ensure effective completion of firm's desired goals and objectives. Managers at chosen
firm haver to take considerations of such factors that will foster true potential of the firm in
approaching to business goals.
Legal: This environment of the business firm relates to legal laws and legislation which
any business irrespective of their nature, size or any other characteristic have to follow such legal
laws. In regards to operational working at chosen hotel, managers of the firm takes
considerations of legal factors that facilitates firm to govern business strategies towards right
direction.

Environmental: It refers to governing of business operations by considerations of
environmental factors like eco-friendly business techniques. With considerations to operational
working at given firm such factors plays a vital role to ensure better trust of customers and
establish effective goodwill in its operational marketplace (Tooranloo and Saghafi, 2019).
Porter's Five Force Model
Competition in the industry: Moderate
The first of the five forces refers to the numbers of competition and there capability of
capturing the market. "The Oak Tree Inn" which its long existence has a decent numbers of
customer and a brand value. The company is listed in the London stock exchange. Since the
market is evolving rapidly and the taste of people for quality living is also being enhanced. So
for fulfilling the wants of the market there are so many brands available with great quality
product and eye catchy prices.
New entrants in the market: LOW
The next factor addresses the force of new entrants in the market. Since "The Oak Tree
Inn" has a renowned identity in the market which lower down their risk from new entrants. They
focuses on the age group and has a brand value between the youth of the region. They offers
wide range of variety with the combination of natural and technological services and product
which develops unique identity in the market. Their unique products and marketing making a
barrier for the new entrants. Thus, their unique approaches of product designing lowers the threat
of new entrants.
Power of suppliers: Moderate
The next factors which includes in the porter's 5 forces addresses the power of supplier.
The number of supplier in the hospitality industries are very high. Companies like "The Oak
Tree Inn" has various option from choosing the quality to finalize the raw materials. That's why
supplier can't make any price enforcement on raw materials delivered to respective company. But
at the same time it is a well established brand with a market value, any change in quality of raw
material can affect their sales. So it could be a little bit risky for them to switching the supplier
Therefore it concludes that "The Oak Tree Inn" saves extra bucks on their operations, which
helps them out in taking good margins on their product (White, 2018).
Power of customer: LOW

The company workings affect by the power of consumer. The size of the customer
derives their power. "The Oak Tree Inn" which has a strong number of customer acquisition
lowers down the customer power.
Threats of substitute products: Low
The last of the five forces shows the power of substitute product. The availability of
substitute can manipulate the price as well as the sale and vice-versa. Since the brand is using
their unique design and different varieties. They have their registered trademark which not
allows other to imitate, it leads to eliminate the fear of substitution. Thus it derives their unique
product which leads to give them an exposure in sales (Whittington and et. al., 2020).
Two potential strategic options
Considerations of TOWS matrix will be evaluated when engaging in firm's strategic
operations. Management authority at, "The Oak Tree Inn" determines two strategic operations
made available to the given firm when engaging their operations in respective marketplace. For
the given model, managers of the firm can take considerations of threats faced by firm and adjust
it with company's strength also weaknesses with possible opportunities. Several strategic options
are made available to given firm in respect with their threats and weaknesses, two of them are as
follows;
Strategic option 1: Reflecting to company's location as the greatest strength, opportunity
to regulate business operations through use of digital technologies can prove to be useful.
Through this company will build effective abilities when engaging their operations in uncertain
market situations. Furthermore, it can be said that, given hotel can perform efforts and derive
combination of natural and technology derived experience to their customers.
Strategic option 2: Taking considerations of quality services provided in the given
company that acts as one of the greatest strength for company. Managers at the company can
replicate their operations with taking concerns of environment. This will enable firm to strategies
their working and develop effective standards through which brand value can be increased.
Evaluate two strategic choices using SAFe model
SAFe model is an effective technique through which strategic choices for the given
company can be enhanced their reference to appropriate results. Managers at "The Oak Tree Inn"
filters their possible strategic options with this model. Evaluation of the provided model with
respect to operational working at given firm are as follows;

Suitability: The strategic option 1 suits at the best given firm can adopt on the basis of
their relevancy to business operations. Given that through strategy option 1 managers of the
given firm can engage firm's operations through use of digital technologies. This can prove to be
an innovative way to increase sales revenue through increased customer base which will also aid
towards lowering the customer power for the given company.
Accessibility: From performing several strategic models like SWOT, PESTLE and
Porter's, it can be said that strategic option 1 proves to be less risky when compared to strategic
option 2. The given statement can be justified as less resources will be used and proper
management system in the company can fulfil the requirements for given strategic option.
Feasibility: It can be said that given elements can be classify strategic option 1 as highly
feasible when compared to the other. This can be said that, by classifying the above stages of
suitability and accessibility given stage favours towards strategic option 1 to be selected.
SAFe Matrix score table
SFA Matrix Strategic options
Option 1 Option 2
Suitability 3 2
Accessibility 4 3
Feasibility 5 3
Total 12 8
From the above mentioned table it can be said that, both the strategy has its own positive
areas and potential to provide Oak Tree Inn a strength and opportunity to exploit to gain
competitive advantage and to overcome various threats while operating in business market. But
from the score it is recommended that company should use the first strategic option is best for
the company in terms of profitability and productivity (Luo, Maksimov and Bu, 2021).
Conclusion
From the analysis of above report document it can be concluded that, managers at given
hospitality firm opts to several strategic strategies and tools which favours business organisation
in terms of effective working. Furthermore, it can be said that management at the provided firm

accomplish goals and objectives of the firm through devising effective business environment
through considering internal and external business factors.

References
Books and Journals
Luo, Y., Maksimov, V. and Bu, J., 2021. Making geographic dispersion work for emerging
market MNEs. Journal of international management, 27(3), p.100800.
Margherita, A., Sharifi, H. and Caforio, A., 2021. A conceptual framework of strategy, action
and performance dimensions of organisational agility development. Technology
Analysis & Strategic Management, 33(7), pp.829-842.
Saechao, M., 2018. The Aftereffect of the Laotian Civil War Four Decades Later: Examining the
Stressors and Protective Factors of Elderly Iu-Mien Refugees (Doctoral dissertation,
The Wright Institute)..
Shams, R., Vrontis, D., Belyaeva, Z., Ferraris, A. and Czinkota, M.R., 2021. Strategic agility in
international business: A conceptual framework for “agile” multinationals. Journal of
International Management, 27(1), p.100737.
Skopyk, B., 2020. Colonial Cataclysms: Climate, Landscape, and Memory in Mexico's Little Ice
Age. Latin American Landscapes.
Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: A strategic
marketing multicultural model for family businesses. International Studies of
Management & Organization, 48(1), pp.105-120.
Ting, M.G.Y., 2018. Institutional Transformation through Digital Platforms: Enablers and
Inhibitors of Growth in Emerging Ecosystems (Doctoral dissertation, National
University of Singapore (Singapore)).
Tooranloo, H.S. and Saghafi, S., 2019. Investigating the impact of using knowledge management
on organisational agility through competitive intelligence and strategic thinking. Journal
of Information & Knowledge Management, 18(02), p.1950016.
White, G.H., 2018. Singles and Smiles: How Artie Wilson Broke Baseball's Color Barrier.
Rowman & Littlefield.
Whittington, R., Regnér, P., Angwin, D., Johnson, G. and Scholes, K., 2020. Exploring Strategy
Text and Cases. Pearson UK.