Oak Tree Inn: Strategic Report on Tourism Business in Balmaha

This report provides a strategic analysis of the Oak Tree Inn, a successful family-owned tourism business located in Balmaha. It begins with an overview of the business and then delves into the external environment using PESTEL and Porter's Five Forces models to identify threats and opportunities. An internal SWOT analysis is also conducted to assess strengths and weaknesses. The report identifies two potential strategic options, digital marketing and enhanced human resource practices, and analyzes them using a SAFe analysis. Ultimately, the report recommends the implementation of online and digital marketing strategies to improve the Oak Tree Inn's growth and success. The report addresses challenges related to growth, revenue, and workforce productivity, offering data-driven recommendations for improvement.

Consultants strategic
report and
recommendations for
Oak Tree Inn

Executive summary
The current assignment is based on the Oak Tree Inn which is a very successful tourism business
located in a small, Balmaha which is basically a family owned business. The current assignment
comprises of a discussion about the management strategies and brief Overview of Oak Tree Inn
along with analysis of all external threats and opportunities along with possible challenges the
Oak Tree Inn is facing from both the wider macro and micro/competitive environments. Use of
PESTEL, SWOT and Porter’s 5 Forces Model is made to analysis about Oak tree ink along with
leading out two potential strategic options along with their analysis to recommend best possible
strategy for Oak Tree Inn to have improving in its growth and success level.

Table of Contents
A brief overview of Oak Tree Inn....................................................................................................1
External threats and opportunities/challenges the Oak Tree Inn is facing from both the wider
macro and micro/competitive environments....................................................................................1
PESTEL..................................................................................................................................1
Porter’s 5 Forces Model.........................................................................................................2
SWOT Analysis......................................................................................................................3
Two potential strategic options from your SWOT analysis.............................................................4
SAFe Analysis on Two potential strategic options..........................................................................5
Recommendations............................................................................................................................6
CONCLUSION................................................................................................................................7

A brief overview of Oak Tree Inn.
The Oak Tree Inn is a successful tourism business which consists of accommodation in
rooms above the attractive inn along with a series of on-site cottages situated at the east bank of
Loach Lomond which is one of the most iconic natural location of Scotland (The Oak Tree Inn,
2020). Apart from this, a restaurant and bar along with various coffee shop & ice cream parlour
and village shop is also there in Oak tree Inn that attract and cater a larger number of customer
for this organisation (Bayliss and et. al., 2020). Thus, the Oak Tree inn located at Balmaha is a
very beautiful and well known loch side village in Loch Lomond & The Trossachs National
Park.
Mention management strategies on Oak Inn Tree and other things about digital marketing to
promotes their business in effective manner as they are facing challenges to not getting expected
growth as well as revenue another impact is performance of Oak Tree Inn workforce are not at
all productive enough to which there is less practice of Human resource management
(Christodoulou and Cullinane., 2019). These two strategies can helps to Oak Tree Inn to attain
competitive advantages.
External threats and opportunities/challenges the Oak Tree Inn is facing from
both the wider macro and micro/competitive environments
PESTEL
According to Pestle Analysis is a tool which is assort by individual company to measure
about particular country when existing company wants to establish its venture in international
region. Similarly, the pestle analysis for Oak Tree Inn for mapping opportunities and threats in
United States business environment.
 Political: This factor depicts about all norms and regulation which involves and
regulates through corporate governance in which it highlights about government
stability, foreign trade policy and foreign trade regulation. As United States is not having
political stability which Oak Tree Inn has facing impact of political implication in their
revenues. But positive benefits is enhanced through foreign trade policy and social
welfare policy.
 Economical: It is a factor which derives about economic performance of particular
country, where economic condition of United States is quite better as their GDP growth
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rate is stable (Man., 2016). In perspective of Oak Tree Inn would get benefits from GDP
trends and Interest rates and value of Dollars is productive. Other factors like inflation
and recession these bot negative aspect of economic which increase unemployment.
 Social: Through this factor is determines on the basis of two elements demographic
which emphasis about to approach people on age, gender, caste , taste and preferences
and other is Geographic that address about to select location to enhance deliver product
and services (Mihailova., 2020). The Oak Tree Inn can approach demographic, lifestyle,
population trend in basis of fashion and preferences that easily to provide product and
services of hospitality towards right customers.
 Technological: This aspect describes about better advanced technologies which appears
to assort resources like artificial intelligence that enhance to increase mobility. As Oak
Tree Inn, is based of United States and the scope of technologies can expand through
new discoveries, research and development and speed of technology transfers promotes
hospitality business in next level.
 Environmental: According to this factor, it encompasses about particular country
environment related activities such as United States follows better social welfare
development or stands for environment issues. As Oak Tree Inn, must participate their
contribution in US green environment issues and environment protection laws that
increase waste disposal.
 Legal: It is one of most important factor of Pestle in which legislation constraints or
changed such as health and safety also employment laws is follows in United States. In
perspective of Oak Tree Inn need to measure towards product laws that guides to better
product related manufacturing.
Porter’s 5 Forces Model.
This method is for analysing competition of a business. It explains about competitive
density which emphasis about attractiveness as well as profitability. For Oak Tree Inn, the porter
five forces is enhancing to measuring threats in term of competitors and substitutes along with
bargaining power of buyers and suppliers:
 Threats of new entrant: According to this force it provides understand about to decrease
profitability to other firms which can make more incumbent or resources in product and
services. As for Oak Tree Inn having high rate of new entrant.
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 `Threat of Substitute: This threat explains the assorting of different technologies insists
to try for better solving similar economic needs. For Oak Tree Inn, many other small and
medium hospitality services are there, so it has High rate of substitute.
 Bargaining power of buyers: It defines about the market outputs which customer ability
to buy product through making under pressure to the firm (Phadermrod, Crowder and
Wills, 2019). This practise also creates makes under pressure to the prices fluctuation.
Therefore, Oak Tree Inn is having high rate of bargain power because it is small
hospitality venture.
 Bargaining of Supplier: It prescribes towards the raw materials services inputs and
resources in which firm can be counted as source of power when there is certain number
of substitutes. Thus, there is low power of bargaining of supplier as because raw
materials are very economic in range and that acquire easily from buyers.
 Competitive Rivalry: About most of industries is having high intensity of competitive
rivalry that refers about biggest competitiveness traits in context of specific industry. As
per positing is depends upon how customer is approach product and services in different
manner as compare with competitors. The Oak Tree Inn, there is high rate of competitive
rivalry as many other hospitality in small and large based commencing their quality type
of services to customer fulfilling satisfaction needs.
SWOT Analysis
Use of this model is made by Oak Tree Inn to evaluate about its internal strengths and
weakness along with leading and having a better understanding about the prevailing opportunity
and threats for this organisation in its business environment.
Strengths Weakness
 Strong knowledge about the local area
and the target market is the biggest
strength of Oak Tree in supported and
operated by Fraser Family.
 The innovative and creative nature of
the owner along with emphasis on
sustainable growth through undertaking
 A high level dependency and reliance
on family members along with
ineffective management and decision
making is a weakness of Oak Tree Inn.
 High level of employee turnover that
leads to poorer staffing retention is also
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necessary timely changes is also a
strength.
 Good reputation and high quality
product along with strong asset base is
also a strength of Oak Tree Inn.
a weakness.
Opportunity Threats
 Support from Scottish government
along with increasing trend of Oak Tree
Inn among visitors lead by exclusive
experience and quality services is
leading many opportunities.
 Planned development of National Park
with growth in outdoor activities and
services is also enhancing expansion
and growth opportunity for Oak Tree
Inn (Rahma and Pradhanawati, 2018).
 Technology development and better use
of online and digital modes of
marketing is also facilitating better
promotion to have a larger target
market and better growth.
 High level of competition with set up of
new organisation in Tourism sector.
Two potential strategic options from your SWOT analysis.
From above two assessment through external and internal method which highlight to assort
in project to evaluate that on by Pestle analysis where political and economic factor raises
many challenges as well as threats in terms of recession and inflation this can reduces
overall market capitalism in competitive market. As opportunities is generates through
social factor in which variety of people have their presence in United States. Apart from it,
in Swot analysis that there is positive strategies in terms better initiatives. Some threats is
comprise due to other competitors involves in hospitality competitive market.
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The situation arises in Oak Tree Inn hospitality industry is that their performance are not
satisfactory in which they could not attain their competitive advantages. In following there
two potential type of strategies which involves in Oak Tree Inn that leads to their objective
accomplish such as
To promote business or hospitality services:
 Online Marketing or Digital marketing: According to this practise or strategies
can increase as well as change market growth and channelize to various
performance increase to boost promotional activities that enhance to attain all the
targets which leads to the profits (Vallati and Grassi., 2019). The online practise of
marketing enhance very easy approach that directly helps to attain competitive
advantages. As company is facing less performance or not having appropriate profit
in terms of not retain customer effectively. That why Oak Tree Inn would applies
online and digital marketing strategies to accomplish their market targets.
 Enhance Systematic Human resources practises: This is second strategy which
also important towards Oak Tree Inn, as their administrative working procedure is
not at all appropriate where employees are not generating proper outcomes through
their performances which is one of weakness of Oak Tree Inn. Because there is less
practise of Human Resource management and there is need of training and
development, performance appraisal, employee engagement and reward
management all are these activities can improve employee performance of Oak Tree
Inn.
SAFe Analysis on Two potential strategic options.
Online and Digital
Marketing
Best Human Resources
Practises
Suitability This strategy is effective
enough to improve the basic
performance of Oak Tree Inn
promotional activity. As it will
optimise different
opportunities in terms of more
productivity and growth.
According to this practise will
develop performance of
employees in Oak Tree Inn.
As staffs of this company is
facing less productive
outcomes through best human
resources practise it will
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develop more staff
performance in positive
manner.
Acceptability In this proposed strategy
having surety that they will
attain better outcomes
(Pradhanawati., 2018). As it
involves less cost effective or
not having influence for more
expenses towards marketing
promotion.
It involves quite cost incurred
where expertise of human
resource practises involves
high expense roles that
increase company investment
to approaching better activities
involvement in Oak Tree Inn.
Feasibility It not allows any finance, in
fact it is most flexible and
provide basic key effective
learning about promoting Oak
Tree Inn business in online
platform which increase quick
growth in positive manner.
This can be required finance
source as expertise
involvement is there to
improve Human resources
practise. But it will essential
and benefit to employees of
Oak Tree Inn that they will et
attain valuable learning and it
will develop staffs skills and
knowledge in better way.
Recommendations.
Through above two high potential strategies towards Oak Tree Inn by details examine the
best recommended strategy which develop its growth in further aspect or long term point of view
would be Online and Digital Marketing promotional platform. This strategy adopted because as
Oak Tree Inn is small hospitality venture in United States where the facing less marketing
growth in competitive market of hotels and they need a fresh and unique concept to promote
their business which will bring more sustainability as well as productivity in hospitality market.
After that it also helps to easy commence promoting business through various websites and even
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to connect with customer from worldwide. By approaching strategy Oak Tree Inn can
accomplish their competitive advantages.
CONCLUSION
As per above overall report of Consultant Strategic Recommendation business for Oak Tree
Inn, where it comes to summarised by explains in first part about external environment to
implement Pestle Analysis and for internal Swot analysis. Apart from it, Porter five forces and
SAF’s model which describes about taken tow potential strategies in situation of Oak Tree Inn
where first one is Online and Digital Marketing platform and second one Best Human resources
practises.
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REFERENCES
Books and Journals
Bayliss and et. al., 2020. IntCal20 tree rings: an archaeological SWOT
analysis. Radiocarbon. 62(4). pp.1045-1078.
Christodoulou, A. and Cullinane, K., 2019. Identifying the Main Opportunities and Challenges
from the Implementation of a Port Energy Management System: A SWOT/PESTLE
Analysis. Sustainability. 11(21). p.6046.
Man, M.M.K., 2016. Supply Chain Management (SCM), Environmental Factors and Porter Five
Forces: A Case Study of Malaysia Airlines Berhad (MAB). Int. J Sup. Chain. Mgt Vol.
5(3).
Mihailova, M., 2020. The state of agriculture in Bulgaria–PESTLE analysis. Bulgarian Journal
of Agricultural Science. 26(5). pp.935-943.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
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.
Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE Context.
In The EMerging Technology conference (EMiT) 2019 (pp. 66-68). IET.
Online:
The Oak Tree Inn. 2020. [Online] Available Through:< https://www.theoaktreeinn.co.uk/ >.
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