Oak Tree Inn Case Study: Strategic Report and Recommendations

This case study presents a strategic report with recommendations for the Oak Tree Inn, a three-star hotel located in Glasgow, UK. The report analyzes the Inn's current situation, considering the impact of COVID-19 and the need to thrive in the new normal. It employs tools like SWOT, PESTEL, Porter's Five Forces, and VRIO to assess the internal and external environments. The analysis identifies strengths, weaknesses, opportunities, and threats, leading to the development of two strategic options: innovation and market development. The SAFe (Suitability, Feasibility, Acceptability) framework is used to evaluate these options, focusing on their potential to address challenges like changing customer preferences and economic slowdowns. The report concludes that strategic options are crucial for long-term survival and emphasizes the importance of thorough market analysis for effective strategy formulation.

CW1: Consultants
strategic report and
recommendations for
Oak Tree Inn (Case
Study)
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section A................................................................................................................................3
Section B................................................................................................................................3
Section C................................................................................................................................5
Section D................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Appendices:....................................................................................................................................10
PESTEL analysis..................................................................................................................10
Porters Five Forces model....................................................................................................10
VRIO model.........................................................................................................................11
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INTRODUCTION
Strategy is defined as the planned procedures which used by organisations in order to
achieve their strategic goals and objectives (Ackermann and Eden, 2020). This is the reason that
company needs to focus on creating the strategic options in order to achieve their goals and
objectives. For that purpose, it is necessary that to analyse the market situations and match with
the organisational resources. In this context, Oak Tree Inn is undertaken which is the three star
hotels. It is located in the east side of Loch Lomond i.e. Glasgow, United Kingdom. This report
aims to produce two important strategic options which assist in managing the organisation in an
effective way.
MAIN BODY
Section A
It is found in the shade of 500 year old oak tree, there is family which run a 3 star hotel
that named is Oak Tree Inn. It is located in Glasgow, UK. They built this Inn in the village of
Balmaha which is situated on the shores of Loch Lomond. It is found that they have also a
walking trail which named is West Highland Way (The Oak Tree Inn). This hotel is providing
many amenities and services such as on site restaurant, Wi-Fi internet, cafe, bicycle parking, fire
sprinkler system, non smoking property, golf course, hiking trails, ATM, etc. They also have
pubs and cottages in which people can stay and enjoys all the additional services. There are
many competitors found in the case of Oak Tree Inn such as Catnip Inn, Inn on the River, Azalea
Inn Bed and Breakfast, Deluxe Inn and Suites, etc. They earn revenue more than $5 million.
They have total 7 employees who helps in managing all the functions and operations of their Inn.
It is found that due to COVID-19, Oak Tree Inn is facing many issues such as less number of
customers in the market, declining in the profits margins, decreasing in sales, etc. They are also
faced issues after pandemic as they are unable to survive and thrive in the new normal.
Section B
SWOT is an important tool which is used for the purpose of analysing internal analysis. It
is necessary for an organisation to conducts a SWOT analysis which assists an organisation to
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formulate strategies (Dima, Burlacu and Buzoianu, 2020). It includes strengths, weaknesses,
opportunities and threats.
Strengths Weaknesses
 Oak Tree Inn is found to be located in
500 year old oak tress which shows that
they are highly aware in the market.
 They are running their business from
many years and that's why they have
strong financial resources.
 It is identified that employee’s retention
is necessary and it is found that
motivational factors are less in Oak
Tree Inn.
 Their global presence is not as higher in
the market as compared to other
nations.
Opportunities Threats
 Political stability is one of the
opportunity for Oak Tree Inn as they
are able to invest in adoption of
strategies.
 It is found that Oak Tree Inn is highly
sustainable responsible which
opportunity for gaining competitive
advantage becomes.
 Competition rivalry is low which
opportunity for competitive edge
becomes.
 Technological advancement is
increasing and that's why it becomes a
threat for them.
 Economic slowdowns provided a
severe negative impact on the tourism
and hospitality industry due to COVID-
19.
 Continuous changes in tastes and
preferences of customers found to be
high and it impacts on the
organisational success.
It is analysed from the above SWOT tool that helps in identifying the areas in which they
are strong and also identify weak areas. There are many opportunities found in Oak Tree Inn
such as competition rivalry is low, sustainable responsible organisation, and political stability
(Moeslein, and Fritzsche, 2017). Oak Tree Inn is facing many issues such as technological
advancement, economic slowdown, and continuous changes in tastes and preferences.
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Section C
After conduct a SWOT analysis, it is identified that Oak Tree Inn needs to develop some
strategic options in order to grow and success in the market. Two significant strategic options are
undertaking in order to solve the problems which are mentioned below:
Innovation
In the analysis of SWOT, it is found that there is a continuous change in tastes and
preferences of customers and due to this they are unable to attract customers towards their Inn. In
addition to this, technological advancement is becoming the need of an organisation (NEGESCU
OANCEA and et.al., 2019). This is the reason that this option is choosing as a strategic options.
Innovation is the key of success and this is the reason that Oak Tree Inn needs to innovate their
services and amenities time to time which helps them to stay competitive as well as innovative in
the market. This will help in satisfying the needs and wants of customers which assist in gaining
success and growth in the market. In Oak Tree Inn, they should make changes in their services as
well as their employees' behaviour which should be very calm and happy that helps to satisfy
customer’s desires. Innovation is require in services as well as employees' skills and knowledge
so that they are able to take decision when there is no manager and any leader present in the
difficult situations (Langemeier and Boehlje, 2017). It is found that innovation requires high
expenditure and in the case of Oak Tree Inn, they are able to afford that cost as their financial
resources are strong.
Market development
Market development is also adopted as the strategic options as it very helpful for the
organisation to stay competitive and survive in the market (Ali and Anwar, 2021). Due to the
economic slowdown, it is identified that the market of hospitality industry is declining and this
gives a negative impact on Oak Tree Inn. This is the reason that Oak Tree Inn crosses market
development in their option which is one of the important strategies of Ansoff matrix. This
strategy is very helpful in order to expand the market with existing products. Oak Tree Inn needs
to focus on increasing sales with the addition of new promotional strategies and cost strategies.
With the assistance of market development strategic options, it is found that company can
achieve their strategic objectives as well as overcome with the upcoming challenges (Karapin
and Feldman, 2018). In order to implement this strategy, Oak Tree Inn needs to do a market
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research which covers all the areas which have a potential to do a business. This option needs to
be effectively evaluated with the help of analysis of market trends as well as resources and
capabilities of organisation. Oak Tree Inn is found to be already recognized in the market and
that's why they need less resource for promotional activities.
Section D
SAFe model is basically is a strategy framework which are used by the organisation in
order to identify whether the strategies made by them help in achieving a successful position in
the market or not (Payares-Asprino, 2021). On the basis of SAFe framework strategy
organisation measure and weight the competition in the market. The strategy was proposed by
Gerry Johnson and Kevan Scholes. The two strategy choices which are used by the Oak Tree Inn
with the help of SAFe analysis have been discussed below:-
SFA Matrix Innovation Market development
Suitability This factor is being considered
as the most important factor of
the SAFe model. This helps the
company in identifying whether
the strategy made by them is
suitable or not. The strategy of
adopting the new innovation and
technology by the Oak Tree Inn
is very suitable for company.
This is not only helps them in
overcoming for the different
weakness but also help them in
offering new product to the
consumer.
Market development is also being
considered as the most suitable and
important strategy for the Oak Tree
Inn. This not helps the company in
developing the market base but also
help them in operating their business
all over the globe.
Feasibility Yes the innovating strategy
which are adopting by the Oak
Tree Inn is very feasible for the
Yes the market development
strategies is also very feasible for
them. As the Oak Tree Inn is
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company. They want to
innovate their method of
providing the training to their
employee. This innovating
technique not only improves the
skill and knowledge of the
employee but also improves the
productivity. With the help of
this employees of the company
provide better services to the
customer which directly reflects
on the performance of the
company (Liu and Kong, 2021).
financially sound company and deals
in the different types of services. The
feasibility matrix not only helps the
company to grow in the market but
also help the company in improving
the brand awareness of the different
products of the company.
Acceptability Generally the employees of the
company resist adopting the
change. Innovation in the field
of services is generally not
accepted by the employee of the
company. But if the
management of the Oak Tree In
apply the innovating strategy in
a very effective manner then the
innovation is accept by the
employees of the company. This
enhances the skills and
productivity of the employees if
they accept the innovation.
The Oak Tree Inn is a well
established hotel. The existing
product and service which are offered
by the company have already a good
image in the heart and mind of the
consumer. If the company wants to
develop their market or expand their
business with the existing product
then this strategy is easily accept by
the market. This not only helps them
in developing the profit but also
improves the sustainability in the
market for a long period of time.
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CONCLUSION
It can be concluded that it is very important for an organisation that they should
formulate strategic options in order to run their business. This is necessary for the purpose of
long term survival in the market. It is also analysed that company needs to analyse the whole
market in an effective way so that they can make strategies accordingly. In this context, this
report undertook important analysis models such as PESTEL, SWOT, Porter's Five Forces
model, VRIO, etc. These models are assists an organisation to formulate an effective strategy.
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REFERENCES:
Books and Journals
Ackermann, F. and Eden, C., 2020. Strategic options development and analysis. In Systems
approaches to making change: A practical guide (pp. 139-199). Springer, London.
Dima, C., Burlacu, S. and Buzoianu, O.A.C., 2020. Strategic Options for the Development of
Ecotourism in the Danube Delta in the Context of Globalization. In SHS Web of
Conferences (Vol. 74, p. 04005). EDP Sciences.
Karapin, R. and Feldman, L., 2018. Strategic Options.
Langemeier, M. and Boehlje, M., 2017. Evaluating Strategic Options. farmdoc daily, 7.
Moeslein, K.M. and Fritzsche, A., 2017. The evolution of strategic options, actors, tools and
tensions in open innovation. In Strategy and Communication for Innovation (pp. 61-76).
Springer, Cham.
Ali, B.J. and Anwar, G., 2021. Business strategy: The influence of Strategic Competitiveness on
competitive advantage. International Journal of Electrical, Electronics and Computers,
6(2).
Payares-Asprino, C., 2021. Prediction of Mechanical Properties as a Function of Welding
Variables in Robotic Gas Metal Arc Welding of Duplex Stainless Steels SAF 2205
Welds Through Artificial Neural Networks. Advances in Materials Science. 21(3).
pp.75-90.
Liu, C. and Kong, D., 2021. Business strategy and sustainable development: Evidence from
China. Business Strategy and the Environment, 30(1), pp.657-670.
Online
The Oak Tree Inn. [Online] Available through: <https://www.theoaktreeinn.co.uk/>
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Appendices:
PESTEL analysis
 Political Factors: Political stability of UK is found to be strong so that's why Oak Tree
Inn has less threat in political factors.
 Economical Factors: Economic conditions of every country are very bad due to the
impact of COVID-19. So it becomes threat for Oak Tree Inn.
 Social Factors: Continuous changes in tastes and preferences are increasing every day
which becomes an issue of Oak Tree Inn.
 Technological Factors: Continuous technological advancements are increasing which
becomes issue for the organisation as they it needs experts’ solutions and update of
technology.
 Legal Factors: The legal factor needs to consider by an organisation as it gives an
impact on the legal issues. There are many laws which needs to be comply by an
organisation such as
 Environmental Factors: It is necessary for every organisation to consider environmental
issues as it is the responsibility as well as duty. Oak Tree Inn has a good nature
environment.
Porters Five Forces model
Five Forces High Low
Bargaining power of suppliers ✓
Bargaining power of buyers ✓
Competitive rivalry ✓
Threats of New entrants ✓
Threats of substitutes ✓
VRIO model
Resources Value Rare Imitate Organisation
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Talent to manage legal
obligations
Yes No Easily initiated Yes
Global and local
presence
Yes Yes Easily imitated Yes
Financial resources Yes Yes Not easily
imitated
Yes
Brand awareness Yes Yes No Yes
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