Strategic Options and Analysis for Oak Tree Inn: A Management Report

This report provides a comprehensive strategic analysis of The Oak Tree Inn, a family-run hospitality business in Scotland. It begins with an overview of the firm, followed by detailed PESTEL, Porter's Five Forces, and SWOT analyses to assess the external and internal environments. The report then identifies potential strategic options for growth, including market penetration, market development, product development, and diversification, using the Ansoff matrix as a framework. A SAFE analysis is also conducted to evaluate the suitability, acceptability, and feasibility of the proposed strategies. The report concludes with recommendations for the Inn's strategic direction, considering the challenges and opportunities within the hospitality industry. The report aims to help the Oak Tree Inn achieve its growth objectives and adapt to the dynamic market conditions, offering insights into strategic management and policy implementation through macro and micro environment analysis.

Strategic Agility

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1 ...........................................................................................................................................3
Overview Of The Firm................................................................................................................3
TASK 2............................................................................................................................................3
PESTEL.......................................................................................................................................3
Porter's 5 Forces..........................................................................................................................5
SWOT.........................................................................................................................................5
TASK 3 ...........................................................................................................................................6
Potential Strategic Options..........................................................................................................6
TASK 4 ...........................................................................................................................................7
SAFE analysis.............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERNCES:..................................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
In a business environment it is required to meet the dynamism so that market is sustained.
For this the organisation is required to work with Strategic agility that refers to the capability of
quickly responding to the change and accepting the change by determining the flexibility of
operations. In the below mentioned report the strategic agility of The Oak Tree Inn is
discussed(Ahammad, Glaister, and Gomes 2020). As the organisation is working in hospitality
industry and is required to adapt the changes quickly and flexibly by adopting the changes as and
when desired by the market. This will make the business grow and sustain in the market.
MAIN BODY
TASK 1
Overview Of The Firm
The Oak Tree Inn is beautifully located in a small village of Balmaha, Loch
Lomond,Scotland. It was established in 1998 as a traditional style Scottish Inn. It is a small scale
business which is working in a tourism sector providing hospitality services as a bar, hotel,
restaurant by offering food, drinks, beverages, living accommodation and recreational places. It
is a family business run by a famous family group called Fraser family, with Sandy and Lucy
Fraser working as the promoter of business and taking large risks in the event. The generation of
the family is also involved in the business and working for expansion and growth. Along with the
hospitality services they have also diversified its business operations in artisan coffee,
manufacturing ice creams, establishing daily essential shops and handicrafts shops for local
people as well as the visitors. The shops are located on the footpath all round the village to
facilitate the experience(Arokodare 2020). The family believes in promoting tourism in the
village and have taken many initiatives in this manner which will resulted as making the dead
end road a frequently visited place. The family is having the belief that the residents are not
forced to move out of the place in search of job opportunities and for this they have worked for
many miles.

TASK 2
PESTEL
The PESTEL analysis is considered as a market tool which works as examining the
external forces of market that affects the working of the organisation. The managers and the team
are required to evaluate them so that corrective measures can be taken and business can flourish
in market. The factors can be seen as:
Political Factors: The political parties make rules and regulations that work as hampering the
working of industry. When there is ban on travel of various countries, the business operations
will be hampered and on the other hand if there are good relations among different countries and
government provides tax benefits, tourists from respective region will be increased.
Economic Factors: The economic condition of the country is responsible for efficiency of
organisation(Denning 2017). When there is change in the rate of exchange and rate of currency
increases or decreases it will impact the visitors' pocket, hence it will affect their working. The
market conditions like recession will discourage the visitors to spend on recreational activities.
Social Factors: The social factors works in describing the perception of individuals which will
work in either increasing or decreasing the interest of consumers for a particular place. Also the
consumers are attracted when they are provided good services at a cheaper rate.
Technological Factors: The technological advancements provoke the individuals as they cater
the interest options of the consumers. Through advertisement and social media people get to
know about place in depth and thus reputation of the place increases. With the development of
internet the news is rapidly spread and action can be taken spontaneously. The advertisements
through social media will act as popularising the place which will facilitate the competitive
rivalry.
Environmental Factors: There are various environmentalists who are working in favour of
reducing the burden on the environment because of the industries which are existing. When
conducting operations a major focus is required to be made on the maintenance of the local
environment so that the execution of operations are not working in favour of hurting the
sustainability of the economy.
Legal Factors: Time to time there are laws and legislations implemented and are bounded to the
hospitality industry to follow. The laws framed works as a help and support in protecting the
interests of visitors and also the industry. The laws focus on reduced criminal actions and corrupt

measures which will act as demoralising the reputation of the place. Also a focus is required to
be made that guests are treated well and there is no compromise with their health. Last but not
the least transparency is majorly focused.
Porter's 5 Forces
The five forces as given by Porter's works in determining the competition in industry so that
proper measures can be taken for the same. The forces can be seen as:
Rivalry among the existing firms: The existing firms in the industry act as rivals and there is a
major impact of those firms in the existing business. To reduce this market along with the
competitors are required to be studied. This will help in taking corrective actions timely.
Bargaining power of buyers: The bargaining power of buyers is very high as there are many
competitors who are in the market(Doz 2020). The buyers will be diverted to the organisations
who are providing goods and services at a lower price, so the hotels and restaurants are required
to maintain prices.
Bargaining power of suppliers: The bargaining power of suppliers is very low. As there are
many suppliers in the market, the suppliers cannot demand excessive rate for the raw materials as
desired. The competition among the suppliers gives advantage to the organisation.
Threat of new entrants: The hospitality industry is having a high risk of new entrants as there
are less barriers in terms of licensing, patents, copyrights and others. This emerges as a result that
there are lot of new entrants flourishing in the market.
Threat of substitute services: As there is modernisation there are many substitute products in
the market which can cater the market thus leaving the organisation suffer huge losses. This can
be reversed when substitute goods are studied and changes are made to bring creativity.
SWOT
This model Is required to analyse the internal factors of Oak Tree Inn which describe
whether there is need for change and make effective strategies to overcome with threats and
weakness.
Strength
 The company is highly beneficial for
provide Scottish food which attract
large customers by giving great food
Weakness
 The company have low profit margins
and high fixed cost expenses which
lowers down its potential to face

experience.
 The company serve various locations
that is accountable to Crete brand name
into different parts of world(Haider and
Kayani 2020).
competition.
 The company does not involve fresh
talent into organisation which eliminate
creatively and innovation.
 The company does not attract large
people for different countries die to
local operations at village.
Opportunity
 There are a lot of technological up
gradation that Oak Tree Inn could use
while performing transactions,
production and delivering services so
that, customers get easy experience of
enjoying hospitality services(Ivory and
Brook 2018).
 Hospitality sectors gives opportunity to
be creative and provide rare services
like hotel view, decent location and
memorable experience.
Threat
 The company enable on small scale that
give rise to new entrance of other firms
and likely to gain competitive
advantage
 there are many uncertain risk of
booking cancellation, non arrival of
customers and disputes among
staff(Kale, Aknar and Başar 2019).
These all are the threats in hospitality
industry which results in low
productivity and accountability of
organisation.
TASK 3
Potential Strategic Options
A strategy is made to achieve companies goals and objective for which they are aiming
into large market. Mainly, companies aim at fulfilling their profit requirement which is the initial
want of organisation. Along with this, it aims or capturing large market and take long term
growth by retaining customers for longer period(Morton, Stacey and Mohn 2018). Therefore, a
strategic plan helps them to carry out their aim in its practical implementation which could only
be done by forming effective targeted options and set direction for whole of the organisation.
The Oak Tree Inn is ready to make expansion into other parts of world which required to change
in many business practices. Their strategic options are mentioned below:

there are various options to carry out strategy, the best one find out is Ansoff matrix.
Through this model, the company will focus on market development with new or existing
product.
Market penetration: under this strategy, the company will target the existing market
with the same product and features. The aim is to attract more of people towards companies
services.
Market development: through market development, the company aims to target
different market with the same products and services(Sampath and Krishnamoorthy 2017). It
renowned the brand name and set different area of market.
Product development: The Oak Tree Inn is focusing of product development as they
look forewords to increase its product and service range into same market. This will attract more
of customers and set competitive edge.
Diversification: it is the vast and complex stage in which both product and area get
diversified. For this company will require huge investment and potential to take risk. Therefore,
the company will not target this strategic option as they work on small level.
TASK 4
SAF analysis
An organisation consist various options and field on which they build their strategies and
direction to go along into directions. Through this model, the three factors are drive the
suitability of strategies made as per organisation requirement. The strategies must be feasible
and effective that could cover up all the hurdles and drive best options which is better useful.
Therefore, in order to know about effectiveness of plans there is need to check its suitability,
feasibility and acceptability.
Suitability: The Oak Tree Inn makes their strategy to survive into market and expansed its
business to other cities. Therefore, they need to first identify whether it is suitability for their
goals and targets the company wants to achieve. Also, it drives whether the strategy is suitable as
per countries environment, culture and in favour of society(Vaillant and Lafuente 2019). The
company could see the environment through macro environment analysis and modify its strategy
as per the requirement.

Feasibilities: the feasibility study shows the potential strategic framework that companies set to
carry out the best outcome form the strategic plan. The Oak Tree Inn needs to check its financing
feasibility to implement the plan effectively and carry out the operations with money flow,
resources, staff involvement and other factors.
Acceptability: under this factor, it is needed to verify whether the strategies that has made by the
company is acceptable by the political interference and society culture. Hence, strategies are only
effective when it attain by overall society and its people which do not hark any sentiments and
ethics of customers. Therefore, after analysing that society is ready to take their actions at right
direction, the company could enable its implementation.
CONCLUSION
The report has concluded that strategic management and policies are required to
overcome with various macro and micro environment analysis. Is has identified that pestle and
porter's five forces model come out with various strategic alliance that is necessary to target
potential customers with economical and social factors. The company could attain success by
analysing strength, weakness, opportunity and threats which will be beneficial to know about
how well it is performing into market. Moreover, the report provide Safe analysis through which
strategies could get formulate with suitability, acceptability and feasibility. It gives ideas and
strategic options which is most suitable for the organisation

REFERNCES:
Books and Journals:
Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human resource
management. Human Resource Management Review, 30(1), p.100700.
Arokodare, A., 2020. Strategic agility: Achieving superior organizational performance through
strategic foresight. Global Journal of Management and Business Research.
Denning, S., 2017. Strategic agility: Using agile teams to explore opportunities for market-
creating innovation. Strategy & Leadership.
Doz, Y., 2020. Fostering strategic agility: How individual executives and human resource
practices contribute. Human Resource Management Review, 30(1), p.100693.
Haider, S.A. and Kayani, U.N., 2020. The impact of customer knowledge management capability
on project performance-mediating role of strategic agility. Journal of Knowledge
Management.
Ivory, S.B. and Brooks, S.B., 2018. Managing corporate sustainability with a paradoxical lens:
Lessons from strategic agility. Journal of business ethics, 148(2), pp.347-361.
Kale, E., Aknar, A. and Başar, Ö., 2019. Absorptive capacity and firm performance: The
mediating role of strategic agility. International Journal of Hospitality Management, 78,
pp.276-283.
Morton, J., Stacey, P. and Mohn, M., 2018. Building and maintaining strategic agility: an agenda
and framework for executive IT leaders. California Management Review, 61(1), pp.94-
113.
Sampath, G. and Krishnamoorthy, B., 2017. Is strategic agility the new Holy Grail? Exploring
the strategic agility construct. International Journal of Business Excellence, 13(2),
pp.160-180.
Vaillant, Y. and Lafuente, E., 2019. The increased international propensity of serial
entrepreneurs demonstrating ambidextrous strategic agility. International Marketing
Review.