Strategic Analysis and Recommendations for Oak Tree Inn Report

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This report presents a strategic analysis of the Oak Tree Inn, a small business in the lodging and food and beverage industry. The report begins with an overview of the firm and proceeds with an examination of its macro and micro environments, including SWOT, PESTLE, and Porter's Five Forces analyses. It identifies two potential strategic options and evaluates them using the SAF analysis framework (Suitability, Acceptability, and Feasibility). The report considers the company's strengths (safe accommodations), weaknesses (high tax rates), opportunities (new market segments), and threats (competition). The analysis aims to provide recommendations for the Oak Tree Inn to enhance its strategic positioning and future performance within the competitive tourism sector. The report concludes with the evaluation of strategic choices, emphasizing the importance of considering suitability, acceptability, and feasibility in decision-making.
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Strategy Agility
Table of Contents
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INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Outline of firm.........................................................................................................................................3
Macro and micro environment.................................................................................................................4
Two potential strategic options................................................................................................................6
Evaluate two strategic choices from research..........................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9
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INTRODUCTION
Strategy report determine that they should give prospect of concentrate for measurement
of presentation in their organization which is to provide a long-term forecast and recognize a
organization worth of performance (Acharya, 2019). It is also determined that temporary
financial concert of organization and its report to recognize their own shares in their
organization. For this report, selected organization is Oak Tree which is a very small business
which was founded in 1998 and to a give enhance capability of lodging and drink and food
beverage industry also. This assessment covers several topics are to be covered such as overview
of firm, PESTLE analysis, porter's five forces model, SWOT analysis and two potential study
strategic option and safe analysis.
MAIN BODY
Outline of firm
Oak Tree Inn which was founded in 1998 accommodation services for many rumors are
there and there is also a restaurant bar and coffee shop. Oak Tree is in Balmaha beautiful village
outside is slower than beyond of food and drink services. It include so many ingredients weight
by source and enjoy great services in bar, coffee shops and restaurants on there is a business and
is a small business enterprises in a travel and tourism sector and their own directors have a
chance to grow or increased 10 million. There are several successful travel and tourism firm in a
very small village on east bank lodge Lomond is one of Scotland natural location and first ever
national park. First award winning of Oak Tree business has a comprise holiday competition
success ice cream shop, coffee shops, restaurants and bar or a popular in village and also their
employees are 110. Oak Tree Inn has a traditional style which is to be followed and increase or
enhance their capacity for accommodation of food and drink beverage industry (Al-Azzam and
Al-Qura'an, 2018). For this organization, they has also increased their own coffee make to its
personal ice-cream and affiliate system for local visitor on west highland for which runs through
a village. There are also some issue in the firm is situated on east side of Loch that is quiet end
road and it has to be mean that to make a Balmaha through his decision to be a focus for more
and more clients is transform. It has been flourishing relatively which has to be often that in this
village have closed peak summer due to many foreigners are coming in village and they also
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extend their business controlled area of expansion real number of clients. This context of
businesses of national park with international and national park in government as a business
enterprises focus on growth of business in their travel and tourism industry.
Macro and micro environment
SWOT analysis is a tool that owners are defined to their strength, weakness,
opportunities and threats in their business organizations. Oak Tree Inn should give their insights
to various structures strategies and their business operations (Atiku and Abatan , 2021).
Strength
This company gives the people for their
safe accommodations to each and every
one employee to kick back and relax
with their every customer.
There is a high profit margin which
require huge capital which is worthy
for their investment and as a cost of
labor and profit margin should be
higher.
Weakness
There is a high tax rate of hotels which
has thousands of dollars of a single
night and that's why they lose their
customers and easily not attract to their
customers as compared to other
competitors throughout the world.
This Oak Tree Inn has a fixed tax rate
which is turn into cost of services and
some hotels rooms are beautiful which
change per night are.
Opportunities
There's a new market segments for a
creative more opportunity and their
investments to become a more crowded
and making a travel and tourism
industry are lodging.
There is more scope in technology they
have artificial intelligence to upgrade
their property and also involved there
some part of the services also (Calof,
Meissner and Vishnevskiy, 2020)
Threats
The main threat of this Oak Tree Inn
hotel that there is a competition when
another firm are enter into a new
segment and same hotel management is
a competition between them.
Economic recessions are should be
developed that they have followed to
strict rules and regulations to their
guidelines according to their
government instructions which reduce
the organization agencies.
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PESTLE Analysis
Pestle analysis is a strategic and long-term tool for macro environmental factor which
they have directly impact of business organizations and to maximize their opportunity and
minimized their threat to their profitability and productivity in an efficient manner. Key PESTLE
analysis of Oak Tree Inn which are described below:
Political: Political factors are directly force political factor which are named as political
stability, rules and regulations, trade restrictions and so on which are highly influential to make
their policies and procedures for implementation and government (Ilmudeen, 2019)
Economic: Economic factor are directly impact their employment rate with a direct
impact of hotel should identify and will provide higher in their customers for hotel services.
Social: This type of factor are directly impact their arrangement in their civilization
because of Oak Tree Inn are carefully examine the force of demand and supply in financial
system and social reform accepted which determine their different kind of consumption in
society.
Technological: Technology factor of Oak Tree Inn are enough to fail to other business
organization also other factors of new technology have to be determined such as a social media
Face book and ways to be developed for their hotel services that customers are attractive through
this hotel.
Legal: They should be determine their health and safety for this organization need to
complete their different firms for different attitudes and define health and safety so it will be
improved for carry out their research in market (Lill, Wald and Gleich, 2020)
Environmental: This factor shock of surrounding of environment there is a climate
change and changes are become a part of the world and climate shift some environment are
regulated for rules and regulations to be constructed local level of policies and rules and
regulations.
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Porter’s five forces model
Threat of new entrant: If new competitor are enter into a marketplace that the present or
previous players can earn less proceeds or less income generated because of economic of
industry are difficult to accomplish their goals and objectives to complete and firms are operate
with the protections because for new competitor.
Bargaining power of buyers: Sometimes buyers are also stronger for their prices and
decrease their limited potential earning more sustainable profit of businesses and if numbers of
suppliers are increased number of firm which produces a product that means buyers can choose
their new organization and do not have control over their prices (Nam, Lee and Lee, 2019)
Bargaining power of suppliers: Suppliers have also a strong power because of the
higher prices are operate in business and supply as a control over their business organization and
give field prices to less differentiate cost are there and it makes it easier for suppliers. Suppliers
can purchase their raw material at low cost prices and cost of appropriate or suitable they can use
other price of cost also.
Threat of substitutes: Oak Tree Inn is high because these companies invest in their
research and development to take risk in the business organizations are there are many
substitutes are available for producing low profit earning and ceiling of maximum profit of the
business organizations which firm operates.
Rivalry among existing competitors: There are a number of rivals and size of rivals are
large share of market this means that will be completed in market gain and complete positions as
a strategic advantage to become a great leaders because of firm to make to push their full
capacity and which makes to reduce their prices and demands slacken.
Two potential strategic options
SWOT analysis are helpful for the firm which are helpful to internal and external
opportunities and threats which provide strategic actions which is to be undertake (Park, 2020).
There is one way to make up their operations to firm using TOWS matrix to combine their next
macro environmental opportunities which are there in an organization that is a strength and
weaknesses to come up with following strategies based on some condition. Opportunities are
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those factor in which can be applied to sustainable aggressive advantage so that they can increase
their demand and supply for a particular product or services for stock are favorable situations
that can be harmful for biggest strength through their competitors to increase their raw materials
and whether it's a weakness and lack of resources to her abilities which can generate economic
value and sustainable competitive advantage and should be generated to their business
organizations for staff. Strength may be in firm ability use to use firm specific product or service
to provide higher level of customers and attract more customers in retail market and should be
considered to develop their firm strategy internal strength are matched with outside opportunities
and inside weaknesses are competition with external opportunities, internal strength are match
with external threats and internal and external threats for these are connected with each other to
gain competitive advantage of the business organization should be identified.
Evaluate two strategic choices from research
Strategic choice is a process which is perform many action in firm organizations to their
market for opportunities, threats and strengthen market research to their managers and legal
requirements are better to some strategic actions (Schachtner, 2021). Some choices are
especially because they can complete their steps of process of their resources and strategic
choices are should be determined that what product or service, what they sell, where to sell and
what type of different target market to sell them. To gain market share they could be acquiring
and rivals to focus on their spelling trade instead of their potential consumer. To identify their
choice is using SAF analysis such as suitability, acceptability and visibility which are described
below:
Suitability: It is most important analysis for a SAF model because whether it is a strategy should
be used or not they are all satisfied with their analysis. It is usually assess their number criteria
which is most significant for environment or surrounding their expectations appropriate and
capability for some individual category which need to be there for a particular needs and wants.
In order to assess their capability for business organizations they can ask some such questions
and using their strength completely overcome with such analysis (Schweitzer, Hofmann and
Meinheit, 2019)
Acceptability: This type of analysis is used to measure their risk and return for their reactions
and stakeholders are resulting with a particular strategy for stock return value method which is
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based on stakeholder that could be financially as well as their non-financial. This will be
depending upon their stakeholders to decide what is right now and what is wrong in particular
situations in a business organization for stock calculation also perform returning by measures a
numbers and which is cost benefit analysis. Shareholder are very profitable and productivity. If
they should talk about their risk and return probability and displays their losses in business
financial risk and measure which will impact their shareholder and should be determine how
acceptable strategies is (Wu, Wu and Harrison, 2019)
Feasibility: When it comes about their feasibility analysis in SAF model which is really
to make that broke their tools and strategies because the way that is a source of businesses and
determine how implemented study a key factor for success of business is a financial feasibility is.
It is to be assessed by focusing some techniques and analyze cash flow in their business
organization and break even analysis also.
CONCLUSION
As per the above information, it has been understood that strategic organization which is
to appreciate their investor and managers determined by they would share in business
organization has been closed their complete analysis for performance at the end of positions.
This topic covers overview of firm, macro and micro environment such as porter 5 forces model,
PESTLE analysis, two strategic options, two strategic choices from research and analysis using
SAF model.
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REFERENCES
Books and Journals
Acharya, S., 2019. Beyond learning outcomes: Impact of organizational flexibility on strategic
performance measures of commercial e-learning providers. Global Journal of Flexible
Systems Management. 20(1). pp.31-41.
Al-Azzam, Z. F. and Al-Qura'an, A., 2018. How Knowledge Management Mediates the Strategic
Role of Talent Management in Enhancing Customers' Satisfaction. Independent Journal
of Management & Production (IJM&P) v, 10.
Calof, J., Meissner, D. and Vishnevskiy, K., 2020. Corporate foresight for strategic innovation
management: the case of a Russian service company. foresight.
Ilmudeen, A., 2019, August. Impact of IT governance mechanism on IT-enabled dynamic
capabilities to shape agility and firm innovative capability: moderating role of turbulent
environment. Proceedings of the 8th International Conference on Management and
Economics–2019.
Lill, P. A., Wald, A. and Gleich, R., 2020. Agility and the role of project—Internal control
systems for innovation project performance. International Journal of Innovation
Management. 24(07). p.2050064.
Nam, D., Lee, J. and Lee, H., 2019. Business analytics use in CRM: A nomological net from IT
competence to CRM performance. International Journal of Information Management. 45.
pp.233-245.
Park, J. H., 2020. Chasing two rabbits: how social enterprises as hybrid organizations manage
paradoxes. Asian Business & Management. 19(4). pp.407-437.
Schachtner, C., 2021. Learning to Transform by Implementing AI into Administrative
Decisions–Disruptive Mindset as the Key for Agility in the Crisis. In Central and Eastern
European eDem and eGov Days (pp. 265-272).
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Schweitzer, N., Hofmann, R. and Meinheit, A., 2019. Strategic customer foresight: From
research to strategic decision-making using the example of highly automated
vehicles. Technological Forecasting and Social Change. 144. pp.49-65.
Wu, Y., Wu, Y. and Harrison, 2019. Achieving Supply Chain Agility. Springer International
Publishing.
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