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Executive Summary

In this report, several elements have been evaluated that contribute to the leading factors and competitive edge of the corporation belonging to the hospitality sector. The analysis has been performed for Oak Tree Inn company by assessing numerous environmental aspects on the basis of distinct analysis models. The critical assessment has been performed with the help of Pestle, porter and SWOT analysis to recognize various opportunities and threats in the hospitality and tourism sector. The analysis has been thoroughly analyzed to frame two choices for the corporation that can aid in bridging the gap to acquire a competitive edge.

Introduction

Strategic agility is the capability of the firm to rapidly respond to market variations with keeping focus and competency. This phrase means to remain competitive in the market while also identifying the prospects that will assist to decrease the threats (Nyamrunda and Freeman 2021). Through this, the owners of the firm will identify the market variations that could be good or bad for the firm helping them to rapidly adapt to those variations. Formulating strategic agility assists the owners of the business to establish clarity regarding market demand and where they stand in a competitive market. Oak Tree Inn provides friendly guestrooms and pubs with a sound atmosphere and comfortable rooms. The report will cover a brief overview of the firm and its activities with risks and opportunities that the hotel is facing covering both macro and micro environments. Also, it will cover two potential strategic options that will mitigate risks and exploit opportunities.

Brief Introduction of the Company

Oak Tree Inn was found in 1997 as a family-run corporate. and is situated between Heathrow Airport and Central London which is a pub and provides guestrooms to consumers. Along with this, it has an ice cream parlour, B&B accommodation, village shop and coffee shop (Oak Tree Inn 2023). The restaurant provides tasty and affordable food and the bar is very cozy and soothing with a warm atmosphere with a real log fire. The business has derived a long way from successive electrician firm to establishing and developing a new holiday business destination. Oak Tree Inn hires 100 people wide crosswise its village workshop, accommodation and food and coffee drive-thru.

Overview of the Competitiveness of the Hospitality Sector Across the UK

The hospitality industry in UK is dynamic. The sector is the combination of international and national brands that share high level competition. It recorded growth numbers in last years in context to both investments and performance. This sector is expected to grow at 2.5% CAGR in upcoming years. UK’s hotel sector is worst hit sectors during COVID-19 outbreak, but with ease in COVID-19 cases and restrictions, the demand for new hotels is assumed to rise. Hospitality sector tend to grow in Loch Lomond area of Scotland as it covers all from watersports to admiration of breathtaking surroundings. It offers the chances to the customers to spot UK’s rarest wildlife like pine martens, red deer and red squirrels (Forest holidays 2023). Easy of driving distance and popular tourist attraction make it an attractive place for progress of hospitality sector.

External Analysis

Pestle Analysis

Pestle acts as a tool helpful for analyzing external analysis of the nation and making verdicts to build viable edges for the corporation (Simoes 2020).

  1. Political aspects – Scottish government is extremely concerned regarding the tourism sector and deliberates the tourism industry as a crucial source of generating revenue. The association with tourism agencies and stakeholders also supports tourism businesses in raising efficiency and sustainability in this sector (Fonseca and Carnicelli 2021). The stable political environment assists Oak Tree Inn to offer more outdoor activities.
  2. Economic factors – Because of COVID–19, corporations have laid off thousands of individuals from their jobs and this has led people to spend less on holidays and other leisure activities. Apart from this, the tourism sector of Scotland made a contribution of 6 billion pounds to the general GDP (Loureiro 2022). However, because of a lack of housing amenities, Oak Tree Inn encounters complications in retaining personnel.
  3. Social factors – Tourists favour economical resorts with the accessibility of primary amenities. The tourism industry is generating wealth together with social aids in each corner of the nation, that have improved the happiness of society. Oak Tree Inn lay emphasis on ice cream and coffee as their star food items on the sites to improve the experience of customers.
  4. Technological aspects – The progression in technology allows online booking of hotels, travel guides and review sites, and travel blogs also raise tourist attractions (Bhuiyan et al. 2022). Oak Tree In has an eye-catching website with each aspect of the tourism posts. Positive reviews from customers on social media also allow them to determine KPIs for upholding sustainability.
  5. Legal aspects – The visiting cost to Scotland is extremely high. In context to travel price competitiveness, the UK is ranked 140th out of 141 nations by World Economic Forum. Provided the visitor tax would decrease the competitiveness of Scotland, it would take preference over National Tourism Strategy, discouraging the efforts to boost the visitor's revenues and figures (Stewart 2021).
  6. Environmental factors – Tourism in Scotland is focused on upkeeping ecological sustainability by indorsing locally grown superior products to enhance consumer delight. Oak Tree Inn is undertaking measures to keep Balmaha vibrant of clutter and recycle waste items to the extent possible.

Porter’s 5 Forces Analysis

This model will aid the corporation in identifying the probable threats that impact the business profits.

  1. Bargaining power of suppliers – This power is relatively low as Oak Tree Inn is well recognized for producing coffee mixtures and ice cream on its sites. Moreover, it is a family-owned business with members of the family overseeing the major operations.
  2. The threat of substitute goods – This power is higher as Oak Tree Inn faced a lot of competition due to the availability of cheaper options. Various websites like Hotel Trivago, Trip Advisor, etc. filter via their site to showcase to consumers which hotel better fits their needs and budget (Chhabra 2022).
  3. Bargaining power of buyers – It is higher because of new attributes in technology consumers can now look for hotels that are within their budget. This provides the customers with a wide choice of hotels that they can book.
  4. The threat of new participants – It is high for Oak Tree Inn as rising tourism trends and scopes are attracting entrepreneurs, to begin their ventures in the tourism sector. Furthermore, the lack of proficient staff, inadequate organizational structure, higher turnover rate, etc. are posing a great risk for this corporation to shape a competitive edge (Fang 2020).
  5. Competition from existing corporations – This power is fairly lower for Oak Tree Inn as it is a family business and is always engrossed on constant development that fetches them a wide array of selections.

Internal Analysis

SWOT Analysis

Strengths

· Oak Tree Inn has capability in a wide array of services. It grasps the capacity to acquire a sturdier part of the market share in the sector (Breznik et al. 2022).

· Established business extension strategies through services in the food and beverage business.

· Have the capability to offer specialized services on basis of niche demands of the available consumer base.

Weaknesses

· Being a family-run business, it does not operate on a systematic board. Thus, processes may compromise on specialized viewpoints and standards.

· It has recognized a principle focus on client welfare and great client service. However, concerns are linked with the company in creating clear systems for employee welfare.

Opportunities

· Has access to main support from the government.

· With the easing of COVID-19 restrictions, Oak Tree Inn can get a higher volume of consumers (Bonfanti et al. 2021).

Threats

· Factors like Brexit and COVID-19 might cause negative impacts on tourism that may reduce demand for Oak Tree Inn.

· A lack of organizational structure might lead to a lack of interest from stockholders and other participants.

Potential Strategic Options From Analysis

Option 1 – Development of an Organizational Structure

The major issue linked with problems of the company is concerned with the lack of structure of the organization that can take verdicts on behalf of the corporation on issues like operations, employment, account management and property maintenance. The major outcomes from the analysis signify that the corporation requires the construction of precise management and leadership pattern to raise the productivity and performance of the workers (Alblooshi et al. 2021). The capability to accomplish the objectives of the company that possesses a wide array of goods and services is reliant on on the corporation having essential standards of human capital together with a strong work report and enough understanding of allocated tasks. With well framed organizational structure, Oak Tree Inn will become capable of properly managing diverse procedures and assure that every division is under the supervision of qualified professionals. It has been analyzed that the usage of leadership in the company makes a contribution towards the enhancement of motivation and provides a clear path towards accomplishing the objectives of the firm (Khan et al. 2020).

Option 2 Effective Training and Progress Agendas For Personnel

Oak Tree Inn has made corporate models for a wide array of areas associated with the hospitality sector that are exclusive to the corporation. In the current environmental setting, the basic prominence is on the source of hotel facilities and beverage and food-related amenities. To competently implement the market segmentation strategy of Oak Tree Inn, the corporation should assure that highly talented and experienced personnel are available and improve their abilities (Cattermole 2019). The major aspect making contribution to the requirement for higher trained employees in regard to the corporate model of Oak Tree Inn is the deficiency of proficiency among personnel will have adverse consequences on the capacity of the company to function across a wide array of services. In contrast, greater demand for skilled labour indicates that skilled personnel are not easily accessible from the labour marketplace directly. As a significance of this, it is suggested that Oak Tree Inn execute strong training and progressive programs that will allow the company to hire people with potential and prepare them with the instruments they require to grow competency. It has been analyzed that corporations may incorporate the training model that is established through financing assimilated from government structures for the retrieval of the hospitality industry during post COVID stage (Spanaki et al. 2021). The funds being acquired can be cast-off to make operative programs together with reward schemes for high-performing personnel.

SAFE Examination for Two Probable Strategic Options

Analysis for option 1

  1. Suitability - The analysis presented the major issue for Oak Tree Inn linked with the absence of an effective organizational structure. As an outcome, the corporation might establish a competitive edge through the executive of this option. Also, the structure is vital for attracting stockholders to acquire funding for further actions.
  2. Acceptability - The major stakeholders of the company are the Fraser family in custody of Oak Tree Inn and its steady customers. The option might seem challenging because of own reasons from the perspective of ownership. However, from a consumer viewpoint, the approach holds higher value as it is straightforwardly associated with service improvement.
  3. Feasibility – A higher cost is involved with this strategy. The development of a proper structure requires huge expenditure. However, on the basis of financial assistance structures by the UK government, the hotel can object at fulfilling the tactic to the finest of its limit.

Analysis for option 2

  1. Suitability - The option lay emphasis on making sure that the company can establish a higher competent workforce. It holds direct pertinence to findings of SWOT analysis showing strengths in relation to a wide array of services and opportunities concerned with the access of funds via government support schemes.
  2. Acceptability - The option will lead to the upgrading of services for Oak Tree Inn. As a consequence, the main participants of the corporation including clienteles will be offered superior quality and fulfillment (Ozkan et al. 2020). It will also lead to a rise in demand for services of a company that will ensure acceptable marks of return on investment.
  3. Feasibility - This strategic option is regularly used policy by numerous firms and is stated to make sure about steady positive results. The funding of the approach can be associated with the usage of the capital of the corporation as well as fiscal assistance from the administration.

Conclusion and Recommendation

It can be concluded that enhancements in service quality have been linked with the skill levels and competence of the staff of the organization. The component is directly connected with the circumstances surrounding the activities of Oak Tree Inn. As an outcome, the report suggests that the second strategic option concerned with staff training and progress must be adopted. The strategy adheres to proven methods linked with organizational success. It has the potential to offer the company longer-term benefits by appropriately implementing an agenda for requirements of employee performance. Therefore, it can be claimed that the positive linkage of the second option with factors like the growth of the organization, stakeholder satisfaction and enhancement of services and goods makes it an as optimum choice for Oak Tree Inn.

References

Alblooshi, M., Shamsuzzaman, M. and Haridy, S., 2021. The relationship between leadership styles and organisational innovation: A systematic literature review and narrative synthesis. European Journal of Innovation Management, 24(2), pp.338-370.

Bhuiyan, K.H., Jahan, I., Zayed, N.M., Islam, K.M.A., Suyaiya, S., Tkachenko, O. and Nitsenko, V., 2022. Smart Tourism Ecosystem: A New Dimension toward Sustainable Value Co-Creation. Sustainability, 14(22), p.15043.

Bonfanti, A., Vigolo, V. and Yfantidou, G., 2021. The impact of the Covid-19 pandemic on customer experience design: The hotel managers’ perspective. International Journal of Hospitality Management, 94, p.102871.

Breznik, K., Zupan Korže, S., Ragozini, G. and Gorenak, M., 2022. Revealing mission statements in a hotel brand sector using social network analytic approach. International Journal of Contemporary Hospitality Management.

Cattermole, G., 2019. Developing the employee lifecycle to keep top talent. Strategic HR review, 18(6), pp.258-262.

Chhabra, A., 2022. Social Media Transforming Tourist Behavior. In Event Tourism in Asian Countries (pp. 183-217). Apple Academic Press.

Fang, W.T., 2020. Tourism in emerging economies. Springer Singapore.

Forest Holidays. 2023. Everything you need to know about Loch Lomond. [Online]. Available at: https://www.forestholidays.co.uk/forestipedia/everything-you-need-to-know-about-loch-lomond/ [Accessed on: 23rd March 2023].

Fonseca, A.P. and Carnicelli, S., 2021. Corporate social responsibility and sustainability in a hospitality family business. Sustainability, 13(13), p.7091.

Khan, H., Rehmat, M., Butt, T.H., Farooqi, S. and Asim, J., 2020. Impact of transformational leadership on work performance, burnout and social loafing: A mediation model. Future Business Journal, 6, pp.1-13.

Loureiro, M.B.P., 2022. Motivation in the hospitality sector: satisfying and retaining employees (Master's thesis).

Nyamrunda, F.C. and Freeman, S., 2021. Strategic agility, dynamic relational capability and trust among SMEs in transitional economies. Journal of World Business, 56(3), p.101175.

Oak Tree Inn. 2023. Facilities. [Online]. Available at: https://www.oaktreeinnsouthall.co.uk/our-facilities/ [Accessed on: 23rd March 2023].

Özkan, P., Süer, S., Keser, İ.K. and Kocakoç, İ.D., 2020. The effect of service quality and customer satisfaction on customer loyalty: The mediation of perceived value of services, corporate image, and corporate reputation. International Journal of Bank Marketing, 38(2), pp.384-405.

Simões, E.N., 2020. A decision support system application module for PESTLE analysis-competitive intelligence algorithm (Doctoral dissertation).

Spanaki, M.Z., Papatheodorou, A. and Pappas, N., 2021. Tourism in the post-COVID-19 era: evidence from hotels in the North East of England. Worldwide Hospitality and Tourism Themes, 13(3), pp.357-368.

Stewart, M., 2021. The Law and Policy of VAT Tourist Tax Refund Schemes: A Comparative Analysis.

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