Oak Tree Inn’s Applied Business Strategies

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Sandy and Lucy Fraser started a genuinely successful family business. They were able to open a hotel and additional services in a remote area that is difficult for tourists to arrive. Due to the application of prosperous strategies that permitted to use of the picturesque landscapes of the area, and the colorful design of institutions and hotels, the company’s profit has increased. Thus, their family business began to need new development opportunities, which would include the search for investment to solve urgent problems. For example, paving innovative routes that allowed tourists to receive to their destination quickly and in an extraordinary way. The organization already has some ideas for solving this dilemma but is again facing new challenges, such as decision-making. That is, considering the rapid popularity and growth of the business, it is valuable to analyze the applied business strategies and adapt them to modern requirements.

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Analysis of the Business’s Current Strategic Position

It is essential to develop family business strategies that the Scottish government hopes to increase the tourism sector. Therefore, the National Park is actively developed and improved. Thus, new paths and routes are being laid. However, significant to the growth of the Oak Tree Inn is the fact that it is planned to create new places for excursions. For example, due to the installation of various statues, many park visitors want to see all the locations and look for places to stay overnight. In high season there are so many guests that it is difficult for them to walk from the park to the hotel. The strategy of the Oak Tree Inn is not to restrict the movement of people on narrow paths during rush hour. In order to make significant changes, it is necessary to apply the strategy of creating valuable alliances with the government (Girod and Whittington, 2017, p.1123). Thus, there will be an opportunity for the business to receive additional funding for the construction of new roads and for the government to create comfortable conditions for improving the tourism business.

The company’s next business strategy is to increase the organization’s revenue in 2018 and 2025. There are several ideas on how to do this, from expanding the territory to introducing new services. Although the problem is that there is no single group that will make decisions in the company. The gap between the creation and implementation of the strategy is based on the lack of an operational body that can present a development plan. Thus, now the family business can offer investors to explore the potential of the company and invest capital only in their data. Therefore, removing gaps is a prerequisite for future business development. Accordingly, it is essential to develop a definite organizational structure that will share roles and responsibilities in the team (Kannan‐Narasimhan and Lawrence, 2018). In this way, it will be clear which of the owners or employees is responsible for a particular sector in the business.

Another strategy of the company is to recruit not only seasonal workers from Eastern Europe but the required number of permanent staff. As of now, business owners are solving such trivial issues as problems with sewage and water shortages. Accordingly, they have insufficient time to establish contacts with investors and business partners. The company employs seasonal workers on a short-term basis, but for the low season, they will return home (Hautz, Seidl, and Whittington, 2017). Therefore, the question arises that such staff turnover has a negative impact on the quality of assistance.

In order to increase profits, the organization needs to offer excellent services. The strategy is to encourage people to work on a permanent basis in the company. Another strategy adopted by Oak Tree Inn is to be constantly present on social networks. The owners hope that disseminating information about the location and benefits of their hospitality complex will allow them to compete successfully in the tourism industry (Hautz, Seidl, and Whittington, 2017, p.300). However, visitors are often interested in local food and products. Accordingly, the company plans to apply a strategy that will offer special flavors of ice cream and coffee for visitors. Therefore, certain foods and beverages can only be tested at the Oak Tree Inn. Thus, current business strategies are designed to increase the productivity of the organization and profits in the future.

SAFE: Suitability, Acceptability, Feasibility, Evaluation

When creating a strategy for business, a company needs to analyze and assess the effectiveness of its implementation, but SAFE: Suitability, Acceptability, Feasibility, Evaluation is a competent means of evaluation. The first strategy, concerning establishing cooperation with state bodies to develop tourism, is suitable for implementation. Additional government funding and support for family businesses will raise the funds needed to develop roads (Burton and Obel, 2018, p.8). Further, this will assist in overcoming the difficulties associated with the accommodation of tourists in the hotel since the availability of transport routes will open the possibility of access to the national park. As a result, they will demand a place to spend the night. In the long run, the public tourism sector will expand, and revenues at the Oak Tree Inn will increase.

The acceptability of this is measured in the future popularity of hotels and growing profits for businesses and the state. Comparatively, for feasibility, the strategy will be successful only after the management system is reformed and established. Thus, then the company will be able to qualitatively solve problems with the involvement of equipment for construction and human resources (Dichev et al., 2016). Thus, the evaluation of this strategy can be positive after organizational reforms.

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Intimately related to the previous strategy is the creation of an operational body to address essential assignments. It is highly suitable for overcoming the challenges that exist in the form of decentralized decision-making and the lack of division of management responsibilities. The policy will be acceptable if family business owners can share leadership roles and consolidate the CEO position. Therefore, there is a risk that the division of duties will lead to a complex relationship between the partners. However, in case of successful negotiations, the strategy will improve the feasibility and increase the overall liquidity rating of the project.

A primary strategy is to attract permanent employees, which is essential for expanding opportunities and offering new quality services. The lack of professionals leads to an increase in the number of dissatisfied tourists, which reduces the overall assessment of the company’s viability. Thus, it is valuable to establish certain benefits for employees who will live close to the corporation and work all year round, despite the number of customers in the season. This can be done by providing higher than average wages in the region. Additionally, an excellent opportunity is to offer a seasonal worker from other areas to move to live with a family near the company (Grooms, 2017). In this case, the firm can offer them to pay in part for the purchase of housing or provide an apartment from the organization.

The suitability and acceptability of the company’s appearance strategy on social networks are unquestionably justified due to the possibility of attracting new customers. Also, a virtual description and photos of hotels and restaurants will help customers appreciate the beauty of the proposed place. The feasibility criterion refers to the fact that a person who is interested in the company’s growth should disseminate information on the Internet. In addition, along with expanding the range of unique souvenirs and food and promoting these opportunities, profits will increase. The final recommendation for the company is that these strategies are suitable for future applications. However, to meet the company’s needs to expand and increase profits, it is essential to make reorganization changes and solve employees’ problems.

Organizational Structure and Leadership

This type of business is undoubtedly unique because the idea is held by the goals and ambitions of one group, who strive to turn the village into an attractive vacation destination. The key to success is considered detailed planning and development. The concept is also presumed that the family and residents will be provided with jobs and opportunities for professional development. The business’s organizational structure deserves special attention because its change is one of the critical conditions for the further expansion of the concept. It is crucial to remark that there is still no single management body, and family members make all final decisions by consensus. There are no formal processes and no reliable information systems based on capabilities rather than plans. Even though this management process system contradicts the models that have already proven their practical effectiveness, it must be recognized that it has been successful (Whittington et al., 2020). However, this does not mean that the lack of a specific financial plan and a responsible body will not continue to hinder the development of the business.

On the contrary, as the number of clients and services increases, there is an urgent need to reform the organizational structure and enable effective communication between the members involved. Today, the company is no longer simply a family-oriented enterprise. In addition, the lack of monitoring and sufficient human resources and improper allocation of time only become obstacles to further development. Also, it is essential to introduce a more brutal approach to strategy and the ability to delegate authority to specific people. Businesses of this scale can no longer rely solely on intuition but must be replaced by analysis and factual certainty.

However, it is also essential to keep the initial idea, the key to which is the family environment. Employees must have a sense of team spirit, as well as the necessary skills and abilities. They need to switch to different elements of running the business depending on specific problems. Business owners are influential leaders because, under their past work, they understand how to worry about long-term goals and form a stable enterprise (Whittington et al., 2020). However, they also understand that changes in organizational structure and the way they manage are inevitable.

Moreover, it is essential to note that only strategic leaders, whose personal qualities and reputation make them key figures, can influence an organization’s strategy. It is especially appropriate for family businesses, especially in the context of this case study. However, according to the study, CEOs who are not considered founders but are salaried employees are also valuable workers (Xie et al., 2018, p. 259). They can bring unique expertise and offerings and therefore expand the market. Founders are more successful in achieving rapid company growth in the initial stages if they apply prior knowledge. While salaried employees need more time to accumulate knowledge and skills, they can develop more successful strategies in mature and competitive markets.

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Regarding the ways of strategic leadership, the obvious fact is that one person cannot command such a vast business and control all aspects. Even at once, four individuals managed the project. The transformational leadership model is well illustrated in this context. The emphasis is on the purpose of the organization, to create an identity, the collective value of the family business, and the beliefs that support that vision, and hence motivate people to achieve it (Williams et al., 2017, p. 735). This approach positively affects workers, and interviews are even held in the home’s living room so that people immediately feel the atmosphere of family comfort and embrace the idea. However, it is essential to note that it is also vital to apply transactional elements in the concept of leadership. Its elements provide problematic leverage and change, the development of a system and control, which is missing for further development. Transformational leadership is a very effective model, but alone it cannot provide a solution to all the challenges of market globalization. Therefore, emphasis should be placed on restructuring and careful project management, and performance monitoring.

As for the scale of change, the business model and strategy development will depend on it. For example, if new products and services are introduced gradually, fundamental modifications are not necessary. They can be introduced gradually, which will give time to develop the necessary skills and opportunities to make adjustments following existing experience (Bartlett and Beamish, 2018). At the same time, the introduction of information technology, the development of a website, booklets, and significant changes in the management structure require a more transformational model. It means that there will be a reconstruction of the business. In this environment, it is very effective because it presumably changes the organization quickly, while the culture of the business model is not changed.

Since the market is rapidly evolving, it is impossible to accurately determine whether the business can withstand the fierce competition or receive the necessary income. Therefore, it is crucial to regain control of the situation and focus on the speed of change. The key to success in the change process is identifying the target audience or market segments that will force profits and generate money. It is what a company that is constantly looking for new revenue opportunities does. It is an excellent example of how to define your target audience.


Thus, a successful family business needs to expand and improve profits, which can be achieved by implementing existing strategies. Although they need to be developed in terms of organizational structure and leadership, a clear division of responsibilities will increase the efficiency of the enterprise. Then the owners will be ready to solve problems by attracting investment and cooperation to expand roads. Accordingly, the business needs to increase the staff of permanent employees who will be able to provide comfortable accommodation for tourists. Therefore, adherence to certain strategies will assist ensure quality customer service and increasing profits.

Reference List

Bartlett, C. A. and Beamish, P. W. (2018) Transnational management. Cambridge University Press.

Burton, R. and Obel, B. (2018). ‘The science of organizational design: fit between structure and coordination’, Journal of Organization Design, 7(1), pp. 1-13.

Dichev, I. et al. (2016) ‘The misrepresentation of earnings’, Financial Analysts Journal, 72(1), pp. 22-35.

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Girod, S. and Whittington, R. (2017) ‘Reconfiguration, restructuring and firm performance: dynamic capabilities and environmental dynamism’, Strategic Management Journal, 38(5), pp. 1121 -1133.

Grooms, J. A. (2017) ‘The art and science of attracting today’s next-gen workforce is digital by design’, Strategic HR Review,16(4), pp. 177-181.

Hautz, J., Seidl, D. and Whittington, R. (2017) ‘Open strategy: Dimensions, dilemmas, dynamics’, Long Range Planning, 50 (3), pp. 298-309.

Kannan‐Narasimhan, R., and Lawrence, B. S. (2018) ‘How innovators reframe resources in the strategy‐making process to gain innovation adoption’, Strategic Management Journal, 39(3), pp. 720-758.

Whittington, R. et al. (2020) Exploring Strategy Text and Cases. Pearson UK.

Williams, T. A. et al. (2017) ‘Organizational response to adversity: Fusing crisis management and resilience research streams’, Academy of Management Annals, 11(2), 733-769.

Xie, Y. et al. (2018) ‘Leadership style and innovation atmosphere in enterprises: An empirical study’, Technological Forecasting and Social Change, 135, pp. 257-265.

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