Critically discuss the extend to which formal strategic may be Essay

critically discuss the extend to which formal strategic may be considered to be the draw to effective transmission line process management in hospitality SMES - Essay ExampleAccording to Tangen (2004) , this suggests poor organisational configuration, which is detrimental to continue competitive advantage. Configuration is defined as making choices about what a company will do and how it will do it, andensuring that the things a company does reinforce each other. They argue that the lack of a focused competitive strategy is one of the key causes of poor organisational configuration.However, the problem of organisational configuration is not ripe restricted to understanding markets, with poor configuration being put together in a number of key areas, including hospitality SMEs relationships with their nodes, which are fraught with uncertainty. There is an acknowledged advantage in that small firms are close-hauled to the customer, enabling more personal relationships to develop (Crook , 2003). However, this is tempered by the danger that having a limited customer base (Gray, 2005) facilitates the development of deferential suppliercustomer relationships. Research by Harrison (2003) concludes that, apart from those firms which operate but in very low profit or niche markets, hospitality SMEs are consistently found to be subservient to their larger counterparts. This view is supported by Wong (2005) who suggest that hospitality SMEs have a lack of control over their coming(prenominal)s because of demands made by stronger customers throughout the supply chain. An additional burden is a lack of power to leverage payment of debts from these customers, as noted by (Okumus, 2003), who point out that many a(prenominal) smaller firms are afraid to press customers too hard for payment for fear of loss of future business. It is this scenario which most severely affects hospitality SMEs as their limited resources cannot cope with the fluctuations in cash fly the coop that late payment inevitably brings.The overall effect of the fiercely competitive environment in which hospitality SMEs operate is that, very often, strategic planning becomes a seemingly