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 business process management in hospitality SMES - Essay ExampleAccording to Tangen (2004) , this suggests hapless organisational configuration, which is detrimental to sustained 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 compete 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 just restricted to understanding markets, with poor configuration being found in a number of key aras, including hospitality SMEs relationships with their customers, which are fraught with uncertainty. There is an acknowledged advantage in that wasted firms are closer to the customer, enabling more personal relationships to develop (Crook , 200 3). 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 only 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 oer their futures 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 bear down out that many smaller firms are afraid to press customers too hard for payment for fear of loss of future business. It is this scenario which most firmly affects hospitality SMEs as their limited resources cannot cope with the fluctuations in cash flow that late payment inevitably brings.The ov erall effect of the fiercely competitive environs in which hospitality SMEs operate is that, very often, strategic planning becomes a seemingly