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Examines variations in the nature of hospitality operations from a strategic perspective. Operational strategy is regarded as a response to environmental risk. Looks at various ways in which organizations have decentralized their operations in response to environmental conditions. Hospitality units may be classified on the basis of customer perceptions, as “transactional” or “experiential” services. This has the merit of being customer‐ rather than operationally‐focused, and also provides insight into the precise nature of hospitality service.

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