Business Strategy and Organisational Structure: A Case of US Restaurant Firms

In today′s complex and competitive environment, strategic management becomes the primary means of adapting organisations to their changing environment. For firms in the maturing hospitality industry to survive and grow, they will have to depend on their ability to align themselves strategically with the turbulent environment and select appropriate strategies to create defendable competitive positions. The findings of a nationwide study which was conducted to extend Porter′s framework of business strategy to the service industry by exploring the level of strategic management in restaurant firms in the United States are given. Companies′ emphasis in resource allocation in various competitive methods, and the nature of the relationship between strategy and structure are also examined.