This study contributes to the hospitality and strategic management literature through the development of a mid-range approach to the study of environment and strategy. Through the use of cluster analysis and multiple discriminant analysis, four commonly recurring environmental settings were identified. These were (1) a high growth environment, (2) a complex environment, (3) a dynamic environment, and (4) a low growth environment. The significance of the environmental typology was then determined by investigating the proposition that different strategies are associated with high profit performance in each type of environment. In order to investigate this proposition use was made of Miles and Snow's (1978) strategic typology of generic business strategies. No Significant relationship was found between environment, strategic posture and performance. A description of the methodology and statistical approaches used for the investigating the research propositions is included. / Ph. D.