CHAPTER 01 TEST BANK

Chapter 1. Basic Strategy Concepts

1. Define the term “strategy” and list seven characteristics of a genuine strategy.

• A strategy is a coordinated set of organizational activities summarized in a sophisticated multi-step plan designed to move the organization toward a future vision that it has defined for itself.
• It is usually one of several strategies being implemented at one time, though rarely more than five or six.
• The effect of strategic initiatives is felt throughout the organization, not just within a single department or facility.
• The successful implementation of a strategy usually requires the commitment of a variety of resources from throughout the organization.
• The time required to implement a strategy is measured in years rather than weeks or months.
• A strategy is intended to produce results at a point several years in the future.
• A strategy utilizes and takes fullest advantage of the organization’s current resources and competencies.
• A strategy takes fully into account the external environment in which the organization operates, with particular attention to any competitors that it faces.
• A strategy is not easily or quickly changed, but also is cast in stone. It is not carried through to implementation if changed circumstances make it irrelevant or inappropriate.
• A strategy is not guaranteed of success. Because it takes effect in the unpredictable future, it is marked by risk and uncertainty. It may fail partially or completely.
• A strategy requires the organization to change some of the activities it is performing now, sometimes in profound ways. Change sometimes presents difficulties and is not always successful.

2. Distinguish between a strategic plan, an operational plan, and a tactical plan.

3. The health care industry is composed of a variety of types of organization. Give the name of a real-life health care-related example of each of the following types of organizations:

4. What is a “strategic business unit” and what are its distinguishing features?

5. If you were the CEO of a health care organization that was looking for a high-level manager to assume significant responsibility for strategic planning, how would you assess the “strategic mindset” or ability to think “strategically” of the candidates for the job?

6. List at least seven steps in a generic strategic planning and management process.

7. List at least seven benefits to organizations that practice strategic planning and management.

8. Describe at least five reasons why a not-for-profit health advocacy organization like the American Lung Association or Health Care for All should engage in strategic planning and management.

9. Describe at least five reasons why a health-related government agency like a state Medicaid agency or a city Department of Public Health should practice strategic planning and management.

10. There are several ways in which strategic planning and management can fail to achieve their purposes. Describe five possible problem areas and recommend steps that could be taken to avoid them.