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strategic management

Questions and Answers of Strategic Management

Read the 2002 article “Integrated Delivery Networks: A Detour on the Road to Integrated Care?” by Lawton R. Burns and Mark V. Pauly in Health Affairs, volume 21, issue 4, pages 128–43. What are
How might alliances be less risky than ownership?
When should an organization consider an alliance rather than ownership?
What major benefits do alliances seek?
What major factors can cause an alliance to fail? What components are key to an alliance’s success?
Which type of alliance might work best for a not-for-profit organization? For a for-profit organization? Why?
How does the use of alliances for research and development help drug companies improve their efficiencies?
How does interdependence determine the type of alliance organizations should form?
Why does members’ degree of control often correlate closely with their degree of equity in an alliance?
How can trust affect the success of an alliance? Why is trust more important in an alliance than in a solely owned firm?
What can occur as an alliance matures? Why?
What are the trade-offs of having a larger versus a smaller alliance membership? When would a smaller number of participants be preferable?
Jackie serves as the vice president for network development for a large, midwestern healthcare system. She has worked with many rural and semirural hospitals to improve efficiency by offering shared
Select a GPO. Identify its locations, services, facilities, and sites, and determine the criteria for membership.
Search the internet for strategic alliances. Find one example of each of the three types shown in exhibit 5.6. In a one-page paper, identify the strengths and potential weaknesses of each
What is a stakeholder? What are some common groups of stakeholders in healthcare?
Why would groups’ or individuals’ interest in and power to influence an organization determine whether they are key stakeholders? What other factors might be considered?
Does an organization’s strategic intent always need to specify a mission, a vision, and values separately? Why or why not?
How might an organization’s culture reflect its established values?
What are the three essential components of a mission?
Why do many organizations fail to use their mission and vision effectively?
What is the purpose of a vision?
A consultant was asked to work with a large academic medical center’s top leaders on their strategies and future plans. The leaders exhibited a great passion and desire to improve their
In the 1980s, two healthcare organizations with distinct cultures attempted a merger that soon ran into trouble. How, and why, are mergers difficult? Consider the following history In 1975, Idaho
Use class discussion and reading to infer the potential effect of various statements of strategic intent on organizations’ strategic behavior.a. Choose two for-profit and two not-for profit
Look at the following three mission statements, and evaluate them using the mission evaluation criteria given in this chapter. Which components does each of these statements contain? Lack? What would
Many healthcare organizations have been subject to state and federal fines and criminal investigation. Identify an organization that did not act in accordance with its values, mission, and vision and
Which of Porter’s Five Forces are more dominant in healthcare than in other fields? How does the strength of these forces vary among healthcare sectors?
Identify some switching costs in healthcare. What could a healthcare organization do to minimize the impact of switching costs?
What are the major substitutes for hospital care? How do these substitutes vary by hospital service?
Are insurance companies buyers or suppliers for hospitals? What about physicians? Why is this designation more difficult to make in healthcare?
How does product differentiation affect the level of rivalry in a market?
How are products and services in healthcare different from one another?
How is quality determined in healthcare? How is clinical quality different from service quality?
How can strategic groups be used to determine market competitors?
Can mobility barriers be created by industry incumbents? If so, why would they desire to create them?
How can driving forces be used to envision the future?
Heightened supplier power often induces responses from buyers. As described in the following case, the consolidation and market power of the insurance company Anthem created situations that required
It is December of 2021. The NHL Health System has many decisions to make. Its capital budgeting process requires that the largest capital investments, those more than $5 million, be approved by the
Select a healthcare company with which you either are reasonably familiar or on which significant public information is available, and perform a PEST analysis.
Develop a list of 10 barriers to entry for the following healthcare organizations:(a) Hospitals,(b) Physician practices,(c) Nursing homes,(d) Health insurance companies, and(e) Pharmaceutical
What are the differences between resources, capabilities, and core competencies?
To sustain a competitive advantage, an organization must have resources with what characteristics?
Can an organization gain and sustain competitive advantage by having cutting-edge technology? What problems are inherent in this approach?
Which of the following approaches is most likely to sustain an organization’s strategic advantage? Why?a. Buying new equipmentb. Being the first to add a new servicec. Having a unique culture
What are the benefits and challenges of having culture as a core competency?
Why do data need to be translated into useful information?
How do benchmarking and trend data differ?
Why is it important to consistently evaluate data that reflect how well key stakeholders’ needs are being met?
What is the value of gathering data over time and trending them?
What can be done to use SWOT analysis more effectively?
How can a value chain be used to improve different levels of an organization and an industry?
What are the pros and cons of using portfolio analysis? In your opinion, which dimensions contribute more information?
A large, not-for-profit healthcare organization spent one year developing its first strategic plan. It involved both internal and external stakeholders, created a mission and a vision, gathered trend
Sue was just hired as the director of the Springfield Public Health Department. She had been an assistant director in a public health agency located in another state. She was excited to take her
In groups of three, pick a local healthcare organization with which you are familiar. Conduct a SWOT analysis on the organization. After completing the SWOT analysis, use the template in exhibit 8.12
A large pharmaceutical company wants to ascertain how well it is meeting the needs of its stakeholders. The business development team determines that the key stakeholders it wishes to survey include
Begin with a specialized physician and draw a value chain map. List the different influences that impact the specialized physician from both the upstream and downstream value chain.
What specifically makes prescriptive analytics more difficult to develop than descriptive or diagnostic analytics?
For each component of the value equation not already listed in the chapter—quality, service, and cost—list two possible healthcare measures.
What are some variables that a health system may measure and visualize as part of an industry map?
In what scenario would a data map be an ineffective choice for visualizing data?
How does a pivot table differ from a VLOOKUP function?
What role does a primary key play in performing a data join?
How does a high R2 value relate to the value of a linear regression?
What is an example of a commonly used algorithm in healthcare?
What is the difference between data analysis and data extraction?
Consider a predictive breast cancer analytical model. Is a false negative or a false positive a more concerning error? Why?
The 2020 coronavirus pandemic not only impacted and killed millions of people but also caused a dramatic decrease in utilization of primary care. The Boise Medical Group (BMG) in Idaho serves 10
WFJ Health has been in a rapid growth phase for the last five years. On average, the health system hires 20 new providers each year across its largest internal medicine clinics throughout the
Select several US states to compare. Calculate the following ratios and compare the values among the chosen states: hospitals/state population; GPR/hospital; GPR/staffed beds; and total
Download a free student trial of a major data-visualization tool (e.g., Tableau, Microsoft’s Power BI). Watch introductory training videos as needed and create the following visualization types
Select three local hospitals that are familiar to you. Choose three metrics to represent on an industry map: one metric each for the x-axis and y-axis and one for the size of each icon. If possible,
Why do healthcare leaders need to understand finances and learn to use financial tools?
How do operating statements and balance sheets differ? How are they similar?
How do ratios offer more information than balance sheet data do?
What organizational aspect do liquidity ratios demonstrate?
To which type of healthcare company would the acid test ratio likely be more applicable than the current ratio? Why?
Why would an organization have a large number of days cash on hand? How could its strategic plans influence this number?
How does inventory reduction affect the cash position of an organization?
How does debt benefit an organization? What load of debt is considered too great?
How can a public hospital have a low or negative operating margin yet have enough funds to survive and prosper?
What factors affect the magnitude of the time value of money?
What are the advantages and disadvantages of basing strategic decisions on NPV?
How can the use of NPV and IRR together help leaders make better capital allocation decisions?
What is the benefit of basing strategic decisions on payback period? What problems does use of this metric present?
In what situations could breakeven analysis be used effectively?
What is the advantage of performing sensitivity analysis along with breakeven analysis?
Read the 1987 article by Gerald L. Glandon and colleagues titled “An Analytical Review of Hospital Financial Performance Measures” from Hospital and Health Services Administration, volume 32,
Read the Pennsylvania Health Care Cost Containment Council’s April 2017 report at www.phc4.org/reports/fin/16/docs/fin2016report_ volumeone.pdf, and answer the following questions:a. What do the
Access the Indiana State Department of Health’s website at https:// www.in.gov/health/cshcr/reports-on-health-care-facilities/hospitalreports/2019-hospital-audited-financial-statements. Look at the
How does an organization combine its mission and vision with its environmental analyses to develop a strategic plan?
Why is alignment of employees’ perceptions critical for proper strategic action to take place? Why do you think executives’ perceptions might differ from those of other staff?
How can an organization better align its employees’ perceptions?
Why is it not preferable to have more than seven strategic priorities? Would it be better to have fewer?
What critical factors do leaders need to consider when setting goals and objectives?
What are the advantages of using project charters? What might be some disadvantages?
Why might a person or unit in charge of strategic planning also be assigned responsibility for public relations, communications, and business development?
When and why might a governance board want to organize a strategic planning subcommittee?
What methods can a board or strategic planning committee use to increase communication to stakeholders and better understand their needs and perceptions?

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