1. What are the value-adding delivery strategies?
   1. Organizational structure, organizational culture, and strategic resources.
   2. Pre-service, point-of-service, and after-service.
   3. Cost leadership, differentiation, and focus.
   4. Merger, acquisition, and internal investment.

1. Strategies selected by the organization should address external issues, draw on competitive advantages, and:
   1. Keep the organization within the parameters of the mission and values.
   2. Move the organization toward the vision.
   3. Make progress toward achieving one or more of the organization's strategic goals.
   4. All of the above.

1. Planning implementation includes which of the following:
   1. Setting organizational unit objectives.
   2. Developing plans.
   3. Assigning responsibilities.
   4. All the above.

1. Which of the following terms does NOT refer to implementation strategies?
   1. Business plans.
   2. Action plans.
   3. Sequential plans.
   4. Tactical plans.

1. Within an organization, what is the best choice for developing action plans?
   1. The strategic planning team.
   2. The organizational unit.
   3. The chief executive officer.
   4. The board of directors.

1. Specific milestones in the strategic planning process should be communicated to which of the following groups?
   1. The strategic planning team.
   2. All employees.
   3. The organizational unit.
   4. The consultants involved in developing the strategic plan.

1. Which of the following is NOT a characteristic that should be demonstrated by unit objectives?
   1. Objectives should reinforce organizational strategic goals. Strategic goals relate to mission-critical activities. Reinforcing objectives ensures that the various units contribute to the accomplishment of the organization's mission.
   2. Objectives should be challenging but attainable.
   3. Objectives that are easy to accomplish not require stretch. Objectives that are impossible to attain are not motivational.
   4. Objectives should acknowledge the weaknesses of the organization and the strengths of the action plan to be implemented.
   5. Objectives should identify the time frame for accomplishment.

1. The primary value of the Balanced Scorecard approach is:
   1. To focus the health care organization on those aspects of its operations that most directly impact the accomplishment of its strategies.
   2. To provide direction to unit managers in the development of unit action plans.
   3. To measure the success of senior management in communicating the overall organizational strategy.
   4. To inform lower-level employees of the need to pay close attention to the detailed action plans being implemented by their supervisors.

1. Which of the following are components of action plans?
   1. Budgets, control systems and decision support units.
   2. Strategic information systems and culture templates.
   3. Objectives, activities, timetables, and responsibilities.
   4. Tactics, policies and operating instructions.

1. Which of the following statements is TRUE of change in value-adding strategies:
   1. Change in value-adding strategies is the easiest element of strategy implementation.
   2. The pace of change in an organization cannot be influenced by management and leadership.
   3. Successful change in the value-adding strategies requires leaders to establish a sense of urgency for change and to clearly articulate the connections between the new ways of doing things and success of the selected strategies.
   4. Change in value-adding strategies is independent of value-adding support strategies.

1. Which of the following is central to developing pre- service strategies?
   1. Leadership.
   2. Finance.
   3. Marketing.
   4. Capital structure.

1. Which of the following is NOT what a brand represents?
   1. How an organization is structured.
   2. What an organization offers to the market.
   3. What an organization does.
   4. What an organization is.

1. Organizational culture does NOT include the following component:
   1. Shared assumptions.
   2. Behavioral norms.
   3. Competitive posture.
   4. Shared values.

1. Implementation strategies include objectives and plans for:
   1. Directional and adaptive strategies.
   2. Competitive strategies.
   3. The organizational units to accomplish the strategies (managing strategic momentum).
   4. Entering markets and exploiting brand preferences among customers.

1. Which of the following weaknesses of SWOT analysis and the TOWS matrix give rise to the strategic thinking map for matching external issues and internal competitive advantages and disadvantages:
   1. The designation of external issues as opportunities or threats is often arbitrary.
   2. Opportunities are often presented as strategic alternatives rather than independent external issues affecting the organization.
   3. Many external issues may be both opportunities and threats.
   4. All of the above.

1. Which of the following is NOT an expansion of scope strategy?
   1. Diversification.
   2. Horizontal integration.
   3. Vertical integration.
   4. Market development.
2. By pursuing maintenance of scope strategies, management believes which of the following
   1. Investments in maintaining infrastructure will provide a competitive advantage in a stable industry.
   2. Short-term gains in profitability and market share can be achieved by selectively eliminating product and service lines.
   3. The past strategy has been appropriate and few changes are required in the target markets or the organization's products/services.
   4. Maintaining a stable organizational structure will amplify the organization's ability to recognize emerging market opportunities.

1. Which of the following are positioning strategies?
   1. Mergers and acquisitions.
   2. Cost leadership and differentiation.
   3. Defender, prospector, analyzer, and reactor.
   4. Internal development, internal ventures, and
   5. reconfiguration of the value chain.
2. Which of the following is NOT a market entry strategy?
   1. Purchase.
   2. Cooperation with other organizations.
   3. Make internal investments.
   4. None of the above are market entry strategies.

1. Which of the following is NOT one of the fundamental organizational hierarchical designs?
   1. Functional structure.
   2. Divisional structure.
   3. Matrix structure.
   4. Circular structure.

1. Which of the following questions would NOT be helpful in monitoring signals that the basic strategy for the organization needs to be changed:
   1. What is the relative market share?
   2. Has the strategy been tested with appropriate strategic thinking tools?
   3. Have the major stakeholders, inside and outside the organization that will be most influential in ensuring the success of the strategy been identified and evaluated?
   4. If the adaptive strategy is to fill a currently unfilled niche in the market, has the organization investigated whether the niche will remain open long enough to return the capital investment?

1. How does clinical process improvement (CPI) differ from continuous quality improvement (CQI)?
   1. CPI and CQI not differ, they are identical concepts.
   2. CQI focuses on improving existing clinical processes for performance improvement while CPI is a contextual and critical appraisal of current clinical processes to identify opportunities for more effectively providing care.
   3. CQI focuses on operational efficiency and achieving the lowest possible cost while CPI does not consider cost.
   4. CPI focuses on the innovation of ideas, tools, and systems; CQI is a based solely on statistical analysis.

1. Which of the following things must happen to have effective service delivery:
   1. Service delivery managers must translate broader organization-wide strategies into implementation plans.
   2. Service delivery strategies must be developed and managed.
   3. Organizations must demonstrate an ability to learn.
   4. All the above.

1. The organizational structure decision is one of prioritizing which characteristics:
   1. Competitive advantage and market reach.
   2. Internal strengths and external opportunities.
   3. Standardization and flexibility.
   4. Functional structure and organic structure.

1. Which of the following is TRUE of changing strategic resources?
   1. Change in strategic resources is a rare requirement of developing value-adding support strategies.
   2. Change in strategic resources is generally accomplished through acquisitions and mergers.
   3. Change in strategic resources is usually restricted to changes in information systems.
   4. Changing the type or nature of the financial and human resources, information systems, or facilities and equipment can be a difficult and long-term project.

1. Which of the following is NOT a step in the development of action plans?
   1. Assigning responsibility for accomplishing individual actions.
   2. Scanning the environment to ensure changing conditions have been incorporated into the action plan.
   3. Determination of resource requirements for accomplishing each action.
   4. Determination of how results will be measured.

1. If strategy is to be successful it must be integrated into which of the following systems:
   1. Performance evaluation system.
   2. Resource allocation system (budgeting).
   3. Action planning systems.
   4. All the above.

1. Which of the following should be included in employee updates when milestones are reached in the strategic planning process?
   1. Celebration of accomplishment of individual milestones.
   2. Discussions regarding how the process is progressing.
   3. Expected timelines for transferring the planning to the implementation process.
   4. All the above.

1. Strategic alliances include which of the following configurations:
   1. Networks.
   2. Consortiums.
   3. Federations.
   4. All the above.

1. Which of the following is NOT true regarding defenders?
   1. Defenders engage in limited search for opportunities.
   2. Defenders primary attention is on efficiency of existing operations.
   3. Defenders are not concerned about cost efficiency.
   4. Defenders seldom make adjustments in efficiency.

1. What is the characteristic of health care organizations that suggests using extended portfolio matrix analysis rather than BCG portfolio analysis:
   1. Health care organizations operate in a highly regulated environment.
   2. Health care organizations employ the same strategies.
   3. Health care organizations have larger pools of stakeholders than other organizations.
   4. An underlying assumption of BCG portfolio analysis is that high market share means high profitability; however, for health care organizations it is quite possible to have a high market share and no profit.

1. Program evaluation is appropriate for organizations with which of the following sets of characteristics:
   1. Organizations where market share, service category strength, and competitive advantage are not particularly important or not relevant.
   2. Organizations exhibiting low market share, high growth, and low-profitability products and services.
   3. Organizations that are highly regulated and well capitalized.
   4. Organizations with the dominant market share, low or stagnant growth, and low profitability.

1. Which of the following are steps in the development of service delivery strategies?
   1. Decide to maintain or change pre-service activities.
   2. Decide to maintain or change point-of-service.
   3. Compare strategy requirements with the results of the service delivery internal analysis.
   4. All the above.

1. Which of the following is NOT a pre-service activity?
   1. Formalized billing system.
   2. Pricing.
   3. Distribution/logistics.
   4. Target marketing.

1. Which of the following are part of the cognitive assumptions of an organization?
   1. Who we are as a health care organization?
   2. What we are trying to as a health care organization?
   3. What we collectively believe in as a health care organization?
   4. All of the above.
2. Which of the following is an expansion of scope strategy?
   1. Retrenchment.
   2. Status quo.
   3. Vertical development.
   4. None of the above.

1. Which of the following organization structures facilitates the development of strategic service units?
   1. Functional structure.
   2. Divisional structure.
   3. Matrix structure.
   4. Combination structure.

1. Which of the following should strategic managers if they wish to maintain a productive culture:
   1. Review and discuss values and behavioral norms periodically.
   2. Regularly communicate the mission, vision and values.
   3. Reward and promote behaviors that reinforce the directional strategies.
   4. All the above.

1. Self-managed teams attempt to eliminate which of the following:
   1. Hierarchy.
   2. A sense of direction.
   3. Leadership.
   4. Coordination.

1. Which of the following is the underlying assumption when selecting the liquidation strategy?
   1. The organization has a market but is less than formerly.
   2. Joining with another organization will improve operations and earnings.
   3. Internal resources are available for investment at an opportune time.
   4. The organization cannot be sold as a viable on-going operation.

1. The appropriateness of a specific market entry strategy is dependent upon which of the following:
   1. The strategy having been tested with appropriate strategic thinking tools.
   2. The major stakeholders, inside and outside the organization that will be most influential in ensuring the success of the strategy having been identified and evaluated.
   3. The external conditions, the pertinent internal strengths and weaknesses based on the organization's resources, competencies, and capabilities, and the goals of the organization. Each of these three areas should be scrupulously evaluated.
   4. The strategy fills an unfilled niche in the market and the organization investigated whether the niche will remain open long enough to return the capital investment.

1. Brand equity is most accurately defined as:
   1. Knowledge the consumer possesses about a product or service.
   2. Loyalty the consumer possesses with regard to a particular product or service.
   3. A perceptual predisposition of a consumer to support a product or service based on stored knowledge.
   4. All of the above.

1. Disruptive innovations:
   1. Displace market leaders by creating new markets and value networks.
   2. Provide an evolutionary pathway for new idea implementation.
   3. Challenge decision makers to make steady improvements in processes and policies.
   4. None of the above.

1. Which of the following is NOT an important question when attempting to link strategic alternatives and situational analysis?
   1. Does the proposed alternative fit with the organizations mission?
   2. Does the proposed alternative move the organization toward the accomplishment of its vision?
   3. Does the proposed alternative address an external issue?
   4. None of the above.

1. Which of the following are stages in product life cycle analysis?
   1. Decline.
   2. Maturity.
   3. Growth.
   4. All the above.

1. Strategic control is the process of:
   1. Establishing the goals and objectives for the organization.
   2. Determining the activities required to accomplish goals and organizing them under similar categories.
   3. Determining whether the strategies are successful and taking corrective action.
   4. Matching the assumptions underlying strategic decisions with the decision-making process.

1. Which of the following is an advantage of the functional structure?
   1. Fosters efficiency.
   2. Allows a high degree of specialization.
   3. Centralizes control and decision-making.
   4. All the above.

1. Which of the following is NOT a factor in determining community need:
   1. Number of regulatory agencies.
   2. Public and private health care gaps.
   3. Community health objectives.
   4. Community resources.

1. Which of the following methods provides guidance to selecting an aggressive profile, a competitive profile, a conservative profile and a defensive profile:
   1. Product life cycle analysis.
   2. Strategic position and Action Evaluation technique.
   3. Extended portfolio analysis.
   4. Needs/Capacity assessment.

1. Which of the following is NOT a generic strategy?
   1. Cost leadership.
   2. Focus.
   3. Vertical integration.
   4. Differentiation.