Unit 5 –Mid-term Assignment

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Strategic Planning andMarketing – 8517

Instructions: Please complete the questions below.be sure toanswer questions in a thoughtful, clear and complete manner.

The assignment is worth 5% of your total grade.

(Correct answer underlined)

  1. Strategic thinking is:

    1. An organizational-level activity.

    2. An individual intellectual process.

    3. An element of long-range planning.

    4. Not needed to capitalize on change.

  1. Health policy

    1. Is a very broad strategy.

    2. Is the result of strategic thinking, strategic planning, and strategic management.

    3. Determine the rules of the game that apply to all consumers and providers in the field.

    4. Does not involve governmental activity.

  1. The three stages of strategic management are:

    1. Plan, implement, and revise the plan.

    2. Leadership, professionalism, and management.

    3. Strategic thinking, strategic planning, and managing strategic momentum.

    4. Thinking, planning, and doing.

  1. Strategic management is NOT:

    1. A “quick fix” for organizations with fundamental problems.

    2. A process of completing paperwork.

    3. A process of extending the organization’s current activities into the future.

    4. All of the above.

  1. Which of the following is NOT a role of middle management in determining the strategic direction of an organization?

    1. Keeping the role of quality as a strategic goal before all employees.

    2. Selecting the CEO.

    3. Being involved in the redefinition of organizational vision.

    4. Appealing to the economic motives important to health care employees.

  1. Values and beliefs are directional strategies that provide the focus and parameters for:

    1. External analysis.

    2. Defining internal strengths and weaknesses.

    3. Product and service quality.

    4. Strategic goals.

  1. Which of the following questions would NOT be asked when evaluating directional strategies?

    1. Do our mission, vision, and values fit the needs of our stakeholders?

    2. Do our products and services meet the highest quality standards?

    3. Are we doing some things now that we should not be doing?

  1. Health care organizations DO NOT have to cope with change in which of the following areas:

    1. Competitive.

    2. Economic.

    3. Weather.

    4. Legislative/political.

  1. The Center for Medicare and Medicaid Services (CMS) is:

    1. A health maintenance organization (HMO).

    2. Part of the US Department of Health and Human Services.

    3. A regulator of certificate of need (CON) laws.

    4. A provider of electronic medical record (EMR) services.

  1. One of the specific goals of environmental analysis is:

    1. To measure organizational efficiency.

    2. To develop a list of “one-word” descriptions of the external environment.

    3. To ignore minor competitors.

    4. To provide organized information for the development of the organization’s internal analysis, mission, vision, values, goals, and strategy.

  1. The four fundamental processes of environmental analysis are:

    1. Asserting, seeing, seeking, and meeting.

    2. Thinking, planning, checking, and doing.

    3. Scanning, monitoring, forecasting, and assessing.

    4. Detecting, guessing, measuring, and implementing.

  1. The three elements of service delivery are:

    1. Pricing, quality, and marketing.

    2. Target market, clinical operations, and billing.

    3. Pre-service, point-of-service, and after-service.

    4. Branding, process innovation, and clinical.

  1. The three subsystems that support service delivery by ensuring an inviting and supportive atmosphere, an effective organization, and sufficient resources such as finances, highly qualified staff, information systems, and appropriate facilities and equipment are:

  1. Pricing, quality, and marketing.

  2. Organizational culture, organizational structure, and strategic resources.

  3. Pre-service, point-of-service, and after-service.

  4. Branding, process innovation, and clinical.

  1. The two categories into which capabilities may be classified are:

  1. The ability to make dynamic improvements to the organization’s activities through learning, renewal, and change over time.

  2. The ability to develop strategic insights and recognize and arrange resources and competencies to develop novel strategies before or better than competitors.

  3. Both a and b.

  4. Neither a nor b.

  1. Organizational weaknesses represent competitive disadvantages when they:

  1. Are present in the organization.

  2. Are more prevalent than the weaknesses in a competitor.

  3. Are arranged into a matrix and sorted by relevance.

  4. Are of high value to stakeholders, not possessed by competitors, not easily eliminated, and such that competitors can sustain their strengths.

  1. Stretch is accomplished through:

  1. Effectively assessing organizational strengths and weaknesses.

  2. Resource leveraging or systematically achieving the most possible from the available resources.

  3. Focusing only on high-value, rare strengths.

  4. Eliminating all competitively relevant weaknesses.

Please circle or select the correct answer. (Correct answer inred)

  1. Managing strategic momentum is how an organization constructively manages change, evaluates strategy, and reinvents or renews the organization. T or F

  1. Much of the legitimate work in an organization does not contribute to the accomplishment of the strategic plan. T or F

  1. An organizational mission is a broadly defined and enduring statement of purpose that distinguishes a health care organization from other organizations of its type and identifies the scope of its operations in product, service, and competitive terms. T or F

  1. Mission statements do not reference the principal services delivered or products provided by the organization. T or F

  1. A mission statement helps all employees focus their efforts on the most important priorities. T or F

  1. An effective vision clarifies the picture of the future by stabilizing the strategic capabilities of the organization. T or F

  1. It is important that managers, employees, and key stakeholders understand the values that are expected in an organization. T or F

  1. Environmental analysis is largely strategic thinking and strategic planning and consists of understanding the issues in the external environment to determine the implications of those issues for the organization. T or F

  1. External environmental analysis does not inform the analysis of the internal environment. T or F

  1. Evaluating the strengths and weaknesses of the functional elements of a health care organization is as effective as evaluating the organization’s value chain. T or F

  1. The organizational structure increases patient satisfaction by effectively and efficiently facilitating the service delivery. T or F

  1. The continuous evaluation of an organization’s strengths and weaknesses is NOT a critical part of strategic momentum. T or F

  1. The competitive relevance of an organizational strength is a function of value, rareness, imitability, and sustainability. T or F

  1. An organizational strength that is of high value, rare, difficult to imitate, and easy to sustain contributes to long-term competitive advantage. T or F

  1. Only financial resources may be leveraged by an organization. T or F

  1. An organizational weakness that is of high value to stakeholders, possessed by competitors, easily corrected, and such that competitors can sustain their advantage presents a competitive disadvantage. T or F

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Complete the questions below:

  1. 123 Organization is now ready to develop their mission statement. The team has brainstormed the Mission components below develop a mission statement for the following organization.

Mission Statement Components

Key Words of Our Mission

Target customers/clients and markets

Primary care physicians and patients

Principles services/products offered

Practice modernization, technology, administrative support

Geographical domain of operations

Local communities, nationwide

Commitment to specific values

Improving care delivery

Explicit philosophy

Best medical decision making at moment of care

Other important components

Care through partnerships

Mission statement:

The mission of 123 organizations is to provide world class healthcare services to the local and national community through innovationand excellence in primary care, best medical decision, modernizationof out facilities in an environment where physicians and primary caregivers are committed to the wellbeing of our patients.

  1. Describe strategic management in the health care industry

Strategicmanagement is the health care industry is formulating andimplementing of the major goals of the health care organization bythe management based on an analysis of the resources available andenvironmental analysis. Strategic management provides a direction inwhich the health care organization will follow to meet theorganization’s goals and objectives by formulating policies andallocation of resources.

  1. What are the differences between a mission statement and a vision statement?

Whileboth mission statement and vision statements focuses on the goals andobjectives of the organization, they are very different. The missionstatement is concerned with the present activities of theorganization. It therefore defines the target clientele or customers,describes the essential processes or activities and gives theexpected performance level. On the other hand, a vision statementconcentrates on the future of the organization. It gives theorganization and its employees a source of inspiration to further theorganization’s goals in the future. The vision statement describesthen future of the organization in relation to all the stakeholders.

  1. Why are values important to an organization?

Organizationalvalues are very essential in strategic management. Values in anorganization provide essential support to the vision of theorganization in achieving its goals and objectives. They define theprinciples and philosophies that guide the organization towardsachieving its objectives. The values of the organization are a guidesthe employees on how to related with the client, other employees andstakeholders. The interaction with external players and stakeholderssuch as competitors, regulators and suppliers is also based in theorganization’s valuses. They are game changers in the workplaces,result into personal growth among employees and improves engagementwith workers, customers and stakeholders.

  1. How do strategic goals relate to critical success factors?

Strategicgoals are the planned objectives that a health care organization aimsat achieving within a stipulated time. Critical success factors rethe things that must go well for the organization has to besuccessful.Critical success factors are the essential activitiesthat are critical in the achievement of strategic goals in anorganization. Therefore, critical success factors can be viewed as ameans of achieving strategic goals.

  1. What are some of the practical limitations of environmental analysis?

Environmentalanalysis is a basic step in strategic management. However, there areinherent challenges. These challenges include inaccurate orincomplete assessment of the environment and the resources and timerequired to conduct a successful environmental analysis. Anotherchallenge is organizing the huge data collected to make it useful instrategic management. However, there limitations can be overcomethrough proper planning and allocation of adequate resources.

  1. How does an organization achieve a competitive advantage?

Everyorganization aims at achieving a competitive advantage where itoutperforms its competitors in the market. Competitive advantage canbe achieved through cost leadership where the organization offers itsproducts at relatively cheaper price compared to the competitorswithout compromising on quality. Differentiation can also be used toachieve competitive advantage where an organization seeks todifferentiate itself from the competitors. Competitive advantage canalso be achieved through alliances with other related business andusing defensive strategies.

  1. Based on the attached case study on CBCC, answer the following questions:

Who are the CBCC stakeholders and what are the benefits ofconducting this type of environmental analysis? On what you knowabout CBCC, write a mission and vision statement for them?

CBCC is a community based organization which aims at increasing thesupply of blood in the Charlotte-area. The organization wasestablished through an effort of ten health care facilities in thearea to resolve the increased cost of blood especially from RedCross. The main stakeholders are hospitals in Charlotte-area, donors,sponsors and the immediate community.

Mission statement:

Community Blood Center of theCarolinas is committed to providing safe and adequate supply of bloodat affordable costs.

Vision statement:

Community Blood Center of theCarolinas vision is to become a blood center with no equals through

  • Provision of adequate and affordable supply of blood,

  • Service decisions that focuses on donors and patients,

  • Maximizing value to our sponsors.

CASE STUDY

Community Blood Center ofthe Carolinas: Donations, Donations, Donations

OVERVIEW

In 2002, Tom Hassett, group Vice-President for Carolinas HealthcareSystem, was responsible for studying the laboratory service line. Hediscovered that blood costs were increasing more rapidly than others.In just one year, the cost for blood had doubled. Most hospitals inthe area were experiencing the same situation. Discussions with theRed Cross (the dominant supplier of blood in the area) went nowhere.Other hospitals called to express their interest in looking at analternative to the Red Cross. The Community Blood Center of theCarolinas (CBCC), the first community blood center in North Carolina,emerged as a result of the effort by ten Charlotte-area hospitals. Itwas the first time that there had been such extensive collaborationto resolve a common problem – the rising cost of blood.

CBCC faced some difficulty in blood collections, a key successfactor. It was very important to CBCC that the blood donated in thearea would stay in the area to help family members, friends, andneighbors. For years, the American Red Cross had blood drives in theregion sponsored by the major corporations, government entities, andchurches – it was really entrenched. Collecting blood was nearlyidentical no matter whether it was the Red Cross or a community bloodcenter because the process was so heavily regulated by the FDA. Themajor differences were in donor satisfaction and sponsorsatisfaction.

CBCC urgently needed to expand the number of donors and sponsors,increase its cash flow, and increase the level ofcustomer/donor/sponsor service to survive. This was critical for CBCCto survive.

KEY ISSUES

  1. Competing against a well-entrenched, well-funded, and well recognized organization in the industry – a real Goliath.

  2. Developing challenger strategies.

  3. Differentiating a nearly identical service.

  4. Surviving with weak cash flow and “shallow pockets.”

  5. Building awareness for a new, cash-poor organization.

  6. Making decisions about product/market scope when the organization faces many challenges.

SWOT ANALYSIS

Internal Strengths

CBCC is focused on serving the needs of blood donors, patients, andhealth care providers in the Charlotte region. • CBCC exceededrequirements on all factors for the annual FDA inspections meetingthe high quality standards the organization set for itself. • TenCharlotte-area hospitals committed to work together to develop andsupport a community-based blood organization. • Doctors could getblood products to best meet the needs of their patients. • Highlevel of donor and sponsor satisfaction. • CBCC charged hospitals$150 per unit of blood (the Red Cross charged $200 per unit). •CBCC board members included medical experts and business leaders. •CBCC is a member of American’s Blood Centers (ABC) and the AmericanAssociation of Blood Banks (AABB). • Additional blood can bepurchased from other ABC blood banks to fill the area hospital needswhile CBCC redoubles its efforts to increase collections. • CBCCprovided donors with a choice of where they gave blood.

Internal Weaknesses

Blood collections in 2003 were one-half of the projected amounts (700units collected vs. 1,400 projected). • Initial and 2003 CBCC costswere significantly higher than budgeted or anticipated. • CBCC mayrun out of cash by September 2004. •CBCC used paper donor forms andrequires transcription of donor information and has a high errorrate. • Very little awareness of CBCC in the community. •Miscalculation of the challenges in recruiting sponsors and donors. •High costs: leasing a huge facility, leasing of two apheresismachines, more than needed specialized employees hired, and so on. •Because of high costs and cash-flow problems, the Board deleted themarketing budget. • Specialized staff was not being kept busy (notworking 40 hours per week) their skills were in high demand and theycould leave and be hired elsewhere. • Staff reduction from 50 to31. • Management turnover in leadership positions since CBCC’sinception. • No long-term strategy.

External Opportunities

Carolina’s region is very strong in donating blood (led the nationfrom 1997 to 2003). • More than 1.5 million people in the region –900,000 potential donors. • Healthy persons were able to donateblood every 56 days or six times per year. • Blood donations byseniors (over 65) acknowledged as safe and practical. • Demand forlower cost blood supply. • Red Cross problems: safety with theblood supply negative publicity after September 11, 2001 anddiscarding of blood hospitals were unhappy with Red Cross monopolistattitude failed FDA inspections and fines.

External Threats

Only 5 percent of the US population donates blood 60 percent coulddonate. • The Red Cross CLARA computer system is highly automatedand provides for a more efficient input of donor forms anddemographic and donor history information. • An increase in thenumber of screening tests (AIDS/HIV, SARS, West Nile, and so on)decreases the number of eligible donors. • The Red Cross, aninternational organization with a strong reputation, is entrenchedwith donors and sponsors, especially large businesses and governmentorganizations (police, fire fighters, military). • Red Crossimproved pricing/service to squelch competition. • Bad pressgarnered by the Red Cross related to September 11, 2001 errorscarrying over to all blood collection programs. • Artificial bloodsubstitutes.

Reference

Peter, M., Jack D. &amp Linda, E. S. (2013). Strategic management ofhealth care organizations, San Francisco, CA: Jossey-Bass, a WileyImprint.

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