HC Strategy Final Study
Reinforcing feedback prompts change that builds on itself and amplifies the outcome of a process. a. True b. False
T
A critical factor to improve the odds of an alliance's success is a. A means for conflict resolution b. Constant involvement of top executives c. Common education among participants d. A super ordinate goal
a. A means for conflict resolution
Why are population demographics so important in healthcare strategy? a. Age directly affects the amount and type of healthcare used. b. Men tend to make healthcare decisions for their family c. Demographers often make regulations d. Gender is the most important indicator of healthcare use
a. Age directly affects the amount and type of healthcare used.
A hospital and a large insurance company's markets a. Almost always overlap and are similar b. Frequently are quite different c. Include many of the same competitors d. Hardy ever overlap
a. Almost always overlap and are similar
problem with published, public data is a. Almost always two to three years old b. published with the source often unknown c. Difficult to understand d. Created for public consumption
a. Almost always two to three years old
Which is not a component of the definition of a strategic alliance? a. An integrated multi-dimensional contract b. Mutually beneficial formal relationship c. Two or more parties d. Entities remain independent organizations
a. An integrated multi-dimensional contract
Transfer pricing is used to a. Charge for good and services within a company b. Charge frequent customers for non-price services c. Align goals across vertically integrated companies d. Provide feedback on company profitability
a. Charge for good and services within a company
Break-even analysis includes a. Fixed and variable costs b. Liquid and non-liquid assets c. Payback analysis d. An appropriately determined discount rate
a. Fixed and variable costs
Strategic management differs from strategic thinking in that it a. Focuses on daily control and allocation of resources b. Encourages innovation and participation of employees c. Constantly challenges the mission and vision of the organization d. Seeks to gain strategic competitive advantage
a. Focuses on daily control and allocation of resources
Why would a company want to have a low average payment period? a. Frees up cash for other purposes b. Encourages vendors to provide higher discounts c. Lowers discount rates d. Indicates positive cash flow
a. Frees up cash for other purposes
Market concentration can be determined by using which two formulas? a. Herfindhl-Hirschman Index and Four Firm Concentration Ratio b. Heckman Index and Four Firm Concentration Ratio c. FTC Ratio and Four Firm Concentration Ratio d. FTC Ratio and the Six Firm Market Ratio
a. Herfindhl-Hirschman Index and Four Firm Concentration Ratio
A Broad segment and low cost strategy requires all of the following except a. High asset turnover b. Narrow line of products to standardized, no-frill goods c. Highly centralized decision making d. Low cost distribution system
a. High asset turnover
Accountable care organizations may require organizational structures that a. Integrate decision-making among physicians and hospital personnel b. Include insurance products and managers c. Include functional structures d. Minimize the influence of allied health professionals
a. Integrate decision-making among physicians and hospital personnel
Determining the management structure is important for a business plan because a. It may influence whether investors will contribute b. It provides direction on how capital will be invested c. It defines the process of implementation for the new firm d. It places a skilled administrator at the helm of the new firm
a. It may influence whether investors will contribute
What is not correct regarding the product life cycle? a. It may not apply to fad products b. Products can skip stages c. The duration of time for stages can vary dramatically d. Changing technologies and consumer demand affects it
a. It may not apply to fad products
The degree of interdependence is lowest among a. Pooled interdependence b. Sequential interdependence c. Reciprocal interdependence d. Clockwork interdependence
a. Pooled interdependence
The two critical dimensions to determine key stakeholders are a. Power to influence and interest in the organization b. Market power and organizational voice c. Political power and Networks d. Controlling interest and financial debt
a. Power to influence and interest in the organization
Return on assets is a a. Profitability ratio b. Liquidity ratio c. Activity ratio d. Debt ratio
a. Profitability ratio
Which is not a factor mentioned in the text that may increase rivalry? a. Similar leadership b. Degree of product differentiation c. Rate of demand growth d. Strength of exit barriers
a. Similar leadership
All of the following create barriers to entry except a. Size of a market b. Economies of scale c. Product differentiation d. Access to distribution channels
a. Size of a market
Which is not a method to embed organizational change? a. Surveys of employee satisfaction b. Leaders telling of success stories c. Checklists d. Problem solving groups
a. Surveys of employee satisfaction
Which is not mentioned as a means to differentiate a product or service. a. Symbols and colors b. Distribution coverage c. Integration of processes and inputs d. Courtesy
a. Symbols and colors
An appropriate span of control may depend upon all of the following except a. The gender of the leader b. The degree of centralization of decision-making c. The skills and abilities of subordinates d. The culture of the organization
a. The gender of the leader
A "gap analysis" occurs when executives identify the distance between their mission and vision and where their organization currently exists. a. True b. False
a. True
A higher possibility of having a substitute for a product or service will increase the competitive nature of a market. a. True b. False
a. True
A hospital and independent practicing physicians that own a medical service organization represent a joint venture alliance. a. True b. False
a. True
A marketing section is often included in business plans. a. True b. False
a. True
A portfolio analysis allows internal comparison of an organization's distinct units. a. True b. False
a. True
A strategic alliance provide much more flexibility than a merger for a firm. a. True b. False
a. True
A variable cost increases when volumes increase. a. True b. False
a. True
Acquisition or merger may combine incompatible cultures that may product extreme conflicts. a. True b. False
a. True
Activity ratio are also known as efficiency ratios. a. True b. False
a. True
An internal rate of return is found when the net present value equals zero. a. True b. False
a. True
An organization must embed (refreeze) change into its culture to make change permanent. a. True b. False
a. True
An organization's mission and vision statement should be included in its marketing plan. a. True b. False
a. True
An organization's missions should preferably distinguish it from competitors. a. True b. False
a. True
Healthcare leaders without strong financial skills are at a severe disadvantage. a. True b. False
a. True
Healthcare organizations without active, consistent support of senior executives tend to provide poorer clinical care. a. True b. False
a. True
Horizontal expansion and integration is now occurring among physician practices. a. True b. False
a. True
If an organization has determined that leaders or participants are not prepared for a planned change, the change should be delayed until these groups are prepared. a. True b. False
a. True
Patient origin studies allow firms to better understand where their patients live. a. True b. False
a. True
People working for a company is an example of a market. a. True b. False
a. True
Profits could be a measure used for on a balanced scorecard to demonstrate expected performance. a. True b. False
a. True
Short-term wins can gain important leadership support to proceed with long-term efforts. a. True b. False
a. True
Some strategic alliances can have thousands of participants. a. True b. False
a. True
Stakeholders and organizations share benefits and support. a. True b. False
a. True
Strategic actions should be driven by an organization's mission and vision. a. True b. False
a. True
Strategic alliance are often better options if they involve human resources and knowledge rather than equipment and fixed assets. a. True b. False
a. True
Strategic alliances are sometimes organized to gain economies of scale. a. True b. False
a. True
Strategic alliances often have ambiguous governance structures. a. True b. False
a. True
Strategic leaders must balance short-term financial success and long-term growth and viability. a. True b. False
a. True
Strategic plans often fail because their organizations lack strategic leaders. a. True b. False
a. True
Strategic plans should be used to actively change and challenge an organization. a. True b. False
a. True
Strong mobility barriers allow some firms in an industry to earn much higher profits than others in their industry. a. True b. False
a. True
Surveys can be effectively used to determine change readiness of an organization. a. True b. False
a. True
Switching costs are costs associated with changing a product, brand or supplier. a. True b. False
a. True
TOWS analysis could provide an organization guidance to focus on an area to minimize their weaknesses by taking advantage of specific opportunities. a. True b. False
a. True
The US healthcare business model is now shifting to focus on prevention and disease reduction. a. True b. False
a. True
The firm's mission and vision should direct which metrics are chosen on a balanced scorecard. a. True b. False
a. True
The healthcare industry is one of the most heavily regulated sectors in the USA. a. True b. False
a. True
The height of an exit barrier may be affected by the amount of specialized assets. a. True b. False
a. True
The major advantages of internal expansion are greater control by managers and preservation of a firm's culture. a. True b. False
a. True
The type of industry will influence the span of control of companies within the industry. a. True b. False
a. True
There are few differences regarding the flow of vertical integration in healthcare and other industries. a. True b. False
a. True
There are many different appropriate formats for a strategic plan. a. True b. False
a. True
There is almost always a tension between the need to integrate and differentiate functional activities in an organization. a. True b. False
a. True
To be effective strategic plans should contain metric oriented goals and objectives. a. True b. False
a. True
Transfer pricing often creates internal conflict in vertically integrated companies. a. True b. False
a. True
Turnover of top personnel often occurs and can negatively affect alliances if not planned for. a. True b. False
a. True
Unproductive meetings are a top reason for employees' frustrations and lack of motivation. a. True b. False
a. True
Unrelated diversification often involves venture capitalists. a. True b. False
a. True
Vertical expansion and vertical integration are essential the same terms. a. True b. False
a. True
Women have much higher utilization of obstetrics than men. a. True b. False
a. True
clear tie between organizational budgets and strategic plans should exist. a. True b. False
a. True
governing board has the principal responsibility for the strategic planning process. a. True b. False
a. True
he extent of rivalry will vary according to the strength of buyers and sellers and the potential for substitute products. a. True b. False
a. True
n organization should determine the best level and type of key stakeholder involvement. a. True b. False
a. True
n organization's strategic analysis of its strengths and weakness must include its finances. a. True b. False
a. True
review of budget variances can provide information to understand the root cause of the variance. a. True b. False
a. True
strategic leader will be involved directly in leading change. a. True b. False
a. True
Perfect competition is distinct from the other market structures in that its products are a. Undifferentiated b. Distinguished on quality c. Of low quality d. Change more rapidly
a. Undifferentiated
The major advantage of using a project charter is that it a. Allows greater employee participation b. Allows greater clarification of scope and outcomes c. Creates a document that can be used in lieu of objectives d. Provides a better method to allocate capital equipment
b. Allows greater clarification of scope and outcomes
Operating statements include all of the following except a. Revenues b. Asset values c. Personnel expenses d. Depreciation
b. Asset values
Which is not one of the driving forces discussed? a. Political changes b. Chronic Disease c. Technological Changes d. Workforce Availability
b. Chronic Disease
The person directing an organization's strategic planning process commonly may have these additional responsibilities except a. Business development b. Clinical services c. Marketing d. Project management
b. Clinical services
Strategic intent includes all of the following but a. Mission b. Company motto c. Vision d. Company values
b. Company motto
Consultants can be effectively used if a. They are given full control of the strategic planning process b. Deliverables are clearly established and monitored c. They are allowed to choose the participants from their firm d. The company deals directly with the consultants and does not seek external advice to review the consultant's work
b. Deliverables are clearly established and monitored
All the following are ways to encourage strategic thinking except a. Have ground rules for meetings to encourage open conversations b. Develop detailed budgets and establish high level control systems c. Create personal development with needed competency development for key employees d. Make decisions based on values and ethics
b. Develop detailed budgets and establish high level control systems
Governing boards can better prepare for strategic planning by a. Hiring the best consulting firm b. Developing a communication plan c. Assigning the full responsibility for planning to a vice president d. Creating a large strategy advisory board
b. Developing a communication plan
A CEO is best situated to direct the day-to-day strategic planning process. a. True b. False
b. False
A business is being successful if it has a high amount of accounts receivable. a. True b. False
b. False
A company should be considered successful if achieves its mission, even if its actions may conflict with its values. a. True b. False
b. False
A high times interest earned might suggest that a firm might lack monies to pay basic expenses. a. True b. False
b. False
A mission and vision should always be separate statements. a. True b. False
b. False
A static budget can provide much more information to leaders than a flexible budget. a. True b. False
b. False
A value chain consists of three broad categories of activities: primary, support, and network activities. a. True b. False
b. False
All large companies must have a strategic planning committee. a. True b. False
b. False
An employee or manager is demonstrating disloyalty if they express resistance to a strategic change. a. True b. False
b. False
Balanced scorecards and dashboards are fundamentally very different.a. True b. False
b. False
Balanced scorecards can be decoupled from the organization's strategic planning efforts. a. True b. False
b. False
Business models enjoy a commonly agreed-upon definition. a. True b. False
b. False
Business plans should only be used to develop new, external projects and programs. a. True b. False
b. False
Companies that employee wider spans of control will always have a very decentralized decision-making function. a. True b. False
b. False
Coordination and trust would be needed more heavily in a situation of sequential interdependence. a. True b. False
b. False
Corporations can only be for-profit and have stock holders. a. True b. False
b. False
Different levels in an organization generally have the same perceptions regarding progress on strategic goals and their mission. a. True b. False
b. False
Effective leaders delegate the strategic planning process to others. a. True b. False
b. False
Financial activity ratios are used to determine the reasonableness of the financial return. a. True b. False
b. False
Focused factories do not exist in healthcare. a. True b. False
b. False
Force Field Analysis is almost equivalent scenario planning. a. True b. False
b. False
In most situations a company board should use a strategic planning committee to complete its strategic plan. a. True b. False
b. False
Influences from the societal environment do not affect Healthcare greatly. a. True b. False
b. False
Most well-crafted strategies are successfully implemented. a. True b. False
b. False
Often it is not critical to describe the background of key managers in a business plan. a. True b. False
b. False
Optimal levels for financial ratios maintain relatively stable over time.a. True b. False
b. False
Organizations that use benchmarking compare internal trend data a. True b. False
b. False
Overall, it is probably more easily to create a tangible asset into a core competency. a. True b. False
b. False
Payback includes the time value of money by reducing cash flows by the discount rate. a. True b. False
b. False
Placing a highly respected consulting firm in change of strategic implementation will almost guarantee that it will be happen.a. True b. False
b. False
A functional organization's primary advantage is a. The ability to more easily integrate activities b. Increase skills and expertise and capturing economies of scale c. Decreasing the need for information technology for communication d. Lowering the unit price of goods and services
b. Increase skills and expertise and capturing economies of scale
Which is not a generally accepted method in which growth can be accomplished by a firm? a. Internal expansion b. Increasing inventory c. Acquisition and/or merger d. Networks
b. Increasing inventory
Which is not a component of Transaction Cost Economics. a. Number of suppliers or buyers b. Interlocking boards c. Cost of writing and enforcing contracts d. Frequency of exchange
b. Interlocking boards
Which is not one type of budget variance generally used by firms? a. Volume variance b. Inventory variance c. Efficiency variance d. Price variance
b. Inventory variance
Two dimensions which can be used to rank items listed in a SWOT analyses are a. Stakeholder need and Market change b. Level of uncertainty and significance c. Technological innovation and employee attitudes d. Delphi and nominal methods
b. Level of uncertainty and significance
Strategies have been known to shift with the exception of a. Low cost and highly differentiation to high cost and high differentiation b. Low cost and highly differentiation to high cost and low differentiation c. Low cost and low differentiation to high cost and low differentiation d. High cost and high differentiation to high cost and low differentiation
b. Low cost and highly differentiation to high cost and low differentiation
Which of the following awards require a balanced scorecard? a. International Quality Metric Award b. Malcolm Baldrige National Quality Award c. Institute of Medicine Quality Award d. Centrix Best Hospital Award
b. Malcolm Baldrige National Quality Award
If a company has grown significantly and expanding internationally, it might consider which organizational structure?a. Matrix b. Multi-divisional c. Functional d. Corporate
b. Multi-divisional
Which would not be considered medical technology. a. New medical procedures b. Newly hired personnel c. New medications d. Different ways to complete a surgery
b. Newly hired personnel
Isomorphism refers to a. The isolation of mission and values b. Organization mimicking competitors c. Stakeholders creating novel structures d. Employees attending similar training
b. Organization mimicking competitors
In which market structure can consumers more easily find substitutes? a. Monopoly b. Perfect competition c. Monopolistic competition d. Oligopoly
b. Perfect competition
Which is not a key attribute that could be used to determine which market segment should be targeted? a. Substantiality of the market b. Persistence of the consumers c. Accessibility of the segment d. Differentiability of the segment
b. Persistence of the consumers
Which are two of the "Four P's" traditionally used for product positioning? a. Proposition and Polemics b. Promotion and Price c. Population and Personality d. Patient Need and Placement
b. Promotion and Price
What is an example of a strategic leader's behavior? a. Stating we will do it this way since I am the boss b. Re-evaluating key assumptions periodically c. Grow red faced and express anger d. Show hubris when with subordinates
b. Re-evaluating key assumptions periodically
A PEST analysis is a method to a. Determine strategic goals b. Select driving forces c. Analyze market demand d. Determine patient origin
b. Select driving forces
All of the following groups should be diagnosed for readiness for change except a. Participants b. Stakeholders c. Organizational d. Leaders
b. Stakeholders
First movers in healthcare can create entry barriers and sustainable advantage through a. Low cost and efficient distribution centers b. Technological advantage and customer reputation c. Constant innovation and acquisitions d. Market pricing and marketing
b. Technological advantage and customer reputation
A key aspect of net present value is a. Unequal cash flows b. Time value of money c. Accounting for depreciation d. Salvage values
b. Time value of money
n organization that is highly financially leveraged will have a. A lower operating margin b. A high current ratio c. A high debt to assets ratio d. A positive net margin
c. A high debt to assets ratio
An insurance company's strategic alliance with a hospital would be considered a. A manufacturer to provider alliance b. A manufacturer to purchaser alliance c. A purchaser to provider alliance d. A provider to provider alliance
c. A purchaser to provider alliance
Which is not one of the types of integration discussed. a. Component integration b. Operation integration c. Emotional integration d. Social integration
c. Emotional integration
Two means for facilitating implementation of change are a. Newsletters and strategic champions b. Marketing plans and organizational missions c. Identifying resistance and short-term wins d. Engaging stakeholders and developing elevator speeches
c. Identifying resistance and short-term wins
major factor in healthcare to what an organization's mission will be includes a. The type of personnel employed b. The geographic location of the company c. If not-for-profit or for-profit d. The company's link to private funds
c. If not-for-profit or for-profit
Which is not a type of alliance discussed? a. Joint venture alliance b. Network outsource alliance c. Manufacturing development alliance d. Pooled service alliance
c. Manufacturing development alliance
A balanced scorecard generally has measures in each of the following categories except a. Customer/Stakeholder measures b. Internal business processes measures c. Organizational design measures d. Learning and growth measures
c. Organizational design measures
Which is not a level of involvement discussed for key stakeholders? a. Participate b. Direct c. Organize d. Inform
c. Organize
1. What is not one of the components of the business model discussed in the text? a. Inputs b. Revenue Generation c. Outputs d. Processes
c. Outputs
A resource to be sustainably valuable to a company should be a. Tangible and visible b. Fungible and vibrant c. Rare and hard to imitate d. Historically successful and critical to the company's mission
c. Rare and hard to imitate
A group of physicians who work together and jointly take care of patients might have what type of interdependence? a. Pooled interdependence b. Sequential interdependence c. Reciprocal interdependence d. Clockwork interdependence
c. Reciprocal interdependence
The person in an organization in charge of the day-to-day strategic planning process should a. Be the CEO b. Have an advanced degree c. Report directly to the CEO d. Have many other more important responsibilities
c. Report directly to the CEO
When the perceptions of key stakeholders and executives on the need for change is misaligned it can lead to a. Efforts to achieve the status quo b. A likely consensual effort c. Resistance to change d. A high possibility for major change
c. Resistance to change
ll of the following are major problems with net present value except a. Accurately determining future cash flows b. Accounting for non-financial, mission based reasons c. The finite amount of available capital d. Determining an accurate discount rate
c. The finite amount of available capital
Which entity has been identified having the role of the virtual integrator in healthcare? a. A nurse case manager b. The primary care physician c. The insurance company d. New governmental regulators
c. The insurance company
Approximately what portion of the US GDP will be consumed by healthcare in 2025?
d. 20 percent
What is not a phase of a product life cycle? a. Maturity b. Decline c. Growth d. Deficit
d. Deficit
What do markets generally not exchange? a. Information b. Products c. Money d. Effort
d. Effort
What is not one of the items often placed in a business plan's appendix? a. Personal and business credit history b. Letters of reference c. Details of permits and patents d. Financial projections
d. Financial projections
Which combination of generic strategies will be the most difficult market position in healthcare? a. Broad segment and low cost b. Broad segment and differentiated c. Focused segment and differentiated d. Focused segment and low cost
d. Focused segment and low cost
Which is not a factor to be considered in a "gap analysis"? a. The stakeholders whose needs are not being met b. If the organization is livings its values c. Critical threats d. Future manpower needs in healthcare
d. Future manpower needs in healthcare
If a high percentage of a firm's product is purchased by one firm, what situation exists? a. High seller market power b. A monopoly c. High rivalry d. High buyer power
d. High buyer power
A mobility barrier a. Increases the competitive rivalry in a market b. Block firms from moving into a new industry c. Are generally illegal in the USA d. Impede companies from moving into a different strategic group
d. Impede companies from moving into a different strategic group
All but which is true about a value chain? a. Is a graphical representation of key internal activities b. Provides a framework for analyzing a company's strengths and weaknesses c. Demonstrates the ultimate aim of profitability or mission achievement d. Is often seen as a substitute for a SWOT analysis
d. Is often seen as a substitute for a SWOT analysis
Monopolists primary strategic focus will be on a. Price b. Differentiating their products and services c. Increasing their market share d. Keeping potential competitors out
d. Keeping potential competitors out
Which is not a criticism of portfolio analyses. a. It may ignore important factors b. Some dimensions are very difficult to quantitatively define c. Market share may not have a strong correlation with profitability d. Most organizations fail to use it for capital allocation purposes
d. Most organizations fail to use it for capital allocation purposes
Which is not an important aspect of a short-term win? a. Must be visible b. Must be meaningful c. Must be certain of being accomplished d. Must have top leadership involvement
d. Must have top leadership involvement
In which market structure is price of greatest strategic consideration? a. Monopoly b. Oligopoly c. Monopolistic competition d. Perfect competition
d. Perfect competition
What type of companies in healthcare are predominantly for-profit? a. Acute care hospitals b. Home health agencies c. Hospices d. Pharmaceutical companies
d. Pharmaceutical companies
Which is not part of the societal environment? a. General economic conditions b. Population growth c. Government laws d. Product development
d. Product development
Appropriate liquidity allows a firm to a. Meet its short-term financial obligations and carry out planned financial transactions b. Quickly sell almost all of its assets if threatened with bankruptcy c. Minimize the amount of interest it can earn on its invested monies d. Understand the amount of debt needed to fund long-term projects
a. Meet its short-term financial obligations and carry out
In which market structure would there be more market power? b. Oligopoly a. Monopoly c. Monopolistic competition d. Perfect competition
a. Monopoly
2. An executive summary should include a. Organization's mission and vision b. Detailed project plans c. Financial pro formas d. A complete marketing analysis
a. Organization's mission and vision
Which is not a major group for market segmentation? a. Political party b. Geographic c. Demographic d. Behavioral
a. Political party
mission should contain a. The scope of its products and markets b. The future market position of a firm c. The key stakeholders d. The locus of decision making
a. The scope of its products and markets
Which is not a potential problem in using a SWOT analysis for strategic planning? a. Too many people may participate in the process b. The analysis may not include background information and trend data c. Personal bias may be interjected into the process d. Strong personalities may have undue influence
a. Too many people may participate in the process
A PHO is an acronym for a physician-hospital organization. a. True b. False
a. True
A SWOT analysis should examine both the internal and external environment. a. True b. False
a. True
A group must perform a SWOT analysis before doing a TOWS analyses. a. True b. False
a. True
Assuring a constant definition would be one of the first steps to do in collecting data. a. True b. False
a. True
Audits of strategic change allows leaders to understand what areas have not sufficiently changed. a. True b. False
a. True
Broad differentiated strategies are most effective in large markets with diverse buyer preferences and rapid product innovation. a. True b. False
a. True
Business plans are often used to raise money from independent entities. a. True b. False
a. True
Business plans are tools that can assist strategic thinking. a. True b. False
a. True
Business plans will often have a section that discusses sales strategies, which would not usually be in a strategic plan. a. True b. False
a. True
Change can be very difficult and challenging for most organizations. a. True b. False
a. True
Chronic disease is and will be a critical factor in designing healthcare strategies. a. True b. False
a. True
Communication is a critical need leaders need to implement strategic planning. a. True b. False
a. True
Company values should reflect the expectations and common values of key stakeholders. a. True b. False
a. True
Core competencies could be many different kinds of both tangible and intangible assets. a. True b. False
a. True
Engendering a sense of urgency will facilitate strategic change. a. True b. False
a. True
Establishing core competencies assists in encouraging strategic management. a. True b. False
a. True
First movers almost always become the market leader in a growing industry. a. True b. False
a. True
First movers in a market can use the "learning curve" to become more efficient than their later competitors. a. True b. False
a. True
Gaining honest subordinate feedback has been a problem across the ages with most organizations. a. True b. False
a. True
Gantt charts are helpful in graphically displaying the timeframes for the activities involved in a strategic planning process. a. True b. False
a. True
Healthcare information technology is predicted to be one of the major technology advances in the 21st Century. a. True b. False
a. True
In any major change significant resistance should be anticipated. a. True b. False
a. True
In later, more developed portfolio analysis methods the criteria were extended to include industry attractiveness and competitive advantage. a. True b. False
a. True
Industries cannot exist without appropriate markets. a. True b. False
a. True
Isomorphic firms have similar forms, products, and practices. a. True b. False
a. True
Many believe that the accountable care organizations will cause a lot of integration efforts. a. True b. False
a. True
Many changes in a healthcare system will be resisted and reinforced by feedback mechanisms, many of which are not clearly visible. a. True b. False
a. True
Many firms fail to establish metric and specific outcome measures when beginning a strategic change process. a. True b. False
a. True
Matrix structures are more common in companies that are focused on innovation and projects. a. True b. False
a. True
Medical staffs are a key stakeholder who need to be involved in hospitals' strategic planning process. a. True b. False
a. True
Middle strategies almost always are very difficult to sustain. a. True b. False
a. True
Most companies have written mission statements. a. True b. False
a. True
Most healthcare systems in the USA exist in oligopolistic market structures. a. True b. False
a. True
Most of innovation in healthcare has been competency destroying. a. True b. False
a. True
Multidivisional organizations can duplicate functions and increase costs. a. True b. False
a. True
Net present value can be very helpful in deciding among the purchasing of capital equipment. a. True b. False
a. True
Networks allow acquisition of knowledge that provides long-term sustainability. a. True b. False
a. True
One primary reason companies use a corporate legal structure is to limit personal liability. a. True b. False
a. True
Organizations use growth for reasons other than to gain market share and more profits. a. True b. False
a. True
Past success can make leaders more susceptible to fail to acknowledge environmental shifts. a. True b. False
a. True
Patents can be a very effective barrier to entry. a. True b. False
a. True
Psychographic segmentation involves the combination of psychological and demographic data. a. True b. False
a. True
SWOT analyses are often accomplished because they are easy to do and take little preparation. a. True b. False
a. True
Successful differentiation in healthcare would allow a firm to charge higher prices. a. True b. False
a. True
The ability and ease to fix a broken product could be considered a means to differentiate. a. True b. False
a. True
The book recommends that driving forces be narrowed to four to five during the planning process. a. True b. False
a. True
A strategic alliance may be better than a merger between two firms when a. Cultures and missions are aligned b. Cultures are misaligned and missions aligned c. Cultures and missions are misaligned d. Cultures are aligned and missions misaligned
b. Cultures are misaligned and missions aligned
Having a written mission is probably the most important aspect of creating a positive strategic intent. a. True b. False
b. False
History has shown that monopolists by themselves frequently make good decisions that directly benefit their customers. a. True b. False
b. False
Hubris is a quality that highly skilled strategic leaders should seek to gain .a. True b. False
b. False
If an organization has a strategic plan in most instances they will not have to create a business plan. a. True b. False
b. False
In a corporation the primary degree of competition lies at the corporate level of the organization. a. True b. False
b. False
In determining capital allocation, a leader should use just one of the three financial analyses methods discussed. a. True b. False
b. False
Internal expansion is almost always the best choice in any condition. a. True b. False
b. False
It is reasonably easy to determine the boundaries of different industries. a. True b. False
b. False
Leaders should seek to form coalitions from existing formal leaders to best effect change. a. True b. False
b. False
Long mission statements are often useful as they more fully describe the mission of an organization. a. True b. False
b. False
Monopolistic competition has just one firm that could be very large. a. True b. False
b. False
Most oligopolies will have relatively the same level of rivalry.a. True b. False
b. False
Most organizations have too little internal data to be able to adequately reflect important stakeholder needs. a. True b. False
b. False
Most strategic alliance tend to achieve the purpose of their creation. a. True b. False
b. False
Most strategic alliances produce some type of immediate benefit. a. True b. False
b. False
Pooled interdependence involved non-modular coordination. a. True b. False
b. False
Related diversification tends to involve greater business risk than unrelated diversification. a. True b. False
b. False
Research has shown that healthcare organizations often obtain efficiencies from vertical integration. a. True b. False
b. False
Scenario planning does not deal with driving forces a. True b. False
b. False
Stakeholders are almost always shareholders of a firm. a. True b. False
b. False
Strategic groups help determine which firms belong in which industry. a. True b. False
b. False
Strategic priorities are very similar to driving forces. a. True b. False
b. False
Strategic thinking is an inherent trait and is very difficult to train someone to have it. a. True b. False
b. False
The Four Firm Concentration is more accurate and more often used to determine market concentration. a. True b. False
b. False
The extent and degree of division of labor usually has little impact on strategy. a. True b. False
b. False
The formula for the Four Firm Concentration Ratio is =∑_(i=1)^n [i=1]+(MS)^2+(MS)^2+ (MS)^2+⋯(MS)^2 a. True b. False
b. False
The lack of a mission for a strategic alliance does not seem to affect its success or failure? a. True b. False
b. False
The position in a product's life cycle is not important to discuss in a business plan .a. True b. False
b. False
There are many examples of markets that exhibit actual perfect competition. a. True b. False
b. False
There are only very few dimensions that can be legitimately used to determine strategic groups. a. True b. False
b. False
There is almost always an optimal structure for an organization. a. True b. False
b. False
There is little overlap between strategic management and strategic thinking. a. True b. False
b. False
Value chains are primarily used to analyze single firms activities and processes. a. True b. False
b. False
he degree of control and equity is highest within which of the following alliances? a. Licensing b. Franchise c. Purchasing d. Learning
b. Franchise
In which phase of a product life cycle might it be best to enter as a new firm? a. Emerging b. Growth c. Maturity d. Decline
b. Growth
Concierge Medicine allows a. Greater differentiation of healthcare services b. Higher costs for healthcare c. Better overall healthcare coverage d. Improved vaccination rates for a population
b. Higher costs for healthcare
What of the following was not a key strategy for successful healthcare organizations in the past? a. Attract talented clinicians b. Reduce costs c. Add new technology d. Find new methods to increase revenue
b. Reduce costs
The success of a first mover may be dependent upon two external factors. They are: a. Average production cost and marketing expertise b. Steepness of the learning curve and the isomorphic nature of the market c. Market demographics and regulations d. Speed of innovation and rate of market demand
b. Steepness of the learning curve and the isomorphic nature of the market
The reluctance of a patient to change its physician might be considered a. Product differentiation b. Switching cost c. Monopolistic competition d. Consumer preference
b. Switching cost
All of the following are ways to speed decision making except a. Leaders should hold many formal meetings b. Leaders should be visit work settings c. Leaders should hold meetings, if possible, in subordinates' offices d. Leaders should actively manage time
a. Leaders should hold many formal meetings
Which is not one type of budget generally developed by organizations? a. Management development budgets b. Statistical budgets c. Cash budgets d. Operating budgets
a. Management development budgets
A common portfolio analysis method is known as a. The Anderson Consulting Six Stage Portfolio Matrix b. The GE/McKinsey Nine-block Matrix c. The Booz/Allen Product Portfolio Matrix d. The Maryland Magnet Portfolio Matrix
b. The GE/McKinsey Nine-block Matrix
Market power is best described as a. The ability of a market to direct the course of legislation b. The ability to influence prices c. The ability to influence which buyers and sellers exist d. The ability to organize product and services in a cost effective manner
b. The ability to influence prices
Which of the following is an example of balancing feedback? a. Developing a blueprint for an ICU b. Using real-time physiological monitoring to control drug dosage c. Injecting a patient with a drug d. Hand washing
b. Using real-time physiological monitoring to control drug dosage
GPO in healthcare stands for a. group physician organization b. group purchasing organization c. group policy ordinance d. group performance options
b. group purchasing organization
Pre-change preparation requires all of the following except a. Recognition of the need for change b. A connection between the results of the change and the organization's mission and vision c. A leadership style that involves significant participation d. Key stakeholders understanding the rationale for the change
c. A leadership style that involves significant participation
Which is a measure of liquidity?a. Asset turnover b. Debt to Asset Ratio c. Acid or Quick Ratio d. Operating Margin
c. Acid or Quick Ratio
8. Visions should do all but one a. Guide strategic actions b. Meet stakeholder future needs c. Be revised at least every two years d. Provide a difficult, but achievable future
c. Be revised at least every two years
Governments in healthcare have increased barriers to entry by creating a. Membership requirements b. Medicare c. Certificate of need laws d. Medicaid
c. Certificate of need laws
Variable costs will a. Always increase with volume increase b. Always decrease with volume decreases c. Change only within a range of volume d. Change in correlation with fixed costs
c. Change only within a range of volume
Which are often used in balanced scorecards? a. Employee annual evaluations b. Personal development plans c. Colors and grades d. CEO compensation
c. Colors and grades
Which is a major problem with benchmarking? a. Internal trend data does not tell how well a company is doing compared to its competitors b. There is far too much data available to benchmark c. Companies may define and collect data differently, even though named the same d. External data is very expensive
c. Companies may define and collect data differently, even though named the same
A chain of command a. Defines the span of control for an organization b. Provides a clear understanding of the locus of decision-making c. Defines the formal line of authority and reporting relationship d. Provides direction on the type of optimal organizational structure
c. Defines the formal line of authority and reporting relationship
What percent of strategic alliances fail according to academic studies? a. 20 to 40 percent b. 35 to 50 percent c. 40 to 60 percent d. 55 to 80 percent
d. 55 to 80 percent
An example of horizontal expansion would be a. A hospital acquiring an HMO b. An insurance company acquiring a physician group practice c. A pharmaceutical company acquiring a medical supply company d. A academic medical center acquiring a specialized hospital
d. A academic medical center acquiring a specialized hospital
Effective meetings follow all the following except a. The correct people should attend b. Meetings should have specific purposes and explicit desired outcomes c. Agendas and ground rules should exist d. A top executive should direct each key meeting and committee
d. A top executive should direct each key meeting and committee
6. Elements of the clinical microsystem include which of the following? a. The team of health professionals who provide clinical care b. The tools the team has at its disposal to treat the patient c. The logic for determining the appropriate treatments and processes to deliver care d. All of the above
d. All of the above
Which of the following healthcare aims is included in the Institute of Medicine's Crossing the Quality Chasm? a. Safe b. Timely c. Equitable d. All of the above
d. All of the above
A major difference between operating margin and net margin is that net margin accounts for a. Depreciation b. Cash flows c. Arbitrage d. All revenue sources
d. All revenue sources
Which component of strategic intent should be probably be first developed? a. Mission b. Company motto c. Vision d. Company values
d. Company values
Disruptive innovation does all but one of the following a. Increases scientific discovery by motivating venture capital b. Enabled by technological and business model innovation c. Allows new firms to better compete in a market place d. Created by the discovery of competency destroying innovation
d. Created by the discovery of competency destroying innovation
The strategic action cycle discussed in the text included all of the following except a. Budgeting b. Implementation c. Controlling/monitoring d. Design of strategic initiatives
d. Design of strategic initiatives
The US healthcare's business model a. Provides better morbidity and mortality than most other industrialized nations b. Spends most of its resources for primary care treatments c. Care is coordinated through a federal government agency d. Is often seen as fragmented and inefficient
d. Is often seen as fragmented and inefficient
Unrelated diversification potential problems include all but a. May impose increase administrative costs b. Decrease the ability for top executives to understand their businesses c. Decrease the ability to gain economies of scale d. Problems increase with the number of different companies controlled
d. Problems increase with the number of different companies controlled
The primary strategic issues handled by a functional level of a company include a. Purchasing new companies b. Divesting companies not profitable c. Monitoring and promoting favorable legislative d. Promote their products and services by marketing
d. Promote their products and services by marketing
Research has suggested that the greatest benefit that hospital have gained by horizontal integration has been a. Greater market power b. Greater efficiencies c. Lower administrative costs d. Increased consumer access
a. Greater market power
What is it difficult to change just one component of a business model? a. All the components interrelate and are affected by the other components b. Customers will not accept a change of just one component c. Often the change will cause the company to move into another industry d. The outputs are too difficult to change
All the components interrelate and are affected by the other components
Which is not a primary function of a corporate strategy? a. Developing new products and services b. Deciding in which businesses to compete c. Deciding how businesses should be integrated d. Allocating capital among business units
a. Developing new products and services
Governing boards role in regard to strategic planning generally include a. Final approval and periodically monitoring of strategic plans b. Data analysis and creation of environmental analysis c. Development of draft mission, vision, and values d. Implementation of financial controls
a. Final approval and periodically monitoring of strategic plans
An "elevator speech" in relationship to change should a. Communicate in less than five minutes strategic direction b. Describe the organizational structure and goals c. Be written and delivered by the organization's CEO d. Not include any specific information of goals and objectives
a. Communicate in less than five minutes strategic direction
4. Which strategy is not considered part of "evidence-based medicine"? a. Correct coding of procedures and diagnoses b. Using patient care guidelines c. Using computerized medical records to identify optimal approaches to care d. Using shared decision-making tools for both patients and providers
a. Correct coding of procedures and diagnoses
Which is not one of the quadrants from the BCG's Growth Share Matrix a. Crab b. Cash Cow c. Star d. Dog
a. Crab
Which might be the most durable asset and most difficult to imitate? a. Culture b. Equipment c. Employee attitudes d. Technology
a. Culture
The number of strategic alliances in healthcare are a. Decreased from 1990 to 2000 slightly b. Remain about the same since 2000 c. Ending abruptly d. Constantly increased since 1990
a. Decreased from 1990 to 2000 slightly
Funding requests should do all but one of the following. a. Detail who will have expenditure authority b. Amount of funds requested c. Time period money needed d. How funds will be used
a. Detail who will have expenditure authority
Why is trust such an important aspect for the success of an alliance? a. Alliance members rarely know each other prior to the alliance. b. CEOs do not understand the goals of the alliance. c. Documents setting forth the purpose of the alliance are always incomplete d. Subordinates always run alliances
c. Documents setting forth the purpose of the alliance are always incomplete
Oligopolies market structures do not exhibit a. Domination by a few firms b. High entry and exit barriers c. Easy ability to raise prices d. Frequent governmental controls
c. Easy ability to raise prices
Entering a market by acquisition allows a firm to a. Obtain the key, most talented individuals in a market b. Assure the continuity of an established, profitable product c. Enter a market most rapidly d. Increase company profits most rapidly
c. Enter a market most rapidly
Related diversification involves add new products for an existing customer base or a. International expansion b. New services for a geographic niche c. Enters a new business with similar technologies d. Expands an existing warehouse or factory
c. Enters a new business with similar technologies
Hospitals have traditionally been organized by which organizational structure? a. Matrix b. Multi-divisional c. Functional d. Corporate
c. Functional
Silos are a problem that often occur in which organizational structure? a. Matrix b. Multi-divisional c. Functional d. Corporate
c. Functional
1. Which is not one of the ways a business plan differs from a strategic plan? a. Focus b. Narrow focus c. Goals d. Narrow focus
c. Goals
A healthcare industry would include a. An exchange locale b. Groups of buyers in a specific location c. Groups of sellers with products that are close substitutes d. A series of exchanges that result in a product transferred to a new owner
c. Groups of sellers with products that are close substitutes
A "most favored nation clause" allows a. A company to set up a preferred provider list b. Gives the holder valuable business knowledge c. Guarantees the lowest price d. Higher levels of competition among firms
c. Guarantees the lowest price
5. Which of the following is not a trend that provides opportunity for improvement in the US health system? a. More powerful data and analytics tools b. Adoption of precision medicine tools such as pharmacogenetics c. Individual providers avoiding mergers, partnerships, and acquisitions d. Automation, robots, and the internet replacing human labor
c. Individual providers avoiding mergers, partnerships, and acquisitions
What statement below is not true about marketing plans? a. Should be developed after a strategic plan is adopted b. Focuses on attracting and retaining preferred customers c. Is often created as part of a project charter d. Involves segmentation and targeting
c. Is often created as part of a project charter
All are true about strategic planning committees except a. Both governing board and non-governing board members can be part of the committee b. Organizes and facilitates the strategic planning process c. Members will have specific terms and rotate off d. Monitors trends and periodically reviews the internal and external environment
c. Members will have specific terms and rotate off
Which is not a problem with many mission statements? a. Missions are too similar across companies in industries b. Missions are not used to set organizational strategies c. Missions and Visions get confused and confound employees d. Missions may not include actionable and measurable statements
c. Missions and Visions get confused and confound employees
Physician practices in the USA could best be considered to exist in which market structure? a. Monopoly b. Oligopoly c. Monopolistic competition d. Perfect competition
c. Monopolistic competition
Which is not one of forces used in Porter's Five Forces Model? a. Potential of new entrants b. Power of buyers c. Power of key stakeholders d. Threat of substitutes
c. Power of key stakeholders
Patient or customer origin studies identify a. The birth place of critical customer segments b. The percentage of minority populations using a facility c. The proportion of customers or patients coming from different zip codes d. The combination of minorities and gender differences among total patients
c. The proportion of customers or patients coming from different zip codes
Financial projects in a business plan should be for what term of time? a. One to two years b. Two to four years c. Three to five years d. Eight to ten years
c. Three to five years
A first mover advantage may only short-term if which two factors are present? a. Rapid technological change and rapid market demand change b. Slow technological change and rapid market demand change c. Rapid technological change and slow market demand change d. Slow technological change and slow market demand change
d. Slow technological change and slow market demand change
Vincent Valley Hospital is a. located in Illinois. b. facing serious financial problems. c. developing an accountable care organization. d. a fictional, but realistic, healthcare system used to illustrate the effective use of operations management tools and techniques.
d. a fictional, but realistic, healthcare system used to illustrate the effective use of operations management tools and techniques.
Scenario analysis may be important a. because an organization can be much more successful if it can more accurately predict the future b. to organizations which exist in relatively stable environments c. to provide a more accurate means to allocate resources across corporate units d. to prepare contingencies for potential major changes in the future
d. to prepare contingencies for potential major changes in the future
