Mid term Capstone
Sustained competitive advantage is:
An enduring value difference between the services of one organization and its competitors in the minds of patients.
Sustained competitive advantage is the result of which of the following?
An enduring value differential between the services of one organization and that of its competitors in the minds of patients, physicians, and so on.
Organizational weaknesses represent competitive disadvantages when they:
Are of high value to stakeholders, not possessed by competitors, not easily eliminated, and such that competitors can sustain their strengths
Organizational weaknesses represent competitive disadvantages when they:
Are of high value to stakeholders, not possessed by competitors, not easily eliminated, and such that competitors can sustain their strengths.
What is meant by CEO duality?
CEO functions as chief executive officer and chairman of the board of directors.
Transformative Thinking:
Challenges accepted beliefs and assumption.
Which of the following is an example of a societal change that may affect the successor failure of health care organizations?
Changes in consumer attitudes and expectations
Which of the following is NOT true regarding critical success factors:
Critical success factors are the same for each service category.
The use of the systems perspective requires strategic managers to do what?
Define the organization in broad terms and identify the important variables and interrelationships that will affect decisions.
Which of the following questions would NOT be asked when evaluating directional strategies?
Do our products and services meet the highest quality standards?
Which of the following is NOT a component of the health care system:
Educational institutions.
Which of the following is NOT related to the liability of newness:
Established reputations of pioneering organizations.
A board process that involves both constructive and destructive debate will likely lead to a successful board.
False
A mission statement is in effect "carved in stone" and must never be changed or it will cause needless confusion among the leadership as well as employees.
False
A vision-led approach is a philosophy where leaders are committed to high levels of performance that can be achieved because this level has been achieved in the past.
False
An effective vision clarifies the picture of the future by stabilizing the strategic capabilities of the organization
False
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
False
External analysis can accurately foretell the future. t or f
False
External analysis does not inform the analysis of the internal environment
False
There is no reason for strategic goals to relate to critical success factors since they are anchored in the directional strategies.
False
Value can be created in the service delivery or support subsystems but it can never be lost in support subsystem once it is created. t or f
False
Which of the following is a way an organization can leverage important resources:
Harvesting resources.
Which of the following is NOT a source of vision development by health care leaders:
History of the organization Perception of the opportunities present in the environment. Strategic capacity of the organization to take advantage of opportunities. *********All of the above can be a source of vision development.*********
Which of the following is not an important health policy question?
Is health care a right or individual responsibility? Who pays for employer offered health insurance? Can the human costs of poor health be quantified? None of the above
Which of the following are directional strategies:
Mission, vision, values, and strategic goals.
An organized competitor intelligence system does which of the following?
Monitors consumer and competitor activity, Filters the raw information picked up by external and internal sources, Efficiently communicates actionable intelligence to those who need it.
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:
Organizational culture, organizational structure, and strategic resources
The three elements of service delivery are:
Pre-service, point-of-service, and after-service.
Value is the perceived relationship between:
Satisfaction and price.
The three stages of strategic management are:
Strategic thinking, strategic planning, and strategic momentum.
The two categories into which capabilities may be classified are:
The ability to make dynamic improvements to the organization's activities through learning, renewal, and change over time. The ability to develop strategic insights and recognize and arrange resources and competencies to develop novel strategies before or better than competitors. Both a and b.
The term "pathfinding" is:
The job of building a vision for an organization
The dissolution of formal planning staffs is associated with:
The management theory termed "Theory Z."
It is important that managers, employees, and key stakeholders understand the values that are expected in an organization.
True
In evaluating the competitive relevancy of a strength, if the resource, competency or capability does not have value to relevant stakeholders there is no reason to ask the questions relating to rarity, ease of imitation and sustainability. t or f
True
In the current health care industry environment, a multitude of interests are directly or indirectly involved in the delivery of health care.
True
In the resource-based view of strategy, valuable, expensive, difficult-to-copy resources contribute to sustainable competitive advantage. t or f
True
Institutions that anticipate and recognize significant external forces and modify their strategies and operations accordingly are more likely to prosper. t or f
True
Major goals of strategic management are responsiveness to change and staying relevant.
True
Many of the management methods adopted by health care organizations originated in the business sector.
True
Mission creep takes place when a health care organization takes on more and more activities to the point where the diversity of the activities becomes unmanageable.
True
Mission drift occurs when the mission of an organization is altered and the organization fades into areas it should not pursue.
True
One of the most important technological changes facing health care in recent years has been the adoption of the electronic health record.
True
Organizations and individuals within the health care system develop and employ new technologies, deal with changing social and demographic issues, address legislative and political change, compete with other health care organizations, and participate in the health care economy. t or f
True
Pathfinding is the job of building a vision for an organization.
True
Religious organizations are important components of the general environment.
True
Sensemaking requires the capacity to suspend beliefs, preconceptions, and judgments that may inhibit connections among unclear or disparate data. t or f
True
Situational analysis is a process of understanding and documenting an organization's external analysis, internal analysis, and the development or refinement of directional strategies.
True
Strategic goals are those overarching end results that the organization pursues to accomplish its mission and achieve its vision.
True
Strategic management is a unique perspective that requires everyone in the organization to cease thinking solely in terms of internal operations and their own operational responsibilities. It insists that everyone adopt what may be a fundamentally new attitude -an external orientation and a concern for the big picture.
True
Strategic momentum is how an organization constructively manages change, evaluates strategy, and reinvents or renews the organization.
True
Strategic planning is the periodic process of developing a set of steps for an organization to accomplish its mission and vision using strategic thinking.
True
Strategic thinkers examine assumptions, understand systems and their interrelationships, and develop alternative scenarios of the future.
True
Strategic thinking is directed toward positioning the organization most effectively within its changing external environment.
True
Stretch enables smaller health care organizations that are less rich in terms of resources, competencies and capabilities to compete with large, powerful, national and regional networks and management care organizations. t or f
True
The implementation of Medicare's prospective payment system in 1983 initiated dramatic changes in the health care industry.
True
The keeper of the vision is ordinarily an executive who is a champion that communicates and models the vision for others in the organization.
True
The mission attempts to capture the organization's distinctive purpose.
True
The monitoring function is the tracking of issues identified in the scanning process. t or f
True
The more often that a particular resource, competency, or capability is used, the greater is the potential for leveraging. t or f
True
The objective of long-range planning is to predict for some specified time in the future the size of demand for an organization's products and services and to determine where demand will occur.
True
The service area of a doctor's practice is defined by patient preferences and the available medical providers. t or f
True
Unit operational strategies may be developed within departments of an organization such as clinical operations, marketing, finance, information systems, human resources, and so on.
True
Values are the fundamental principles of organizations and people.
True
When the purpose or mission of an organization is understood the complexity of the environment can be reduced because decision makers can focus on fewer things.
True
Whereas external analysis focuses on the question of "What should we do," internal analysis requires introspection and an answer to the question "what can we do? t or f
True
Strategic leadership has traditionally focused on mid-level management positions in an organization.
False
Strategic management is a technique that will provide a "quick fix" for an organization that has fundamental problems.
False
Strategy development has never been primarily a staff activity.
False
The history of an organization is its vision.
False
The mission statement is relevant only to the present and is not relevant to the future.
False
The vision consists of the principles that are held dear by members of the organization.
False
Which of the following are accepted modes of board of director governance
Fiduciary responsibility mode - stewardship of assets. Strategic mode - collaborating with leaders to develop visions of the future. Generative mode - engaging in shared decision making. *****All the above are accepted modes of board governance.*****
Health planning is initiated by state or local governments and results in health policies that are implemented through legislation
True
Health planning is initiated by state or local governments and results in health policies that are implemented through legislation.
True
The fundamental nature of strategic management requires the awareness and understanding of outside forces and encourages strategic managers to:
All of the above.
Strategic goals should:
Be formulated by leaders but stated in terms that can be understood by all employees. Be limited in number Be a link between critical success factors and unit objectives *****Strategic goals should be all of the above.*****
As a decision-making activity, strategic planning is based solely on quantitative data.
False
Competency is an infrastructure-based component of sustainable competitive advantage. t or f
False
Strategic thinkers ask which of the following:
***All the above*** What are we doing that we should do differently? What are we not doing that we should be doing? What are we doing that we should stop doing?
Comprehensive and well-organized external analysis processes will detect all of the changes taking place in the external environment
False
Corporate level strategies relate to individual units and divisions in an organization.
False
Cost pressures and intensified competition will NOT lead to further consolidation within the health care industry.
False
Strategic management is NOT:
A "quick fix" for organizations with fundamental problems. A process of completing paperwork. A process of extending the organization's current activities into the future. All of the above
Which of the following are limitations of external analysis:
All the above.
Which of the following are part of the manager's external scanning activities:
All the above.
Strategic planning for organizations is typically:
A group process.
Which of the following is an example of pre-service value creation:
A receptionist who is courteous and helpful.
Decision making is expedited and consensus more easily reached when everyone in the organization is involved in the strategic planning process.
False
Developing implementation plans is not an essential part of strategic planning.
False
Which of the following is not a state of strategic thinking:
A.Synthesis B. Interpretation C. Reflection ******None of the above*****
Organizations will find themselves out of touch with the needs of the market when they
All of the above.
Health care leaders acquire vision from:
An appreciation of the history of the organization A perception of the opportunities present in the environment. An understanding of the strategic capacity of the organization to take advantage of these opportunities *******All of the above.*******
Sustained competitive advantage is the result of:
An enduring value differential between the services of one organization and that of its competitors in the minds of patients, physicians, and so on.
Strategic thinking is:
An individual intellectual process
Health policies are made by the leadership team in health care organizations and are designed to aid in adapting to external regulations.
False
Identifying the scope of operations in terms of services and markets is not an important characteristic of mission statements.
False
In order to be successful, health care organization leaders do not have to develop an understanding of the external environment in which they operate.
False
In order to effectively deal with a complex situation, the leader must redouble efforts to become involved with every detail of the situation.
False
Increasing automation of basic business processes, clinical information interfaces, data analysis, and telehealth are NOT examples of technological changes.
False
It is important that visions empower patients first because there is time to empower employees later after the patients become fully aware and supportive of the vision.
False
Management rather than leadership is required to deal with rapid, complex, and discontinuous change.
False
The use of the systems perspective requires strategic managers to:
Define the organization in broad terms and identify the important variables and interrelationships that will affect decisions.
Mission statements do not reference the principal services delivered or products provided by the organization.
False
Mission statements may be accurately looked upon as superordinate goals that stand the test of time and help top management navigate the through turbulent times of change.
False
Health policy:
Determines the rules of the game that apply to all consumers and providers in the field.
Organizations that are able to make ongoing improvements to organizational activities through learning, renewal, and change over time possess:
Dynamic capability.
Much of the legitimate work in an organization does not contribute to the accomplishment of the strategic plan.
False
Organizational strengths are typically directed toward obtaining a cost advantage but rarely do they contribute to differentiating the organization from competitors. t or f
False
An organizational strength does not need to have value in order to be competitively relevant. t or f
False
An organizational strength that is of low value, rare, easy to imitate, and difficult to sustain offers short-term competitive advantage. t or f
False
An organization may create a new, unintended strategy by:
Implementing the strategy created by its strategic planning process.
Which of the following is the proper interpretation of a strategic thinking map of competitive advantages with the judgments of Value (High); Rareness (No); Imitability (Difficult); and Sustainable (Yes)
No competitive advantage. Many competitors possess the strength but it is difficult to develop, so care should be taken to maintain this strength. Because the strength is widely possessed and can be sustained, it is likely that it already has become a minimum condition for long-term success.
Monitoring or tracking of external issues accomplishes all but which of the following functions:
Projections of future directions of external issues
Organizational strengths and weaknesses are said to be subjective in some cases because:
They represent opinions of evaluators.
When boards of directors are formed primarily to provide representation of diverse stakeholders, and fund raising is one of their primary duties, in fund raising they are referred to as:
Philanthropic governing boards.
Cost position is the extent to which an organization seeks the low-cost position through efficiency programs and cost-minimizing facilities and equipment.
True
The four fundamental processes of external analysis are:
Scanning, monitoring, forecasting, and assessing.
Which of the following is not a step in external analysis:
Sealing off the organization to disruptions
Which of the following is NOT a role of middle management in determining the strategic direction of an organization:
Selecting the CEO.
What would be the appropriate interpretation if an organization possessed a weakness that was of value to customers, was rare among competitors, is difficult for you to correct and your competitor can sustain the advantage:
Serious competitive disadvantage.
Which of the following is the proper interpretation of competitive disadvantages for an organizational weakness that exhibits high value, is not rare, is easy to correct, and such that competitors can sustain their advantage:
Short-term competitive disadvantage.
Values and beliefs are directional strategies that provide the focus and parameters for:
Strategic goals.
Creative tension is the means of reconciling an organization's vision with its strengths and weaknesses
True
Critical success factors are the benchmarks that organizations must accomplish if they are to be successful in a particular industry.
True
Critical success factors are those things that organizations must do in order for the organization to achieve high performance.
True
Forecasting environmental change is a process of extending the trends, developments, dilemmas, and events that the organization is monitoring. t or f
True
A clear specification of organizational level and orientation determines:
The type and range of decision to be made in strategic planning.
Which of the following is NOT a reason for the importance of directional strategies.
They initially set all other activities in motion They create the first signs of momentum. They provide a sense of direction in decision making. ******None of the above*******
Which of the following are common purposes or missions for organizations:
To make money. To deliver health services in as convenient a way as possible To provide health care to indigent patients. ******All of the above*****
One of the specific goals of external analysis is:
To provide organized information for the development of the organization's internal analysis, mission, vision, values, goals, and strategy.
A community is a group of people living together in a defined space who share some important feature such as a religion or a profession. t or f
True
A complex environment makes it difficult to establish a clear purpose for an organization.
True
A vision communicates when it is shared and people believe in the importance of cooperation in creating the future that managers, employees, and other stakeholders desire.
True
A vision is coherent when it "fits" with other statements, including the mission and values.
True
An organization mission statement is an attempt to capture an organization's purpose and commit it to writing.
True
An organization's ability to develop strategic insights, recognize and/or rearrange resources and competencies and develop novel strategies before of better than competitors is a disruptive capability. t or f
True
An organization's value chain is the various ways that it creates value for present and prospective customers t or f
True
An organizational strength that is of high value, rare, difficult to imitate, and difficult to sustain offers short-term competitive advantage but not a strength that can be sustained over the long run. t or f
True
Capability is the ability of an organization to deploy resources and competencies. t or f
True
Competitive advantage requires an organization to develop a distinctiveness that has value to consumer is rare among competitors, is hard to imitate and can be sustained.
True
Complex adaptive systems are parts of organizations that evolve in response to change.
True
Corporate-level strategies address the question: "What business(es) should we be in?" Such strategies consider multiple, sometimes unrelated, markets and typically are based on return on investment, market share or potential market share, and system integration.
True
Which of the following are about ideals, hope, standards and desirable future states:
Vision.
Which of the following IS a characteristic of an effective vision:
Visions must make sense in the relevant community, be flexible, and stand the test of time. If the vision is pragmatically irrelevant, it will not inspire high performance.
Which of the following are best prepared to develop an effective mission statement:
Well informed organizational members.
The process of internal analysis attempts to answer which of the following questions:
What should we do?
A realized strategy is on that
Works out as planned
A realized strategy is on that:
Works out as planned.
Consumer determinants of a service area include all but which of the following:
hours of operations