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  1. What four types of strategies make up the strategy formulation process? Describe the role each plays in developing a strategic plan.
  2. Why are the directional strategies both a part of situational analysis and a part of strategy formulation?
  3. How is strategy formulation related to situational analysis?
  4. Name and describe the expansion, reduction, and maintenance of scope strategies. Which of the adaptive strategies are corporate and which are division level? Under what conditions may each be appropriate?
  5. Explain how an understanding of an organization’s strategic alternatives provides structure for strategic thinking.
  6. What is the difference between related diversification and product development? Provide examples of each.
  7. What is a market-driven or focused factory strategy? Identify some organizations that have employed this type of market development strategy.
  8. Many health care organizations have engaged in vertical and horizontal integration. What is the rationale for these strategies?
  9. Describe vertical integration in terms of patient flow. Explain the difference between an enhancement strategy and a status quo strategy.
  10. How is market development different from product development? Penetration? Provide examples of each.
  11. Compare and contrast a divestiture strategy with a liquidation strategy.
  12. Explain Porter’s generic strategies. How do they position the organization’s products and services in the market?
  13. How might a retrenchment strategy and a penetration strategy be linked together? What are some other logical combinations of strategies? How may a combination of strategies be related to vision?

Chapter 7

  1. Why is the traditional SWOT Analysis a good place to begin? What are the problems with using SWOT?
  2. Explain the rationale underlying the external/internal strategy matrix.
  3. Describe the product life cycle. How is it useful for thinking about the adaptive strategy of a health care organization?
  4.  What adaptive strategic alternatives are indicated for each stage of the product life cycle?
  5. Identify appropriate adaptive strategic alternatives for each quadrant in the expanded portfolio matrix.
  6. Explain the strategic position and action evaluation (SPACE) matrix. How may adaptive strategic alternatives be developed using SPACE?
  7. Why should program evaluation be used for public health and not-for-profit institutions in the development of adaptive strategies?
  8. How are market entry/exit strategies evaluated? What role do speed of market entry/exit and control over the product or service play in the market entry/exit decision?

Chapter 8

  • Explain the linkage between internal analysis and the value adding service delivery and support strategies. How are the value adding strategies linked with action plans?
  • Explain the difference between pre-service, point-of-service, and after-service activities. What elements are central to each? Provide an example of how an organization might create a competitive advantage in each of these areas.
  • For a health care organization, explain why pre-service, point-of- service, and after-service activities are fundamentally marketing and clinical in nature.
  • Discuss the various ways that health care providers can define the market they want to serve.
  • Does marketing have a role to play in the market entry strategies?

Chapter 9

  • What part does internal analysis play in the development of value- adding support strategies? What part does strategy formulation play?
  • How do the value-adding support strategies create the “context” for strategy implementation?
  • What is organization culture? How does it implement strategy?
  • What are the basic building blocks of structure? What are the advantages and disadvantages of each?
  • Which do you think changes first, strategy or structure? After formulating your answer and making your case, argue the opposite position.
  • What are the primary differences in the financial strategies needed for expansion, reduction, and maintenance of scope?
  • What are the primary differences in the human resources strategies needed for expansion, reduction, and maintenance of scope? Which type of adaptive strategy is most difficult to implement from a human resources perspective? Why?

Chapter 10

  • Explain the relationship between situational analysis and action plans.
  • List the important components of action plans. Which component do you think is the most important? The least important? Explain your response.
  • How are the action plans for a division (for example, the hospital division) similar to action plans for a department (such as housekeeping)? How are they different?
  • How do action plans assist in the allocation of organizational resources in line with strategies?
  • Are the costs associated with accomplishing the unit objectives the only ones that should be included in budget requests? Why or why not?
  • What are the primary characteristics of unit objectives? Are these characteristics descriptive of good organizational strategic goals? Why or why not?
  • What is a Balanced Scorecard? In what ways is it a means of focusing attention on strategy implementation?
  • What are some of the primary barriers to the effective implementation of strategies in health care organizations? How can each be overcome or removed?
  • Explain how vision, mission, values, goals as well as the adaptive, market entry/exit, competitive and implementation strategies are a part of strategic control.
  • Should every organization formulate contingency plans? Why or why not?

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