How have strategies evolved?
Very interesting point, strategy literally means “The are of the general” in Greek. This was mostly used for military purposes in the beginning. Pairing this with organizational structure and todays vast world of business and economics it has also taken newer meaning. Today, it can be seen as a deliberate, purposeful behavior that allows a firm to plan decisions that maximize opportunities while minimizing threats.
What is strategic management?
Strategic management involves the creation, implementation, and overall direction for a firm. As such, it requires both internal and external management functions to facilitate the development, implementation, and monitoring of strategy within an organization.
- Goal Formation
- Environmental scanning
- Strategy formulation
- Strategy evaluation
- Strategic control
What is strategy?
We identify strategy as the development of a broad formula prescribing a way in which a business competes and collaborates, sets goals, and establishes policies to carry out those goals in order to achieve the organizational mission. Strategy occurs at all levels of firms and organizations.
What are the characteristics of strategy?
- Concerns both organizations and the environment
- Is complex
- Affects the welfare of the organization
- Involves issues of content and process
- Is not purely deliberate
- Exists on different levels
- Involves various thought processes
- Involves the allocation of resources
- Should be mission based
Describe the strategic process.
Successful strategies require direction, resources, and institutionalized processes. This takes everything and looks at it as a whole process. Strategic thinking, planning, the implementation of it all.
What is the difference between vision and mission?
A mission should be the foundation of strategic direction. The existence and enactment of a company mission should be critical to a firm’s success. A mission keeps management focused on what their primary purpose is. A vision is a statement about what the organization wants to become. It focuses on the future. The main difference is a vision looks into the future.
What are the components of a business model?
- Customer Value: A value proposition that better meets a customer’s needs in terms of product differentiation, cost, and/or access/availability.
- Inputs: The combination of resources used to provide the product or service.
- Processes: The sequence and method resources are combined to deliver the product or service.
- Profitability: A financial mechanism to recover enough revenue to sustain the provision of the product or service.
What is the hospital business model?
- Customer Value
- Inputs: Professionals in healthcare working to provide world class healthcare to citizens.
- Processes: Processes followed by hospital staff in order to efficiently help those who are requesting it.
- Revenue Generation: Revenue Cycle is big, making sure that you get paid is a big part of healthcare being able to pay healthcare professionals to keep their services going.
Explain the elements of evaluating an organizational environment.
Customers, these are the people who are paying for the services. Understanding you customers and giving them what they need is pivotal. Next is competition, understanding the competition is important and being a few steps ahead of your competition is needed. Lastly is Other Factors. There can be several things such as referral sources for physicians and insurance groups. These can all have a significant affect on the organization.
Describe the Five Forces Framework.
- Threat of new entrants- New entrants threaten markets by potentially decreasing incumbents’ market share and increasing price competition. The extent of barriers to entry will influence the number and size of firms within a given market.
- Threat of substitutes – The extent and degree of product/service substitution influences the propensity of customers to switch to alternatives. The strength of substitution is tied to customer perception on how well the substitute can match the quality of the good or service.
- Bargaining power of suppliers – A firm’s buyers or customers always seek to drive down price and improve quality. Their ability to do so, known as buyer power, depends on how much they purchase, how well informed they are regarding the product, and their willingness to experiment with alternatives
- Bargaining power of buyers – A firm’s buyers or customers always seek to drive down price and improve quality. Their ability to do so, known as buyer power, depends on how much they purchase, how well informed they are regarding the product, and their willingness to experiment with alternatives.
- Threat of rivalry – Competitors (rivals) in a market compete for customers and market share. Rivalry influences the strategies of firms and determines the overall profitability of the industry.
What is a SWOT Analysis?
This is a common analytical tool for evaluating organizational capabilities and to enhance organizational effectiveness and strategic direction. The SWOT analysis enables members of the organization to assess all aspects of the organization. These encompass the strengths and weaknesses of the internal organization’s capabilities and activities in the areas of organizational culture, structure, access to resources, staffing, operations, external relationships, information technology capacity and function, administrative processes, clinical control processes, and organizational decision making.
What is a value chain?
This refers to the interlinked activities among a set of organizations whereby suppliers provide raw material inputs to manufacturers who process them and produce outputs for down- stream markets.