The eText describes various types of strategies that can be used by organizations.  These strategies include:

  • Growth or expansion strategies.
  • Concentrate resources strategies, for increased leverage.
  • Diversification strategies to expand services or products in unrelated areas.
  • Retrenchment or reduction of products and services strategies:

(a) Retrenchment by way of a turnaround or downsizing.

(b) Retrenchment by way of divestiture or selling parts.

(c) Retrenchment thru liquidation or closure/bankruptcy.  

  • Stability strategies via maintaining current operations.
  • Cooperation strategies through collaboration partnerships.
  • Strategic partnerships with other organizations with mutual interests.
  • Outsourcing alliances by purchasing services.

Do a little research and find a health care organization that followed one of these strategies.  Tell us about the organization, the strategy that they followed, the outcome that they hoped for and whether this strategy was successful.  If the strategy was not successful, tell us why you think it was not successful and what you think might have been a better strategy.

Be sure to cite your sources using APA format.

Requirement:  One original post (250-word minimum) and two additional posts.

Deadline: Saturday at 11:59 pm.


Making Major Choices

Performing Strategic Analysis and Making Decisions

Learning Objectives

After Studying This Chapter, Students Should Be Able To

· Understand the various types of strategies that can be employed in making major decisions

· Explain how to go about formulating strategies

· Collect information that can help in developing strategies and making decisions

· Conduct an analysis of data gained from a variety of sources including environmental, functional, business, and historical

· Differentiate among the models of approach in developing operational changes

· Implement a strategic plan that involves all the stakeholders

Chapter Summary

This chapter stresses the importance of understanding the strategic planning process and developing a plan of action that allows it to attain and sustain a competitive advantage over would-be competitors. The strategic plan helps formulate a long-range view utilizing resources efficiently. The strategic management process focuses on formulating the plan that will keep the organization ahead of the competition and toward maintaining focus on the organization’s mission and goals.

The first step of the strategic management process is to look ahead by asking five key questions:

1. What is our mission? What business are you in?

2. Who are our customers?

3. What do our customers consider of value?

4. What have been our results?

5. What is the plan?

. The second responsibility is to design an implementation plan:

· Identify organizational mission and goals.

· Assess current performance of the organization.

· Create strategic plans to accomplish the objectives.

· Implement the strategic plans.

· Evaluate results, change plans and/or implementation.

Levels of Strategy

Successful organizations formulate different levels of strategy:

Corporate level:
Overall plan set by top management.

Business level:
Marketplace plan set by top- and mid-level managers.

Functional level:
Internal operational service plan set by mi- and low-level managers.

Types of Strategy

As these plans or levels become visualized, then types of strategies are pursued:

· Growth or expansion strategies.

· Concentrate resources strategies, for increased leverage.

· Diversification strategies to expand services or products in unrelated areas.

· Retrenchment or reduction of products and services strategies:

(a) Retrenchment by way of a turnaround or downsizing.

(b) Retrenchment by way of divestiture or selling parts.

(c) Retrenchment thru liquidation or closure/bankruptcy.

· Stability strategies via maintaining current operati


Chapter 8

Making Major Choices

[These slides are intended to be used in conjunction with Health Care Management by Donald J. Lombardi and John R. Schermerhorn, Jr. with Brian Kramer (the Text).    Please refer  to the Text for a more complete explanation of the materials covered herein and for all source material references.]

Copyright by John Wiley and Sons, 2006


  • Competitive advantage: an attribute or combination of attributes that allows an organization to outperform its rivals.
  • Sustainable competitive advantage: an attribute that is difficult for competitors to imitate.
  • Strategic management: the process of formulating and implementing strategies that create competitive advantage and advance an organization’s mission and objectives.
  • Strategy formulation: assessing existing strategies, organizations, and environments to develop new strategies and strategic plans capable of delivering future competitive advantage.
  • Strategy implementation: acting upon strategies successfully to achieve the desired results.

Understanding Levels
and Types of Strategy


The Strategic Management Process


Levels of Strategy

Successful health care organizations formulate strategies at several specific levels:

  • At the level of corporate strategy, top management directs an organization as a whole toward sustainable competitive advantage.
  • At the level of business strategy, top- and mid-level management set the direction for a single business unit.
  • At the level of functional strategy, middle- and low-level management guide the use of resources to implement business strategy.


Types of Strategies

  • Growth strategies pursue larger-size and expanded operations.
  • some organizations grow through concentration
  • others grow through diversification
  • Retrenchment strategies reduce the scale of operations in order to gain efficiency and improve performance.
  • retrenchment by turnaround
  • retrenchment by divestiture
  • retrenchment by liquidation
  • Stability strategies maintain the present course of action without major operating changes.
  • Cooperation strategies are becoming increasingly popular, and include
  • strategic alliances
  • outsourcing alliances


Formulating Strategies
and Making Decisions

  • Major opportunities for competitive advantage include the following areas:
  • cost and quality
  • knowledge and timing
  • barriers to entry
  • Excerpted from The Emerging Healthcare Leader: A Field Guide,
    by Laurie Baedke and Natalie Lamberton (Health Administration Press, 2015).


    C H A P T E R 8

    Bounce Back from Failure

    “Mistakes are the usual bridge between
    inexperience and wisdom.”

    —Phyllis Theroux, Essayist

    Reading Points

    • Managing Failure

    • Taking and Handling Criticism

    • Persevering Through the Nos

    • Trying New Things

    • Forgetting

    • Michael Jordan was cut from his high school basketball

    • Walt Disney was fired from a newspaper for “lacking
    imagination” and “having no original ideas.”

    • Steve Jobs was unceremoniously removed from the
    company he started.

    Copying and distributing this content is prohibited without written permission. For permission,
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    The Emerging Healthcare Leader128

    • Oprah Winfrey was demoted from her job as a news
    anchor because she “wasn’t fit for television.”

    • The Beatles were rejected by a recording studio, which
    said, “We don’t like their sound, they have no future in
    show business.”

    This list coul d go on and on, but our point is this: Fail-
    ures happen to everyone, even to very talented, famous people. As
    we’ve said, failures are a matter of when, never a matter of if. All
    we can do is hope for the best, but plan for the worst.

    Don’t define your career in this constantly changing, high-
    stress, high-stakes healthcare industry by the number of times
    you failed or made a mistake. Doing so is unfair, and it dimin-
    ishes the countless things you’ve accomplished, contributed, and
    improved. Instead, see failure for what it is—an inevitable and
    scary occurrence that you can bounce back and learn from and
    you can prevent. How you overcome or rebound from adversity is
    what should define your career, because that’s tough work that not
    only requires but also shows your strength of character—whether
    you’re tenacious, resilient, committed, disciplined, progress ori-
    ented, and so on.

    Many of us were schooled to believe that failure is bad. But
    that’s only true if you let it stop you from trying again. In fact,
    failure is good because it provides learning and growth opportu-
    nities. It also promotes taking risks by applying new approaches
    to old or existing processes. The corporate giant 3M, for example,
    has a company-wide philosophy that encourages employees to
    fail—and do so regularly (Kalb 2013). If employees aren’t fail-
    ing 95 percent of the time, the company reasons, then they likely
    aren’t trying anything fresh and current. Although we elevate our
    chances of falling flat on our faces if