Mod 3 Assignment:Internal Environmental Analysis and Competitive Advantage

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Welcome to Module 3! This module explores how an organization examines its strengths and weaknesses to understand competitive advantages and disadvantages as the basis for strategy formulation. Assessment of the internal environment is accomplished through strategic thinking maps for a health care value chain and analysis of the organization’s resources, capabilities, and competencies.

Summary: Understanding competitive advantage requires a careful analysis of the internal organizational environment. In this module, the value chain was introduced as a guide to this internal assessment. A value chain is a useful tool for focusing on those areas in a health care organization where value can be added. The value chain is divided into two major components. The first relates to the delivery of health services and includes pre-service activities, point-of-service activities, and after-service activities. The second major component consists of support activities that include organizational culture, organizational structure, and strategic resources. Assessing the various resources, competencies, and capabilities that may or may not be used to create value allows strategic thinkers to identify possible strengths and weaknesses that are competitively relevant. These competitively relevant strengths and weaknesses provide the basis for developing strategies that capitalize on strengths while avoiding weaknesses—- thus establishing a competitive advantage. Sustained competitive advantage requires that leaders understand what the environment demands of successful health care organizations, configure competitively relevant strengths to the organizations’ greatest advantage, eliminate or minimize the adverse effects of competitively relevant weaknesses, and establish demanding aspirations that require strategic assets to be pushed to their limits while constantly searching for new opportunities.

Assignment Description:

For this assignment, based on your Chapter readings for this module, create an essay discussing the following:

1. Discuss the resource-based view of competitive advantage. Why is it important to understand organizational differences to use this approach?

2. Briefly define what is meant by competitive advantage. Are competitive advantage and sustained competitive advantage identical concepts? Compare and contrast the two concepts.

The following specifications are required for this assignment:

  • Length: 1500-2000 words.
  • Structure: Include a Title page in APA style.
  • References: Include at least two scholarly sources, in addition to the textbook and provided material.

Mod 4 Discussion Question:Directional Strategies and Developing Strategic Alternatives

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Welcome to Module 4! This module examines the directional strategies— mission, vision, values, and goals. Developing a mission forces member of an organization to strategically think about its distinctiveness today; developing a vision forces them to think about their hopes for its future; and building awareness of organizational values makes members cognizant of the things that should be cherished and not compromised as the mission and vision are pursued. Organizational goals establish clear targets and help focus activities.

Strategy formulation is concerned with making strategic decisions using the information gathered during situational analysis. This module provides the decision logic for strategy formulation and demonstrates that strategic decisions are connected in an “ends-means” chain. Each decision along the decision chain more explicitly defines the strategy and must be consistent with upstream and downstream decisions.

Summary: Mission, vision, values, and strategic goals are called directional strategies because they guide strategists when they make key organizational decisions. The mission attempts to capture the organization’s distinctive purpose. The vision creates a mental image of what the managers, employees, health care providers, patients, and stakeholders want the organization to be when it is accomplishing its purpose or mission. Values are the principles that are highly regarded by the members of the organization. These are guiding principles the managers and employees will not compromise while they are in the process of achieving the mission and pursuing the vision and strategic goals. Strategic goals are those overarching results that the organization pursues to accomplish its mission and achieve its vision.

Following the articulation of the directional strategies, adaptive strategies are identified, evaluated, and selected. These adaptive strategies are central to strategy formation and delineate how the organization will expand, contract, or maintain the scope of operation. Expansion strategies include diversification, vertical integration, market development, product development, and penetration. Contraction strategies include divestiture, liquidation, harvesting, and retrenchment. Strategies for maintenance of scope include enhancement and status quo. Finally, strategic decisions also encompass both market entry strategies and competitive strategies.

Discussion Question:

Who determines the values of the health care organization? What values do you think should be shared by all health care organizations? Why?

OR

How is market development different from product development? Penetration? Provide examples of each.

Mod 3 Discussion Question: Internal Environmental Analysis and Competitive Advantage

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Welcome to Module 3! This module explores how an organization examines its strengths and weaknesses to understand competitive advantages and disadvantages as the basis for strategy formulation. Assessment of the internal environment is accomplished through strategic thinking maps for a health care value chain and analysis of the organization’s resources, capabilities, and competencies.

Summary: Understanding competitive advantage requires a careful analysis of the internal organizational environment. In this module, the value chain was introduced as a guide to this internal assessment. A value chain is a useful tool for focusing on those areas in a health care organization where value can be added. The value chain is divided into two major components. The first relates to the delivery of health services and includes pre-service activities, point-of-service activities, and after-service activities. The second major component consists of support activities that include organizational culture, organizational structure, and strategic resources. Assessing the various resources, competencies, and capabilities that may or may not be used to create value allows strategic thinkers to identify possible strengths and weaknesses that are competitively relevant. These competitively relevant strengths and weaknesses provide the basis for developing strategies that capitalize on strengths while avoiding weaknesses—- thus establishing a competitive advantage. Sustained competitive advantage requires that leaders understand what the environment demands of successful health care organizations, configure competitively relevant strengths to the organizations’ greatest advantage, eliminate or minimize the adverse effects of competitively relevant weaknesses, and establish demanding aspirations that require strategic assets to be pushed to their limits while constantly searching for new opportunities.

Discussion Question:

What is the difference between objective and subjective strengths and weaknesses? Give examples of each type of strength and weakness in a health care organization.

OR

Why are some strengths and weaknesses that are not competitively relevant deserving of attention by health care strategists? Provide one example of strength or weakness that is not competitively relevant but is deserving of attention.