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

1. How is strategy formulation related to situational analysis?
2. 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?
3. Collect examples of mission, vision, and values statements from various health care organizations — be sure to include those that are for-profit, not-for-profit, public, and private. The Internet provides a useful tool for obtaining real-time examples to review and evaluate. Utilizing the criteria discussed in the textbook readings, determine the extent to which the actual statements apply the principles discussed. Identify the similarities and differences between “for-profit” and “not-for-profit” examples. Compare and contrast statements obtained from public and private health care organizations.
4. Work through Exhibit 6-4 (p. 210), “Strategic Thinking Map – Hierarchy of Strategic Decisions and Alternatives,” for an organization with which you are familiar. Practice selecting different alternatives under each strategy type.

• Length: 1500-2000 words.
• Structure: Include a Title page in APA style.