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  1. 1. MGT 6123 Gonzales MGT 6123 Health Care Management MGT 6123 STRATEGIC MANAGEMENT OF HEALTH CARE ORGANIZATIONS SYLLABUS — Fall Semester 2009 Wed., 7:00 pm - 9:45 pm, BB 2.01.18 I. Instructor Mr. Joseph P. Gonzales, MHA, FACHE Office / Cell Phone: (210) 260-9979 Office: BB 4.03.48 Home Phone: (210) 545-9680 Office Hours: Wednesdays, 6-7PM, And by appointment II. Course Description The objective of this course is to provide students with current knowledge, skills, and practical experience needed to conduct insightful, systematic, and well-grounded strategic analysis and to make effective choices regarding a firm’s future. These capabilities will enable students to solve strategy-related problems and capitalize on competitive opportunities. As a field, strategic management attempts to explain why one firm outperforms another firm. Strategic management also concerns itself with the long-term success of the organization. Successful strategic management involves both making good decisions about where you want your organization to go and deciding how to get there. This course will focus on both direction issues and execution issues. Additionally, this course will emphasize that strategic management cuts across all aspects of an organization. It is important to remember that this course is not about identifying a single “right” solution to strategic issues. Each business situation is different and what works for one organization at one point in time may not work in another organization at a different time. In the real world, new issues and problems emerge every day. Answers may be obsolete very quickly, but thinking processes will not. Thus, this course will help students learn to ask the “right questions.” While we will reach consensus on some issues, there will be many times that different interpretations and disagreements will arise. This is the nature of strategic issues. Do not be frustrated by the ambiguity that presents itself and strive to provide a logical basis for the decisions that you make. This course will cover approaches for conducting situational analysis that includes both the external and internal environment. It will also cover strategy formulation and discuss various directional and support strategies that organizations can pursue in their competitive environment. It will also provide students with the skills to evaluate these strategies in the face of different environments. Finally, this course will provide students with the skills to monitor the strategic plans of organizations.
  2. 2. MGT 6123 Gonzales Readings and lectures will provide students with a basis for thinking constructively about strategy. Students will be provided with a number of tools and techniques that will aid in their analysis of organizations and situations. Case analyses, coupled with exams, will provide students with practical experience in strategic analysis and decision-making as well as the opportunity to integrate concepts from other classes in the program. In-class discussions and activities integrate concepts to provide students with the opportunities to enhance their ability to use materials presented in the course. III. Course Goals A. The Learning Goals for the MBA academic program are for students to: 1) Be able to apply business concepts and principles to a broad range of organizational and corporate decision problems, both local and global. 2) Be able to apply business concepts and principles to assess the attractiveness of various industries, and identify the strengths and weaknesses of firms. 3) Be proficient at using quantitative methods and associated research techniques and information technologies to make business plans and solve business problems. 4) Be knowledgeable of the ethical and other leadership issues facing business organizations, and have an appreciation of the various leadership roles and social responsibilities of the players in a business environment. B. MGT 6123 specifically supports the above goals through the following objectives. At the end of this course, each student should be able to: 1) Discuss briefly the evolution of strategic management, its fundamental principles and theories, its current status, and explain why strategic management is important to an organization. (Goal 1 and 2) 2) Identify and discuss the components of the strategic management framework set forth by Swayne, Duncan, and Ginter (2008). (Goal 1) 3) Explain why external environment analysis is important, discuss the process of conducting an external environment analysis, identify the various external environment analysis tools/techniques, and analyze an organization’s external environment. (Goal 1 and 2) 4) Explain why service area competitor analysis is important, discuss the process of conducting a service area competitor analysis, identify the various service area competitor analysis tools/techniques, and conduct a service area competitor analysis for an organization. (Goal 1, 2 and 4) 2
  3. 3. MGT 6123 Gonzales 5) Explain why internal analysis is important and how it helps identify the basis for sustained competitive advantage, discuss the process for identifying competitive advantages and disadvantages, identify the various internal analysis tools/techniques, and conduct an internal analysis of an organization. (Goal 1 and 2) 6) Describe the role of vision, the mission statement, goals, and values in providing strategic direction for a health services organization, describe why these items are called directional strategies, and, given an organizational situation, explain why directional strategy changes (if any) need to be made and how they should be made. (Goal 4) 7) Describe the decision logic and steps of strategy development, discuss the hierarchy of strategies and strategic decisions, discuss the scope, role, advantages and disadvantages of various strategy types, and, given a situation, develop logical strategic alternatives for an organization. (Goal 1) 8) Describe and select various key success factors and strategic alternatives in order to evaluate the appropriateness of the selection and, evaluate situational strategies. (Goal 1 and 2) 9) Describe how service delivery strategies add value to organizations, discuss a thinking map for developing value adding service delivery strategies, and, given a situation, develop a service delivery strategy. (Goal 1 and 2) 10) Describe how support strategies add value to organizations, discuss a thinking map for developing value adding support strategies, and, given a situation, develop a support strategy. (Goal 1 and 2) 11) Identify and discuss organizational mechanisms for communicating the strategy and developing action plans, identify the various tools/techniques, and, given a situation, develop an action plan for an organization. (Goal 1, 2 and 4) IV. Methodology A combination of teaching and learning approaches will be used including lecture, group exercise, case analyses, and written examination. Most class sessions will involve individual or group activities and often require the turn-in of a written product following an in-class activity. V. Course Requirements/Grading A. Readings. Required readings are assigned from the course text and supplemental materials. B. Contribution. Active, meaningful, and consistent class contribution is an essential part of the learning experience of this course. To do so requires that each student adequately prepare out- of-class by completing all assigned readings and be familiar with current events that relate to the targeted concepts of the class. Students are encouraged to contribute to class discussion on their own initiative. Each student will also be required to lead/facilitate small group discussion on various occasions. Contribution to group work in class will also be considered. 3
  4. 4. MGT 6123 Gonzales C. Examination. Covers all materials presented up to that point in the class. Retesting for this deliverable will be on an exception basis (it is not expected, and it must be cleared with the instructor). D. Writing Assignments / Projects. Case Analyses. Four cases will be turned in for grading. Specific directions for each will be provided later in class. E. Grades. Grades will be distributed using WebCT. VI. Method of Evaluation Requirement Percent Due Date of Grade Contribution (2 parts) 20% Daily, and Leading Class Discussion 10% will be computed on 14 Oct 10% will be computed on 2 Dec Exam #1 25% 21 Oct Case Studies 40% 1- Case #TBD, due before class 16 Sep, 5% (1 individual, 2 group) 2- Case #TBD, due before class 7 Oct, 10% 3- Case #TBD, due before class 12 Nov, 10% 4- Case # TBD, due before class 2 Dec, 15% Exam #2 15% 2 Dec VII. Academic Honesty Scholastic dishonesty, including plagiarism, will be treated as a violation of University policies on academic honesty. Appropriate sanctions will be pursued vigorously. VIII. Required Text and other materials A. Required. Swayne, L.E., Duncan, W.J., & Ginter, P.M. 2008. Strategic Management of Health Care Organizations, 6th Edition. Malden, MA: Wiley(Jossey- Bass) Publishers. This is the required text, and this textbook will be referred to as SDG in this syllabus. Other materials are listed in the class schedule. B. Supplemental materials. To keep abreast of current events students are encouraged to read Fortune, The Wall Street Journal, and local newspapers. 4
  5. 5. MGT 6123 Gonzales C. Websites that may be of use are as follows: IX. Additional Instructions A. Writing assignments. This will not be a class that requires students to memorize the text or lecture material. Rather, it will emphasize learning, understanding, and applying the concepts. Therefore, while advanced degree writing and presentation skills must be demonstrated, the focus of the deliverables, to include the exams, will be on application of the course materials. The deliverables should be typed, double-spaced, on 8.5 by 11 inch paper with 1-inch margins on all sides, and include a title page (does not count toward page limit). Font should be Times New Roman, 12-point size. If you use tables and figures, they should be used to support and clarify your words and as much as possible be included in the body of the document versus added as an appendix. You may include appendices as appropriate; they should be the last section of your document. Case analyses and the exams should also be turned in electronically to the instructor. Finally, be sure to follow any special instructions provided. Reference citations should be consistent; students can use the following citations as examples: Boulding, K.E. 1956. The Image. Ann Arbor: University of Michigan Press. (book example) Goggin, W.C. 1974. How the multidimensional game works: Innovations in the workplace. Harvard Business Review, 55(1): 54-65. (journal or periodical example). Tarlier, M. 1994. Nature’s Ambush: How two firefighters survived the tragedy of South Canyon Blaze. Wall Street Journal, August 22: A1, 6. (WSJ example, newspaper) Venue for Business. Retrieved June 13, 2004, from (internet example) B. Classroom conduct. The instructor is committed to providing excellent instruction during the class. The class will employ PowerPoint and most sessions will include in-class group and/or individual exercises. When the material required to be covered during a session has been covered the class will dismiss. Similarly, students are expected to contribute positively to the classroom experience. Therefore, unless students are using their computers to take class notes, they should be closed. C. Make-up and Late policy. Late assignments will be penalized 10% for each calendar day past the deadline. D. Blackboard. The instructor will employ the use of Blackboard when it becomes available and is necessary. 5
  6. 6. MGT 6123 Gonzales E. Changes. The instructor reserves the right to change this syllabus to maximize the learning of the students. X. Class Schedule Session/Date Session Topic/Readings/Preparation Questions/Assignments #1 Topic: Introduction to Strategic Management; Case Analysis Wednesday 26 August Readings: SDG , Chapter 1; SDG 7:00 pm - 9:45 pm #2 Topic: The External Environment Wednesday 2 September Readings: SDG, Chapter 2 & Case #18 7:00 pm - 9:45 pm Preparation Questions: What are the differences between the general and industry environment? What types of changes are likely to occur in the health care environment in the next few years? What does a stakeholder map for Premier Alliance look like? #3 Topic: Service Area Competitor Analysis Wednesday 9 September Readings: SDG , Chapter 3 & Case #18 7:00 pm - 9:45 pm Preparation Questions: How has the healthcare industry changed in the past decade? What does Porter’s Five Forces framework reveal about the environment facing Premier Alliance? What are the strengths and weaknesses of Premier Alliance’s competition? #4 Topic: Internal Analysis Wednesday Readings: SDG, Chapter 4 & Case #18 16 September 7:00 pm - 9:45 pm Preparation Questions: What is a good definition of competitive advantage? Of what use is a resource if it is not used? What does a SWOT analysis look like for Premier Alliance and why might using only the SWOT analysis be limiting? Assignments: Turn-in Case 1 (#TBD) (5%) #5 Topic: Directional Strategies Wednesday 23 September Readings: SDG, Chapter 5 & Case #18 6
  7. 7. MGT 6123 Gonzales 7:00 pm - 9:45 pm Preparation Questions: Are hospital alliances becoming dinosaurs in the healthcare industry? What issues arise in a trend/issue identification and evaluation analysis? Premier developed and approved a statement of values. Would you have started with values or a mission statement? What should be the mission for the new Premier Alliance? #6 Topic: Developing Strategic Alternatives; Evaluation of Alternatives Wednesday and Strategic Choice 30 September 7:00 pm - 9:45 pm Readings: SDG, Chapters 6, and 7 & Case #14 - AND - Assignments: #7 Wednesday Turn-in Case 2 (#TBD) (10%)- 7 October 7 October 7:00 pm - 9:45 pm Preparation Questions: Why do organizations change strategies? If diversification is so risky then why do organizations do it? In what cases would retrenchment of a service or product line be appropriate? What is Cooper Green’s current strategy? Has it been successful? Will it be so in the future given the anticipated environmental influences? What are the factors that point to the need for change? What are some alternative strategies for Cooper Green? What are the advantages and disadvantages of each? #8 Topic: Conduct Exam review Wednesday 14 October 10% Class Contribution calculated 7:00 pm - 9:45 pm Preparation Questions: Will be provided #9 Assignment: Exam Due (25%) Covers all materials presented in Wednesday sessions 1-8. 21 October Readings: SDG, Chapter 8 7:00 pm - 9:45 pm Preparation Questions: Exam review will be provided session #8 #10 Topic: Value Adding Service Delivery Strategies Wednesday Readings: SDG, Chapter 8 & Case #14 28 October 7:00 pm - 9:45 pm Preparation Questions: 7
  8. 8. MGT 6123 Gonzales What is the best strategy for Cooper Green and why? What tools from the chapter would best demonstrate the direction Cooper Green should take? Assignments: Student Briefings #11 Topic: Value Adding Service Delivery Strategies Wednesday 4 November Readings: SDG, Chapter 8 & Case #14 7:00 pm - 9:45 pm Preparation Questions: Why is it so critical to have service delivery strategies that add value to the formulated strategy? What would a new value chain for Cooper Green look like? What value adding service delivery should Cooper Green pursue? #12 Topic: Value Adding Support Strategies Wednesday 11 November Readings: SDG, Chapter 9 & Case #14 7:00 pm - 9:45 pm Preparation Questions: Why is it so critical to have support strategies that add value to the formulated strategy? What organizational structure changes would you recommend for Cooper Green? What other support changes would you recommend? Assignments: Turn in Case #3, 10% #13 Topic: Communicating the Strategy and Developing Action Plans Wednesday 18 November Readings: SDG, Chapter10 7:00 pm - 9:45 pm Preparation Questions: How many measures are too many? What comprises a successful action plan? Should all organization have contingencies? #14 Topic: TBD Wednesday 25 November Readings: SDG, Chapter 11 7:00 pm - 9:45 pm Exam #2 Presented Preparation Questions: What are the characteristics of effective control? What is the “concept of urgency” when discussing the use of measures? How do controls impact the organization’s ability to respond to change? 8
  9. 9. MGT 6123 Gonzales #15 Topic: Presentations Wednesday 2 December Readings: TBD 7:00 pm - 9:45 pm Assignments: 2nd Half/ contribution grade determined (10%) Case #4 Due (15%), and Exam #2 Due (15%) #16 Topic: Presentations; Wrap-Up Wednesday Final Exam Period. No exam scheduled. Instructor will be available to 9 December discuss course material with students, review grades, etc. 7:00 pm - 9:45 pm 9