English 101 Reyes Essay #4 Argumentative essay .docx

English 101
Reyes
Essay #4
Argumentative essay
Researching a Social Issue
We have now entered into our argumentative unit which is the
final unit of this course.
Although you may not realize it, you have been doing exactly
this in your papers throughout this
course. You have posed judgments and have provided
supporting reasons to defend them; you
have made claims and used visual texts as evidence to support
your claims. For this essay you
will pick a social issue and conduct research on the issue.
Specifically, you will consider a social
issue that interests you and build an argument around that issue.
Your job is to pose an effective
argument on the topic of your choosing using the research you
conduct to support your
argument.
When considering the social issue you wish to write about, I
suggest you choose a topic
you have experience with or a great interest in. You may argue
about any topic of your choice.
However, please note that if you choose a highly controversial
topic it will be difficult to
effectively present your side within the span of a 4-6 page

paper. Additionally, choose a topic
that is relevant within the last two years, the more recent the
research is, the more credible your
argument will be. If you choose a topic that is outdated, chances
are the research will be too.
Essay Requirements:
-2 counterarguments
4-6 pages (At least 4 spilling onto 5)
Additional due Dates & Paper Requirements:
10 Pts Proposal due 11/28:
You will write a short proposal (about 300 words) that states:
the topic of your choice,
why you have decided to write about it, a working thesis
statement, and why this issue is
important to explore.
5 Pts Outline #4 due 12/2:

40 Pts Annotated bibliographies due 12/7:
An annotated bibliography is an evaluation of your sources for
your essay. It is similar to a
Works Cited page, but you will also add a short summary (at
least 3 sentences) for each source
and explain how it relates to your argument.) You will need to
cite 5 sources in your annotated
bibliography. Although only three are required for this essay,
having at least two more sources
gives you more choices, and will be helpful if you decide one of
your sources does not strongly
support your argument once you begin to write the paper.
15 Pts Rough draft due 12/09:
125 Pts Essay 4 Final Paper:
Due by Wednesday 12/14/2016 by 11:59 PM on Titanium
STRATEGIC MANAGEMENT OF
HEALTH CARE ORGANIZATIONS 7TH EDITION
*

Evaluation of Alternatives and Strategic Choice
Chapter 7
*
Chapter 7 Learning ObjectivesUnderstand the rationale
underlying the various strategic thinking maps used to evaluate
strategic alternatives.
*
strategic alternatives.Discuss, evaluate, and select appropriate
adaptive strategic alternatives for a health care organization.
*
strategic alternatives.Discuss, evaluate, and select appropriate
adaptive strategic alternatives for a health care

organization.Discuss, evaluate, and select appropriate market
entry strategic alternatives.
*
Chapter 7 Learning ObjectivesDiscuss, evaluate, and select
appropriate strategic posture and generic positioning
alternatives.
*
alternatives.Determine whether selected strategies are
consistent, coordinated, and fit the situation.
*
alternatives.Determine whether selected strategies are
consistent, coordinated, and fit the situation.Understand the role

of the service delivery and support strategies.
*
Strategic Thinking Map
Hierarchy of Strategic Decisions and Alternatives
Directional Strategies Mission
Vision
Values
Goals
Implementation Strategies
Service Delivery Pre-service Point-of-service After-service
Support Culture Structure Strategic resources
Unit Action Plans Objectives Actions Timelines
Responsibilities
Competitive Strategies
Strategic Posture Defender Prospector Analyzer (Reactor)
Positioning
Market-wide Cost leadership Differentiation
Market Segment Focus/Cost
leadership Focus/
differentiation
Market Entry Strategies
Purchase Acquisition Licensing Venture capital

investment
Cooperation Merger Alliance Joint venture
Development Internal
development Internal
venture
Adaptive Strategies
Expansion of Scope Diversification Vertical Integration Market
Development Product Development Penetration
Contraction of Scope Divestiture Liquidation Harvesting
Retrenchment
Maintenance of Scope Enhancement Status Quo
*
Evaluation of Alternatives
External/Internal Strategy Matrix
*
Product life cycle analysis

*
BCG portfolio analysis
(Extended portfolio analysis)
*
Strategic Position and ACtion Evaluation (SPACE)
*

Program evaluation
*
Program evaluation
*
Long-Term
Competitive
Advantages
Internal Advantages
& Disadvantages
General Environment
Issues
1.
2.

3.
Short-Term
Competitive
Advantages
1.
2.
3.
Short-Term
Competitive
Disadvantages
1.
2.
3.
Long-Term
Competitive
Disadvantages
1.
2.
3.
1.
2.
3.
Health Care
Environment Issues
1.
2.
3.
Service Area &
Competitive Issues
1.
2.
3.
Strategies
1.
2.
3.

Strategies
1.
2.
3.
Strategies
1.
2.
3.
Strategies
1.
2.
3.
Strategies
1.
2.
3.
Strategies
1.
2.
3.
Strategies
1.
2.
3.
Strategies
1.
2.
3.
Strategies
1.
2.
3.
Strategies
1.
2.
3.

Strategies
1.
2.
3.
Strategies
1.
2.
3.
External Issues
*
Program evaluation
*
The Product Life Cycle (PLC)
Dollars

0
Time
Stage 1
Introduction
*
Dollars
0
Time
Stage 1 Stage 2
Introduction Growth
*
Dollars

0
Time
Stage 1 Stage 2 Stage 3 Introduction
Growth Maturity
*
Dollars
0
Time
Stage 1 Stage 2 Stage 3 Stage 4
Introduction Growth Maturity Decline
*
Dollars

0
Time
Stage 1 Stage 2 Stage 3 Stage 4
Introduction Growth Maturity Decline
Sales/Revenue
Profit
*
PLC Stage
CharacteristicsCharacteristicIntroductionSales/RevenueLowProf
itsNegativeCompetitorsFewCost/CustomerHighCapital/AccessV
enture
*
PLC Stage

CharacteristicsCharacteristicIntroductionGrowthSales/RevenueL
owRapid growthProfitsNegativePeak
LevelsCompetitorsFewGrowingCost/CustomerHighAverageCapi
tal/AccessVentureEquity/debt
*
PLC Stage
CharacteristicsCharacteristicIntroductionGrowthMaturitySales/
RevenueLowRapid growthSlow growthProfitsNegativePeak
LevelsHighCompetitorsFewGrowingManyCost/CustomerHighAv
erageLowCapital/AccessVentureEquity/debtDebt/internal

*
PLC Stage
CharacteristicsCharacteristicIntroductionGrowthMaturityDeclin
eSales/revenueLowRapid growthSlow
growthDecliningProfitsNegativePeak
LevelsHighLowCompetitorsFewGrowingManyDecliningCost/cu
stomerHighAverageLowLowCapital/accessVentureEquity/debtD
ebt/internalMinimal
*

Strategic Choices for Stages of the PLCStage 1
Introduction Market
Development
Product
Development
*
IntroductionStage 2
Growth Market
Development
Product
Development Market
Development
Product
Development
Penetration
Vertical
Integration
Related
Diversification
*
IntroductionStage 2

GrowthStage 3
Maturity Market
Development
Product
Development Market
Development
Product
Development
Penetration
Vertical
Integration
Related
Diversification Market
Development
Product
Development
Penetration
Enhancement
Status Quo
Retrenchment
Divestiture
Unrelated
Diversification
*
IntroductionStage 2
GrowthStage 3
MaturityStage 4
Decline Market

Development
Product
Development Market
Development
Product
Development
Penetration
Vertical
Integration
Related
Diversification Market
Development
Product
Development
Penetration
Enhancement
Status Quo
Retrenchment
Divestiture
Unrelated
Diversification
Divestiture
Liquidation
Harvesting
Unrelated
Diversification
*

Program evaluation
*
BCG Portfolio Analysis
Stars
Problem
Children
Cash
Cows
Dogs
Relative Market Share Position
High Medium Low
High
Medium

Low
Market
Growth
Rate
*
Stars
Problem
Children
Cash
Cows
Dogs
High Medium Low
High
Medium

Low
Market
Growth
Rate
Strategies
Market Development
Product Development
Penetration
Vertical Integration
Related Diversification
*
Stars
Problem
Children
Cash
Cows
Dogs
High Medium Low
High
Medium

Low
Market
Growth
Rate
*
Stars
Problem
Children
Strong
Cash
Cows
Dogs
High Medium Low
High

Medium
Low
Market
Growth
Rate
Strategies
Status Quo
Enhancement
Penetration
*
Stars
Problem
Children
Weak
Cash
Cows
Dogs
High Medium Low
High

Medium
Low
Market
Growth
Rate
Strategies
Retrenchment
Harvesting
Divestiture
Liquidation
*
Stars
Problem
Children
Cash
Cows

Dogs
High Medium Low
High
Medium
Low
Market
Growth
Rate
*
Stars
Strong
Problem
Children
Cash

Cows
Dogs
High Medium Low
High
Medium
Low
Market
Growth
Rate
Strategies
Market Development
Product Development
*
Stars

Weak
Problem
Children
Cash
Cows
Dogs
High Medium Low
High
Medium
Low
Market
Growth
Rate
Strategies
Harvesting
Divestiture
Liquidation
*

Stars
Problem
Children
Cash
Cows
Dogs
High Medium Low
High
Medium
Low
Market
Growth
Rate
*

Stars
Problem
Children
Cash
Cows
Dogs
High Medium Low
High
Medium
Low
Market
Growth
Rate
Strategies
Liquidation
Divestiture
Retrenchment

*
Stars
Problem
Children
Cash
Cows
Dogs
High Medium Low
High
Medium
Low
Market
Growth
Rate

*
Program evaluation
*
Expanded Product Portfolio Matrix
Market Share
High Low
High
Market
Growth
Rate

Low
High Low
Market Share
High
Market
Growth
Rate
Low
Problem
Child
Mangy
Dog
Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit
High Low

*
Market Share
High Low
High
Market
Growth
Rate
Low
High Low
Market Share
High
Market
Growth
Rate
Low
Problem
Child

Mangy
Dog
Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit
High Low
Strategies
Enhancement
Product Development
Market development
Penetration
*
Market Share
High Low
High

Market
Growth
Rate
Low
High Low
Market Share
High
Market
Growth
Rate
Low
Problem
Child
Mangy
Dog
Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy

Child
Shining
Star
Profit
High Low
Strategies
Enhancement
*
Market Share
High Low
High
Market
Growth
Rate
Low
High Low
Market Share
High

Market
Growth
Rate
Low
Problem
Child
Mangy
Dog
Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit
High Low
Strategies
Product Development
Market development
Penetration
*

Market Share
High Low
High
Market
Growth
Rate
Low
High Low
Market Share
High
Market
Growth
Rate
Low
Problem
Child
Mangy
Dog

Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit
High Low
Strategies
Status Quo
Retrenchment
Harvesting
Divestiture
*
Market Share
High Low
High
Market

Growth
Rate
Low
High Low
Market Share
High
Market
Growth
Rate
Low
Problem
Child
Mangy
Dog
Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit

High Low
Strategies
Enhancement
Retrenchment
*
Market Share
High Low
High
Market
Growth
Rate
Low
High Low
Market Share
High
Market
Growth
Rate

Low
Problem
Child
Mangy
Dog
Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit
High Low
Strategies
Market Development
Or
Divestiture
Liquidation
*

Market Share
High Low
High
Market
Growth
Rate
Low
High Low
Market Share
High
Market
Growth
Rate
Low
Problem
Child
Mangy
Dog
Cash
Pig
Black
Hole
Cash

Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit
High Low
Strategies
Retrenchment
Market Development
*
Market Share
High Low
High
Market
Growth
Rate
Low
High Low

Market Share
High
Market
Growth
Rate
Low
Problem
Child
Mangy
Dog
Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit
High Low
Strategies
Liquidation
Divestiture

*
Market Share
High Low
High
Market
Growth
Rate
Low
High Low
Market Share
High
Market
Growth
Rate
Low
Problem
Child
Mangy

Dog
Cash
Pig
Black
Hole
Cash
Cow
Faithful
Dog
Healthy
Child
Shining
Star
Profit
High Low
*
Program evaluation
*

SPACE Matrix
6
5
4
3
2
1
-1
-2
-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Conservative Aggressive
Defensive Competitive
Financial Strength
Environmental Stability
Competitive
Advantage
Service Category
Strength

*
Strategic Position and Action Evaluation Factors
Environmental Stability Critical Factors
Fairly turbulent environment; strong competition; many
technological changes.
Comments
Necessary to maintain financial stability because of turbulence
in the environment; demand in market segments relatively
stable; protect market niche against competition.
*
Service Category Strength Critical Factors
Good growth and profit potential; strong competition.
Comments
Very attractive service category, but strong competition; degree
of capital intensity increasing.
*

Competitive Advantage Critical Factors
Market share low; product/service quality very good.
Comments
The organization still enjoys slight competitive advantage
because of quality and customer loyalty; can be expected to
diminish, however, because of improving performance of
competitive organizations.
*
Financial Strength Critical Factors
Very little liquidity; too much debt.
Comments
Financial position very weak; each inflow has to be increased in
order to improve liquidity; outside financing difficult because
of high leverage.
*
SPACE Matrix
6
5

4
3
2
1
-1
-2
-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category
Strength
1.6
3.7
-3.7
-2.4

*
SPACE Matrix
6
5
4
3
2
1
-1
-2
-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category

Strength
*
SPACE Quadrants Strategic Alternatives
6
5
4
3
2
1
-1
-2
-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive

Advantage
Service Category
Strength
Aggressive Profiles
Strategies Related Diversification Market Development Product
Development Vertical Integration
*
SPACE Matrix
6
5
4
3
2
1
-1
-2
-3
-4
-5
-6

-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category
Strength
*
6
5
4
3
2
1
-1
-2
-3
-4

-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category
Strength
Conservative Profiles
Strategies Status Quo Unrelated Diversification Harvesting
*
SPACE Matrix
6
5
4
3
2
1
-1
-2

-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category
Strength
*
6
5
4
3
2

1
-1
-2
-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category
Strength
Competitive Profiles
Strategies Penetration Enhancement Product Development
Market Development Status Quo
*
SPACE Matrix
6
5
4

3
2
1
-1
-2
-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category
Strength
*
6

5
4
3
2
1
-1
-2
-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category
Strength
Defensive Profiles
Strategies Divestiture Liquidation Retrenchment
*

6
5
4
3
2
1
-1
-2
-3
-4
-5
-6
-6 -5 -4 -3 -2 -1
1 2 3 4 5 6
Financial Strength
Competitive
Advantage
Service Category
Strength
Aggressive Related Diversification Market Development
Product Development Vertical Integration
Competitive Penetration Enhancement Product Development

Market Development Status Quo
Defensive Divestiture Liquidation Retrenchment
Conservative Status Quo Unrelated Diversification Harvesting
*
Program evaluation
*
Program Evaluation
Needs/Capacity Assessment
Program Priority Setting
*

Community need is a function of (1) clear community
requirements (environmental, sanitation, disease control, and so
on) and personal health care (primary care) gaps, (2) the degree
to which other institutions (private and public) fill the
identified health care gaps, and (3) public/community health
objectives.
*
Organizational capacity is the organization’s ability to initiate,
maintain, and enhance its set of adaptive strategy programs.
Organizational capacity is composed of (1) funding to support
programs, (2) other organizational resources and skills, and (3)
the program’s fit with the mission and vision of the
organization.
*
High
Community
Need

Low
Organizational Capacity
High Low
Expansion of Scope Vertical Integration Related Diversification
Product Development Market Development Penetration
*
High
Community
Need
Low
High Low
Maintenance/
Contraction of Scope Enhancement Status Quo Retrenchment
Harvesting
*

High
Community
Need
Low
High Low
Maintenance/
Harvesting
Contraction/
Maintenance of Scope Related Diversification Retrenchment
Harvesting Status Quo
*
High
Community
Need

Low
High Low
Maintenance/
Harvesting
Contraction/
Maintenance of Scope Related Diversification Retrenchment
Harvesting Status Quo
Contraction of Scope Liquidation Harvesting Divestiture
Retrenchment
*
Program Evaluation
*
Invariably more programs have high community need than
resources are available. Therefore, the most important programs
(and perhaps those with categorical funding) may be expanded
or maintained. The organization must have an understanding of

which programs are the most important, which should be
provided incremental funding, and which should be the first to
be scaled back if funding is reduced or eliminated.
*
Q-Sort Method
The Q-sort method provides a more formal method of
differentiating the importance of programs and setting
priorities.
Q-sort is a ranking procedure that forces choices along a
continuum in situations where the difference between the
choices may be quite small.
By ranking the choices using a Q-sort procedure, participants
see where there is wide consensus.
*
Q-Sort Method
The Q-sort method provides a more formal method of
differentiating the importance of programs and setting
priorities.
Q-sort is a ranking procedure that forces choices along a
continuum in situations where the difference between the
choices may be quite small.
By ranking the choices using a Q-sort procedure, participants
see where there is wide consensus.

Most Next Next Next Next
Next Next Next Next
Important Most Most Most Most
Most Most Most Most
Important Important Important Important
5%
5%
7.5%
7.5%
12.5%
12.5%
15%
15%
20%

Most Next Next Next Next
Next Next Next Next
Important Most Most Most Most
Most Most Most Most
5%
5%
7.5%
7.5%
12.5%
12.5%
15%
15%
20%
Expansion

of Scope
Maintenance
of Scope
Contraction
of Scope
*
Vision
Values
Goals
Responsibilities
Positioning
leadership Focus/
differentiation

investment
venture
Adaptive Strategies
Retrenchment
*
External Conditions for Market
Entry StrategiesStrategyAppropriate External
ConditionsAcquisition
Growing market
Early stage of the product life cycle or long maturity stage
Attractive acquisition candidate
High volume economies of scale (horizontal integration)
Distribution economies of scale (vertical integration)

*
Growing market
Distribution economies of scale (vertical integration)Licensing
High capital investment to enter market
High immediate demand for product/service
Early stages of the product life cycle
*
Growing market

Early stages of the product life cycleVenture Capital
Investment Rapidly changing technology
Product/service in the early development stage
*
Growing market
Early stages of the product life cycleVenture Capital
Investment Rapidly changing technology
Product/service in the early development stageMerger
Attractive merger candidate (synergistic effect)
High level of resource required to compete

*
ConditionsAlliance Alliance partner has complementary
resources, competencies,
capabilities
Alliance partner has similar status
Market demands complete line of products/services
Market is weak and continuum of services is desirable
Mature stage of product life cycle
*
capabilities
Mature stage of product life cycleJoint Venture High capital

requirements to obtain necessary skills/expertise
Long learning curve in obtaining necessary expertise
*
capabilities
Long learning curve in obtaining necessary expertiseInternal
Development High level of product control (quality) required
Early stages of the product life cycle
*

capabilities
Early stages of the product life cycleInternal Venture
Product/service development stage
Rapid development/market entry required
New technical, marketing, production approach required
*
capabilities

Early stages of the product life cycleInternal Venture
Product/service development stage
Rapid development/market entry required
New technical, marketing, production approach
requiredReconfiguring the Value Chain Competition dominated
by a few traditional providers
Specialized market niche identified
New technology, marketing, production approach required
*
Resources, Competencies, and Capabilities for Market Entry
StrategiesStrategyAppropriate Resources, Competencies and
CapabilitiesAcquisition Financial resources
Ability to manage new products and markets
Ability to merge organizational cultures and organizational
structures
Rightsizing capability for combined organization
*

structures
Rightsizing capability for combined organizationLicensing
Financial resources (licensing fees)
Support organization to carry out license
Ability to integrate new product/market into present
organization
*
structures
organizationVenture Capital Investment Capital to invest in
speculative projects
Ability to evaluate and select opportunities with a high degree

of success
*
structures
organizationVenture Capital Investment Capital to invest in
speculative projects
Ability to evaluate and select opportunities with a high degree
of successMerger Management willing to relinquish or share
control
Rightsizing capacity
Agreement to merge management
structures

*
CapabilitiesAlliance Lack of competitive
skills/facilities/expertise
Desire to create vertically integrated system
Need to control patient flow
Coordinate board/skills
Willing to relinquish share control
*
Willing to relinquish share controlJoint Venture Lack of a
distinctive competency
Additional resources/capabilities are required
Not enough time to develop internal resources, capabilities, or
competencies
Venture is removed from core competency
Lack required skills and expertise

*
Willing to relinquish share controlJoint Venture Lack of a
distinctive competency
Additional resources/capabilities are required
Not enough time to develop internal resources, capabilities, or
competencies
Venture is removed from core competency
Lack required skills and expertiseInternal Development
Technical expertise
Marketing competency
Operational capacity
Research and development capability
Strong functional organization
Product/service management expertise
*

CapabilitiesInternal Venture Entrepreneur
Entrepreneurial organization
Ability to isolate venture from the rest of the organization
Technical expertise
Operational capacity
*
CapabilitiesInternal Venture Entrepreneur
Entrepreneurial organization
Ability to isolate venture from the rest of the organization
Technical expertise
Operational capacityReconfiguring the Value Chain New
technology available
Entrepreneurial Organization
Ability to rearrange value chain
Ability to adapt business model
*

Market Entry Strategies and Goals
Rapid Market Entry
Slow Market Entry
Low
Initial Control
Over Design,
Production,
Market
High
Initial Control
Over Design,
Production,
Market
Internal
Development
Internal
Venture
Reconfigure Value Chain
*
Rapid Market Entry
Slow Market Entry
Low
Initial Control

Over Design,
Production,
Market
High
Initial Control
Over Design,
Production,
Market
Internal
Development
Internal
Venture
Venture
Capital
Merger
Licensing
Acquisition
*
Rapid Market Entry
Slow Market Entry
Low

Initial Control
Over Design,
Production,
Market
High
Initial Control
Over Design,
Production,
Market
Internal
Development
Internal
Venture
Venture
Capital
Alliance
Joint Venture
Merger
Licensing
Acquisition
*

Vision
Values
Goals
Responsibilities
Positioning
leadership Focus/
differentiation
investment
venture

Adaptive Strategies
Retrenchment
*
Appropriate External Conditions for Strategic PosturesDefender
Stable external environment
Predictable political/regulatory change
Slow technological and competitive change
Products or services in mature stage of PLC
Relatively long PLCs
High barriers to entry
*
Appropriate External Conditions for Strategic
PosturesProspector Turbulent environment
Rapid technological, political/regulatory, economic change
Introduction and early growth stages of PLC
Technology may be employed across markets
Low intensity of competitive rivalry

Numerous market and product opportunities
Fairly low barriers to market entry
*
Appropriate External Conditions for Strategic PosturesAnalyzer
Moderately changing environment
Technological, regulatory, economic, social, and competitive
change open
new opportunities
Some competitive rivalry in old and new markets
Some stable products and markets
Some new market and product opportunities
Growth and mature stage of PLC for existing products
Growth stage of PLC for new products
*
Appropriate Internal Conditions for Strategic PosturesDefender
Ability to develop a single core technology
Ability to be very cost efficient
Ability to protect market from competitors

Capacity to engage in vertical integration strategy
Management emphasis on centralized control/stability
Structure characterized by division of labor
Well-defined hierarchical communications channels
Cost control expertise
Well-defined procedures and methods
High degree of formalization, centralization
*
Appropriate Internal Conditions for Strategic
PosturesProspector Ability to adjust organization to a variety of
external forces
Technological and administrative flexibility
Ability to develop and use new technologies
Ability to deploy and coordinate resources among numerous
decentralized
units
Decentralized planning and control
Flexible structure
Marketing plus research and development expertise
Low degree of formalization (few well-defined procedures and
methods)
*

Appropriate Internal Conditions for Strategic PosturesAnalyzer
Ability to mix high levels of standardization and routinization
of core products and markets with flexibility and adaptation for
new products and markets
Structure accommodates both stable and dynamic areas of
operation
Effective lateral and vertical communication channels
Many different management skills required
Effective strategy and planning team
*
External Risks of Positioning StrategiesCost Leadership
Technological change that nullifies past investments or learning
Low-cost learning by industry newcomers or followers, through
imitation or
through their ability to invest in state-of-the-art facilities
Inability to see required product or marketing change because
of the
attention placed on cost
Inflation in costs that narrow the organization’s ability to
maintain sufficient
price differential to offset competitors’ brand images or other
approaches
to differentiation
*

External Risks of Positioning StrategiesCost Leadership
Technological change that nullifies past investments or learning
Low-cost learning by industry newcomers or followers, through
imitation or
through their ability to invest in state-of-the-art facilities
Inability to see required product or marketing change because
of the
attention placed on cost
Inflation in costs that narrow the organization’s ability to
maintain sufficient
price differential to offset competitors’ brand images or other
approaches
to differentiation
*
External Risks of Positioning StrategiesDifferentiation The cost
differential between low-cost competitors and the
differentiated firm is too great for differentiation to hold
brand
loyalty; buyers therefore sacrifice some of the features,
services, or
image possessed by the differentiated organization for large
cost
savings
Buyers’ need for the differentiating factor diminishes, which
can occur
as buyers become more sophisticated
Imitation narrows perceived differentiation, a common
occurrence as

the industry matures
*
External Risks of Positioning StrategiesFocus Cost differential
between broad-range competitors and the focused
organization widens to eliminate the cost advantages of
serving a narrow
target or to offset the differentiation achieved by focus
Differences in desired products or services between the
strategic target and
the market as a whole narrows
Competitors find submarkets within the strategic target and
outfocus the focuser
Focuser grows the market to a sufficient size that it becomes
attractive to
competitors that previously ignored it
*
Resources, Competencies and Capabilities for Positioning
StrategiesGeneric StrategyResources and
CompetenciesOrganizational CapabilitiesCost
LeadershipSustained capital investment and access to capital
Process engineering skills

Intense supervision of labor
Products and services that are simple to produce in volume
Low-cost delivery systemTight cost control
Frequent, detailed control reports
Structured organization and responsibilities
Incentives based on meeting strict quantitative targets
*
Incentives based on meeting strict quantitative
targetsDifferentiationStrong marketing abilities
Product/service engineering
Creative flair
Strong capability in basic research
Reputation for quality or technological leadership

Long tradition in the industry or unique combination of skills
Strong cooperation from channelsStrong coordination among
functions in R&D, product/service development, and marketing
Subjective measurement and incentives instead of quantitative
measures
Amenities to attract highly skilled labor, scientists, or creative
people
*
Incentives based on meeting strict quantitative
targetsDifferentiationStrong marketing abilities
Product/service engineering
Creative flair

Strong capability in basic research
Reputation for quality or technological leadership
Long tradition in the industry or unique combination of skills
Strong cooperation from channelsStrong coordination among
functions in R&D, product/service development, and marketing
Subjective measurement and incentives instead of quantitative
measures
Amenities to attract highly skilled labor, scientists, or creative
peopleFocusCombination of the preceding skills and resources
directed at a particular strategic targetCombination of the
preceding organizational requirements directed at a particular
strategic target
*
Mapping Strategies
Adaptive
Strategies
Expansion of Scope
Vertical Integration Product Development Market Development
Penetration

Maintenance of Scope
Enhancement
*
Mapping Strategies
Adaptive
Strategies
Expansion of Scope
Penetration
Enhancement
Market Entry
Strategies
Cooperation
Alliance Joint Venture
Development
Internal Development
Hospital Alliance
Independent
Living
Information System
Advertising
Medicare

*
Mapping Strategies
Adaptive
Strategies
Expansion of Scope
Penetration
Enhancement
Market Entry
Strategies
Cooperation
Alliance Joint Venture
Development
Internal Development
Competitive
Strategies
Strategic Posture
Analyzer
Positioning
Marketwide
Differentiation Quality Service Caring
Hospital Alliance
Independent

Living
Information System
Advertising
Medicare
*
Managing Strategic Momentum
Adaptive StrategiesAre all the important assumptions on which
the strategy is based realistic (external environment,
competitive environment, internal environment)?Has the
strategy been tested with appropriate strategic thinking
tools?Have the major stakeholders, inside and outside the
organization, that will be most influential in ensuring the
success of the strategy been identified and evaluated?If the
adaptive strategy is to fill a currently unfilled niche in the
market, has the organization investigated whether the niche will
remain open long enough to return the capital investment?
*
Adaptive StrategiesHas the adaptive strategy been tested with
appropriate analysis, such as return on investment and the
organization’s ability and willingness to bear the risks?Is the
payback period acceptable in light of potential environmental

change? Does the strategy take the organization too far from its
current products and markets?Is the adaptive strategy
appropriate for the organization’s present and prospective
position in the market?
*
Market Entry StrategiesIs the market entry strategy the most
appropriate way to achieve the mission, vision, and goals of the
organization?Is the market entry strategy consonant with the
values of the organization?Is the market entry strategy the best
way to accomplish the adaptive strategy?Is the market entry
strategy compatible with the adaptive strategy?Does
management understand the unique requirements of the market
entry strategy (purchase, cooperation, development)?Does
management understand the important market forces?Have
adequate financial resources been allocated to enter the market?
*
Market Entry StrategiesDoes the selection of the market entry
strategy affect the ability of the organization to effectively
position its products/services in the market?Is the market entry
strategy compatible with the competitive strategies?Does the

market entry strategy place unusual strains on any of the
functional areas?Have new stakeholder relationships developed
as a result of the market entry strategy (customers, vendors,
channel institutions, and so on)?Has the relationship between
the desire and need for rapid market entry been properly
analyzed?Has the relationship between the desire and need for
control over the products and services been achieved?Have the
trade-offs between costs and control been properly analyzed?
*
Competitive Strategies – Strategic PostureIs the strategic
posture sustainable?Have there been external developments
(technological, social, regulatory, economic, or competitive)
that have shortened product life cycles?Are there new market
opportunities that suggest the organization should move more
toward a prospector posture? Analyzer strategy? Defender
strategy?Has the organization developed the right mix of
centralization and decentralization for the selected strategic
posture?Is the level of standardization and administrative
flexibility appropriate to the strategic posture?
*

Competitive Strategies – Strategic PostureIs the level and type
of communication appropriate for the strategic posture?Is the
strategic posture appropriate given the barriers to market
entry?Has the level of vertical integration been appropriate for
the strategic posture?Has the organization been caught by
surprise too often?Are the overall strategy, strategic posture,
and value adding strategies compatible?Does the organization
need to evolve its strategic posture?
*
Competitive Strategies – Positioning
Is the product or service positioned appropriately in the
market?Can the organization use one of the other generic
positioning strategies?Is the positioning strategy appropriate
considering the external opportunities and threats?Will market
forces allow the selected positioning?Is the positioning strategy
best suited to capitalize on the organization’s strengths and
minimize its weaknesses?Is the positioning of the organization’s
products and services unique in the marketplace?
*
Competitive Strategies – PositioningIs the positioning strategy

defensible against new players trying to position themselves in
a similar fashion?Is the positioning strategy compatible with the
market entry strategy?Does the positioning strategy provide the
appropriate image for the organization?Is the positioning
strategy sustainable?Is the appropriate distribution channel
being used?Is the current promotional strategy appropriate?Is
the pricing strategy appropriate?
*
Chapter 7 Conclusions
After reading Chapter 7, you should be able to define the
following terms:
*
STRATEGIC MANAGEMENT OF
HEALTH CARE ORGANIZATIONS 7TH EDITION
*

Developing Strategic Alternatives
Chapter 6
*
Understand and discuss the steps involved in the decision logic
of strategy development.
Chapter 6 Learning Objectives
of strategy development.Synthesize and integrate strategic
thinking accomplished in situational analysis into a strategic
plan for an organization.
plan for an organization.Identify the hierarchy of strategies and
strategic decisions required in strategic planning.

plan for an organization.Identify the hierarchy of strategies and
strategic decisions required in strategic planning.Understand the
nature of directional strategies, adaptive strategies, market
entry strategies, and competitive strategies.
Identify strategic alternatives available to health care
organizations.
organizations.Provide the rationale as well as advantages and
disadvantages for each of the strategic alternatives.
disadvantages for each of the strategic alternatives.Understand
that strategies may have to be used in combination to

accomplish the organization’s goals.
disadvantages for each of the strategic alternatives.Understand
that strategies may have to be used in combination to
accomplish the organization’s goals.Map strategic decisions
showing how they are linked as an ends–means chain.
The Strategic Planning Process
Strategic Planning
Situation Analysis
Strategy Formulation
Planning the Implementation External Analysis Internal
Analysis Directional Strategies Directional Strategies Adaptive

Strategies Market Entry Strategies Competitive Strategies
Service Delivery Strategies Support Strategies Action Plans
*
Strategy formulation is the deciding what the organization
should explicitly be doing What the organization is NOW doing
but should STOP doing? What is the organization NOT doing
but should START doing? What the organization is currently
doing that should be DONE
DIFFERENTLY?
*
Linking Today and Tomorrow
Profile of Today
Vision (hope
for the future)
Profile of
Tomorrow
Strategy

year
1
year
2
year
3
year
4
year
5
plans
plans
plans
budgets
budgets
budgets
budgets
budgets
plans
plans
plans
plans
plans
plans

plans
budgets
budgets
budgets
budgets
budgets
*
Linking Strategic AlternativesCheck ListStrategy 1Strategy
2Strategy 3Addresses an External Issue?Draws on a
Competitive Advantage or Fixes a Competitive
Disadvantage?Fits with Mission, Values?Moves the
Organization Toward the Vision?Achieves One or More
Strategic Goals?

Decision Logic of Strategy Formulation
Directional
Strategies
Adaptive
Strategies
Market Entry
Strategies
Competitive
Strategies
Implementation
Strategies
Strategy
Formulation
Strategy
Implementation
Decision Logic of Strategy Formulation
Directional
Strategies
Adaptive
Strategies

Market Entry
Strategies
Competitive
Strategies
Implementation
Strategies
Ends Means Ends Means
Ends Means Ends
Means
Strategy
Formulation
Strategy
Implementation
Strategy FormulationDirectional StrategiesThe broadest
strategies that set the fundamental direction of the organization
by establishing a mission for the organization (Who are we?)
and vision for the future (What should we be?). In addition,
directional strategies specify the organization’s values and the
strategic goals.
Strategy FormulationDirectional StrategiesThe broadest

strategies that set the fundamental direction of the organization
by establishing a mission for the organization (Who are we?)
and vision for the future (What should we be?). In addition,
directional strategies specify the organization’s values and the
strategic goals.Adaptive StrategiesThese strategies are more
specific than directional strategies and provide the primary
methods for achieving the vision (adapting to the environment).
These strategies determine the scope of the organization and
specify how the organization will expand scope, reduce scope,
or maintain scope.
Strategy FormulationMarket Entry StrategiesThese strategies
provide the method of carrying out the adaptive strategies
(expansion of scope and the maintenance of scope strategies)
through purchase, cooperation, or internal development. Market
entry strategies are not used for reduction of scope strategies.
Strategy FormulationMarket Entry StrategiesThese strategies
provide the method of carrying out the adaptive strategies
(expansion of scope and the maintenance of scope strategies)
through purchase, cooperation, or internal development. Market
entry strategies are not used for reduction of scope
strategies.Competitive StrategiesTwo types of strategies, one
that determines an organization’s strategic posture and one that
positions the organization vis-à-vis other organizations within
the market. These strategies are market oriented and best

articulate competitive advantage.
Planning the ImplementationImplementation StrategiesThese
strategies are the most specific strategies and are directed
toward value added service delivery and the value added
support areas. In addition, individual organizational units
develop objectives and action plans that carry out the value
added service delivery and value added support strategies.
Vision
Values
Goals
Responsibilities

Positioning
leadership Focus/
differentiation
investment
venture
Adaptive Strategies
Retrenchment
*
Normative Model of

Strategy Formulation Example Decisions
Directional Strategies
Organizational Scope
Strategies
Marketing Entry
Strategies
Strategy
Content
Mission, Vision, Values
Diversification, Vertical
Integration
Acquisition, Alliance,
Merger
Cost Leadership, Defender
Marketing, Structure

Vision
Values
Goals
Adaptive Strategies
Retrenchment
*
Adaptive Strategic Alternatives – Expansion
Expansion of Scope Types
Diversification
Market Development
Product Development
Penetration
Related
Unrelated
Forward
Backward
Geographic

Segment
Product Line
Product Enhancements
Promotion
Distribution
Pricing
Adaptive Strategies –
ExpansionStrategyDefinitionRationaleRelated
DiversificationAdding new related product or service
categories. Often requires the establishment of a new
divisionPursuit of high-growth markets
Entering less-regulated segments
Cannot achieve current objectives
Synergy is possible from new business
Offset seasonal or cyclical influences
ExpansionStrategyDefinitionRationaleRelated
DiversificationAdding new related product or service
categories. Often requires the establishment of a new

Synergy is possible from new business
Offset seasonal or cyclical influencesUnrelated
DiversificationAdding new unrelated product or service
categories. Typically requires the establishment of a new
Current markets are saturated or in decline
Organization has excess cash
Antitrust regulations prohibit expansion in current industry
Tax loss may be acquired
ExpansionStrategyDefinitionRationaleBackward Vertical
IntegrationAdding new members along the distribution channel
(toward a later stage) for present products and services or
controlling the flow of patients from one institution to
anotherControl the flow of patients through the system
Scarcity of raw materials or essential inventory/supplies
Deliveries are unreliable
Lack of materials or supplies will shut down operations
Price or quality of materials or supplies variable
Industry/market seen as profitable for long term

ExpansionStrategyDefinitionRationaleBackward Vertical
IntegrationAdding new members along the distribution channel
(toward a later stage) for present products and services or
controlling the flow of patients from one institution to
anotherControl the flow of patients through the system
Scarcity of raw materials or essential inventory/supplies
Deliveries are unreliable
Lack of materials or supplies will shut down operations
Price or quality of materials or supplies variable
Industry/market seen as profitable for long termForward
Vertical IntegrationAdding new members along the distribution
channel (toward an earlier stage) for present products and
services or controlling the flow of patients from one institution
to anotherControl the flow of patients through the system
Faster delivery required
High level of coordination required between one stage and
another – secure needed resources
Industry/market seen as profitable for long term
Gain bargaining power
Hospital Vertical Integration

Hospital
Strategic
Business Unit
Upstream Downstream
Urgent Care
Unit
Primary Care
Unit
Wellness/
Health Promotion
Unit
Skilled
Nursing
Unit
Rehabilitation
Unit
Home Health
Unit
ExpansionStrategyDefinitionRationaleMarket
DevelopmentIntroducing present products or services into new
geographic markets or to new segments within a present
geographic marketNew markets are available for present
products

Provide comprehensive services across the market (focus
factory)
New markets may be served efficiently
Expected high revenues
Organization has cost leadership advantage
Organization has differentiation advantage
Current market is growing
Fundamental Expansion Strategies
Products
Old New
Markets
Old
New
Market
Development

ExpansionStrategyDefinitionRationaleMarket
DevelopmentIntroducing present products or services into new
geographic markets or to new segments within a present
geographic marketNew markets are available for present
products
Provide comprehensive services across the market (focus
factory)
New markets may be served efficiently
Expected high revenues
Current market is growingProduct Development Improving
present products or services or extending the present product
lineCurrently in strong market but product is weak or product
line incomplete
Market tastes are changing
Product technology is changing
Maintenance or creation of differentiation advantage
Products
Old New
Markets
Old

New
Market
Development
Product
Development
Key Strategic Thinking Questions
Remember to draw upon the results of external analysis,
internal analysis, and development of directional
strategiesQuestionsProducts/Services StrategiesInternal
ProcessesStop doing?Start doing?Continue doing?Do
differently?
*

Services versus Customers
CONTRACT/
EXPAND
Two-Phase Refocus
CONTRACT/
EXPAND
Two-Phase Refocus
CONTRACT
MAINTAIN
CONTRACT
Change Focus
CONTRACT
Getting Out
Change Focus
Reduce Costs
Improve Efficiency
Improve Quality
EXPAND
New Markets Refocus
New Services
New Services
& Markets
EXPAND
EXPAND
Reduce Types
or Number of
Customers
Keep Types or
Number of
Customers Same
Add New
Customers

Reduce
Programs or
Services
Keep
Programs or
Services
the Same
Add New
Programs or
Services
ExpansionStrategyDefinitionRationalePenetration Seeking to
increase market share for present products or services in present
markets through marketing efforts (promotion, channels, or
price)Present market is growing
Product/service innovation will extend product life cycle (PLC)
Expected revenues are high
Products
Old New
Markets

Old
New
Penetration
Strategies
Market
Development
Product
Development
Products
Old New
Markets
Old
New
Penetration
Strategies
Market
Development
Product

Development
Diversification
Adaptive Strategic Alternatives – Contraction
Contraction of Scope Types
Divestiture
Liquidation
Harvesting
Retrenchment
Total
Partial
Operations
Assets
Fast
Slow
Markets
Products
ContractionStrategyDefinitionRationaleDivestitureSelling an
operating unit or division to another organization. Typically,
the unit will continue in operationIndustry in long-term decline
Cash needed to enter new, higher growth area
Lack of expected synergy with core operation
Required investment in new technology seen as too high

Too much regulation
Unbundling
ContractionStrategyDefinitionRationaleDivestitureSelling an
operating unit or division to another organization. Typically,
the unit will continue in operationIndustry in long-term decline
Cash needed to enter new, higher growth area
Lack of expected synergy with core operation
Required investment in new technology seen as too high
Too much regulation
UnbundlingLiquidationSelling all or part of the organization’s
assets (facilities, inventory, equipment, and so on) in order to
obtain cash. The purchaser may use the assets in a variety of
ways and businessesOrganization can no longer operate
Bankruptcy
Trim/reduce assets
Superseded by new technology
ContractionStrategyDefinitionRationaleHarvestingProducts or

services typically in late stages of the product life cycle (late
maturity and decline) where industry-wide revenues are
expected to decline. These products or services will ultimately
be discontinued but may generate revenue for some time. Few
new resources are allocated to these areasLate maturity/decline
of the product life cycle
Consider divestiture or downsizing
Short-term cash needed
ContractionStrategyDefinitionRationaleHarvestingProducts or
services typically in late stages of the product life cycle (late
maturity and decline) where industry-wide revenues are
expected to decline. These products or services will ultimately
be discontinued but may generate revenue for some time. Few
new resources are allocated to these areasLate maturity/decline
of the product life cycle
Consider divestiture or downsizing
Short-term cash neededRetrenchment Reducing the scope of
operations, redefining the target market, cutting geographic
coverage, reducing the segments served, or reducing the product
lineMarket has become too diverse
Market is too geographically spread out
Personnel costs are too high
Too many products or services
Marginal or nonproductive facilities

Adaptive Strategic Alternatives – Maintenance
Enhancement
Status Quo
Quality
Efficiency
Innovation
Speed
Flexibility
MaintenanceStrategyDefinitionRationaleEnhancement Seeking
to improve operations within present product or service
categories through quality programs, increasing flexibility,
increasing efficiency, speed of delivery, and so onOrganization
has operational inefficiencies
Need to lower costs
Need to improve quality
Improve internal processes

Adaptive Strategies -
MaintenanceStrategyDefinitionRationaleEnhancement Seeking
to improve operations within present product or service
categories through quality programs, increasing flexibility,
increasing efficiency, speed of delivery, and so onOrganization
has operational inefficiencies
Need to lower costs
Need to improve quality
Improve internal processesStatus quoSeeking to maintain
relative market share within a marketMaintain market share
position
Maturity/late maturity stage of the product life cycle
Product/market generating cash but has little potential for future
growth
Extremely competitive market
Vision
Values
Goals

investment
venture
Adaptive Strategies
Retrenchment
*
Market Entry Strategies – Purchase
Vision
Values
Goals
investment

venture
Adaptive Strategies
Retrenchment
Market Entry Strategies – PurchaseMarket Entry
StrategyDefinitionMajor AdvantagesMajor
DisadvantagesAcquisitionStrategy to grow through the purchase
of an existing organization, unit of an organization, or a
product/serviceRapid market entry
Image already established
Performance known before purchaseNew business may be
unfamiliar to parent
Takes a long time to assimilate organization’s culture
New management team may be required
High initial cost

High initial costLicensingAcquiring or providing an asset
(technology, market, equipment, etc.) through contractRapid
access to proven technology
Reduced financial exposure
Access to brand name
Exclusive territoryNot a substitute for internal technical
competence
Not proprietary technology
Dependent on licensor
Rules and regulations

High initial costLicensingAcquiring or providing an asset
(technology, market, equipment, etc.) through contractRapid
access to proven technology
Reduced financial exposure
Access to brand name
Exclusive territoryNot a substitute for internal technical
competence
Not proprietary technology
Dependent on licensor
Rules and regulationsVenture Capital InvestmentFinancial
investment in an organization in order to participate in its
growth or receipt of venture capital for startup or expansionCan
provide window on new technology or market
Low riskAlone, unlikely to be a major stimulus of growth
Extended time to profitability
Market Entry Strategies – Cooperation
Vision

Values
Goals
investment
venture
Adaptive Strategies
Retrenchment
Market Entry Strategies – CooperationMarket Entry
DisadvantagesMergerCombining two (or more) organizations
through mutual agreement to form a single new
organizationUses existing resources
Retains existing markets and products
Reduces competitionTakes a long time to merge cultures
Merger match often difficult to find

Merger match often difficult to findAlliance
Formation of a formal partnershipFills in gaps in product line
Creates efficiencies (e.g., bargaining power)
Reduces competition in weak markets
Stabilizes referral base
Shared riskPotential for conflict between members
Limits potential markets/products
Difficult to align resources
Governance issues

Merger match often difficult to findAlliance
Formation of a formal partnershipFills in gaps in product line
Creates efficiencies (e.g., bargaining power)
Reduces competition in weak markets
Stabilizes referral base
Shared riskPotential for conflict between members
Limits potential markets/products
Difficult to align resources
Governance issuesJoint VentureCombination of the resources of
two or more organizations to accomplish a designated
taskTechnological/marketing joint ventures can exploit
small/large organizational synergies
Spreads distribution risksPotential for conflict between partners
(shared vs. proprietary)
Objectives of partners may not be compatible
Market Entry Strategies – Development
Vision
Values
Goals

investment
venture
Adaptive Strategies
Retrenchment
Market Entry Strategies – DevelopmentMarket Entry
DisadvantagesInternal DevelopmentProducts or services
developed internally using the organization’s own
resourcesUses (leverages) existing resources
Organization maintains a high level of control
Presents image of developing (growth) organizationTime lag to
break even
Unfamiliarity with new markets
Obtaining significant gains in market shares against strong
competitors may be difficult

break even
competitors may be difficultInternal VentureEstablishment of an
independent entity within an organization to develop products
or servicesUses existing resources
May enable organization to hold a talented entrepreneur
Isolates development from organization’s bureaucracyMixed
record of success
Organization’s internal climate (culture) often unsuitable

break even
competitors may be difficultInternal VentureEstablishment of an
independent entity within an organization to develop products
or servicesUses existing resources
May enable organization to hold a talented entrepreneur
Isolates development from organization’s bureaucracyMixed
record of success
Organization’s internal climate (culture) often
unsuitableReconfigure the value chainChanging the activities or
sequence of activities in the value chain and therefore change
how value is delivered to the customer. New approach may not
be seen as a threat by existing competitors
Captures a special niche of the market
May create low-cost business modelNot always possible
Initially must focus on a niche rather than entire market
Must be first to recognize the new business model

Vision
Values
Goals
Positioning
leadership Focus/
differentiation
investment
venture
Adaptive Strategies
Retrenchment

*
Vision
Values
Goals
Positioning
leadership Focus/
differentiation
investment
venture
Adaptive Strategies

Retrenchment
*
Strategic PosturesStrategic
PostureDefinitionAdvantagesDisadvantagesDefenderFocus on a
narrow market with limited number of products or services and
aggressively defend this segment through pricing or
differentiationFocus on limited set of products and services
Focus is on narrow market segment
Stable environment
Difficult for competitors to enter this segmentReliance on the
success of narrow product line
Must have long/sustaining product life cycles
Market segment must be stable – slow change
May be unable to respond to major market/industry shifts
Difficult to enter new markets or technologies

PostureDefinitionAdvantagesDisadvantagesDefenderFocus on a
narrow market with limited number of products or services and
aggressively defend this segment through pricing or
differentiationFocus on limited set of products and services
Focus is on narrow market segment
Stable environment
Difficult for competitors to enter this segmentReliance on the
success of narrow product line
Must have long/sustaining product life cycles
Market segment must be stable – slow change
May be unable to respond to major market/industry shifts
Difficult to enter new markets or
technologiesProspectorContinuously seek out new products and
new marketsAlways involved in “cutting-edge” developments
Organization changes with changing environment
Allows for a rapid response to a changing
environmentOrganization is in constant state of change
New products and markets always being developed
Multiple technologies being employed, seldom able to achieve
efficiency
Tend to have lower profits because of continuous change
Tend to overextend resources
Tend to underutilize financial, human, and physical resources
PostureDefinitionAdvantagesDisadvantagesAnalyzerBalance

market defense in some markets with selectively entering a
limited number of markets or productsAllows for the
maintenance of a core of stable traditional products and services
Allows for high-risk products and services to be borne by
prospectors
Lower investment in research and developmentDifficult strategy
to pursue
Must respond quickly to follow lead of key prospector while
maintaining efficiency in core products/services
Complex structure (matrix)
Management of both stable and dynamic products and markets
Communication is often difficult
PostureDefinitionAdvantagesDisadvantagesAnalyzerBalance
market defense in some markets with selectively entering a
limited number of markets or productsAllows for the
maintenance of a core of stable traditional products and services
Allows for high-risk products and services to be borne by
prospectors
Lower investment in research and developmentDifficult strategy
to pursue
Must respond quickly to follow lead of key prospector while
maintaining efficiency in core products/services
Complex structure (matrix)
Management of both stable and dynamic products and markets
Communication is often difficultReactorReacts to the strategies
of competitorsLittle strategic planning required (monopolistic

or highly regulated environment)Inconsistency in response to
environmental change
Instability in organization
Organization becomes both ineffective and inefficient
No effective guide for decision making
Positioning Strategies
Vision
Values
Goals
Positioning
leadership Focus/
differentiation
investment

venture
Adaptive Strategies
Retrenchment
Positioning StrategiesPositioning StrategyDefinitionMajor
AdvantagesMajor DisadvantagesCost LeadershipLow-cost/price
strategy directed toward entire marketProvides clear
competitive advantage
Provides clear market position
Provides opportunities to spend more than competitionMust
obtain large volume
Product/service must be standardized
Product/service may be viewed as low quality

AdvantagesMajor DisadvantagesCost LeadershipLow-cost/price
strategy directed toward entire marketProvides clear
competitive advantage
Provides clear market position
Provides opportunities to spend more than competitionMust
obtain large volume
Product/service must be standardized
Product/service may be viewed as low
qualityDifferentiationDevelopment of unique product/service
features directed toward entire marketProduct/service viewed as
unique
Often viewed as high quality
Greater control over pricingOften difficult to adequately
differentiate product or service
Product/service may be higher priced
AdvantagesMajor DisadvantagesFocus – Cost LeadershipLow-
cost/price strategy directed toward a particular market
segmentAppeals to market segment seeking low price
May develop good relations with marketLow quality may be
associated low price
Expansion of market may be difficult

AdvantagesMajor DisadvantagesFocus – Cost LeadershipLow-
cost/price strategy directed toward a particular market
segmentAppeals to market segment seeking low price
May develop good relations with marketLow quality may be
associated low price
Expansion of market may be difficultFocus --
DifferentiationDevelopment of unique product/service features
directed toward a particular market segmentProduct/service may
be customized to the special needs of the segment
May develop close relationship with market segmentMarket
segment may remain small
Price will probably be high
Strategy Combinations and Phases
Today Year 1 Year 2 Year 3 Year 4

Year 5 Time
SSU 1
SSU 2
SSU 3
Retrenchment (Product)
Market Development
Market
Development
Vertical Integration (forward)
Market
Development
Harvesting/Divest
Cash
Boundary Set by
Mission/Vision
Boundary Set by
Mission/Vision

External Environment
External Environment
following terms:Key TermsKey TermsAcquisitionCooperation
StrategyAdaptive StrategyCost LeadershipAllianceDefender
Strategic PostureAnalyzer Strategic PostureDevelopment
StrategyBackward Vertical
IntegrationDifferentiationCombination
StrategyDiversificationCompetitive
StrategyDivestitureConcentric DiversificationEnds-Means
ChainConglomerate DiversificationEnhancement
*

following terms:Key TermsKey TermsExpansion of Scope
StrategyInternal VentureFocused FactoryJoint VentureFocus
StrategyLicensingForward Vertical
integrationLiquidationGeneric StrategyMaintenance of Scope
StrategyHarvestingMarket DevelopmentHorizontal
IntegrationMarket Entry StrategyImplementation
StrategyMarketwide StrategyInternal DevelopmentMerger
following terms:Key TermsKey TermsPenetration
StrategyRelated DiversificationPositioning
StrategyRetrenchmentProduct DevelopmentStatus
QuoProspector Strategic PostureStrategic PosturePurchase
StrategyStrategy FormulationReactor Strategic
PostureUnrelated DiversificationReconfigure the Value
ChainVenture Capital InvestmentReduction of Scope
StrategyVertical Integration
Assignment
Using the Strategic Thinking Map – Hierarchy of Strategic
Decisions and Alternatives in Chapter 6 as a guide, find
examples of three types of strategies (for example, market
development, merger, alliance) from the popular literature.

Good sources of healthcare strategy examples include The Wall
Street Journal, Business Week, your local newspaper, or one of
several health care periodicals.
You may also use website searches.
*
English 101
Reyes
Essay #4 Outline
Argumentative
Essay
I. Introduction:
A) Thesis Statement:
II. Topic Sentence #1:
A) Evidence/Support:

B) Analysis/significance:
C) Link:
III. Topic Sentence #2:
B) Analysis/Significance:
C) Link:
IV. Topic Sentence #3:
B) Analysis/Significance:

C) Link:
V. Counter argument One:
A)Refutation__________________________________________
___________________________________
_____________________________________________________
___________________________________
_____________________________________________________
___________________________________
VI. Counter Argument Two:
_____________________________________________________
________________________________________
_____________________________________________________
________________________________________
_____________________________________________________
________________________________________
A)Refutation__________________________________________

_________________________________
_____________________________________________________
__________________________________
_____________________________________________________
__________________________________
VII.Conclusion:_______________________________________
________________________________________
_____________________________________________________
________________________________________
_____________________________________________________
________________________________________
_____________________________________________________
________________________________________

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