1. Generally, strategy originated as a need in military events.

Chapter 1

• Generally, strategy originated as a need in military events.

*a. True

• False

• The growth of the importance of strategy in healthcare has been

primarily driven by the growth of HMOs in the United States.

• True

*b. False

• Private healthcare organizations rarely employ cooperative

strategies.

• True

*b. False

• Strategy can be considered a tool and means for making better

decisions.

*a. True

• False

• Prospective strategy is always the most useful in developing and

making strategic decisions.

• True

*b. False

• Emergent strategies enable an organization to learn what actions its

competitors might take.

*a. True

• False

• Corporate strategy must originate with functional strategy.

• True

*b. False

• Business-level strategies focus on specific product lines.

*a. True

• False

(Strategic Healthcare Management Planning and Execution, 2e Stephen Walston) (Official Complete Test Bank) (Correct Answer are marked with*) 1 / 4

• An organization explicitly expresses its business unit strategy in

its functional strategy.

• True

*b. False

• Organizations must use either mostly de liberate, prospective

strategies or emergent strategies, not a mix of the two.

• True

*b. False

• In terms of the dimensions of competition versus collaboration and

public versus private benefit, a medical equipment company would probably have

• high competition and high public benefit

*b. high competition and high private benefit

• high collaboration and high private benefit
• high collaboration and high public benefit

• An organization may use emergent strategies when

• consumer preferences change over a decade
• the organization has a clearly defined mission

*c. product and market uncertainty exists

• an industry has a long period of success

• Functional strategies should

*a. align with corporate strategies

• be derived by line workers
• determine which products will be produced
• decide which markets to penetrate

• Strategies are used to

• guide a company in creating its mission and vision
• implement personnel policies

*c. guide behaviors to achieve a n organization's mission and goals

• determine which organizational values are most important
• / 4

Chapter 2

• Influences from the societal environment do not affect healthcare

greatly.

• True

*b. False

• Chronic disease is and will be a critical factor in designing

healthcare strategies.

*a. True

• False

• Women have much higher utili zation of obstetrics than men do.

*a. True

• False

• Patient origin studies enable organizations to better understand

where their patients live.

*a. True

• False

• The healthcare industry is one of the most heavily regulated sectors

in the United States.

*a. True

• False

• Major advances in healthcare information technology are predicted to

be made in the twenty -first century.

*a. True

• False

• It is reasonably easy to determine the boundaries of different

industries.

• True

*b. False

• People working for a company is an example of a market.

*a. True

• False 3 / 4

• Industries cannot exist without appropriate markets.

*a. True

• False

• Monopolistic competition involves just one large organization.

• True

*b. False

• Many markets exhibit actual perfect competition.

• True

*b. False

• Most healthcare systems in the United States exist in oligopolistic

market structures.

*a. True

• False

• History has shown that monopolists frequentl y make good decisions

that directly benefit their customers.

• True

*b. False

• The four-firm concentration ratio is more accurate and more often

used than other measures of market concentration.

• True

*b. False

• Which is not part of th e societal environment?

• General economic conditions
• Population growth
• Government laws

*d. Product development

• Why are population demographics so important in healthcare

strategy?

*a. Age directly affects the amount and type of health care used.

• Men tend to make healthcare decisions for their family.
• / 4