HCA 407 California National University Strategic Management Discussion

  • Explain what you understand “strategic management” to be. Inother words, how would you explain the term “strategic management” tosomeone who doesn’t know what the term means? (In your replies toothers, note if you agree or disagree with the explanation given andwhy.)

    Next, look at Exhibit 1-1 on page 12 of the text (

  • Strategic Thinking
  • Map of Strategic Management). Make an argument for which stage of strategic management is most important:

    Strategic Thinking

  • Strategic Planning
  • Managing Strategic Momentum
  • I recognize that this is subjective and they are all important, but yourtask is to pick one and argue why it is the most important part of theprocess. Defend your position as to why the part of the process you’vechosen is arguably the most important. In your replies explain why youagree or disagree. HCA 407
    Healthcare Planning
    and Evaluation
    Week One Lecture
    HCA 407 Healthcare Planning and Evaluation
    Week One, Chapter One
    Chapter 1
    The Nature of Strategic Management
    Strategic Management
    What is it?
    Why should we care?
    What does it look like?
    What is unique about health care
    that could impact how strategic
    management is used?
    Quote
    American Health Care is in a state of hyper- turbulence characterized
    by accumulated waves of change in payment systems, delivery
    systems, technology, professional relations, and societal expectations.
    It can be likened to an earthquake in its relative unpredictability, lack
    of a sense of control, and resulting anxiety
    – S.A. Shortell, R.R. Gillies, and K.J. Devers
    “The Only Constant is Change”
    • Legislative healthcare reform
    • Growth of outpatient care
    • Increasingly restrictive reimbursement env’t
    • Growth of home health
    • Demographic shifts
    • Changes in managed care strategies
    • The baby boomers
    • Increase physicians in executive leadership
    • Shortages of providers
    • Emerging focus on prevention
    • High costs of new tech
    • Pressure to reduce overhead costs
    • Further consolidation within the industry
    Foundations of Strategic Management
    Greek word stratēgōs, meaning “a general” which in turn comes from roots meaning
    “army” and “lead.”
    Greek verb stratēgēō means “to plan the destruction of one’s enemies through
    effective use of resources.”
    Development of Strategic Management
    • Long- Range Planning
    • Strategic Planning
    • Strategic Management
    • Strategic Management in the Health Care Industry
    What’s the difference?
    Strategic Management
    Health Care Policy Planning
    The Dimensions ofStrategic Management
    Strategic thinkers draw upon the past, understand the present, and can
    envision a better future.
    The Map and the Compass
    The Map
    • Analytical or Rational Approach
    • Logical Sequence of Steps
    • Specific Processes.
    • Better in Known Worlds.
    The Compass
    • Emergent Approach
    • Relies on Learning
    • Leadership Sets Direction
    • Better in Uncharted Worlds
    The Map and the Compass
    The Map
    • Analytical or Rational Approach
    • Logical Sequence of Steps
    • Specific Processes.
    • Better in Known Worlds.
    The Compass
    • Emergent Approach
    • Relies on Learning
    • Leadership Sets Direction
    • Better in Uncharted Worlds
    Map and Compass
    Map
    Compass
    Planned
    Emergent
    Rational
    Non- rational
    Sequential
    Random
    Performance
    Learning
    Consistency
    Change
    Logical
    Illogical
    Order
    Discontinuity
    Efficiency
    Effectiveness
    Prescriptive
    Descriptive
    Evolution
    Revolution
    Control
    Risk
    Present
    Future
    Management
    Leadership
    Analytic Approach
    Emergent Approach
    What determines what type of approach to use?
    Non-realized
    strategies
    Realized Strategy
    Emergent
    strategies
    Strategic Management Processes
    Strategic Planning
    Strategic Thinking
    Awareness Anticipation
    Analysis Interpretation
    Synthesis Reflection
    Situation Analysis
    • External Analysis
    • Internal Analysis
    • Directional Strategies
    Strategy Formulation
    • Directional Strategies
    • Adaptive Strategies
    • Market Entry/Exit
    Strategies
    • Competitive Strategies
    Implementation Planning
    • Service Delivery Strategies
    • Support Strategies
    • Action Plans
    Managing
    Strategic Momentum
    Managerial Action Strategy
    Evaluation Strategic Control
    Emergent Learning Reinitiate Strategic Thinking
    Leading Strategically
    • Strategic Thinking – an intellectual orientation, a way of thinking or
    mindset.
    • Strategic Planning – the periodic process of creating organizational
    momentum (a strategy).
    • Managing Strategic Momentum – a philosophy and process of
    continuously leading and managing an organization using strategic thinking
    and periodic strategic planning.
    Strategic Thinking Framing
    What are we doing now that we should stop doing?
    What ae we not doing now, but should start doing?
    What are we doing now and should continue to do but perhaps alter in some
    fundamental way?
    Leading Strategically
    Strategic Activity
    Description
    Orientation / Scope
    Strategic Thinking
    Fundamental Strategic Skill – an
    Intellectual Orientation, a Way of
    Thinking or Mindset
    Individual Leadership
    Process
    Strategic Planning
    Process of Creating a Plan
    Using Strategic Thinking
    Periodic Group
    Leadership and
    Management Process
    Managing Strategic
    Momentum
    Process of Leading and Managing the
    Strategy using Thinking and Planning
    Organizational
    Management Processes
    Strategic Thinkers
    • Do not assume that the organization will continue to do what it is presently
    doing.
    • Determine what the organization should stop doing.
    • Determine what the organization should start doing that it is presently not
    doing.
    • Determine what the organization should continue to do but perhaps in a
    fundamentally different way.
    Strategic Planning
    • Provides a sequential, step- by- step process for creating a strategy.
    • Involves periodic group strategic thinking sessions.
    • Requires data/information, but incorporates consensus and judgment.
    • Establishes organizational focus.
    • Facilitates consistent decision making.
    • Reaches consensus on how the organization fits within its industry .
    • Results in a documented strategic plan.
    Linking Today and Tomorrow
    plans
    plans
    plans
    plans
    budgets budgets
    plans
    budgets budgets
    budgets
    Profile of
    Today
    Mission
    Strategy
    budgets budgets
    plans
    plans
    year
    1
    budgets
    year
    2
    budgets
    plans
    year
    3
    budgets
    plans
    year
    4
    plans
    year
    5
    Profile of
    Tomorrow
    Vision (hope
    for the
    future)
    Managing Strategic Momentum
    • Addresses the management of the actual work to accomplish specific
    objectives.
    • Concerns decision making process and their consequences.
    • Provides the style and culture.
    • Evaluates strategy performance.
    • Controls strategy implementation.
    • Is a learning process.
    • Relies on and initiates new strategic thinking and new periodic strategic
    planning.
    Benefits of Strategic Management

    Ties the organization together with a common sense of purpose and shared values.

    Improves financial performance in many cases.

    Provides the organization with a clear self- concept, specific goals, and guidance as
    well as consistency in decision making.

    Helps managers understand the present, think about the future, and recognize the
    signals that suggest change.

    Requires managers to communicate both vertically and horizontally.

    Improves overall coordination within the organization.

    Encourages innovation and change within the organization to meet the needs of
    dynamic situations.
    What potential problems exist with
    “Strategic Management?”
    What are the dangers?
    How can you avoid them as a leader?
    Link Between Levels of Strategic Management
    Ends – Means
    Hierarchy of Strategies
    Organizational Levels
    Strategic
    Thinking
    Corporate
    Offices
    Strategic
    Planning
    Strategic
    Momentum
    Strategic
    Thinking
    input
    Outpatient
    Facilities
    Long-term
    Care
    Home Health
    Hospital
    Division
    Divisional
    Level
    Hospital West
    Hospital
    Central
    Hospital
    Division
    Organizational
    Level
    Strategic
    Planning
    Strategic
    Momentum
    Strategic
    Thinking
    input
    Strategic
    Planning
    Strategic
    Momentum
    Strategic
    Thinking
    input
    Surgery
    Strategic
    Momentum
    Corporate
    Level
    Strategic
    Planning
    Orthopedics
    Pharmacy
    Unit
    Level
    Conclusion
    Key Term
    Key Term
    Key Term
    Analytical/Rational Approach
    Leadership
    Strategic Service Unit (SSU)
    Compass
    Long- Range Planning
    Strategic Thinking
    Complex Adaptive
    System
    Map
    Strategic Thinking Map
    Corporate- Level Strategy
    Organizational- Level Strategy
    Strategy
    Directional Strategies
    Realized Strategy
    Strategy Formulation
    Divisional- Level Strategy
    Situational Analysis
    System
    Emergent Approach
    Strategic Business Unit (SBU)
    Systems Perspective
    Conclusion
    Key Term
    Key Term
    Key Term
    Emergent Strategy
    Strategic Management
    Unit- Level Strategy
    Health Policy
    Strategic Momentum
    Unrealized Strategy
    Implementation Plan
    Strategic Planning
    Check Your Understanding
    Strategic Thinking is an intellectual orientation, a way of thinking or mindset.
    • True
    • False
    Check Your Understanding
    Strategic Thinking is an intellectual orientation, a way of thinking or mindset.
    • True
    • False
    You are done with Week One
    Interactive Presentation.
    Please proceed back to Week One in
    Blackboard to finish the curriculum for
    Week One.
    HCA 407
    Healthcare Planning
    and Evaluation
    Week One Lecture
    HCA 407 Healthcare Planning and Evaluation
    Week One, Chapter Two
    Chapter 2
    External Analysis
    External Analysis
    The most important task of an organization’s leader is to anticipate a
    crisis. Perhaps not to avert it, but to anticipate it …One has to make
    the organization capable of anticipating the storm, weathering it, and
    in fact, being ahead of it.
    – Peter Drucker
    The Strategic Planning Process
    Strategic Planning
    Situation Analysis
    • External Analysis
    • Internal Analysis
    • Directional Strategies
    Strategy Formulation
    • Directional Strategies
    • Adaptive Strategies
    • Market Entry/Exit
    Strategies
    • Competitive Strategies
    Implementation Planning
    • Service Delivery Strategies
    • Support Strategies
    • Action Plans
    Situational Analysis
    External
    Environment
    Should
    Do
    Strategy
    of the Organization
    Situational Analysis
    External
    Environment
    Should
    Do
    Internal
    Environment
    Wants
    To Do
    Strategy
    of the Organization
    Can
    Do
    Situational Analysis
    External
    Environment
    Should
    Do
    Directional
    Strategies,
    Leadership
    Wants
    To Do
    Strategy
    of the Organization
    Internal
    Environment
    Can
    Do
    The Strategic Planning Process
    Strategic Planning
    Situation Analysis
    • External Analysis
    • Internal Analysis
    • Directional Strategies
    Strategy Formulation
    • Directional Strategies
    • Adaptive Strategies
    • Market Entry/Exit
    Strategies
    • Competitive Strategies
    Implementation Planning
    • Service Delivery Strategies
    • Support Strategies
    • Action Plans
    Process for External Analysis
    Step 1 – Organize the External Analysis Process and Create an
    Issue Map Template
    Step 2 – Scan the General Environment, Health Care System,
    and Service Area
    Step 3 – Monitor and Confirm External Issues
    Step 4 – Forecast External Issues
    Step 5 – Assess External Issues
    Step 6 – Complete an Issue Map
    Nest Environment of a Health Care Organization
    General Environment






    Government Institutions
    Business Organizations
    Educational Institutions
    Religious Institutions
    Research
    Organizations/Foundations
    Individuals/Consumers
    Health Care System





    Planning/Regulatory
    Organizations
    Primary Providers
    Secondary Providers
    Provider Associations
    Individuals/Patients
    Service Area






    Competitors
    Government Services
    Business Organizations
    Not- for- Profit Organizations
    Other Local Organizations
    Individuals/Consumers
    Organization
    The External Environment
    The General Environment

    Government Institutions

    Business Organizations

    Educational Institutions

    Religious Institutions

    Research
    Organizations/Foundations

    Individuals/Consumers
    The External Environment
    The General Environment

    Government Institutions

    Business Organizations

    Educational Institutions

    Religious Institutions

    Research
    Organizations/Foundations

    Individuals/Consumers
    Health Care System

    Planning/Regulatory
    Organizations

    Primary Providers

    Secondary Providers

    Provider Associations

    Individuals/Patients
    The External Environment
    The General Environment

    Government Institutions

    Business Organizations

    Educational Institutions

    Religious Institutions

    Research
    Organizations/Foundations

    Individuals/Consumers
    Health Care System

    Planning/Regulatory
    Organizations

    Primary Providers

    Secondary Providers

    Provider Associations

    Individuals/Patients
    Service Area

    Competitors

    Government Services

    Business Organizations

    Not- for- Profit
    Organizations

    Other Local Organizations

    Individuals/Consumers
    The External Environment
    The General Environment

    Government Institutions

    Business Organizations

    Educational Institutions

    Religious Institutions

    Research
    Organizations/Foundations

    Individuals/Consumers
    Impact Each Other
    Service Area

    Competitors

    Government Services

    Business Organizations

    Not- for- Profit
    Organizations

    Other Local Organizations

    Individuals/Consumers
    Health Care System

    Planning/Regulatory
    Organizations

    Primary Providers

    Secondary Providers

    Provider Associations

    Individuals/Patients
    The External Environment
    The General Environment

    Government Institutions

    Business Organizations

    Educational Institutions

    Religious Institutions

    Research
    Organizations/Foundations

    Individuals/Consumers
    Impact Each Other
    Service Area

    Competitors

    Government Services

    Business Organizations

    Not- for- Profit
    Organizations

    Other Local Organizations

    Individuals/Consumers
    Impact Organization
    Health Care System

    Planning/Regulatory
    Organizations

    Primary Providers

    Secondary Providers

    Provider Associations

    Individuals/Patients
    Issue Map
    Categories of
    Issues
    Economic
    Social / Demographic
    Legislative /
    Political
    Technological
    Competitive
    General Environment
    Health Care
    System
    Service Area
    Scanning the External Environment
    Serve as the organization’s “window” or “lens” on the external world.
    “Areas “of the Environment Information Categories
    Technological
    Social / Cultural
    Demographic
    Political / Regulatory
    Economic
    Competitive
    Customer
    Scanning the External Environment
    People
    • Direct: Within organizations
    • Indirect: Outside organizations
    Publications
    • Direct: Industry, technical reports, data bases
    • Indirect: Newspaper, journals, the Internet, etc.
    Monitoring the External Environment
    • Accumulate a data base around an identified issue.
    • Investigating the sources of the information.
    • Identifying the organizations creating changes.
    • Identifying the sources reporting changes.
    Forecasting Environmental Change
    If these trends continue, or if issues accelerate beyond their present
    rate, or if this event occurs, what will the issues and trends ‘look like’ in
    the future?
    Assessing Environmental Change
    Interpret the data based on perceptions, values, past experiences,
    and context.
    Assessing Issues
    High
    High Impact Low
    Probability
    High Impact High
    Probability
    Low Impact Low
    Probability
    Low Impact High
    Probability
    Impact
    on the
    Organization
    Low
    High
    Probability of Trend Continuing
    Assessing Issues
    High
    Critical Issues to the
    right of the
    line should be
    addressed in the
    strategic plan
    High Impact Low
    Probability
    High Impact High
    Probability
    Impact
    on the
    Organization
    Low Impact Low
    Probability
    Low Impact High
    Probability
    Low
    Critical Issues to
    the right of the line
    should be
    addressed in the
    strategic plan
    High
    Probability of Trend Continuing
    Environmental Analysis Tools and Techniques
    Technique
    Primary Focus
    Issue Impact and
    Probability
    Prioritization




    Scanning
    Monitoring
    Forecasting
    Assessing
    Advantage
    Disadvantage
    • Simple
    • Logic
    • Easy to communicate
    • Need a good deal of
    data in order to
    extend trend
    • Limited to existing
    trends
    • May not foster
    creative thinking
    Environmental Analysis Tools and Techniques
    Technique
    Primary Focus
    Advantage
    Disadvantage
    Issue Impact and
    Probability
    Prioritization




    Scanning
    Monitoring
    Forecasting
    Assessing
    • Simple
    • Logic
    • Easy to communicate
    • Need a good deal of
    data in order to
    extend trend
    • Limited to existing
    trends
    • May not foster
    creative thinking
    Delphi Method




    Scanning
    Monitoring
    Forecasting
    Assessing
    • Use of field experts
    • Avoids intimidation
    • Members are
    physically dispersed
    • No direct interaction of
    participants
    • May take a long time
    problems
    • Eliminates
    management’s
    biases
    to complete
    Environmental Analysis Tools and Techniques
    Technique
    Primary Focus
    Nominal Group
    Technique




    Scanning
    Monitoring
    Forecasting
    Assessing
    Advantage
    Disadvantage
    • Everyone has equal
    status and power
    • Wide participation
    • Ensures
    representation
    • Eliminates
    management’s
    biases
    • Structure may limit
    creativity
    • Time consuming
    Environmental Analysis Tools and Techniques
    Technique
    Primary Focus
    Nominal Group
    Technique




    Brainstorming
    Forecasting
    Assessing
    Scanning
    Monitoring
    Forecasting
    Assessing
    Advantage
    Disadvantage
    • Everyone has equal
    status and power
    • Wide participation
    • Ensures
    representation
    • Eliminates
    management’s
    biases
    • Structure may limit
    creativity
    • Time consuming
    • Fosters creativity
    • No process for
    making decisions
    • Develops many ideas,
    alternatives
    • Sometimes gets off
    track
    • Encourages
    communication
    Environmental Analysis Tools and Techniques
    Technique
    Primary Focus
    Advantage
    Disadvantage
    Focus Groups
    • Forecasting
    • Assessing
    • Uses experts
    • Management/expert
    interaction
    • New viewpoints
    • Finding experts
    • No specific structure
    for reaching
    conclusions
    Environmental Analysis Tools and Techniques
    Technique
    Primary Focus
    Advantage
    Disadvantage
    Focus Groups
    • Forecasting
    • Assessing
    • Uses experts
    • Management/expert
    interaction
    • New viewpoints
    • Finding experts
    • Forecasting
    • Assessing
    • Surfaces many subissues and factors
    • Conclusions are
    reached on issues
    • Based on analysis
    • Does not provide a
    set of procedures for
    deciding what is
    important
    • Considers only a
    single issue at a time
    • Time consuming
    Dialectic Inquiry
    • No specific structure
    for reaching
    conclusions
    Environmental Analysis Tools and Techniques
    Technique
    Primary Focus
    Advantage
    Disadvantage
    Stakeholder
    Analysis
    • Scanning
    • Monitoring
    • Considers major
    independent groups
    and individuals
    • Ensures major needs
    and wants of outside
    organizations are
    taken into account
    • Emerging issues
    generated by other
    organizations may
    not be considered
    • Does not consider the
    broader issues of the
    general environment
    Environmental Analysis Tools and Techniques
    Technique
    Primary Focus
    Advantage
    Disadvantage
    Stakeholder
    Analysis
    • Scanning
    • Monitoring
    • Considers major
    independent groups
    and individuals
    • Ensures major needs
    and wants of outside
    organizations are
    taken into account
    • Emerging issues
    generated by other
    organizations may
    not be considered
    • Does not consider the
    broader issues of the
    general environment
    Scenario Writing
    • Forecasting
    • Assessing
    • Portrays alternative
    futures
    • Considers
    interrelated
    external variables
    • Gives a complete
    picture of the future
    • Requires generous
    assumptions
    • Always a question
    as to what to
    include
    • Difficult to write
    Conclusion
    Key Term
    Key Term
    Key Term
    Assessing
    Inevitable Surprise
    Scanning
    Brainstorming
    Issue Map
    Scenarios
    Delphi Method
    Issue Impact & Prioritization
    Secondary Providers
    Dialectic Inquiry
    Medicaid
    Sensemaking
    Expert Opinion
    Medicare
    Service Area
    External Analysis
    Monitoring
    Service Category
    Focus Groups
    Nested Systems
    Stakeholders
    Forecasting
    Nominal Group Technique (NGT)
    Stakeholder Analysis
    General Environment
    Predictable Surprise
    Strategic Awareness
    Gray Rhino Event
    Primary Providers
    Strategic Issues
    Check Your Understanding
    One of the ways to monitor external environment is to accumulate a data base
    around an identified issue.
    • True
    • False
    Check Your Understanding
    One of the ways to monitor external environment is to accumulate a data base
    around an identified issue.
    • True
    • False
    You are done with Week One
    Interactive Presentation.
    Please proceed back to Week One in
    Blackboard to finish the curriculum for
    Week One.
    HCA 407
    Healthcare Planning
    and Evaluation
    Week One Lecture
    HCA 407 Healthcare Planning and Evaluation
    Week One, Chapter Three
    Chapter 3
    Service Area Competitor Analysis
    The Strategic Planning Process
    Strategic Planning
    Situation Analysis
    • External Analysis
    • Internal Analysis
    • Directional Strategies
    Strategy Formulation
    • Directional Strategies
    • Adaptive Strategies
    • Market Entry/Exit
    Strategies
    • Competitive Strategies
    Implementation Planning
    • Service Delivery Strategies
    • Support Strategies
    • Action Plans
    Focus of Service Area Competitor Analysis
    • Foster strategic thinking throughout the organization.
    • Identify market niches and discontinuities.
    • Select a viable strategy.
    Obstacles to Effective Service Area Competitor Analysis
    • Misjudging industry and service area boundaries.
    • Poor identification of the competition.
    • Overemphasis on competitors’ visible competence.
    • Overemphasis on where, rather than how, to compete.
    • Faulty assumptions about the competition.
    • Paralysis by analysis.
    Process for External Analysis
    Step 1 – Complete Situational Analysis of the General
    Environment, Health Care Industry, and Service Area
    Step 2 – Conduct Service Area Structure Analysis
    Step 3 – Conduct Competitor Analysis
    Step 4 – Analyze the Critical Success Factors
    Step 5 – Map Strategic Groups
    Step 6 – Assess Likely Competitor Actions or Responses
    Step 7 – Synthesize Analyses
    Services Analysis
    Potential
    Entrants
    Threat of New
    Entrants
    Bargaining
    Power of
    Suppliers
    Bargaining Power
    of Buyers
    Suppliers
    Buyers
    Rivalry
    Rivalry
    Among
    Existing
    Competitors
    Substitutes
    Threat of
    Substitute
    Products or
    Services
    Service Area Structural Analysis
    Porter’s Five Forces
    • Threat of new entrants to the market.
    Barriers to Entry
    • Existing organizations have economies of scale.
    • It costs a great deal (capital) to get into this type of
    business.
    • Switching from one service provider to another is
    expensive.
    Service Area Structural Analysis
    Porter’s Five Forces
    Threat of new entrants to the market
    Level of rivalry among existing organizations
    Intensity of Rivalry
    • Numerous or equally balanced competitors?
    • Slow market growth for these types of services?
    • High fixed costs (buildings, equipment)?
    Intensity of Rivalry
    Porter’s Five Forces
    Threat of new entrants to the market
    Level of rivalry among existing organizations
    Threat of substitute products and services
    Threats of Substitute Services
    • Many services available that perform about the same
    function.
    • There are lower cost substitute services.
    • Buyers of the service tend to experiment or substitute
    often.
    • Buyers of the service have difficulty in telling the difference
    in the effectiveness of the alternatives.
    Service Area Structural Analysis
    Porter’s Five Forces
    • Threat of new entrants to the market.
    • Level of rivalry among existing organizations.
    • Threat of substitute products and services.
    • Bargaining power of buyers (customers).
    Bargaining Power of Buyers
    Purchases products that are standard.
    • Buyers view all providers as having about the same service
    and quality?
    Pose a threat of backward integration.
    • Buyers could begin providing the service themselves?
    Service Area Structural Analysis
    Porter’s Five Forces
    • Threat of new entrants to the market
    • Level of rivalry among existing organizations
    • Threat of substitute products and services
    • Bargaining power of buyers (customers)
    • Bargaining power of suppliers
    Bargaining Power of Suppliers
    • Few suppliers (personnel, equipment, materials).
    • Few substitutes for the supplies.
    • The supplier’s products or services are unique.
    • The product or service supplied is important to the buyer’s
    business.
    • Switching costs from one supplier to another are high.
    • The buyer’s industry is not considered an important
    customer.
    • The suppliers pose a threat of forward integration
    Bargaining Power of Suppliers
    Bargaining Power of Suppliers
    If all five forces are favorable:
    If all five forces are unfavorable:
    • Little or friendly competition.
    • A great deal or very unfriendly
    • Difficult for new competitors to
    enter the business.
    competition.
    • Easy for new competitors to
    • Few or no good substitutes for
    the product or service.
    enter the business.
    • Many good substitutes for the
    • Buyers will not control the price,
    product or service.
    quality, design, or volume.
    • Buyers will control the price,
    • Suppliers will not control the
    quality, design, or volume.
    inputs to production.

    Suppliers will control the inputs
    to production.
    Services Analysis
    A “Three Star” Product or Service
    Potential
    Entrants
    Threat of New
    Entrants
    Bargaining
    Power of
    Suppliers
    Suppliers
    Bargaining Power
    of Buyers
    Rivalry
    Among
    Existing
    Competitors
    Buyers
    Rivalry
    Substitutes
    Threat of
    Substitute
    Products or
    Services
    Services Analysis
    Evolving Products/Services Viability
    Potential
    Entrants
    Threat of New
    Entrants
    Bargaining
    Power of
    Suppliers
    Suppliers
    Bargaining Power
    of Buyers
    Rivalry
    Among
    Existing
    Competitors
    Buyers
    Rivalry
    Substitutes
    Threat of
    Substitute
    Products or
    Services
    Services Analysis
    Evolving Products/Services Viability
    Potential
    Entrants
    Threat of New
    Entrants
    Bargaining
    Power of
    Suppliers
    Suppliers
    Bargaining Power
    of Buyers
    Rivalry
    Among
    Existing
    Competitors
    Buyers
    Rivalry
    Substitutes
    Threat of
    Substitute
    Products or
    Services
    Services Analysis
    Evolving Products/Services Viability
    • New Regulations or Political Changes.
    • New Technologies or Services Improvement
    • Social or Demographic Changes.
    • Economic Changes.
    • Competitive Changes.
    Competitor Analysis & Strategic Groups
    What are the strengths and weaknesses of your competitors?
    Can your competitors be “mapped” with respect to two or more
    dimensions?
    Competitor Analysis and Mapping Strategic Groups
    Competitor Strengths and Weaknesses
    Service Category Critical Success Factor Analysis
    Service Area Plastic Surgery Competitors (2012)
    Service Area Plastic Surgery Competitors (2012)
    *Range of services included skilled nursing, organized social activities, outings, physical therapy, education,
    rehabilitation, speech therapy, Alzheimer’s care, nutritional services, infusion, pharmacy, homemaker services,
    live- ins, companions, and so on.
    Conclusion
    Key Terms
    Key Terms
    Black Swan Event
    Service Area
    Competitive Advantage
    Service Area Competitor Analysis
    Competitor Analysis
    Service Area Structural Analysis
    Critical Success Factor Analysis
    Strategic Groups
    Mapping Competitors
    Strategic Response
    Check Your Understanding
    One of Porter’s five forces are Threat of substitute products and services.
    • True
    • False
    Check Your Understanding
    One of Porter’s five forces are Threat of substitute products and services.
    • True
    • False
    You are done with Week One
    Interactive Presentation.
    Please proceed back to Week One in
    Blackboard to finish the curriculum for
    Week One.

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