Assigment--41

PART

II CORE CONCEPTS OF STRATEGY

This section explores common strategy theories and concepts and applies them to the healthcare field. In chapter 2, readers learn that strategies must be aligned with an organization’s environment and market structures. An organization’s relationships to its environment and market structure directly affect its market power and ability to make strategic decisions. The chapter discusses the concepts of monopolies, oligopolies, monopolistic competition, and perfect competition, along with product life cycles and their impact on strategies.

Chapter 3 reviews the concept of business models and potential strate- gies. Business models define the core components of any company. Organiza- tions must match the parts of their business model to their environment to succeed. Potential strategies include generic strategies that focus on low cost, or differentiation, or both. The advantages and disadvantages of being a first mover or an early entrant into a market also are discussed.

Chapter 4 examines a concept that has become critical in the healthcare field: the strategic use of vertical and horizontal expansion. Vertical expansion— connecting upstream and downstream components of an organization—has become a key strategy for many healthcare providers since the implementa- tion of the Affordable Care Act and often calls for ownership and integration of hospitals, insurance products, physicians, and other healthcare businesses. Horizontal expansion—growth through mergers and acquisitions—continues to be a common healthcare strategy. The chapter explores the methods and challenges of both vertical and horizontal integration.

Chapter 5 considers strategic alliances—strategic nonowner relation- ships. Various types of alliances, their degree of interdependence, and requisite management skills are discussed. The chapter directly applies these concepts to the healthcare market and illustrates them through examples.

Walston, Stephen L.. Strategic Healthcare Management : Planning and Execution, Health Administration Press, 2018. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/westernkentucky/detail.action?docID=5517312. Created from westernkentucky on 2021-09-17 01:59:09.

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Walston, Stephen L.. Strategic Healthcare Management : Planning and Execution, Health Administration Press, 2018. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/westernkentucky/detail.action?docID=5517312. Created from westernkentucky on 2021-09-17 01:59:09.

C o p yr

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2 0 1 8 . H

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A d m

in is

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. A

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