Exam 2: Understanding and Analyzing the General Environment and the Health Care Environment

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One of the specific goals of environmental analysis is:

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Health care organizations DO NOT have to cope with change in which of the following areas:

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Strategic thinking is directed toward positioning the organization most effectively within its changing external environment.

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Organizations will find themselves out of touch with the needs of the market when they:

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Organizations and individuals within the health care environment develop and employ new technologies, deal with changing social and demographic issues, address legislative and political change, compete with other health care organizations, and participate in the health care economy.

(True/False)
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Which of the following is an example of a societal change that may affect the success or failure of health care organizations?

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The organization itself may be affected directly by the legislative/political, economic, social/demographic, technological, and competitive change initiated and fostered by organizations in the general environment.

(True/False)
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A brainstorming group is convened for the purpose of understanding an issue, assessing the impact of an issue on the organization, or generating strategic alternatives. In this process, members present ideas and are allowed to clarify them with brief explanations.

(True/False)
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Environmental analysis is largely strategic thinking and strategic planning and consists of understanding the issues in the external environment to determine the implications of those issues for the organization.

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In order to be successful, health care organization leaders do not have to develop an understanding of the external environment in which they operate.

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One of the specific goals of environmental analysis is to detect and analyze early or weak signals of emerging issues and changes that will affect the organization.

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Provide at least two examples of changes in the general environment affecting multiple industry environments (sectors of the economy).

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Cost pressures and intensified competition will NOT lead to further consolidation within the health care industry.

(True/False)
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A PPO (preferred provider organization) is an entity through which various health plans or carriers contract to purchase health care services for patients from a selected group of providers, typically at a better per-patient cost.

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In the current health care industry environment, a multitude of interests are directly or indirectly involved in the delivery of health care.

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A successful health care organization must:

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External environmental analysis does not inform the analysis of the internal environment.

(True/False)
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A "visionary" is a strategic manager who detects the signs of change and explores the significance of change before it becomes apparent to others.

(True/False)
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The fundamental nature of strategic management requires the awareness and understanding of outside forces and encourages strategic managers to:

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