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INDIANA UNIVERSITY PURDUE UNIVERSITY INDIANAPOLIS
P 616: STRATEGIC PLANNING IN HEALTH SERVICE ORGANIZATIONS
STRATEGIC MANAGEMENT TERMS
Strategic Management – A management philosophy / process that
includes the three components of:
1. Strategic Thinking
2. Strategic Planning
3. Strategic Momentum
Strategic Planning – (1) The set of organizational processes for
identifying the desired future of the organization and developing decision
guidelines. (2) The process for assessing a changing environment to
create a vision of the future, determining how the organization fits into
the anticipated environment based on its institutional mission, strengths,
and weaknesses; and then setting in motion a plan of action to position
the organization accordingly (3) The periodic process of developing a set
of steps for an organization to accomplish its mission and vision using
strategic thinking.
Strategic Thinking – An individual intellectual process, a mindset, or
method of intellectual analysis that asks people to position themselves as
leaders and see the “Big Picture”. Vision and a sense of the future are
inherent in strategic thinking.
Scenario Analysis – Developing plausible representations of a firm’s
possible future that make different assumptions about forces and
outcomes that affect the organization, its strategy, and its future.
Strategy – 1) A company’s game plan for achieving its goals.
2) The means an organization chooses to move from where it is today to
a desired state some time in the future in pursuit of achieving its vision,
mission, goals and objectives.
Strategic Momentum – Day-to-day activities of managing the strategy
to achieve the strategic goals of the organization. Accountability, culture,
process and people are key components of strategic momentum.
Planning – Determining organizational goals and a means for achieving
them.
Action Plan – The specific steps, people, timeframes and resources
needed to accomplish a goal.
Operational Plans – Day-to-day plans, developed and implemented by
lower-level managers, for producing or delivering the organization’s
products and services over a 30-day to six-month period.
Contingency Planning – Planning for alternative means for achieving
organizational goals.
Contingency Plan – Alternative plans that are put into effect if the
strategic assumptions change quickly or dramatically, or if the
organizational performance is lacking.
Core Competency – A source of competitive advantage that is difficult
for competitors to imitate.
Competitive Advantage – A distinctive strength of the organization that
provides greater value for customers than competitors do / can.
Sustainable Competitive Advantage – A competitive advantage that
other companies have tried unsuccessfully to duplicate and have, for the
moment, stopped trying to duplicate.
Visionary Leadership – Leadership that creates a positive image of the
future that motivates organizational members and provides direction for
future planning and goal setting.
Participatory Leadership – A leadership style or approach in which the
leader consults employees for their suggestions and input before making
decisions.
Controlling – A management function that involves monitoring progress
toward goal achievement and taking corrective action when needed.
Organizational Culture – The shared values, beliefs and attitude of
organizational members.
Corporate Culture – The shared experiences, stories, beliefs, and norms
that characterize an organization.
Total Market Potential – The maximum number of sales that might be
available to all of the firms in an industry during a given period.
Target Market – The part of the qualified available market the company
decides to pursue.
Forecasting – The art of anticipating what buyers are likely to do under a
given set of conditions.
Market Demand – The total volume that would be bought by a defined
customer group in a defined geographical area in a defined time period in
a defined marketing environment under a defined marketing program.
Market demand is a function of the stated conditions.
Company Demand – The company’s estimated share of market demand
at alternative levels of company marketing effort in a given time period.
Market Share – The proportion of total sales of a product secured by
one particular company or brand.
Environmental Scanning – Searching the environment for important
events or issues that might affect an organization.
Market Research – The gathering and analysis of information about
what people want or like, or what they actually buy.
Marketing Information System (MIS) – Consists of people, equipment,
and procedures to gather, sort, analyze, evaluate, and distribute needed,
timely, and accurate information to marketing decision makers.
Positioning – Act of designing the company’s strategy, actions, offerings
and image to occupy a distinctive place in the market.
Trend – A direction or sequence of events that has some momentum and
durability.
Fad – Something that is unpredictable, short-lived, and without social,
economic, and political significance.
Customer Relationship Management – Process of managing detailed
information about individual customers and managing all customer
encounters to maximize customer loyalty.
Brand Image – The perceptions and beliefs held by consumers, as
reflected in the associations held in consumer memory.
Branding – Creating mental structures and helping customers organize
their knowledge about products and services in a way that clarifies their
decision making, and, in the process, provides value to the firm.
Brand Equity – The added value endowed to products and services,
reflected in how consumers think, feel, and act with respect to the brand,
as well as the prices, market share, and profitability that the brand
commands for the firm. Brand equity is an important intangible asset that
has psychological and financial value to the firm.
Positioning – Act of designing the company’s offering and image to
occupy a distinctive place in the target market’s mind.
Benchmarking – The process of identifying outstanding practices,
processes, and standards in other companies and adapting them to your
company.
Milestones – Formal project review points used to assess progress and
performance.
Break-Even Analysis – A means by which management estimates how
many units of the product or service the company would have to sell to
break even with the given price and cost structure.
Risk Analysis – Typically three estimates (optimistic, pessimistic, and
most likely) are obtained for each uncertain variable affecting
profitability under an assumed marketing environment and strategy for
the planning period.
References
Healthcare Strategic Planning, Second Edition, by Alan M. Zuckerman.
Strategic Management of Health Care Organizations, Sixth Edition, by
Linda A. Swayne, W. Jack Duncan, and Peter M. Ginter.
Effective Management, Fourth Edition, by Chuck Williams.
A Framework For Marketing Management, Third Edition, by Philip
Kotler and Kevin Lane Keller.