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Leadership Ch. 19- Strategic Management

Terms in this set (27)

1. Strategic management is defined as the management of an organization based on its:
a. goals.
b. mission.
c. plan.
d. objectives.
ANS: B
Strategic management is defined as the management of an organization based on its vision or
mission.
2. The guiding framework that describes what the organization considers to be its business
direction is the:
a. futuristic guidelines.
b. organizational vision.
c. strategic plan.
d. tactical operand.
ANS: B
Organizational vision is defined as a guiding framework that describes what the organization
considers to be its business and future direction.
3. Objectives are:
a. bylaws used to govern the organization.
b. financial minimums needed to operate.
c. performance-based criteria for accreditation.
d. targets that the organization wants to achieve.
ANS: D
Objectives are defined as the targets that an organization wants to achieve.
4. A new cancer center is being built in the local hospital. A patient survey has revealed that
patients are not certain which caregiver is the registered nurse (RN) during their hospital stay.
A group is formed to recommend methods to help patients identify which caregiver is their
RN for the new cancer center. Which of the following groups best represents those who
should be involved in forming recommendations?
a. Chief medical officer, public relations vice-president, and human resources
b. Oncology clinical nurse specialist, nurse's aides, and RNs
c. Physicians, unit secretaries, and vice-president of finance
d. Vice-president of nursing, decentralized pharmacist, and licensed
practical/vocational (LPN/LVN) nurses
ANS: B
Involving individuals at all levels of the organization will ensure a variety of perspectives and
more "buy in" to the final product. Including the patient's perspective may provide additional
insight about the issue. Ideally, those involved in all levels of patient care, such as the vicepresident
of nursing, nurse manager, oncology clinical nurse specialist, LPN/LVNs, and
nurse's aides, as well as patients of the RN, may need to be included to gain additional
perspective.
5. A highly respected staff RN on the medical-surgical unit has been asked to champion the
implementation of a new nursing protocol. What does champion mean in this situation? The
staff nurse will be:
a. accepting an award on behalf of her unit regarding this protocol.
b. displaying a winning attitude in support of the new protocol.
c. educating others in continuous quality improvement protocols.
d. leading the support for implementing the new protocol.
ANS: D
To champion a process means to defend or support something. Informal, highly respected
leaders are the best people to choose as champions. They will help "sell" the new idea to
others in that particular discipline. They may be involved in education, leadership, and
ongoing marketing of the idea.
SWOT is an acronym for:
a. stability, wealth, opportunistic, and timeliness.
b. strategies, work ethic, oppositions, and team.
c. strengths, weaknesses, opportunities, and threats.
d. strong, worthy, oppositional, and tactical.
ANS: C
SWOT is an acronym for strengths, weaknesses, opportunities, and threats. SWOT analysis is
used in developing strategic plans for an organization.
7. An action plan:
a. breaks a strategic plan into manageable parts.
b. details a futuristic view of the institution.
c. outlines the steps in performing a procedure.
d. provides a strategic plan for actualizing the mission.
ANS: A
An action plan breaks a strategic plan into manageable parts.
8. A nurse manager enjoys implementing new programs and beginning new projects. She is
beginning to find herself overwhelmed and needs to decrease her workload. Which of the
following ideas might best help decrease her workload?
a. Comparing her vision with that of the institution
b. Following the strategic objectives and mission of the hospital
c. Reviewing the action plan and vision of the hospital system
d. Using her intuition to determine which project should continue
ANS: B
Strategic objectives provide a way of converting the rather abstract mission of an organization
into concrete terms. Following the mission of the hospital will help keep the nurse manager
focused.
9. Part of the evaluative process of a strategic plan includes:
a. an annual review of the strategic plan.
b. designing a form to critique the guidelines.
c. formulating an implementation outline.
d. rewriting the vision and mission statement.
ANS: A
Part of the evaluative process of a strategic plan is to perform an annual review of the plan;
assumptions underlying it; and feedback received from performance data, activity reports,
market indications, and customer surveys.
10. A hospital with a large surgery department is concerned about surgeons starting their own
surgical centers. In relation to the strategic plan evaluative process, this is an example of:
a. an economic monopoly.
b. an external threat.
c. marketplace competition.
d. political strength.
ANS: B
This is an example of an external threat.
11. Operational choices for action that are made to implement a strategy are called:
a. tactics.
b. objectives.
c. core values.
d. strategic plans.
ANS: A
Tactics are operational choices for action that are made to implement a strategy.
12. The first step of the strategic planning process is to:
a. develop strategic goals.
b. survey the environment.
c. implement the action plan.
d. identify the organization's vision.
ANS: D
The first step of the strategic planning process is to identify the organization's vision or
mission. This requires a determination of what the organization is, what business it is in and
for whom, and where the business seeks to be in the future.
13. The statement, "We will provide high-quality care and services to our patients. We are
committed to maintaining excellence, respect, and integrity in all aspects of our operations
and our professional and business conduct," is an example of:
a. a mission statement.
b. the core values of an organization.
c. a strategic plan.
d. the core purpose of an organization.
ANS: A- mission statement
The mission statement reflects the vision of what the organization seeks to do and to become;
it provides a clear view of what the organization is trying to accomplish, and it indicates its
intent to carve out a particular position in the industry or field.
14. Answering questions such as, "What business are we in?" and "What business do we want to
be in?" can lead the organization to define the:
a. mission.
b. objectives.
c. core purpose.
d. strategic plan.
ANS: C- core purpose
The core purpose can be explicated by asking and answering questions such as, "What
business are we in, and what business do we want to be in?" The core purpose can be refined
by asking, "Why?" so that the initial response: "We are in the business of health care," may be
further refined to: "We want to contribute to the community in which we exist." Thus asking
why may result in the core value of social responsibility and the core purpose of providing
needed health care services to the community in which the organization is located.
15. Addressing the strategic planning process questions involves considering environmental
factors. An example of an external environmental factor to be considered is:
a. financial factors.
b. human resources.
c. regulatory bodies.
d. organizational culture.
ANS: C- regulatory bodies
Generally, addressing the strategic planning process questions involves considering both
external environmental factors (e.g., activities of regulatory bodies) and internal
environmental factors (e.g., financial and human resources). The assessment of future
environmental impact takes the form of assumptions. These assumptions encompass the
sociodemographic, political, economic, and technological aspects of the external environment.
Of course, these assumptions are merely "best guesses," because it is impossible to predict the
future with any certainty.
16. The statement, "We will increase our profit by 8% each year," is an example of a(n):
a. strategic plan.
b. mission statement.
c. organization objective.
d. implementation strategy.
ANS: C- organization objective
Objectives generally are written in terms of financial outcomes that relate to improvements in
an organization's fiscal health and those that will result in a stronger position for the
institution in the industry. For example, a for-profit hospital may set a financial objective to
increase earnings growth by a specific percentage each year. A specific strategic objective
might be to achieve lower overall costs than competitors or to attain technological advantage.
17. In their book, Educating nurses: A call for radical transformation, Benner and colleagues
(2010) challenged nursing education programs to:
a. prepare nurses for advanced nursing degrees.
b. require doctor of nursing practice degrees for all nursing faculty.
c. encourage 50% of all nurses to obtain a master's degree in nursing within 10 years
after graduation.
d. make the baccalaureate in nursing be established as the minimal educational level
for entry into practice.
ANS: D
In their book, Educating nurses: A call for radical transformation, Benner and colleagues
(2010) challenged nursing education programs to upgrade classroom education to prepare
nurses for complex clinical environments, urged that the baccalaureate in nursing be
established as the minimal educational level for entry into practice, and suggested that all
nurses obtain a master's degree in nursing within 10 years after graduation. The Institute of
Medicine (2011) issued a report, The future of nursing: Leading change, advancing health,
which called for an improved educational system that promotes seamless academic
progression.
1. Strategic management, long used in business to ensure a competitive advantage over similar
enterprises, involves (select all that apply):
a. setting targets.
b. establishing goals.
c. evaluating success.
d. developing an action plan.
e. defining the core purpose.
f. conducting an environmental scan.
ANS: A, B, C, D, F
Strategic management involves conducting an environmental scan, knowing the competition,
establishing goals, setting targets, developing an action plan, implementing the plan, and
evaluating success. This approach has long been used in business to ensure a competitive
advantage over similar enterprises. The core purpose is the reason the organization is in
business.
2. The purpose of strategic management is to (select all that apply):
a. ensure customer satisfaction.
b. establish a competitive position.
c. reach strategic objectives or goals.
d. develop the organizational mission.
e. provide a "blueprint" for operating a business.
ANS: A, B, C, E
Strategic management involves strategic planning and implementation. It provides a
"blueprint" for operating a business, establishing a competitive position, ensuring customer
satisfaction, and reaching strategic objectives or goals.
3. An organization's strategy should consist of how it (select all that apply):
a. grows and develops.
b. treats its competitors.
c. capitalizes on new opportunities.
d. defines its organizational culture.
e. achieves its financial and strategic objectives.
f. responds to changes in the industry and marketplace.
ANS: A, C, E, F
Basically, an organization's strategy consists of how it treats its customers and stakeholders;
how it responds to changes in the industry and marketplace; how it capitalizes on new
opportunities; how it manages its operations; how it grows and develops; and how it achieves
its financial and strategic objectives.
4. For organizational strategy to be implemented successfully it must be (select all that apply):
a. specific and inflexible.
b. applied in a timely manner.
c. agreed upon by all stakeholders.
d. executed proficiently and efficiently.
e. aligned with the organizational culture.
ANS: B, D, E
Strategy must be implemented proficiently and efficiently, as well as in a timely manner, if it
is to be effective. For this to occur, the organization must attend to its capabilities, the reward
structure, available support systems, and the organizational culture. If any of these
characteristics are not in place, implementation of the strategy will surely fail.
5. Most strategic plans result in a written document. Strategic plan documents generally contain
which of the following sections (select all that apply)?
a. Forward
b. Glossary
c. Goals and strategies
d. Executive summary
e. Mission, vision, and values
ANS: C, D, E
Generally, strategic plan documents contain an executive summary; background; mission,
vision, and values; goals and strategies; and appendixes.
6. Strategic management is useful for nursing leaders and managers because it (select all that
apply):
a. helps identify best practices on the nursing unit.
b. rewards those who carry out strategy successfully.
c. can be used to set measurable, achievable goals and plans.
d. can be used to analyze the environment for opportunities and threats.
e. can help determine the future of the nursing area, such as a department or unit.
ANS: C, D, E
Strategic management is useful for nursing leaders and managers because it can be used to
analyze the environment for opportunities and threats; to set measurable, achievable goals and
plans; and to help determine the future of the nursing area, such as a department or unit.
Success in strategic planning and implementing that strategic plan will position nursing well
in an institution. The process provides an opportunity for nursing to shine, because the
similarities between the nursing process and the strategic planning process allow nurses to
shortcut the learning curve and begin to move forward with the implementation phase while
others may still be grappling with the planning process.
1. A(n) ___________ is a two- to three-page encapsulation of the essence of the strategic plan, written
in language understandable by all potential readers.
ANS:
executive summary
An executive summary is a two- to three-page encapsulation of the essence of the strategic
plan, written in language understandable by all potential readers, because many will not
venture beyond the first few pages of the document.
2. A competitive move or business approach designed to produce a successful outcome is called
strategy
3. In a written strategic plan the _____________ contains all the documentation related to the strategic
planning process so that the reader obtains a sense of the background information used by the
strategic planners in order to arrive at the strategic plan.
appendix
1. The final step in strategic management is to evaluate the outcomes of the strategic planning
process and the implementation of strategy. Place the steps of the evaluation component in
order:
a. Identify strengths and weaknesses internal to the organization.
b. Shape strategies into a strategic plan on which strategic management is based.
c. Establish priorities for the critical issues so that strategies are based on the priority issues.
d. Analyze strengths, weaknesses, opportunities, and threats for their impact on the
organization.
e. Analyze components for the purpose of drafting a picture of the critical features of the
organization.
ANS:
A, E, D, C, B
Environmental analysis incorporates an internal analysis such as a review of the mission
statement and value system, as well as an external analysis. The analysis needs to review four
areas: strengths, weaknesses, opportunities, and threats. In this approach, strengths and
weaknesses internal to the organization are identified. Once identified, these components are
analyzed for the purpose of drafting a picture of the critical features of the organization, its
achievements and failures, and its good points and bad points. Next, priorities must be
established for the critical issues so that strategies are based on the priority issues. The
strategies identified through the SWOT analysis can be shaped into a strategic plan on which
strategic management is based. The more carefully the analysis is done, the more reliable the
strategic plan.
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