WGU C432 Healthcare Management and Strategy Questions and Answers Rated A+

Acquisition Ans The purchase (or merger) of an existing organization broad differentiation strategy Ans type of strategy aimed at offering products that consumers perceive to be distinct from competitor's products and that appeal to a wide segment of a market Broad low-cost strategy Ans type of strategy aimed at providing low-cost products to a broad customer segment Business model Ans the underlying structure of an organization; the means through which an organization creates and delivers value to its customers and earns revenues Business-level strategy Ans the strategic scope and direction of strategic business units (SBUs) Strategic business units (SBU) Ans focus on specific product/service lines while under the umbrella of corporate direction Corporate-level strategy Ans the overall strategic scope and direction of a corporation. primary function is to allocate capital funds to SBUs and decide which business to enter or exit Customer Value Ans the perceived benefits of a product or service Diversification Ans Strategic expansion into different businesses Emergent Strategy Ans a pattern of actions that develop over time and become an organizations strategy de facto. identified by examining decisions that were made and the patterns that occurred as a result. also called realized strategy First movers Ans organizations that are the earliest to enter a market or an industry Focused differentiation strategy Ans strategy aimed at offering products that consumers perceive to be distinct from competitor's products and that appeal to a limited industry niche or customer segment Focused factories Ans manufacturing strategy that concentrates on core (often single) products and a defined set of technologies and customers Focused low-cost strategy Ans strategy aimed at providing low-cost products to a limited subset of the broad mass market Four-firm concentration ratio Ans measure of market concentration calculated by summing the market shares of the four largest firms in a market Functional-level strategy Ans strategic scope and direction at the operating division, department, or project level. driven by product or service line Generic strategies Ans commonly used strategies that combine a target market and a type of differentiation Herfindahl-Hirschman Index (HHI) Ans measure of market concentration calculated by squaring the market share percentage of each organization in a market and then summing the numbers Horizontal expansion Ans the acquisition and/or merger of two or more organizations that produce similar products or services Industry Ans particular category of business or economic activity; an aggregation of sellers whose products are close substitutes Inputs Ans the combination, type, and mix of resources an organization uses to provide a product or service Internal expansion Ans method of business growth that builds on an organization's capabilities and resources and may include developing new products and services, launching marketing efforts to increase market share, or introducing existing products into new markets Joint-venture alliance Ans partnership between a small number of organizations in which each member has a direct ownership position in a shared investment and directional authority over the investment Markets Ans Places, systems, and processes through which buyers and sellers exchange goods and services Market structure Ans organizational characteristics of a market that exert a strategic influence on the intensity and form a competition Middle strategy Ans strategy that seeks to deliver low cost and differentiation simultaneously Monopolistic competition Ans one of the four basic types of market structure. Exists in markets composed of many organizations offering differentiated products