MHA 709 Test 1 - Textbook Chapters 1 and 2
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
What is the primary purpose of To define where the organization is going
strategic planning? and
provide focus for decision-making.
Who defined strategy as a 'set of Wickham Skinner (1969)
plans and policies by which a
company aims to gain advantages
over its competitors'?
What does Michael E. Porter It is about making choices and determining
assert what
about the essence of strategy? not to do.
What are the two historical roots of Military history and political history.
the concept of strategy?
What are the seven key 1. Sustainability, 2. Performance benefits,
characteristics of effective strategy 3.
proposed by J. Daniel Beckham? Competitive advantages, 4. Direction, 5.
Focus, 6.
Interconnectedness, 7. Criticality.
What is the 'kernel' of a good It consists of a diagnosis of the challenge,
strategy according to Richard a guiding
Rumelt? policy, and a set of coherent actions.
,What is the significance of It ensures lasting power and greater
sustainability in strategy? long-term
impact than alternatives.
What does a good strategy The challenges being faced and provides
acknowledge according to an
Rumelt? approach to overcoming them.
What is the role of strategic It sets direction and provides a common
planning understanding of vision and strategic
in an organization? goals.
What is the definition of true A plan for getting from a point in the
strategy present to a
according to Beckham? point in the future in the face of uncertainty
and
resistance.
What are the steps in the strategic 1. Scan the environment, 2. Select key
planning process proposed by issues, 3. Set
Sorkin, Ferris, and Hudak? a mission statement and broad goals, 4.
Develop
goals, objectives, and strategies, 5.
Develop an
implementation plan, 6. Monitor and
update.
What is the first step in the Identify the organization's current position,
healthcare strategic planning including present mission and long-term
approach by Simyar, Lloyd-Jones, objectives.
and Caro?
, What is the importance of It ensures that the components of the
interconnectedness in strategy? strategy have
a high level of interdependence and
synergy.
What is meant by 'criticality' in the It signifies that while it may not be
context of good strategy? essential, it is
fundamental to organizational success.
What does the term 'competitive An approach that is unique and superior to
advantages' refer to in strategic competitors, yielding competitive
planning? advantages.
How does strategic planning help It provides a template for consistent
in decisions that
decision-making within an align with the organization's vision.
organization?
What is the significance of It yields improvement on key performance
performance benefits in a good and
strategy? competitive position indicators.
What does 'focus' mean in the It represents a choice to pursue a certain
context of effective strategy? course
over other attractive alternatives.
What does the term 'direction' It moves the organization toward a defined
imply end,
in strategic planning? though not necessarily in a linear fashion.
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
What is the primary purpose of To define where the organization is going
strategic planning? and
provide focus for decision-making.
Who defined strategy as a 'set of Wickham Skinner (1969)
plans and policies by which a
company aims to gain advantages
over its competitors'?
What does Michael E. Porter It is about making choices and determining
assert what
about the essence of strategy? not to do.
What are the two historical roots of Military history and political history.
the concept of strategy?
What are the seven key 1. Sustainability, 2. Performance benefits,
characteristics of effective strategy 3.
proposed by J. Daniel Beckham? Competitive advantages, 4. Direction, 5.
Focus, 6.
Interconnectedness, 7. Criticality.
What is the 'kernel' of a good It consists of a diagnosis of the challenge,
strategy according to Richard a guiding
Rumelt? policy, and a set of coherent actions.
,What is the significance of It ensures lasting power and greater
sustainability in strategy? long-term
impact than alternatives.
What does a good strategy The challenges being faced and provides
acknowledge according to an
Rumelt? approach to overcoming them.
What is the role of strategic It sets direction and provides a common
planning understanding of vision and strategic
in an organization? goals.
What is the definition of true A plan for getting from a point in the
strategy present to a
according to Beckham? point in the future in the face of uncertainty
and
resistance.
What are the steps in the strategic 1. Scan the environment, 2. Select key
planning process proposed by issues, 3. Set
Sorkin, Ferris, and Hudak? a mission statement and broad goals, 4.
Develop
goals, objectives, and strategies, 5.
Develop an
implementation plan, 6. Monitor and
update.
What is the first step in the Identify the organization's current position,
healthcare strategic planning including present mission and long-term
approach by Simyar, Lloyd-Jones, objectives.
and Caro?
, What is the importance of It ensures that the components of the
interconnectedness in strategy? strategy have
a high level of interdependence and
synergy.
What is meant by 'criticality' in the It signifies that while it may not be
context of good strategy? essential, it is
fundamental to organizational success.
What does the term 'competitive An approach that is unique and superior to
advantages' refer to in strategic competitors, yielding competitive
planning? advantages.
How does strategic planning help It provides a template for consistent
in decisions that
decision-making within an align with the organization's vision.
organization?
What is the significance of It yields improvement on key performance
performance benefits in a good and
strategy? competitive position indicators.
What does 'focus' mean in the It represents a choice to pursue a certain
context of effective strategy? course
over other attractive alternatives.
What does the term 'direction' It moves the organization toward a defined
imply end,
in strategic planning? though not necessarily in a linear fashion.
