How might a retrenchment strategy and a penetration strategy be linked together?

Assignment:

Exercises:

How is strategy formulation related to situational analysis?
How might a retrenchment strategy and a penetration strategy be linked together? What are some other logical combinations of strategies? How may a combination of strategies be related to vision?

Professional Development:

Collect examples of mission, vision, and values statements from various health care organizations — be sure to include those that are for-profit, not-for-profit, public and private. The Internet provides a useful tool for obtaining real-time examples to review and evaluate. Utilizing the criteria discussed in the textbook readings, determine the extent to which the actual statements apply the principles discussed. Identify the similarities and differences between “for profit” and “not-for-profit” examples. Compare and contrast statements obtained from public and private health care organizations.
Work through Exhibit 6-4 (p. 212), “Strategic Thinking Map – Hierarchy of Strategic Decisions and Alternatives,” for an organization with which you are familiar. Practice selecting different alternatives under each strategy type.

Exhibit 6–4: Strategic Thinking Map – Hierarchy of Strategic Decisions and Alternatives

Directional Strategies

Adaptive Strategies

Market Entry Strategies

Competitive Strategies

Implementation Strategies

• Mission

• Vision

• Values

• Goals

Expansion of Scope • Diversiﬁcation • Vertical Integration • Market Development • Product Development • Penetration

Contraction of Scope • Divestiture • Liquidation • Harvesting • Retrenchment

Maintenance of Scope • Enhancement • Status Quo

Purchase • Acquisition • Licensing • Venture Capital Investment

Cooperation • Merger • Alliance • Joint Venture

Development • Internal Development • Internal Venture

Strategic Posture • Defender • Prospector • Analyzer

Positioning Marketwide • Cost Leadership • Differentiation Market Segment • Focus/ Cost Leadership • Focus/ Differentiation

Service Delivery • Pre-service • Point-of-service • After-service

Support • Culture • Structure • Strategic Resources

Unit Action Plans • Objectives • Actions • Timelines • Responsibilities

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2013). Strategic Management of Health Care Organizations (7th ed.). San Francisco: Jossey-Bass.