1. The forces driving service area completion (the five forces model of service area structural analysis) are:

a. Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and rivalry among existing firms.

b. Market share, bargaining power of employee groups, threat of regulation, quality of products or services, and similarities among existing firms.

c. Threats of internal weaknesses, weakness of suppliers, customer satisfaction, quantity of products or services, and diversity of existing firms.

d. Internal strengths, quality of the management team, bargaining power of customers, earnings per share, and cooperation among existing firms

2. Which of the following is an example of the threat of substitute products and services?

a. Self-administered dental examinations for dentist examinations.

b. Outpatient surgery for inpatient surgery.

c. Adults being treated in pediatric specialty hospitals.

d. Massage therapy substituted for acupuncture.

3. The two categories into which capabilities may be classified are:

a. The ability to make dynamic improvements to the organization’s activities through learning, renewal, and change over time.

b. The ability to develop strategic insights and recognize and arrange resources and competencies to develop novel strategies before or better than competitors.

c. Both a and b.

d. Neither a nor b.

4. In addition to defining its service area, a health care organization must analyze in detail relevant and important aspects of the service area including:

a. Competitor service categories, prices, and strategic initiatives.

b. Economic, demographic, psychographic (lifestyle), and disease pattern characteristics

c. Politically active groups, faith preferences of the service area, and emerging health issues.

d. Product types, service delivery techniques, transportation networks, and critical infrastructure