Strategic thinking quiz

Check the option that most closely matches what you would do in each situation described below.

1. You are evaluating two locations for a new headquarters building. The first site costs $13 million and is located in the midst of your current service area, where your target market is already saturated. The second site costs $20 million, is twice as large as the first site, and is located in the center of a region that forecasters project will have annual double-digit growth in demand for your products during the next two decades. Your strategic plan envisions doubling your organization’s revenues and corporate staff within the next three years. Which site do you purchase?
   
   A. Site One
   B. Site Two
   
   
2. It has been a great year for your organization, and it’s time to allocate year-end bonuses. You can divide the bonuses among senior executives, giving each one a big bonus. Or you can divide the bonuses among all employees, giving each one a bonus that represents a combination of the individual worker’s achievements plus the accomplishments of all employees working together as a team. Or you can divide the bonuses among all employees, recognizing both individual and team performance, plus allocate a portion of the year’s profits toward establishing a scholarship fund to help pay the tuition of employees’ children aspiring for careers with your organization. How do you divide the bonuses?
   
   A. To senior executives only
   B. To all employees
   C. To all employees plus a scholarship fund
   
   
3. You are about to sign a merger agreement with another organization that will bring dramatic changes to the blended organization. Your public relations director requests budget approval for an image campaign introducing the blended organization’s new corporate identity. Meanwhile, your sales staff is urging you to authorize a budget for updating your organization’s sales literature. The sales literature focuses on specific product offerings, but also includes an overview of your organization. You have limited financial resources and can’t afford to do both projects simultaneously. Which one do you authorize first?
   
   A. The corporate identity campaign
   B. The sales literature
   C. The sales literature with an introduction explaining the merger and its benefits to customers
   
   
4. As chief executive officer, you are scheduled to deliver a 10-minute, "State of the Organization" speech at next month’s annual meeting. Will you speak for two minutes about past accomplishments and for eight minutes about plans for the future, or will you speak for eight minutes about past accomplishments and for two minutes about future plans?
   
   A. Two minutes about past, eight minutes about future
   B. Eight minutes about past, two minutes about future

Answers to strategic thinking quiz

As a strategic thinker, you would select these answers to the quiz:

1. B. You are planning strategically for your organization’s future.
2. C. You recognize the interdependency of everyone in the organization in contributing to its success; and you provide incentives to build a skilled, future workforce.
3. C. You maximize limited financial resources by using the same tool to improve near-term cash flow through increased sales and to introduce the organization’s new corporate identity.
4. A. You are a leader who recognizes the importance of communicating your vision to the organization’s stakeholders so they can help to achieve it.