CS Leadership & Decision Making 2

Question 1

A strategist must choose between two market expansion options under severe time pressure with incomplete data. Which decision-making approach is most appropriate?

Accepted Answer

Apply satisficing — choose the first option that meets minimum criteria

Answer

Satisficing, a concept from Herbert Simon, is ideal under time pressure and uncertainty because it identifies an acceptable solution quickly rather than seeking the theoretically optimal one.

Question 2

Which leadership style is most effective when a team is highly skilled but lacks motivation on a strategic initiative?

Accepted Answer

Participating

Answer

The participating (or supporting) style in Hersey and Blanchard's Situational Leadership model is best when competence is high but commitment is low — the leader facilitates rather than directs.

Question 3

A CEO overrides market research data and proceeds with a failing product line because of the large investment already made. This is an example of which bias?

Accepted Answer

Sunk cost fallacy

Answer

The sunk cost fallacy occurs when past, irrecoverable investments drive future decisions rather than forward-looking costs and benefits.

Question 4

In a strategic crisis, a leader who openly acknowledges uncertainty to the team while outlining a clear response plan is demonstrating which leadership quality?

Accepted Answer

Authentic transparency

Answer

Authentic transparency — admitting what is unknown while still providing direction — builds trust and reduces team anxiety during crises.

Question 5

Which analytical tool helps a strategic leader identify the root cause of a recurring organizational problem before making a decision?

Accepted Answer

Five Whys technique

Answer

The Five Whys technique iteratively asks 'why' to drill down to the root cause of a problem, preventing leaders from addressing only symptoms.

(CS) Certified Strategist Practice Test

(CS) Certified Strategist Practice Test

CS Leadership & Decision Making 2