HERE’S A TEST of your strategic thinking. It’s the same one I give my EOPers right at the beginning of the course.

Step into the shoes of Richard Manoogian, CEO of Masco Corporation, a highly successful company on the verge of a momentous decision.1 You’ve got a big pile of money and must decide whether to invest it in a far-reaching new business venture. The stakes are high, and it’s not an easy or obvious decision. If you don’t go ahead, you could be passing up an opportunity for growth in a new direction and hundreds of millions of dollars in future profits. If you take the plunge and turn out to be wrong, you may have wasted $1–2 billion. Either way, you will have to live with the results for many years. ...

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