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A growing company seeks a new CEO. The company—which has always been led by members of one family—wants to make a change in order to generate revenue quickly, possibly by hiring a famous CEO. Promoting from within has been a successful strategy for the company, yielding many of its most effective high-level managers. However, many companies are now hiring famous CEOs who are famous because they have impeccable qualifications and experience running many different kinds of companies.
On the basis of the information provided, select Famous CEO for the principle that, if accepted, would most strongly imply that the company should hire a famous CEO, and select Promote from within for the principle that, if accepted, would most strongly imply that the company should promote someone within the company to the position of CEO. Make only two selections, one in each column.
CEOs have a responsibility to ensure that the companies they head remain profitable.
A company should not dispense with a current strategy unless that strategy has proven to be unsuccessful.
A company should choose as CEO the candidate who has the most experience in that company's specific industry.
A company will often see a quick rise in revenue immediately after hiring a CEO with experience in various industries.
When hiring a new CEO, a company needs to ensure that it does not alienate its employees in the process.
| Text from Passage | Analysis |
|---|---|
| "A growing company seeks a new CEO" |
|
| "The company—which has always been led by members of one family—wants to make a change in order to generate revenue quickly" |
|
| "possibly by hiring a famous CEO" |
|
| "Promoting from within has been a successful strategy for the company" |
|
| "many companies are now hiring famous CEOs who...have impeccable qualifications and experience running many different kinds of companies" |
|
We need to select:
These parts ask us to identify general rules that, when applied to this specific situation, would lead to each decision.
This is asking for principles that strengthen each option:
For Famous CEO:
For Promote from within:
Choice 1: "CEOs have a responsibility to ensure that the companies they head remain profitable."
Choice 2: "A company should not dispense with a current strategy unless that strategy has proven to be unsuccessful."
Choice 3: "A company should choose as CEO the candidate who has the most experience in that company's specific industry."
Choice 4: "A company will often see a quick rise in revenue immediately after hiring a CEO with experience in various industries."
Choice 5: "When hiring a new CEO, a company needs to ensure that it does not alienate its employees in the process."
For Famous CEO: Choice 4
For Promote from within: Choice 2
Choice 3 might seem attractive for promoting from within, but:
Choice 5 might seem to support internal promotion, but: