When a new CEO is selected from within the company, she/he is less likely to make drastic strategic changes than when an outsider becomes the new CEO.

Question

Quizplus · Accepted Answer

When a new CEO is selected from within the company, it is more likely that she/he is already familiar with the company's culture, history, and operations. Therefore, they may be less inclined to make drastic changes to the company's strategy as they are likely to have played a role in formulating and implementing the existing strategy. Conversely, an outsider CEO may have a fresh perspective on the company and may choose to make more significant changes to the company's current strategy.

When a New CEO Is Selected from Within the Company