(a) The first impact on the organization’s culture on recruiting a new CEO may disrupt

the strong and harmonious work culture established over the years. As a result of
which employees might feel demotivated to continue working for the company under
the new CEO’s leadership style, for instance, senior managers might feel unhappy and
quit their jobs due to the changes in the company. The second impact would be that
the new CEO would appear and feel alienated among the employees, he/she might
have to take time to assert authority effectively and form important relationships with
the employees.
(b) (i) Earnings per share refers to a value used to compare companies in the same
industry over a period. Shareholders who invest in the company by purchasing shares
of the company are very important to shareholders as it helps them assess whether
their investment in the company is profitable or not for them. However, the company
can falsify this value as well by creating a false perception of the company’s profits
making the shareholder question the reliability of this value.
(ii) The first method of external recruitment is networking at professional events such
as trade events and conferences for that industry can help the company identify the
correct candidate for the post. The second method is Referrals wherein the current
employees in senior position recommend an individual they believe is fitting for the
position.
(c)
An externally recruited CEO brings a new perspective into the organization
which is valuable in terms of cost cutting. The CEO can identify different products
and expenses that can help increase the profitability of the company. This can help the
company attain a competitive advantage over the other companies of the industry.
However, the externally recruited CEO have a higher failure rate than internal
CEO’s, externally recruited CEO’s have stayed for 2 years or less. The externally
recruited CEO have financial rewards incentives in their packages like bonuses. Due
to the change in the environment, the employees might feel demotivated and dejected,
especially senior employees who have a tendency of leaving the organization once a
new CEO is employed. The externally recruited CEO will also face challenges to
assert authority and make decisions in the beginning and they may or may not ease
into their position.
The externally recruited CEO might be profitable to the company in terms of
the cost cuttings but an internally recruited CEO would in my opinion deem much
more profitable in terms of the work environment and catering to the needs of the
company and the employees. Major companies like Apple, Dell, Intel, Nike etc. have
internally employed CEOs.
(d) Discuss whether organizations that promote CEO’s internally are more likely to be
successful?
By internally employing CEO’s the company is not putting itself into risk,
since externally employed CEO’s are costly and may or may not bring forth a positive
change in the company. Internally employed CEO’s have a greater rate of success and
do not require monetary incentives to work unlike externally employed CEO’s.
Internally employed CEO’s are well aware of the work environment and have bonds
with their employees, an externally employed CEO has to put in effort to form new
bonds with employees. An internally employed CEO can therefore establish his/ her
authority assertively, unlike the externally employed CEO. The reforms and changes
brought about by the internally employed CEO might be accepted in a more positive
way than the decisions and reforms made by the externally employed CEO.
 However, the externally employed CEO has a perspective from the outside,
which can help him/ her cut off unprofitable services and products, which the
internally employed CEO might oversee. The internally employed CEO’s
performance is much better than the externally employed CEO’s performance.
However, the net profit margin of the 2 CEOs has a difference by a very small margin.