Chose an outsider or an insider being a new CEO?

Essay by kiteUniversity, Bachelor'sA, October 2006

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1) The micro-environment

This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence.

The macro-environment

This includes all factors that can influence the organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.

2)"Active inertia"--- is a term that describes how business managers tend to respond to change and even genuine crises by doing more of what has worked in the past. To get a large ship moving in the right direction, you need quite a few tugboats. (Joseph M. Juran) When this propensity to "do what we know" makes it easy to miss new opportunities and to overlook even painfully obvious solutions to problems.

"Managers get trapped by success or management's tendency to respond to the most disruptive changes by accelerating activities that succeeded in the past," (Revival of the Fittest)

3. 4 hallmarks of active inertia: strategy frames (blinder); process(routines), relationship (shackles), values(dogmas)

Organizations today need to schedule time on a regular basis to consider future implications for their companies by exploring...