A growing company seeks a new CEO. The companywhich has always been

Can someone explain Promote from within? How do we understand the ans choice is B when this is not stated anywhere is the passage

chetan2u
can you please explain the solution

 
­
From this line in the passage, we can infer that the current strategy has not proven unsuccessful yet. Choice B says to not change the strategy unless proven unsuccessful, hence favoring Promotion from within.

 

Here are my 2 cents,

Note what the question stem is saying principle that, if accepted, would most strongly imply that the company should hire a Famous/Promote from within CEO

Now,
It means that combining the options with the premise of argument should strongly yield the conclusion to either support famous CEO or promoted from within CEO

2 Key points in premise are there:

1. The company wants to make a change in order to generate revenue quickly, possibly by hiring a famous
CEO.

2. Promoting from within has been a successful strategy for the company, yielding many of its most effective high-level managers

Let's check in the options:

Only option- A company will often see a quick rise in revenue immediately after hiring a CEO with experience in various industries. along with the premise pt 1 supports famous CEO.


Only option- A company should not dispense with a current strategy unless that strategy has proven to be unsuccessful. along with premise pt2 supports promote from within

As for last option about alienation: we don't know which CEO is going to create the feeling of alienation.

Key was understanding of question stem.
Hope it makes sense­

­Here's a detailed solution to this question. 

Dataset:
Interpretation:

• The objective of the company is to
  
  1. Change leadership from family led to hiring a new CEO
     
  2. Generate Revenue Quickly
• Strategy 1: Hire a Famous CEO (from outside the company) for the following reasons:
  
  1. Generate revenue quickly
  2. CEO will have impeccable qualifications
  3. CEO will have diverse experience
• Strategy 2: Promote from within (from within the ranks of the company) for the following reasons:
  
  1. It is the current strategy in place.
  2. It has been successful in yielding highly effective managers/leaders
  ­

­

Question Stem Analysis
The given table consists a list of 5 statements. These are principles we need to evaluate. Keeping in mind the data provided/summarised above, from these five choices we need to select one principle which, if accepted by the company, will help the company choose strategy 1, and another principle which, if accepted by the company, will help the company choose strategy 2. 

Statement Analysis
This choice mentions "remaining profitable". This deals with revenue indirectly; however, it does not mean the same as "generating revenue quickly". Hence, this choice can be eliminated for both columns. 

At first glance, this choice comes across as vague because it doesn't mention "CEO" or "promoting from within". And so, one is tempted to eliminate this choice as a knee-jerk reaction. However, that would be a bad decision. Let's dig deeper. This statement says that if a current strategy adopted by the company is successful, then that company should stick to that strategy. The dataset mentions that the current strategy is to "promote from within" and that so far it has been "successful" in yielding highly effective managers. Hence, if this statement is adopted by the company as a principle, it leads us to believe that the company should promote from within. Hence, this is a valid answer for column 2. 

This statement mentions "most experience in the company's specific industry". This hasn't been mentioned as a reason for adopting either of the two strategies. And, if we reason this further, "most experience in the company's industry" is not a factor exclusive to those working in the company. Candidates outside the company but within the same industry could have more experience in the company's industry. Hence, this choice can be eliminated for both columns. 

This statement satisfies 2 out of the 3 reasons for hiring a famous CEO (Strategy 1). Hence, this is a valid answer for column 1. 

This choice talks about "alienation". Again, there's no direct mention of "alienation" in the dataset. And, if we reason this further, "alienation" is not something exclusive to "hiring a famous CEO from outside the company". Although strategy 1 could cause alienation of the company's employees, so could strategy 2. Can we say for sure that if someone is promoted from within, the other employees of the company who felt equally/more qualified won't also feel alienated? Since, this is not an outcome exclusive to either of the two strategies, we can eliminate this as an answer for both columns. 

Therefore, the answer to column 1 is Statement D, and the answer for column 2 is Statement B. 

Hope this helps.
Happy learning! 

-Abhishek ­

I agree with E-GMAT in this case. I myself chose option C but a person can be an outsider and still have more experience in same industry, hence D and B are correct.