External Environment That Can Impact Thesis

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This is a double-edged sword, so the CEO needs to keep that fact in mind. Mistakes will look bad not only personally, but will reflect poorly on the company as well. Therefore, the CEO needs to play the role of the PR flak. People respond to leaders who project a strong image of the firm and therefore the CEO can be an excellent source of good publicity.

The video highlighted the achievements of Lee Iacocca and Norman Schwarzkopf with caveats about the assistance they had. Yet, it was the organizational skills of those leaders that led to the achievements. It is important to remember not who the media assigned credit for the success but how that success was achieved -- this is the way the CEO should approach the issue of organizational skills.

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Lastly, we saw Lee Iacocca issue a response to the Japanese competition. It is important to remember the position Chrysler was in at the time. The CEO needs to always be aware of the competitive threats and the changes to the competitive landscape. The CEO must be prepared to deal with these challenges head on. The competitive environment is one of the most important aspects of the external world for a CEO. Ignoring these threats can be costly......

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