Question

After reading the article "Managing in the Digital Environment Leadership in the Information Age: A Cultural of Continual Change," the external environment of an organization comprises of all the entities that exist outside its boundary but have a significant influence on its growth and survival. An organization has little or no control over its environment but needs to constantly monitor and adapt to these external changes.

Q1) Share a recent example from business news about an external organizational challenge.

Q2) How the company addressed it (internal factors), and what you would do differently.

Answer 1

Answer 1:

A recent example from business news about an external organizational challenge is “You paid taxes. These corporations didn’t” it was published on April 11, 2019 in public integrity online.

The article highlights that how many private sector did companies Amazon.com Inc. and Netflix Inc. found ways to zero out their federal income taxes. However, this is identified as a result of lowering the tax rates to 21 % from 35 % by U.S. on organizations. Organizations actually have zero control over these regulations and therefore, they indulge in identifying new ways of saving tax.

Answer 2:

The company addressed it as they were able to zero out their federal income taxes on $79 billion in U.S. pre-tax income, in this way the company leveraged net corporate tax rebate of $4.3 billion. I would also have determined some way to save tax and maximize profit.