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Internal Environment and External Environment

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Internal Environment and External Environment
Section 1 Internal environment and external environment
Internal environment • Manager:
On one hand, in order to understand a management situation of a company, the organization structure is the key issues which should be involved. Xin hua bookstore is being a traditional organization has the traditional structure that functional organization structure. This type of organization always has many layers including senior management, middle management and base management level in the pyramid. Similarly as the IBM, the management layers up to 18. Xin hua bookstore used this type of organization structure have found much more problems. The information transition is appeared too slowly and the manager’s decision always being distortion. A large number of layers also would bring ineffective work; the company could not operate its business with the changing market. For example, the manager could not gain an effective feedback from their base staff, and they do not know the real need of the customer, in particular the need of book and the services involved. So the flat organization structure should be introduced in the Xin hua bookstore which refers to corporate structure with few or no level of intervening management between staff and managers.

On other hand, the staff from Xinhua bookstore has many claims involved in the management styles. The leader trend to make decisions by himself thinking so that most of staff dissatisfied with this type of authoritarian management style. This type of management style is considered that doing all the things by themselves including find problems, product solution and make decisions. The staffs prefer to democratic leader that they could inquire the staffs and give them an opportunity to air their opinion. The mood will be changed if the leader from Xin hua bookstore that the employee will positive to discuses the problems and attend the meeting. They will have much responsibility to mention the development of the company.

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