Internal Environment and External Environment

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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.

• Employee:
The organization structures decide that there are much more power centre, as a result, employee lack of enthusiasm. 60% of employee claim that the Xin hua bookstore lack of comfortable environment and the company culture can not coordinate with the development of staff. The work trend to stand all working time, they always feel tired. The staff is the internal customer of a company, the manager of Xin hua bookstore should pay more attention to staff’s needs. The reasons of this problem could be the company lack of effective motivation mechanism and the wages do no link with the performance. It request the company should focus on staff’s performance. The competition activities would be encouraged. The culture of company is considered the Process culture which means attracting cautious people who are found of procedures and particular task. The company should close to its internal customer. We should learn what customer wants and provide it. At present, the environment is becoming the limited factors in the development of company. The leaders should consider to extent the business space and fitment the Xin hua bookstore. In the extending room the plant would be put, may be some new tables and new chairs would be added. The comfortable surrounding will give staffs an opportunity to change their mood. However, the new benefit system would be introduce that could be package holiday and training courses. This benefit system based on staff’s needs and they can choose the two or more items such as lower wages but link with good train learning opportunity.

External environment
• Customer:
The Xin hua bookstore’s location is close to many schools including Number Four Middle School and Sai yin Road Primary School. The location decides that the main customers are students and teachers. [pic]

From pie chart we could know student customer is up to 46% and teacher customer is up to 25%. Other profession has low percentage to go to this bookstore. So the...
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