The research mainly studies the difference between institution-oriented environment and marketoriented environment and their inner correlation, and firm’s environment responding strategies to the two different environments. The study argues that firms should consider market and institution factors in the environment and positively integrate these two strategies when formulating and implementing its strategy. Based on issue management theory, it puts forward a management model for the integration of market-oriented and institution-oriented strategy to provide the Chinese managers with insights for the comprehensive environment management.