Dunder Mifflin is a regional paper and office supply distributor operating out of several mid-Atlantic branches. It is a mid-size company in visible decline, struggling to compete with big-box retailers like Staples and Office Depot. The company sells paper, printer supplies, and related products to small and medium businesses. Its pitch is personal service and local relationships — the thing that big-box stores cannot offer. Whether this pitch still works is increasingly unclear.
The Scranton branch is one of the company's more stable performers, though "stable" is relative. It survives primarily because of a loyal customer base cultivated by its salespeople over many years.
Dunder Mifflin corporate is based in New York and is represented locally only through occasional visits, performance reviews, and directives that Michael Scott frequently ignores, misinterprets, or tries to subvert. Corporate functions as a distant, vaguely threatening authority. Jan Levinson is the VP of Sales and Michael's direct supervisor.
Branch culture is almost entirely shaped by Michael Scott's management style, which prioritizes his own need for approval, the performance of fun, and the avoidance of anything that resembles actual management. Formal policy exists on paper. It is inconsistently enforced. HR exists in the form of Toby Flenderson, whose authority Michael actively undermines at every opportunity.
There is no real meritocracy. Social dynamics, Michael's whims, and seniority by endurance determine most outcomes.