Crisis Management In Crisis

Enterprise crisis refers to events that may endanger the image and survival of enterprises in the course of operation, such as financial crisis, product quality reputation crisis, and credit crisis of senior managers of enterprises.

As an event, crises have four characteristics: sudden, sudden eruption in a certain time and space; foresight, it has a latent period before the outbreak; in most cases, there will be Harbinger; destructiveness, it will make the organization's interests and reputation suffer heavy losses; the urgency, the time for enterprises to react and deal with it is very limited.

Crisis management refers to the attitude and process taken by an enterprise when dealing with major accidents related to the public or customers. It is a management idea and survival strategy that is increasingly valued in public relations activities. Especially in today's globalized world, a small accident or accident in the operation of a business will be rapidly expanded to the whole country or even larger, resulting in a worse result than the thunder.

The crisis management of enterprises is basically a battle of corporate identity.

The shaping of corporate image depends on the efforts made at ordinary times, and two is handled by the crisis at that time.

The different attitudes and methods adopted by enterprises in the face of crises will produce a "little difference" in shaping a good corporate image.

Crisis management is a highly practical knowledge in the field of management. It is a discipline that modern business managers must learn.

Crisis management is extremely complex and has a certain process. This process is very flexible and complex. The treatment plan must respond to the conditions and individual differences of the crisis subject. The crisis itself is an unstable situation. If the decision-makers can understand the crisis at the first time and handle properly, they can create a brighter future for themselves and enterprises.

In the year of 2004, when giant energy company failed to get the inspection of the Ministry of health, which proved that hydrogen peroxide was non-toxic, the enterprise held a news conference unilaterally in Beijing, and later embarked on the "no return road".

From 2005 to 2006, Procter & Gamble's SK- II brand product still did not go out of its own innocence route, adopted a wrong crisis management strategy, and the crisis was heading for an unlimited expansion.

In September 4th of 2006, SAIC informed the recent monitoring results of dairy products. In March 8, 2006, the milk powder produced by Ashley dairy was found to be unqualified for detection of iron, vitamin B1 and label items.

In September 5, 2006, Ashley company announced the information: decided to recall the problem milk powder, all the series, all batches and specifications of the middle and old age milk powder in the market were withdrawn, temporarily sealed and waiting for further processing, will be removed within two days.

In September 7, 2006, SAIC issued a rumor in Beijing. It said that the reason why the milk powder was not qualified was the label problem, and the quality of the products was no problem.

The response speed and coping strategies of Ashley Ashley are different from those of the product itself, and the final confirmation is made by the SAIC as the authoritative department, which is much better than the "giant" and Procter & Gamble Company as a warning.

If the enterprise is self reliant, instead of relying on the strategy of "beating the bell", the crisis will spread and expand. The difference between success and failure is that the strategies adopted by the enterprises are different.

Crisis problems often cause business managers headache. This is because the crisis does not happen frequently. Enterprises do not have enough experience. Enterprise crisis management is not a decisive factor in strength, nor is it a decisive factor in winning or losing money. It is not a speed deciding outcome.

Products and services are the soul of an enterprise. When an enterprise is experiencing a product or service crisis, if it is not handled properly, it often leads to media crisis, customer crisis, and many chain crises such as economic boycott, claims, litigation and so on.

If handled properly, it will help enterprises to further enhance their technological innovation, popularity and reputation.

To deal with the crisis, the military is fast.

When the crisis comes, choosing not to take measures and wait-and-see attitude will often lead enterprises to "defeat like a mountain".

When an enterprise is facing a crisis, it is like a person suffering from emergencies. It is not allowed to flicker or tolerate any delay. When an enterprise accidentally touches the high voltage line of the business crisis, it will cause public opinion and the government's full involvement, and the enterprise will be caught in the face of all sides.

After the East Asian airlines pilot failed to fly, the media reported that the civil aviation administrative departments were fully involved. When passengers travelled, they refused to choose Eastern Airlines.

In recent years, the collective defection of senior professional managers in Chinese enterprises has emerged one after another.

Middle and senior professional managers are the backbone of an enterprise. Once the construction system is lost, it will bring injury and pain to the enterprises.

Frequent middle and senior professional managers' collective defection incidents expose the lack of the original corporate culture and the fierce competition of the competitors.

Asiatic flourished in Henan, and carried out a strict semi militarized management of its employees. After Asia entered Guangzhou, it still used the original management mode, causing dissatisfaction among the Guangzhou employees whose culture and habits were quite different. Managers and employees had to leave, and the enterprises could not operate normally, and finally defeated the Yangcheng city.

The relationship between enterprises and customers is not only a common market partner, but also a competitor of local interests, even a complaint and defamation. Therefore, they are a dynamic and pluralistic relationship.

When there are disputes between enterprises and customers, there are three forms of responsibility: corporate responsibility, customer responsibility and mutual responsibility.

If it is corporate responsibility, enterprises must unconditionally retreat, so as to ease things; if it is customer responsibility and mutual responsibility, enterprises need to concession.

Customers are generally divided into two kinds: ordinary customers and opinion leaders. Customers of opinion leaders are fastidious and influential, and enterprises must give special attention to them.

In recent years, news about enterprises' crisis has been happening.

In March 2005, Heinz and KFC became the focus of media and public attention for some products containing Sudan. The baby oil of Heinz was pointed out by the India Drug Administration Commissioner, which contained liquid paraffin oil, which could cause harm to infants. The news spread to China, causing a great uproar; in April 2005, a product trust crisis triggered by reports from abroad attacked Colgate toothpaste, which caused panic in consumption. In early June 2005, Nestle iodine exceeded the standard milk powder incident had not yet come to an end, and an unannounced visit by the media in the city pushed the domestic dairy giant Bright Dairy industry to the top of the storm.

In July 2005, the rumour of "domestic beer plus 95% formaldehyde" made the domestic beer encounter a cold spell in the hot summer. The millionaires who came to the top of the list of Chinese rich men appeared financial scandals, such as billionaire Liu Xiaoqing suspected of tax evasion, Huachen Hualong suspected of embezzling state assets, and the collapse of Delong.

In the competitive environment of market economy, with the increasingly close economic exchanges between enterprises, enterprises' behavior will also face more variables, which brings more business risks.

The crisis of enterprises is not terrible. What is terrible is that when the crisis comes, enterprises are short of good disposal methods, resulting in the failure of crisis disposal and the situation of enterprises in disaster or even death.

When encountering a crisis, enterprises should learn to turn around in time, be good at using system and passion to wash themselves out, understand and be willing to create value for the society, and repay the society in the form of public interest.

In September 2001, Guan Sheng Yuan in Nanjing was criticized by local media and the public for revealing the use of stuffed cakes for mooncakes.

Facing the credit storm that will soon rise, Nanjing Kwan Sheng garden has always had a good brand image of the time-honored brand enterprise, making an incredible thing: it openly claims that "using stuffing to make moon cakes is a common practice in the industry".

This irresponsible speech aroused a lot of noise from the public.

For a time, condemnation, criticism, prosecution, return, and claims came in succession. The 88 year old Crown Garden in Nanjing soon declared bankruptcy.

Crisis is a challenge. Excellent crisis response measures can not only turn endangered enterprises into danger, but also find business opportunities from crisis.

In 2003, CCTV revealed the unhygienic behavior of pickles in some parts of Sichuan and Chongqing.

As a local famous brand product, the reputation of local pickles is facing a crisis. In view of the credibility crisis of products, local party and government officials in Sichuan and Chongqing have come forward to explain the causes through various channels and eliminate the fear and resistance of local pickles.

At the same time, the local government has increased the guidance and management of pickles production, so that it has embarked on the road of intensive and corporatization production, effectively curbed a few unhygienic production practices, and a crisis of rain and rain has finally been resolved.

It's not a day's cold.

All kinds of crises in enterprises are not isolated, but closely related to internal management and external environment.

All kinds of problems and defects existing in the management of enterprises may lead to the occurrence of enterprise crises.

For example, the "bright milk" incident which occurred in June 2005, which is facing too intense market competition and ignoring the tight management under expansion, is an important factor in the outbreak of the incident. With the improvement of consumer awareness and rights awareness in China, some enterprises have also contributed to the crisis.

In 1998, an elderly man in Changde, Hunan died of taking some oral liquid, and his son brought the company to court.

During this period, the company failed to deal with the crisis, resulting in staff strikes, buyers return, cancellation of loans, product accumulation and so on.

Before long, the business went bankrupt. The strengthening of inspection and supervision by the relevant departments of the state has exposed potential problems of many enterprises. Both the KFC's Sudan red incident, Nestle milk powder iodine excess, and the poisonous ham and poisonous tea leaves reported by the news media have pushed the relevant enterprises and industries to the crater of crisis. The spread of the media information has made the rumors of "spark" of some enterprises quickly create a "prairie fire".

With the development of modern commodity society and the change of business environment, enterprises are unable to avoid crises that may happen at any time.

After the crisis, it is very important for enterprises to respond in time and gain the understanding and trust of stakeholders.

Communication is the key link in crisis management. Effective communication between managers and employees, media, shareholders, consumers, product distributors, government departments and other stakeholders is the test of enterprise managers' ability to deal with their crisis. The socialization of modern life is getting higher and higher, and people's social consciousness is getting stronger and stronger. This means that the crisis of an enterprise is no longer a matter of the enterprise itself, but an event related to the general public. Enterprises must pmit the truth and progress of the incident to the public in a timely manner through the media, so as to listen to the public, stop rumors, gossip, stabilize public sentiment, and win the support of public opinion.

When enterprises face the crisis, enterprises should take the interests of the public and consumers as the most important ones, make prompt response and take timely remedial measures, and take the initiative and consciously take the event as an opportunity to turn bad things into good ones.

This will not only restore the credibility of the enterprise, but also expand the visibility and reputation of the enterprise.

The more excellent a company is in crisis, the more it can show its comprehensive strength and overall quality.

The performance of enterprises in crisis management will be regarded as a mirror of enterprises by public opinion.

The demeanor and attitude displayed by enterprises in crisis management, sincerity and goodwill, and sacrifice and compromise will become an important part of the corporate image.

Enterprises should take advantage of this opportunity to establish a positive image of the enterprise in the public mind. The most important goal of dealing with corporate crisis is to maintain and establish a good image of their customers.

Because the public is the existing or potential target of business activities of enterprises, the crisis itself may involve only a small number of consumers, but potentially affects all consumers. They will reassess the value of enterprise products or services accordingly.

In the second day of the November 2001 Sino US history of PPA banned, Shi Ke informed the staff about the ins and outs of the incident and announced that the company would not lay off staff.

The move has won unanimous solidarity among employees.

At the same time, the company quickly set up a crisis public relations group to deal with the crisis actively and effectively.

On the one hand, huge sums of money have been recovered from the national market and not yet sold.