A Study On The Crisis Management In The Industrial Enterprises Of China

From the very beginning, human society has been being accompanied by uncertainty throughout its development. Encountering and overcoming ,constantly, challenges brought by the uncertainty is how human being marches forward. Every entity, with no exception, in the economic market has to operate in an environment where both macro-economical environments (e.g. politics, economics, nature, culture, population, technologies, etc.) and micro-economical environments (e.g. enterprise, competitor, supplier, buyer, consumer, etc.) impose a great deal of influence. The interactivity between enterprises and these surroundings generates additional uncertainty to a concern, pursuing long-run survival and development. The uncertainty brings potential crisis to a concern's operation.Along with the accession to WTO and the economics' further globalization, China enterprises are encountering crisis's, in wider ranges and with higher frequency, due to the more complicated and dynamic environments.Initially, crisis management in China was perceived as a tool fighting fire, lacking systematic thinking in concern's strategic development arrangements. Later on, crisis prevention was somewhat over-emphasized as core arm of crisis management. Considering the nature of crisis, uncertainty and incontrollable, and people' stair-like recognition about the nature, the author states that both view-points above mentioned now seem to unilateral. In fact, both pre-crisis prevention and post-crisis recovery are equally important methods in crisis management, in which scientific knowledge, attitudes and procedures play a critical role. The management of China industrial enterprises has to catch up with knowledge and skills in this area as soon as possible in order to survive and develop ourselves in the dynamic environment and at this IT era. In the paper, Lucent LWS' outage prevention and recovery process is examined to see how multi-national enterprise is handling crisis in telecommunication industry.In chapter 3, the author also discusses the types of crisis in current China enterprises and it's pointed out credit-loss the most serious crisis we are now facing, where Singapore China-Petrol scandal is case-studied. The root cause of credit-loss in China is analyzed based on theories of trade-cost and information asymmetry. The author calls for government, enterprise and individual' obligation to obey certainregulation to turn around the national-wide credit-loss crisis.Based on discussion of the characteristics of crisis in IT era, it's stated in the paper that a corporate culture with sense of crisis is vital to China enterprises' survival and development. The countermeasures about how to establish, breed and develop crisis corporate culture are also discussed in the later part of Chapter 4.