Construction Andapplication Of W Company's Crisis Early Warning System

The paper construct crisis warning system for production-oriented enterprises -Wcompany which products correction type professionally, and then carried out it. Thesystem will identify factors which may cause crisis in its external environmenteffectively. It will guide for management of W company and help W companyunderstand own operations and growth potential correctly. Simultaneously, it alsoguide for formulation and implementation of the future development strategy. Theultimately purpose of doing so is to enhance the ability of resisting crises for Wcompany.This paper discussed and analyzed risk and early warning management for SMEby using comparative analysis, qualitative analysis, quantitative analysis, caseanalysis, literature method, investigation, analysis and mathematical model.Based onthese, the paper construct more viable crisis warning system which consists of 4 partsin order to help W company enhance the ability of crisis warning .This paper analyzed crisis warning system for W company. Based onmathematical model, calculated the warning degree of W company. According to thecalculated values of indicators of the model, identified the specific factors inducedcrisis. By contrast calculation with real production and operation, find that theconclusion from crisis warning system is consistent with real situation basically. So itdemonstrates the system's utility. Finally, according to the specific factors inducedcrisis, proposed specific suggestions for improvement and measures response to crisis.