Study On Enterprise Crisis Management In China

After the SARS crisis in 2003, the enterprise crisis management (ECM) started to get the value of local business enterprise. And what followed was that enterprise crisis management became the most frequent words. However, in recent years, the reality is that many enterprises frequently outbreak of the crisis, not only our local enterprises, but many multinational companies in China. So, we have to ask: What's the matter with the enterprise crisis management in china? How do we start to build up the enterprise crisis management system suitable for the actual situation?On such background, this paper does some research on the enterprises crisis management about Chinese enterprises through theory and empirical research methods. This article first defines the crisis and crisis management. This paper believes that the crisis defined as that the policy-makers identified the organization of basic social values and code of conduct of structure facing a serious threat , unexpected emergencies and uncertain prospects make a high degree of tension and pressure, in order to enable organizations in a crisis to survive and the damage caused to a minimum, the policy-maker must in the quite limited time and the physical resource, the manpower, under the information resource makes the crucial decision-making and the concrete measures. The crisis has the burst characteristics, the urgency, two sides, social and other characteristics. We can define the enterprise crisis management that the enterprise in order to prevent, to escape crisis ,make a series proactive behavior that maintenance normal circulate, make the business enterprise escape from adverse circumstances, avoid or reduce business enterprise property loss and dissolve the crisis as turning point.In the process studying such questions, we will lead into enterprise crisis life cycle theory as one of the theories foundations. Just like enterprise life cycle, we may regard enterprise crisis as a process which initiated by certain or a series of events to getting rid of crisis, which means that enterprise crisis from brewing, outbreak, to death as a life cycle. The length of the crisis enterprise is decided by the crisis working group, the victims, the media, the public and many other factors. Enterprises and the victims are leading factors.How to devise the stages of enterprise crisis is an important part of the theory, because crisis event have self's regularity. This paper approves three stages divisions method which more highly recommended by more experts. It includes three stages Pre-crisis, Crises, Post-crisis, and each stage may include the different child stage.The core of this paper is to analyze present condition the enterprise crisis in china, analyze the causes of the enterprise crisis and the establishment of our national enterprise crisis management system. So we first need to be clear about our country enterprise crisis management the present situation of the crisis origin, the crisis type and so on. Through the statistical analysis on the typical model Chinese enterprise crisis in the past several years, if we want to solve the problem, we should establish crisis management mechanism which adapts our country national condition.For Chinese enterprises how to establish a crisis management system, the paper give out the solution .Firstly, China's enterprises should first improve enterprise crisis prevention system. It will be the best that finding the potential sources and the crisis be nipped in the bud before the crisis erupt. In this stage, the enterprise must strengthen the crisis idea, formulates the complete crisis management plan, establishes crisis management team, builds up the enterprise crisis warning mechanism, simultaneously pays great attention on training and exercising, builds the enterprise crisis culture. Such enterprise may form to the certain prevention ability and strives to get rid of crisis before the eruption. Secondly, the crisis prevention system will only reduce the number of the crisis or decrease the extent, but can not prevent all crises to erupt. Enterprises must be able to properly deal with the crisis in order to reduce losses to the minimum, even turn it into a new development opportunity. At this very difficult situation, China's enterprises should be thoughtful, to make scientific and correct decisions. Moreover, due to China's current media environment, We should pay great attention to the communication skills with media and customers , which will help control the spreading scope of the crisis control , upgrade the public's confidence in the enterprise and reduce the difficulty of crisis management .Thirdly, when the crisis was curbed, the enterprise should resume crisis management. They should restore through the long-enduring strategy with the benefit correlation and the benefit relations, and renewal the enterprise image and the reconstruction mutual benefit mechanism. We should eliminate the potential causes of the crisis, think over the enterprise crisis about the prevention and management mechanism, and find out loopholes. On this stage, on the one hand, the resumption of enterprise management must be carried on, on the other hand the enterprise should look for opportunities which are hidden in the crisis .Although the enterprises in crisis face many difficulties, but also can get a lot of business opportunities. Our enterprises should use these opportunities, to optimize the operating mechanism, seize market opportunities and improve the enterprise's strength.Based on the theory that how we build the enterprise crisis management system in china, the paper does the detail and thoroughly analytical research on typical enterprise crisis management cases"San Zhu Crisis"and"Contac Crisis". And the paper proposes the related suggestion and the solution. Also we prove the necessary and feasibility to establish the enterprise crisis management system in our country through such researches.