The Rise And Fall Of The "Chuan Hao Zi" Chain Stores

With Festinger’s Cognitive Dissonance Theory, this paper studies the case of Chuanhaozi Chain Store and focuses on the analysis of irrational behavior of manager affected by emotion. Respectively for the three stages:starting point with a reasonable cognitive structure, going-on point with an unsteady cognitive structure and fast-developing point with a badly unbalanced cognitive structure, this essay probes into irrationality of cognitive structure and personal psychology. The influence of the manager’s irrational cognitive structure on the development of business has been investigated and irrational emotion of manager in business-running has also been analyzed in this paper.This paper, based on the theory of Reasoned Action, by referring to manager’s investment and using the methodology of combining theory with practice, aims to investigate the failure of business, which is led to by the manager’s irrational cognitive structure. The negative effect of irrational cognitive structure on economy and business development has been probed. The purpose of this study is theoretical and also practical.By using the theory of cognitive structure, combing with the analysis of the Chain Store manager’s complex psychology and its effect on the business-running, it can be concluded that, besides some economic factors the steady development of business depends on how the manager’s thoughts go through the whole procedure of business. The Chain Store’s manager himself goes with double characteristics of rationality and irrationality, and irrationality is the key factor which leads to the loss of business.Reform and Opening Policy has been nurturing a quit number of entrepreneurs. Anyhow, among them some were farmers who succeeded in business through hardworking and some were parvenus by taking advantage of policy. Some of them are sure to have wrong ideas about fortune and metal diseases. Irrational beliefs can be clearly found with them. They have serious psychological problems on the way to make fortune and desire to pursuit benefit. There are many errors in the strategies for business development, management and orientation. Rationally, these people are not qualified to be called "entrepreneurs", but managers. At the moment, when rationality is lost, irrationality spreads across every corner and market economy is in a mess, it is very significant to investigate into managers’ irrational cognitive structure, strengthen managers’ psychological ability and nurture managers’ rational cognitive structure.