The epidemic not only caused many companies to directly fall into the dilemma of survival and development, but also provided an opportunity for their business transformation and crisis management. Enterprises need to continuously expand new development space or increase their transformation and upgrading efforts to take the path of green development.
Online business model unsustainable consumption of traditional lines, intelligent, environmental protection, health and other green industry welcome the opportunity
in the short term, the current spread of the disease have a certain impact on Chinese enterprises. The specific manifestations are as follows:
(1) The service industry, especially the tourism, catering, cultural and entertainment industries in the consumer sector, has seen a decline in business turnover and an urgent cash flow. For these industries, the Spring Festival is the peak consumption season, but due to the impact of the epidemic, people are forced to stay at home, so that major hotels, restaurants, and tourist attractions are very close to each other.
(2) Small and medium-sized enterprises are facing the test of life and death. Inadequate governance of SMEs, insufficient funds, weak product competitiveness, suspension of production during the epidemic prevention and control period, and decline in market demand have made the operation of SMEs worse.
(3) The traditional business model is unsustainable. Under the influence of the epidemic, traditional offline businesses such as high-consumption, high-pollution, high-risk, low-output, and low-efficiency industries and enterprises’ living space will continue to be squeezed.
Under the impact of the epidemic, traditional offline businesses have been relatively affected. Contrast this with the rise of online consumer businesses. Under the epidemic, Internet medical companies such as Ali Health and Dingxiang Doctor opened online free clinics, which eased the pressure of offline outpatient clinics, while reducing the risk of cross-infection, and online entertainment has also achieved rapid development. This provides a new opportunity to promote the transformation of corporate offline business. On the one hand, enterprises can realize business transformation by developing online business, and on the other hand, they can develop in the direction of unmanned and intelligent offline.
In addition, the epidemic has also prompted companies to more deeply understand the importance of crisis management and green health, prompt companies to improve relevant systems and governance systems, and improve the execution of corporate crisis management mechanisms to enhance their immunity to the epidemic. At the same time, affected by the epidemic, environmental protection has received increasing attention and recognition, which will help promote the development of major environmental protection, major health and other related green industries.
CSR and crisis management mechanisms to deal with
how companies should deal with during the outbreak? In crisis management and brand strategy, companies should pay attention to two points: The first is a sense of social responsibility. Under the epidemic, corporate social responsibility has become an increasingly concerned social issue. Improving corporate social responsibility is not only a challenge to corporate crisis management, but also an opportunity for corporate brand strategy. From donations and materials to small care for employees, they are all manifestations of corporate social responsibility.
The most basic social responsibility of a company is to comply with laws and regulations. This is also the second point that companies should pay attention to, compliance. Compliance is an important means for companies to reduce risks when faced with an uncertain environment. For the epidemic, on the one hand, corporate compliance refers to the establishment of a crisis management mechanism for disaster prevention and mitigation in wartime; on the other hand, it refers to the establishment of various systems including crisis management mechanisms for enterprises to refer to and comply with various laws. Regulations. Social responsibility is closely related to compliance, such as operating with integrity and not driving up prices during the epidemic. It is not only a company’s compliance with regulations, but also a manifestation of corporate social responsibility. In the management of this public crisis, some companies have lost their social responsibilities and made “national wealth”, which is tantamount to drinking poison to quench thirst. And those “pseudo-social responsibilities” that lack compliance just to gain reputation will not only fail to improve brand reputation, but will self-defeating and cause a greater crisis.
In addition to the above two points, corporate crisis management can also be carried out from many aspects, such as: giving full play to the entrepreneurial spirit of managers, examining the internal and external problems of the company and making timely adjustments and improvements, leading corporate members to get rid of the crisis; building an efficient To improve the digital management capabilities of enterprises, build remote offices to alleviate the dilemma of not being able to resume work under the epidemic; make full use of the policies, and currently many governments have issued relevant policies to help enterprises. In addition to self-help, enterprises should also seize policies opportunity.
Hotel and accommodation industry: Establish an industry epidemic coordination mechanism and strengthen coordinated governance between government and enterprises
Currently, the hotel and accommodation industry, as a modern service industry, has been hit harder by the epidemic. Under the impact of the epidemic, the occupancy rate of most companies fell rapidly, and the capital turnover was tight. With the decline in profitability, how to coordinate the relationship between suppliers, employees and consumers is facing challenges. In addition, as a chain hotel company, facing the operating difficulties of its subsidiaries, it cannot only protect itself, but also has the responsibility to maintain the ecological balance of group governance and strengthen the construction of group governance coordination mechanisms to turn crises into opportunities.
First, strengthen the awareness of compliance management and improve the construction of the epidemic prevention work system. Strengthen communication with government departments, do a good job in daily epidemic prevention and control in strict accordance with the requirements of government health, market supervision, inspection and quarantine departments, clarify the requirements for epidemic prevention and control, and do a good job in the establishment of work systems such as employee health monitoring and care, and sanitation and disinfection, and reduce Risk of cross-infection and spread of the epidemic.
Second, consciously fulfill social responsibilities and strengthen the concept of green governance. Under the influence of the epidemic, the demand of the whole society for the transformation of consumption patterns will increase. The hotel and accommodation industry should strengthen corporate environmental protection publicity, strengthen the awareness of green governance, and actively reduce the use of kitchen waste and disposable hotel supplies. In operation, we strive to save water, energy and electricity, and promote green operation.
Third, establish an industry epidemic response and coordination mechanism, and strengthen the coordinated governance of government and enterprises. Faced with the difficulties of many franchisees, only by strengthening the cooperation between enterprises and helping each other in the same boat can the impact of the epidemic on the industry be reduced. Therefore, it is possible to help franchisees tide over the difficulties by strengthening the capital adjustment and turnover between member companies. The association and other channels actively advise and offer suggestions to promote the introduction of policies that are conducive to the development of the industry.
Governance Transition Opportunity: Under the epidemic, the interests of the industry to re-adjust the pattern of existing
enterprises grasp industry development opportunities in times of crisis, the key is you want to own development and the fight against the epidemic main tasks closely together, follow the development trend of the times.
In the short term, the need for emergency logistics, catering distribution, public opinion monitoring and other aspects of prevention and control work may also bring extraordinary business growth opportunities to enterprises. Relevant companies need to give full play to their own advantages and find market entry points in order to achieve seamless connection of corresponding businesses.
In the long run, the adjustment opportunities for offline asset-heavy and labor-intensive industries such as catering, retail, and training also lie in the degree of embracing the Internet, shifting from offline to online. Catering mainly promotes standardized central kitchens to reduce staff dependence, access to online take-out platforms, and dine-in is to do sanitation and disinfection work, and the main promotion of safety cards; retail and training are also recommended to move online, open online sales, knowledge economy, etc., reduce Spending pressure on the rent of physical stores.
Major emergencies often mean re-adjustment of the existing industry’s interest structure. The outbreak of the epidemic has highlighted the need to change the current unsustainable lifestyle. As people’s understanding of epidemic outbreaks and prevention laws continues to deepen, people’s green demand for ecological and environmental protection, green consumption, healthy production and lifestyle will become greater and greater. Enterprises need to design and utilize this kind of Demand trends in order to continue to survive in the reshuffle and achieve new upgrades.
Case Studies Analysis
Case Background: During the epidemic, box horse Fresh green face labor shortages surge in demand and people are not all in place to produce and launch a new mode of cooperation and programs: February 3, announced that receives clouds meat dish, youth restaurants and other catering Unemployed employees of the company settled in the Hema store, signed a temporary labor contract, and returned the employees to the relevant catering companies after the epidemic. In addition, Hema actively contacts with more than 30 famous catering companies.
Follow the “borrowed” principle, based on cost and the similarity selection of partners
reflects the emergency coordination mechanism to deal with unexpected major public health event started in the horse box and innovative business models, different governance organization respective merits, follow the “borrowed” Principles, reasonable attention to the interests of stakeholders, to maximize the efficiency of the corporate governance system.
In the case, the impact of the epidemic has created a temporary surplus of labor resources in the catering industry, while new types of retail such as Hema are facing a shortage of personnel due to changes in sales channels. By “borrowing” temporary surplus labor resources in the catering industry, it not only provides new job opportunities, but also reduces them. This reduces the cost of Hema’s re-recruitment and training of new employees, and also reduces the burden on catering companies during the epidemic prevention period.
It should be noted that corporate governance has its own specific laws, and it is not “just a mess.” When collaborating with each other, partners should be selected based on business conversion costs, product similarity, etc., to maximize governance synergies.
Case background: During the epidemic, compared with the severe situation faced by many domestic catering brands, McDonald’s can maintain stable and safe operations. What are the reasons? What brand values does it reflect?
McDonald’s: the daily management of standardization, strict brand personality, to win the trust of customers
first, which is closely related to the McDonald uphold the business philosophy. First of all, “Quality, Service, Cleanliness and Value for Money” (QSC&V) is the business philosophy that McDonald’s has always adhered to. Secondly, food safety and health is the focus of McDonald’s work. From production to distribution, it adheres to the concept of being responsible to employees and customers.
Second, McDonald’s daily operation and management measures have played an important role in stabilizing operations and gaining customer trust during the epidemic.
(1) During the food production process, McDonald’s implements total quality management and “standardized production”. Each production process is strictly controlled, and the process is copied and implemented to the corresponding executive positions through unified standards and quantified operations. In order to clarify responsibilities, the tasks are broken down into specific jobs, and employees are encouraged to perform their duties. McDonald’s strict internal control has shown customers a rigorous brand personality, effectively reducing consumers’ panic under the influence of the epidemic, and winning the trust of customers.
(2) McDonald’s food delivery provides “safe delivery” service. All delivery orders are accompanied by a “Mallot delivery card”, indicating production, catering, and delivery personnel information, so that meals and personnel can be traced, responsibilities are clearly defined, and food is guaranteed Safety.
(3) The individual consumer consumption model, self-service ordering service, and “drive-speed” car restaurants adopted by McDonald’s in its daily operations have reduced the chance of personnel concentration and cross-infection under the raging epidemic. In McDonald’s “Drive Speed” car restaurant, customers do not need to get off the car from ordering to picking up. The orderer confirms the order through the walkie-talkie, and McDonald’s daily cleaning and disinfection procedures are carried out in accordance with standardization and flow.
Third, McDonald’s has the advantage of a global supply chain, standardization of the supply chain, and stable operations.
In brand building, McDonald’s upholds seven values: people-oriented, giving back to the society, business growth, continuous updating, customer first, integrity management and a firm belief system. McDonald’s attaches great importance to food safety and is committed to providing food safety services recognized by customers, suppliers and public health and social groups, and building a food safety brand that customers can trust. In this epidemic, McDonald’s rushed to Wuhan and persisted in business, which also reflected McDonald’s people-oriented core values.
