What a project on crisis management in China may entail

What is crisis management?

Crisis Management is the art of dealing with a sudden event that threatens both internal operation and external stakeholders of an organization. A crisis includes sudden and unexpected events, which may lead to an unstable situation in the organization. As a country with unique and often unforeseeable challenges, a plan for crisis management in China is necessary for the longevity of operations.

Types of Crisis

There are internal and external crisis that companies in China may encounter. Though there are similarities, they require unique strategies.

External crisis in China

External crisis management in China includes responses to natural disasters, public health crises like SARS or COVID-19 epidemics, and crisis of malevolence. Necessary actions of external crisis management require companies to be socially conscious and have effective communication with both employees and consumers.

Internal crisis in China

Internal crisis management in China includes responses to financial crisis, technology crisis, deception crisis, workplace violence, confrontation crisis, and organizational misdeeds. In China, marketing mishaps regarding political boundaries and cultural sensitivities are often a source of internal crisis. Necessary actions of internal crisis include showing care for employees, continuous communication, and quick response.

External crisis management in China

From analysis of leading brand’s crisis management strategies in China during the SARS and COVID-19 outbreaks, we identified the main steps to deal with an external crisis in China. While the Chinese media landscape changed significantly, and Chinese consumers are becoming stricter, companies are expected to be more cautious and respond faster than ever.

Five key steps of external crisis management

Short term and long-term outlook after an external crisis in China

Outlook of an external crisis in China

Internal crisis management in China

While an external crisis, although often damaging to business, can be leveraged to improve brand image. On the other hand, an internal crisis in China is more likely to be considered the fault of a company. Therefore, it could damage your business without such underlying benefits.

We strongly recommend companies which want to enter the Chinese market to come with a proactive internal crisis management strategy in hand. To do so, we are committed to giving the best practices, do’s and don’ts to make your business overcome the challenges of the Chinese market:

Four key steps of internal crisis management

Short term and long-term strategic outlook after an internal crisis in China

Internal crisis management response

Additional methods we leverage to build a buttoned-up crisis management strategy in China

China demands its own set of tools and responses to deal with increasingly discerning consumers and merciless online Chinese landscape. At daxue consulting, we developed a bird’s eye view of navigating the Chinese market. Therefore, our China crisis management strategy recommendations for your brand are powered these research methods:

We combine these areas of knowledge with our expertise of handling uncertainty while doing business in China.

Does your enterprise need a China crisis management strategy?

To get started on your crisis management plan, contact our project team at dx@daxueconsulting.com.

Learn from these inspiring crisis responses to SARS and COVID-19

Crisis Management in China-Inspiring business cases during the COVID-19 and SARS crises from Daxue Consulting