Enterprises Should Learn to Deal with Crisis——From the Feiyan Fatty Incident in Zhejiang Province

In May of this year, a sudden fatal incident had brought catastrophic blows to Zhejiang Longyou Feiyan Fertilizer Co., Ltd. Due to the wide spread, the claims process has not yet been fully settled. After a brief resumption of production in June, it is now stopped again because the product cannot be sold. Although after the fatal harm incident, Feiyan Company did a lot of work on the crisis management, such as recalling all the sold fertilizers, actively cooperating with the local governments to make claims, changing the waste sulfuric acid process, and resuming the use of genuine sulfuric acid to produce phosphate fertilizers. However, as a result, due to the lack of a sound management mechanism, the company's handling of this crisis has not reached the desired goal. For this reason, enterprises have to start thinking about abandoning the company's 40-year-old Feiyan trademark. It can be seen from this that how important the crisis of the chemical industry society is.
In today's increasingly fierce market competition, similar to the sudden crisis in Feiyan's fatality, every company may run into troubles, multinational companies, and privately-owned small enterprises. For example, in 2000, the Sino-US KSK "Contec" incident, when the US Food and Drug Administration announced that "Contec" contained PPA components harmful to the human body and banned sales, China immediately followed. After receiving notice, China and the United States quickly set up a crisis response organization and eventually successfully survived the crisis.
Compared with Sino-American S&K, Feiyan’s crisis management capability is obviously inferior. It should be noted that as China's marketization continues to deepen, enterprises have ushered in more market opportunities and are also facing more challenges. It can even be said that the crisis is everywhere. Then, when the crisis comes, whether the company has a complete crisis management system, and whether there is a scientific crisis management technique is directly related to the survival of the company.
Regarding the crisis management of enterprises, our famous marketing scholar You Changqiao has proposed a "5S" principle: First, it is the speed first principle (SPEED). When a crisis occurs, companies should act decisively, respond quickly, act decisively, communicate with the media and the public, and quickly control events so that they do not expand, escalate or spread. This is the key. Second, the system operation principle (SYSTEM). When escaping a danger, do not ignore another danger. The system must be operational when it comes to crisis management. Third, the principle of liability (SHOULDER). No matter who is right or wrong, companies should take the initiative to take responsibility and win public understanding and trust. Fourth, the principle of sincere communication (SINCERITY). When companies are in a crisis vortex, they should communicate with the public as soon as possible to explain the facts of the case and to promote mutual understanding and eliminate doubts and unease. Fifth, the principle of authority verification (STANDARD). After the crisis, companies should not use their loudspeakers to chant loudly all the time. Instead, they must ask third-level heavyweights to speak at the front desk so that consumers can lift their alertness and regain their trust.
We can see from the handling of Feiyan’s fatal incidents and other types of crisis events that have emerged in recent years that most chemical companies have not yet established such a complete crisis management system and they do not have the ability to properly handle the crisis. Such as flying geese incident. It can be said that the top 3 flying geese companies in the "5S" principle proposed by You Changqiao have all done this. However, because of the lack of sincere communication with consumers and the confirmation of authoritative departments, the outcome of the incident was not satisfactory.

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