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Chen Chunhua: Ace the Adversity

Mar 09-2020   



China Central Television (CCTV) has just interviewed Prof. Chen Chunhua on the staggering pressures and glimmering hopes for Chinese firms under the epidemic. For over a month, Prof. Chen, Dean of BiMBA Business School, has been giving online lectures to entrepreneurs and senior management and has donated her pay – 4 million yuan – to doctors and nurses fighting against the coronavirus.

 

She says that the crisis has elicited different responses among Chinese firms. Some leading companies have opted to look adversity in the eyes and respond fast, especially in the field of social responsibility. Another group of companies that rely heavily on traditional industrial model and consumption model are plunged into an immense quagmire.

 

During previous crises such as the SARS in 2003 and the financial crisis in 2008, enterprises were mostly bent on rallying their own resources to cope with the challenges. This time round, they are paying unusual attention to the role of technology and the impact of global economy on the crisis. She says such changes have resulted from the rise of digital and mobile technologies, China’s integration with the global economy, and the vital position of Chinese firms in global value chains and industrial chains.

 

As business grinds to a stop and cash flows dry up, she advises firms to go to extremes for cost cutting, including slashing all wasteful practices (are all the business travels, meetings and gatherings of absolute necessity?), axing loss-making businesses, and bringing on businesses that can generate cash flows in current period.

 

Yet minimizing costs doesn’t entail layoffs, she maintains. It matters more to get employees to unleash their potential. For instance, some restaurants and retailers have mobilized their employees to sell online and have made significant headways.

 

Opportunities lie in any industries that are capable of digitizing. Online education is hyped as the next big thing, but Prof. Chen cautions that despite the conveniences of online learning, education companies must hew closely to the core value proposition of empowering all-round development of students.

 

She also touches upon such hot issues as the effectiveness of government policies to support companies, sharing of employees between companies, and the efficiency of working online.

Chen Chunhua: Ace the Adversity

Mar 09-2020   



China Central Television (CCTV) has just interviewed Prof. Chen Chunhua on the staggering pressures and glimmering hopes for Chinese firms under the epidemic. For over a month, Prof. Chen, Dean of BiMBA Business School, has been giving online lectures to entrepreneurs and senior management and has donated her pay – 4 million yuan – to doctors and nurses fighting against the coronavirus.

 

She says that the crisis has elicited different responses among Chinese firms. Some leading companies have opted to look adversity in the eyes and respond fast, especially in the field of social responsibility. Another group of companies that rely heavily on traditional industrial model and consumption model are plunged into an immense quagmire.

 

During previous crises such as the SARS in 2003 and the financial crisis in 2008, enterprises were mostly bent on rallying their own resources to cope with the challenges. This time round, they are paying unusual attention to the role of technology and the impact of global economy on the crisis. She says such changes have resulted from the rise of digital and mobile technologies, China’s integration with the global economy, and the vital position of Chinese firms in global value chains and industrial chains.

 

As business grinds to a stop and cash flows dry up, she advises firms to go to extremes for cost cutting, including slashing all wasteful practices (are all the business travels, meetings and gatherings of absolute necessity?), axing loss-making businesses, and bringing on businesses that can generate cash flows in current period.

 

Yet minimizing costs doesn’t entail layoffs, she maintains. It matters more to get employees to unleash their potential. For instance, some restaurants and retailers have mobilized their employees to sell online and have made significant headways.

 

Opportunities lie in any industries that are capable of digitizing. Online education is hyped as the next big thing, but Prof. Chen cautions that despite the conveniences of online learning, education companies must hew closely to the core value proposition of empowering all-round development of students.

 

She also touches upon such hot issues as the effectiveness of government policies to support companies, sharing of employees between companies, and the efficiency of working online.