How to deal with the crisis in the face of the enterprise
The era of information explosion has given birth to countless opportunities, but also hidden the latent crisis. Viral communication can make or break a company. Observing the recent corporate crisis events, we can find almost similar crisis, different ways to deal with the different effects. I think there are both technical and conceptual reasons why some companies fail so badly. The following is what I bring to you about the face of crisis enterprises how to deal with, welcome to read!
1, the fact that the level
Enterprises on the authenticity of the crisis information must first make a statement on the factual level. Here it is necessary to explain is that enterprises should realize that attempts to deny, conceal the objective existence of the facts in today's network era is almost delusional, so enterprises should not hold any speculative ideas, straight to the negative news. Second, when the enterprise is not yet very sure to judge the truth of the information, it should not be rash to take a position, so as not to backtrack after the fact, and lose the public trust.
Haidilao and Ajisen Ramen both chose to recognize the facts after the crisis broke out, which was helpful in narrowing the public's skepticism and shortening the duration of the crisis. Da Vinci, on the other hand, chose to deny after the outbreak of the incident, but the facts are not completely non-existent, which provides the public with a wide range of questioning, discussion space, which is for the rapid handling of the crisis is and its unfavorable.
If the enterprise has very good evidence to prove the facts, it should be timely through press conferences and other forms of evidence to the public, but do not do too much confrontation with the media or public opinion, the mouth of the winners and losers of the crisis management and the final results do not have a direct link. The goal of crisis management is to narrow the impact, reduce losses, any enterprise can not be caught in the whirlpool of controversy for a long time, such an environment is not able to let the normal production and operation of the enterprise. Remember: society is never short of hot spots, and every day there is a new focus.
2, the value of the level
After recognizing the facts, the enterprise must show their own value judgment on the facts and come up with practical remedial programs. Crisis information is negative, but not always illegal, for example, food companies in their production of food additives, if the additives have long been expressly prohibited by the state, then this behavior is illegal, but if the additives are not prohibited by the state, but with the development of science and technology after the discovery of the human body's toxicity and side effects, then the addition of this behavior can not be said to violate the law (of course) Enterprises must publicize and record). For crisis events that are not illegal, companies should focus on remedial programs, clearly tell consumers the measures used to improve the product, and strive to establish a responsible image of the company to the public, and strive to turn the crisis into an opportunity. And if it is illegal, because of its behavior itself has legal and moral condemnability, so the enterprise must be their own illegal behavior to the public to express sincere apology, actively cooperate with the relevant departments to investigate and verify, at the same time in the remedial program, should be actively given to the consumer due compensation, so that the public feel that the enterprise can know the error can be corrected, and strive to regain the trust of consumers.
After recognizing the facts, Haijilao actively explained to the public, declared the safety and reliability of all its raw materials, and came up with feasible solutions. The same crisis, Ajisen Ramen used the crisis events commonly used to seek authoritative third-party proof of the way to try to resolve the crisis, but unfortunately the proof provided by the party that did not get the issuer's own recognition, to give people the impression of muddle through, prompting the crisis to further deepen. Da Vinci Home is even more incredible for its illegal behavior to find the public can not recognize the reason, claiming that its one-day tour of the behavior is to allow consumers to benefit from, this kind of strong statement makes the public even more disgusted with it, but also make it more and more in deep.
Some companies believe that as long as my business behavior does not violate the law, I can be very tough to face the public, this is a serious misunderstanding, the crisis event because of its wide range of social concerns and is different from the general legal cases, perhaps the enterprise in the crisis event do not have to bear or escape legal responsibility, but the enterprise if you do not choose to face the public in a correct way, once the public has suspicions or resentment of the enterprise, the public will be able to take the responsibility of the enterprise. But if you don't choose the right way to face the public, once the public is skeptical or resentful of the enterprise, the consequences may far exceed the losses brought by the case itself.
It is inevitable that a company will encounter a crisis, and the larger the company, the more likely it is to attract public attention, which, if it is negative, will lead to a serious crisis. After the crisis information outbreak, the enterprise should quickly respond, in response to the public questioning, the enterprise must face two levels of problems:
1, the fact that the level;
2, the value of the level.
The face of engineering debt crisis enterprise response
Four types of accounts receivable
Delinquent advances. The contractor has no money, to advance funds to let dry, the contractor to take is still not take? If you do not take, lost the market. If you take, how to prevent and control the risk of advances? Contractors in order to receive the project, swallow unconditionally accept 60% -40% of the advance, accounting for about 1/3 of the total contract price of the performance bond and other terms, there is no fastened seat belts, it is completely bad food. Contractors accepting unconditional advances think that they can still make money as long as the project is a project as in the golden age of the last decade, so they don't have to worry about it. Unbeknownst to them, in the current silver age, there is bound to be a group of developers will fall, empty sacks carrying rice developers that may be in the first list. If all the bankruptcy, the lawsuit will not have to fight, the contractor can only participate in the meeting of creditors, to get back a resolution of no property can be distributed only.
Delinquent progress payments. Contractor intermittently pay for the project, there is a previous one is not followed by a sum of money, or even no money at all, the contractor is forced to bear to continue to do it, or only to take some measures? If you want to take, what kind of measures can be taken? This kind of project is too common, for example, a project in the northeast where I am providing debt crisis relief services. For example, the famous Zhongcheng Plaza in Guangzhou, which was once called "China's No. 1 Rotten Tail Building". Cheng Plaza contractors in the case of insufficient funds in the developer, even starving construction for nine years without stopping, and ultimately waited for about 20 years only to recover the principal amount of the project, but considering the cost of capital, the actual recovery rate of less than 30%, which is still in the golden age of rising prices to do so, if you change to the scene of the silver age, I'm afraid that a penny of the principal can not be recovered.
Delinquent stoppage settlement. The contractor ran out of money, the project stopped, the contractor what to do; the contractor and the introduction of new contractors, how to do? I recently received a number of stop-work project consulting, such as a complex project, the contractor to undertake the project, there has been delinquent precedent for the contractor, the delinquent advances and project payments did not take preventive measures. No effective and necessary control measures were taken in case of default in payment for the works. After the suspension of the works, why were no measures taken until they were forcibly taken over by a new construction team. Not even a letter of objection was issued after the stopped works were taken over.
Delinquent completion settlement. Completion of the project delivery, completion of the settlement began, but the contractor is always delayed and not review, review and not decided, the contractor what to do? This case is too much, such as my chief agent of the media called "China's first case of engineering claims", the contractor settlement was delayed for two years before filing a lawsuit.
For the above four kinds of accounts receivable crisis, the contractor's works fastened seat belt? If the contractor did not fasten the seat belt, the reason can only be attributed to: the contractor simply do not have accounts receivable control ideas, strategies, tactics and actions.
Financing construction risk response measures
The developer's capital chain is broken, accounts receivable crisis came. What about contractors? Continue to do or quit? If you continue to do, is the advance to do or not advance to do? If you do not advance funds to do, and what to do? Below, combined with a comprehensive project in the northeast of the debt crisis relief practical cases, for the contractor to share 123 construction financing model.
At the end of last year, B developers in the northeast W city development of a 200,000 square meters of integrated projects, C contractors have completed the project volume of 168 million yuan, B developers should pay 126 million. However, developer B has not paid a penny. C contractor after repeated discussions, that: no longer do, has advanced 168 million yuan of money do not know how long it can be recovered; continue to do, such as the B developers to sell the house, perhaps all the money back to the project. So I decided to continue to do it.
I think: can not do to advance capital contractors, to do financing investors. I proposed a 123 construction financing model, as follows.
"1" is a core, that is, the C contractor as an investor is responsible for financing and get a return as the core. Contractors are not financial institutions, how can they borrow to developers, that will not be illegal? Of course not. I've turned it into a perfectly legal... method - deferred payment. Contractor C conditionally agrees with Developer B to defer payment of the $126 million that has already been delayed, as well as the work that will be delayed.
"2" is the two goals, that is, C contractor as an investor construction financing should achieve two goals: the first goal is to ensure that the financing recovery security. How to ensure the safety of financing recovery, is the following "3". The second objective is to obtain adequate financing returns. First of all, the base return I set for Contractor C is 6% per day. This means that Contractor C can earn an annualized return of 21.6% on its financing, and after deducting the 8% financing cost from the financial institution, Contractor C can earn a net profit of 13.6%. Secondly, I increased the profitability of the construction contract for Contractor C, mainly by expanding the scope of the contract to include decoration, etc., in addition to civil construction, and by requesting modifications to the contract pricing and price adjustment clauses. Finally, I also secured for Contractor C the right to purchase the completed property on the project at cost.
The "3" is the three phases, that is, the pre-sale, pre-sale and post-pre-sale phases that ensure the safety of financing recovery. The details are as follows.
The pre-sale stage ensures the safety of financing recovery. Specifically through the pledge of the equity of developer B, or the assignment of the equity plus repurchase solution. If the B developer can not pay the financing payment at the end of the due date, the C contractor chooses to assign the equity to realize, but also can choose to exercise the right of first refusal of the project price to auction the project to realize. Moreover, the pre-sale phase is expected to last only about 6 months, and the additional risk to Contractor C is not significant.
The mid-pre-sale stage ensures that financing recoveries are secure. The way to do this is to monitor the pre-sales, B developer accounts and seals. This is implemented through a series of agreements and measures. For example, it is fine for Developer B to collect payments, but external payments have to be approved by Contractor C. Developer B can enter into external contracts, but only after Contractor C has approved them. In addition, to prevent accidents, it can also be done by mortgaging the land and construction in progress of some of the buildings to Contractor C. The land and construction in progress of some of the buildings can also be mortgaged to Contractor C. The pre-sale proceeds are of course prioritized to be used to repay the financing and construction work.
The post pre-sale stage ensures that the financing recovery is secure. If the pre-sale proceeds are not recovered fast enough to pay off the financing and construction, Developer B sells the houses to Contractor C or a unit designated by Contractor C at an agreed cost price, and the two parties hedge their debts by invoicing each other.
Before the Spring Festival this year, the 1+2+3 construction financing program was fully accepted by Contractor C. The 1+2+3 construction financing program was implemented into the contract, which became a contractual system centered on the framework agreement and consisting of eight contracts, hundreds of pages in length. After the Spring Festival, the project proceeded normally. developer B took the initiative to transfer the entire stake to contractor C. The trust financier also offered to transfer the entire stake to contractor C. The project was completed in the end of the Spring Festival. The trust financing organization also threw an olive branch to Contractor C. Either the equity is transferred to the trust financing organization, and the trust financing organization comes to pay the full amount, or both parties cooperate fully to ensure the smooth running of the project.
It can be seen that, after the adoption of 123 construction financing model compared with the non-adoption of the contractor's position and the situation has undergone a fundamental change for the better, not only to ensure the safety of the project payment and financing, but also additional to obtain a good return.
Termination Settlement Risk Response Measures
The developer's capital chain has broken, the accounts receivable crisis came. As a contractor, the contractor should do? How should the relief it, the relief program should be how to plan it? If the contractor is the general contractor project leader, fully responsible for the project debt relief program, the contractor will do? I came to assist the contractor to plan the accounts receivable crisis relief program.
The premise of an accounts receivable relief program is an environmental investigation. After completing the environmental investigation, we can proceed to relief program planning. How many programs do we have to choose from? From the most familiar to the most unfamiliar: Option 1: Call the developer for payment but continue construction. Option 2: Press the developer for payment but suspend construction. Option 3: Active notice to cancel the contract. Option 4: Be notified by the developer to cancel the contract. Option 5: Negotiate with the developer to finance the project.
Find crisis relief may appear a variety of programs, some dazzling. We can not do to pick up the sesame, lose the watermelon thing. We need to carefully evaluate and choose the most appropriate option.
Accounts receivable relief program implementation focuses on implementation and monitoring. The perfect program, but also depends on the practical implementation, after all, the theoretical prediction and the actual gap, the size of the gap depends on the strength of the implementation. The perfect program, but also depends on the supervision at any time, after all, the environment is changing, the investigation is also deepening, once the basis for the development of the program changes, the program should be adjusted.
Delinquency lawsuit risk response measures
More than 10 years ago, Guangzhou Zhongcheng Plaza accounts receivable, 13 years after the suspension of the project, the contractor can ultimately recover the principal amount of the project, but the interest on the project funds simply can not be recovered. Because the second, third and fourth down the line claims amounted to 430 million yuan, and the enforceable amount of 850 million minus the first down the line claims 555 million yuan only less than 300 million yuan. The fourth down the line is still insufficient to pay, and the sixth down the line interest on the works is even more unpayable. If you avoid and reduce the risk of delinquency lawsuit?
Such as prior credit investigation can be avoided in the Cheng Plaza receivables loss. How to avoid the risk of bad accounts receivable such as Cheng Plaza? The core lies in the undertaking of the project to do a good job of preventive measures, through the credit investigation, etc., try to avoid the empty sack back rice construction units. According to reports, in the early stages of construction of Cheng Plaza, the developer invested a surprisingly small amount of funds only 20 million yuan, bank loans totaling only 100 million yuan or so, rely entirely on the sale of flowers to maintain. Even if the comprehensive trade-offs are ready to undertake the project of Zhongcheng Plaza, the contractor must also leave enough profit margin to offset losses. For example, the progress payment is enough to cover the cost of the project, the remaining about 15% of the completion of the settlement and warranty payments are all profits.
Such as in the event of active control can greatly reduce the loss of accounts receivable in Cheng Plaza. Beginning in 1992, until 2001, almost 10 years, civil construction contractors surprisingly basically done civil engineering. In this project, the project appeared many rotten signals, including: 1996, Hainan High Court seized the Cheng Plaza project, and since then creditors have seized the project; in the intermittent construction, the developer apparently often can not pay the project payment according to the contract; the project period of serious delays in the completion of the project is far from the foreseeable future. In this regard, the contractor did not take such proactive measures as stopping work, requesting payment guarantees, negotiating for higher payment rates, and canceling the contract. If the contractor to take the above measures, will certainly make the amount of arrears greatly reduced, or make the payment of the project without worry.
If the aftermath of the timely against the house can be greater to reduce the loss of receivables in the Chengcheng Plaza. As previously analyzed, the contractor in the Cheng Plaza accounts receivable loss of about 71%. Creditor Guangdong Hailong Wang Industrial Investment Co., Ltd., the original purchase price of 10,000 yuan per square, in the distribution of housing per square assessment price has reached 25,550 yuan. The contractor would have had no great difficulty in negotiating with the developer to offset the amount payable for the work against the property at the lower price if it had been able to take advantage of its extremely advantageous position. If so, it is clear that it can also be better to reduce the loss of Zhong Cheng Plaza receivables.
In summary, how to face the upcoming accounts receivable crisis? We should pay extra attention to the accounts receivable beforehand prevention and control, through solid accounts receivable management, try to avoid and effectively reduce the loss of claims.
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