Studying on the Crisis Management Based on the Control Theory

Faced with the evolution of the economic environment, some environmental factors which were easily mastered by enterprises are disintegrating, and the business environment of enterprises are transforming from relatively steady statistic one to more and more complex dynamic one. Today crises have become practically the norm in an environment that is both unstable and unpredictable. Crises have thus proved to be almost an unavoidable parameter for corporate strategy. Firstly, the article reviews the characters of crises, and illustrates the fourth phases of crisis evolution. Then, we attempt to construct a conceptual framework model relating to these phases to show how a firm can succeed in managing crisis through control mechanism. The model will be illustrated through an in-depth study of crisis management from three control dimensionalities: feed-forward control, concurrent control and feed-back control. Finally, the article brings forward that if it is linked with a proper organizational learning process, a crisis can sometimes be at the origin of a competitive advantage.