How do companies manage and engage staff during a crisis?
Few businesses are forced to face a crisis quite as devastating as an earthquake, but following Japan's tragic incident in March and the subsequent radiation leak, Japanese restaurants in Hong Kong have suffered as customers plummeted, food supply sources dwindled and employee morale reached an all-time low. Many businesses have still not fully recovered to pre-crisis levels. Of the 600 Japanese restaurants in Hong Kong, more than 20 have closed down and the revenue of some has dropped by up to 60 per cent.
A crisis of this magnitude is bound to affect staff morale and present unprecedented challenges for management, including a lack of confidence in the store's sales and operations, abrupt changes in operations and unbalanced revenue and operations spending.