When a crisis occurs, how should managers make judgments about the uncertainty and respond with the most advantageous cognitive approach and strategy of action? Professor Bao Yongjian from Fudan University School of Management introduced 4 environment archetypes.
1. Friendly environment. The major socio-economic and technological factors have not undergone fundamental changes. Enterprise may consider a layoff, cash flow control and reduction of production scale.
2. Challenging environment. The corresponding cognitive approach is real options valuation.
3. Harsh environment. Scenario planning is recommended to better understand the uncertainty and the possibilities.
4. Cambrian environment. The approach to break through the complete unknown is literary imagination. The digital virtual technology has also been providing powerful tools to predict the effect of a strategy.
