This time, the battle between Lao Luo and Xi Bei reveals the typical differences in corporate governance between China and the United States. This is also why I often urge everyone to study and invest more in American listed companies. Without a century-long history of corporate development and a modern, mature corporate governance system, many Chinese companies are often treated as the private property of the boss, rather than as a responsibility and support for shareholders and society!

In the business MBA textbooks, Xi Bei's boss's public relations approach, which pits customers and consumers against each other, has already failed before it even began.

The public relations logic of Chinese companies resembles a "parental mindset." When a child (consumer) complains, the parent's first reaction is, "How can you say I'm bad? This is slander, and I will correct you!" Thus, they resort to debunking rumors, litigation, and silencing dissent. This is a core value system derived from the traditional Chinese education model.

In contrast, the public relations logic of American companies resembles a "servant mindset." When a customer says the soup is too salty, American companies often respond, "I'm sorry, let me get you a new bowl, and I'll throw in a dessert." They prioritize stabilizing emotions and then investigating the issue; even if they are not at fault, they aim to regain trust first. American business case education is deeply ingrained, with a complete set of standard business case practices in both films and textbooks to resolve corresponding conflicts. I was particularly impressed by a relative who opened a McDonald's; the piles of standardized manuals and problem-solving cases became essential learning for every McDonald's owner.

In the U.S., even if Starbucks receives a complaint about a bug in the coffee, their first response is an apology plus a free voucher, followed by a discreet investigation to determine if the customer dropped it in themselves. In China, in similar situations, companies often respond immediately with, "Our product is qualified; your statement is slanderous, and we reserve the right to pursue legal action."

This illustrates the difference in underlying business mindsets: Chinese companies fear losing "face" → they want to prove "I am right." American companies fear losing "market" → they want to prove "I care about you."

Xi Bei is not a small company in the Chinese restaurant industry; it is preparing for an IPO in Hong Kong. The occurrence of such bizarre public relations for a quasi-listed company highlights the shortcomings in overall corporate management.

1️⃣ Chinese Corporate Logic: Control First

Many bosses inherently follow a "manufacturing logic": as long as I control production, supply, and legal affairs, I can manage risks. Their management thinking is more "top-down," emphasizing a unified stance and controlling public opinion.

The result is that when faced with a public relations crisis, they are likely to take a hardline approach immediately, as this is seen internally as "compliance action," but appears indifferent externally. This is why Boss Jia immediately launched a verbal attack on Lao Luo, stating, "I will sue you." This gives the public a very tough and aloof impression, pushing customers and users directly into opposition, leading to an early loss.

2️⃣ American Corporate Logic: Market First

American companies generally adopt a "consumer-driven" approach: your feelings are my ticket to survival. Internal management emphasizes cross-departmental collaboration (public relations, customer service, legal, and marketing must meet together), with the goal not being to prove themselves right, but to "retain consumers." Therefore, even if American companies later need to go to court, the first response is always public relations reassurance, not legal warnings.

Chinese consumer companies find it difficult to create globally recognized brands like McDonald's or KFC. At the root, this is due to the gap in reputation management; American companies understand that once negative news ferments, it can directly impact stock prices and market value. Thus, they must "extinguish the fire at the first opportunity" and be responsible for their image to shareholders and the public. The key is to resolve conflicts promptly. Many Chinese companies believe that "hot searches will pass in three days," so they often think, "Just delay it." However, the problem is that today's Chinese consumers react faster and more directly; this "cold treatment" instead exacerbates conflicts, as seen in the case of Xi Bei.

Additionally, there is a difference in the perception of the boss's stance. American CEOs often personally apologize, even to the point of tears. For example, after the Boeing crash, the CEO personally attended a press conference to bow and express a sincere apology and acknowledgment of mistakes. In contrast, many Chinese company bosses are often unwilling to "lower their heads," viewing it as a "show of weakness," and thus often shift responsibility to the public relations or legal departments, resulting in an even colder demeanor that further alienates customers.

I believe this incident with Xi Bei is a great educational opportunity. Although I do not engage in large corporate management, from my previous experience as a securities researcher, I have observed many listed company owners and their management styles. The "one above, thousands below" high-and-mighty attitude resembles that of a local emperor. This style of corporate management will inevitably fail in modern times, especially in today's #AI-driven and flattened corporate governance structures! 🧐

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