The Response of Chinese Private Education Organizations to the “Double Reduction” Policy: Evidence from New Oriental and TAL

Abstract

Since the Chinese state government enacted the "double reduction" policy, a policy to alleviate the burden of after-school tutoring for students, there have been many private educational organizations encountering challenges. This policy has caused a radical change to the status and role of private education organizations in the education sector, which leads to a major crisis faced by them. In this context, how the private educational organizations cope with such a crisis becomes a critical problem. On this basis, an analysis will be carried out in this paper of the measures taken by two Chinese listed private education enterprises, New Oriental Education & Technology Group (New Oriental) and Tomorrow Advancing Life Education Group (TAL). Besides, the logic behind the effectiveness of these measures will be examined to provide other enterprises with guidance on the practice of crisis management. The most interesting finding is that both New Oriental and TAL have a strong dynamic capability, which helps them respond effectively to the crisis. The results of this study shed light on crisis management in modern enterprises.