lecture 4 - chapter 6 7 edited student version 2010

8/6/2019 Lecture 4 - Chapter 6 7 Edited Student Version 2010

1/71

1

UBMM1011Sun Zis Art of Warand Business Strategies

Lecture 4


2/71

2

Ch apters1. Detailed Assessment and Planning ( )2. Waging War ( )3. Strategic Attack ( )4. Disposition of the Army ( )5. Forces ( )6. Weaknesses and Strengths ( )7. Military Maneuvers ( )8. Variations and Adaptability ( )9. Movement and Development of Troops ( )10. Terrain ( )

11. The Nine Battlegrounds ( )12. Attacking with Fire ( )13. Intelligence and Espionage ( )


3/71

3

Ch apter 6 Weaknesses and Strengt h s ( )

Chapter Outline

First mover advantageTo dictate and not to be dictatedBe flexible like waterBusiness application: Change and staying flexible


4/71

4

F irst Mover Advantage

Those who arrive first at the battleground willhave sufficient time to rest and prepare againstthe enemy.

Those who arrive late at the battleground willhave to rush into battle when they are alreadyexhausted.


5/71

5

F irst Mover Advantage

If a force arrives late at the battleground, it willlose all the advantages. The troops may already be tired.

Thus, rushing into battle against a well-rested enemy(who arrives early, had enough rest, and more prepare)would be a wrong strategy.


6/71

6

T o Dictate And Not T o Be Dictated

The person adept in warfare seeks to control andmanipulate his enemy instead of being controlledand manipulated.

He can cause his enemy to arrive on his own accord byluring him with advantages. He can deter his enemy from coming by creating

(potential) danger and harm.


7/71

7

T o Dictate And Not T o Be Dictated

1. When the enemy is well rested, distress and tire him.2. When he is well-stocked with food, starve him out.3. When he is well-encamped and comfortable, provoke him

to move on.4. Attack areas where the enemy must defend.5. Move along routes that the enemy least expects.

Exploit the enemy by changing the enemy strengths into

weaknesses.Provoke the enemy out from its comfort zone, therefore,the enemy would become more vulnerable.


8/71

8

Avoid Being Manipulated by Enemy

1. Choose routes of movement where there is no enemy.- They may be routes that the enemy is not interested in or

they may unaware that routes exist. Therefore, one cantravel peacefully and will not be harassed at all.

2. Attack places which are not defended by the enemy, orwhere the enemy is weak and vulnerable.

3. Defend places where the enemy dares not to attackbecause the defense is so strong and invulnerable orwhere the enemy does not know how to attack.

4. Having the ability to withdraw faster than the enemy.


9/71


10/71

10


If he strengthens the front, he will weaken the rear.If he defends the rear, his front will be fragile.If he prepares to his left, he will weaken his right.If he reinforces his right, he will weaken his left.

If he tries to defend everywhere, he will be VULNERABLEeverywhere.

The enemy must not know the places (battleground) where Iintend to attack. If the enemy does not know where I intend toattack, he must defend many places.

The more places the enemy defends, the more scattered are hisforces, and the weaker is his force at any one point where I amattacking.


11/71

11


While remaining concealed myself, I cankeep my forces concentrated and unite myentire troop at one place, while those of theenemy are scattered at ten different places,then I can use my entire force against one-tenth of his.

Inferiority or weakness in numbers meansthat you have to be prepared against theenemy.

Superiority or strength in numbers meansthat the enemy will have to prepare againstyou.


12/71

12

T h e Importance Of KnowingT h e Battle Place And T ime

If you KNOW the places of the battleground andthe exact date of engagement of battle : your army can travel a thousand miles and still be ready

for battle. your army will have sufficient rest and more prepare to

fight the battle.


13/71

13

T h e Importance Of KnowingT h e Battle Place And T ime

If you DO NOT KNOW the location of thebattleground and exact date of the battle, theywill face several risks:

The different columns of the army may not move at thesame speed and face different type of difficulties. This problem is compounded when the columns are

stretched many miles apart. When the army arrives late, they have to rush into

battle, despite its tiredness, against a well-rested andwell-prepared enemy.


14/71

14

V ictories C an Be C reated

Therefore, scheme to discover the plans and strategies of the enemy so as to know their likelihood of success(against us).Provoke him so as to know his reasons and basis formovements and actions.Uncover his dispositions so as to know the vulnerability of the ground (that he is occupying).Throw some contests against the enemy so as to know theareas of his strengths and weaknesses.The ultimate skill in the deployment of troops is to ensurethat it has no fixed or constant formation and disposition.


15/71

15


During the Spring and AutumnPeriod (770 to 476 b.c.), theKingdom of Yue was known to havea very large army and powerful

army.Yet, it did not win all battles. Thus,the large army does notautomatically guarantee victories.

Thus, I say: Victories can becreated by us. ~ Sun Tzu


16/71

16


In war, what matters most is howone goes about planning,strategizing, deploying and directingits army to achieve the optimal

result.

In war, both quantity and quality isimportant to win a battle.


17/71

17

Be F lexible Like Water

I t is the inherent characteristics of flowing water to escape from high ground (strengths) and hasten its movement downwards (weaknesses).

J ust as water controls its flow accordingto the ground, an army should createits victory by avoiding enemys strengthsand strike enemys weaknesses andshould shape its strategy accordingto battle conditions.


18/71

18

Be F lexible Like Water

J ust as water has no constant shape, so in warfarethere are no fixed rules and regulations.

G eneral must be FLEXIBLE in his action with respectto strategic and tactical variations in order to gainadvantage of the changing circumstances.

G eneral has almost the ultimate DISCRETION todecide what he deems the best.


19/71

19

Ch ange and Uncertainty

T he F IVE elements of nature (water, fire, wood, metal,earth) are not always equally predominant; the FOURseasons make way for each other in turn. T here are short days and long; the moon has its periods of waning and waxing.

In warfare, there are no constant condition.What may be considered as strengths may becomeweaknesses the next time around and vice versa.The general must be able to adjust (flexibility, fluidity andadaptability) to the changes that occur ceaselessly.The general must be able to react and capitalise in thechanges (creating opportunities in the midst of dangers).


20/71

20

Summary

Weaknesses and Strength Chapter explains howyour opportunities come from the openings in theenvironment caused by the relative weakness of your enemy in a given area.


21/71

21

%XVLQHVV $SSOLFDWLRQ


22/71

22

Discovering Opportunities

In business, you need to look foropening (opportunities) that makeyour progress easy.Weakness = needs, emptiness and a

lack of resources.Strength = satisfaction, fullness andsurplus of resources.These TWO concepts (weakness andstrength) describe the cycle thatcreates and fills opening naturally.


23/71

23

Discovering Opportunities

S trengths does not come from size and money.I t comes from adapting to opponents weaknesses.

If competitors focus on price, they sacrifice quality.If they focus on quality, they are vulnerable on price.If they focus on speed, they lack accuracy.If they focus on accuracy, they lose on speed.


24/71

24

G oogle has successfully shownhow to make the dot-comadvertising model work, but theresult has been relatively low-

quality products with hugeprivacy and security problems --not to mention an increasinglevel of government concernsand intervention.


25/71

25

Strengt h s & Weaknesses

Reinforcing weakness leverages weaknesses.Reinforcing strength leverages strengths.

Abandon less profitable products and servicesgradually.Concentrate your time and efforts on providing theresources to continue the successful advance.

Do not spend time and resources shoring up weakproducts and weak attacks.Ex: Proton should focus on its best car models (???),not on its worst car model (Savvy?).


26/71

26

C reating Superior Products

Create an overwhelming superiority by concentratingworks in every dimension:

1. Strategy: Apply consistent pressure on achieving keystrategic initiatives.2. Advertising: Use repetition of a clear, distinctive

benefit.3. Sales promotion: Reinforce the advertising message.4. Selling: Focus on your unique selling proposition.5. Leadership: Concentrate on developing people.


27/71

27

T h e Power of Advertisement

Concentration of ADVERTISIN G .Advertising is a marketing weapon that demonstratesits firepower in capturing mass attention and itsconsistency build up identity.


28/71

28

T h e Power of Advertisement

Reinforcing strength through advertisement.Marketing from strengths work in every organization andevery product lines.Companies should focus their advertisment attack onpromoting their premier brands and products.

Example:The strength of departmental store is style and brand

names.The strentgh of boutique is specialization.The strentgh of frozen food and fast-food?The strength of Air Asia, Firefly or MAS?


29/71

29

C ereal Advertisement(Revolution of Breakfast Menu )


30/71


31/71

31

USAs Got Milk? C ampaign

(An attempt to promote cows milk consumption)


32/71

32

USAs Got Milk? C ampaign(An attempt to promote cows milk consumption )


33/71

33

USAs Got Milk? C ampaign(A wareness of drinking milk h as increased 90%. )


34/71

34

H ow T o Exploit OpportunitiesIn Business World?

Example:While South Africa and Vietnamese markets werewidely ignored for political reasons (apartheid

system in South Africa and Vietnam interventionin Cambodia), J apanese businessmen had noworries about their brisk presence in these twocountries.


35/71

35

Early Entrants ( F irst Mover )

Early entrant advantages? Company can enjoy lower costs at establishing

and maintaining a brand name. Can capture bigger market share.

Early entrant disadvantages? Initial high costs (in R&D and advertisements) Company had to educate consumers about the products due to

unfamiliarity. Sometimes has to price down to encourage purchase.

Late entrant advantages? Can avoid high market and/or product development costs. Can avoid mistakes made by early explorers.


36/71

36

Early Entrants: T h e Pioneers

Americans Pionering companyWrigley Chewing gum, Lipton tea, Coca-cola,Nabisco biscuits, G illette razor, G oodyear tires

and Singer sewing machines.From 1923-1983, they remained no 1 in theindustrial ranking!!!

Note from WBLE: Read Article PioneerAdvantage: Marketing Logic and MarketingLegend.


37/71

37

F lexibility In Innovation

Ex: The discovery of carbon fiber (exceptionallyhigh tensile strength but lighter than aluminum).

Western countries uses top-down approach immediately did researches on its application

in aircraft industry (difficult area).

J apan uses bottom-up approach. uses it to manufacture golf clubs and fishing rods (easyapplication). By doing this, J apan controls 70% of the world

production of carbon fiber today.


38/71

38

Ch apters1. Detailed Assessment and Planning ( )2. Waging War ( )3. Strategic Attack ( )4. Disposition of the Army ( )5. Forces ( )

6. Weaknesses and Strengths ( )7. Military Maneuvers ( )8. Variations and Adaptability ( )9. Movement and Development of Troops ( )10. Terrain ( )11. The Nine Battlegrounds ( )12. Attacking with Fire ( )13. Intelligence and Espionage ( )


39/71

39

Ch apter 7Military Maneuvers ( )

Chapter OutlineTradeoffs in maneuveringRules of manoeuvringPrinciples of controlBusiness application: Stay upper-hand and incontrol


40/71

40

T radeoffs in Manoeuvring

In any military campaign, the general will firstreceive his orders from his ruler.He then assembles the troops and mobilises the

citizens (people).He must harmonise (the interest of) thesediverse groups and build their relationships andcomradeships by encamping them together.

However, none of these are more difficult thanmilitary manoeuvres (that are aimed at gainingvictories against the enemy).


41/71

41


The challenges of military manoeuvres:Turning torturous and difficult routes into directaccesses (to the enemy)

This can be achieved by derailing the enemy with baitsas well as inflicting damages. Turning disastrous circumstances into advantageous

situations.


42/71

42


If an army has to travel 100 miles to contend forgains, only the fittest 10 percent would arrive atthe destination first. The rest of the army will be scattered over a vast area. Being separated by time and space, the vulnerability to

enemy attacks becomes extremely high.


43/71

43


It can also travel 50 miles ton contend foradvantages against the enemy. In this case, the general of the vanguard will be

humiliated and defeated. This is because only half the troops will arrive at the

destination.

If the army has to travel 30 miles to contend foradvantages against the enemy, then only two-

thirds of the troops will arrive at the destination.


44/71

44

Prerequisites for C ombat

1. Heavy equipment and supplies.- Better equipment and supplies will boost the chances of

victory. These are typically supplied from home.

2. Sufficient food and grain.- Since war is a very costly exercise and therefore should

be completed in the shortest time possible.- To ensure there will be no shortages and avoid from

going beyond second replenishment of food andsupplies.

3. Sufficient stockpiles and reserves.- To cushion against any possibility of protracted war

campaign.


45/71

45

Prerequisites for C ombat

4. Know the intentions and plans of the neighboring statesbefore entering into any strategic alliances.- There is no such thing as a consistently trustworthy and

friendly neighbour.

5. Understand the characteristics of the terrain that yourtroops are moving through.- Harsh terrain can pose severe threats to your army.

- Some difficult terrains may provide opportunities for theenemy to lay ambushes, booby traps, create obstacles or

sabotage your army movement.6. Use the services of local guides as a way to overcome the

terrain and exploit it.


46/71

46

Rules of Manoeuvring1. Be swift and invisible as the wind when in movement.

( speed )2. Be as majestic as the forest when in slow marches.

( formation )3. Be like fire when raiding and plundering. ( ferocity )4. Be like mountains when encamping. ( steadiness )5. Be like the darkness of night when in concealment.

( secrecy )6. Be like thunder and lightning when attacking and

assaulting. ( ruthlessness )7. Be generous after looting and plundering. ( sharing )8. Be willing to share the gains when occupying conquered

territories. ( rewards and motivation )


47/71

47

C ommunications & Signals in C ombat

As verbal communication cannot be heard clearly,cymbals and drums are used as commands.

As visual communication and eye contact are

hampered, banners and flags are used as signals.The purpose of using cymbals, drums, flags andbanners: to draw the attention of the troops and focus them for

combat under the direction of the commander. to denote the different formations an divisions of the

army.

to boost armys morale and frighten away the enemy.


48/71


49/71

49

C ommunications & Signals in C ombat

Choose the rightcommunication tools tomatch their circumstancesat hand.

Sophisticatedcommunication tools inmodern war:

radar, satellite system.


50/71


51/71

51

Principles of C ontrol

Use orderliness and stability to confront chaos and disorder.Use calmness and steadfastness to deal with noisiness andclamour.

T his is control of psychological factor.


52/71

52

Principles of C ontrol

Use proximity (of troops) to the battlefield to counterenemies that come from afar.Use well-rested troops to counter tired and exhaustedenemies.

Use well-fed and nourished troops against enemies who areshort of food and rations.

T his is control of physical factor.Never engage an approaching enemy who displays orderlyflogs and banners.Never attack an advancing enemy who shows animpressive and well-organised formation.

T his is control of change factor.


53/71

53

Illustrations on t h e Art of Military Manoeuvres

Do not advance against an enemy who is encamped onhigh grounds.Do not engage an enemy who is assaulting downwardsfrom high ridges.Do not pursue an enemy who pretends to retreat indesperation.Do not attack the agile and highly motivated elite force of the enemy.Do not fall for bait offered by the enemy.Do not intercept an enemy who is returning to his homecountry.In surrounding an enemy, always leave him an escaperoute.Do not pursue a desperate enemy too relentlessly.


54/71

54

Summary

Military Maneuvers explains the dangers of directconflict and how to win those confrontationswhen they are forced upon you.


55/71


56/71

56

Governments Role in Business World

G overnment: to facilitate and assist the growth of business

(to achieve national economic growth) andNOT to directly manage them.

is constrained by multiple objectives, includingwelfare-oriented goals (not an optimalsolutions/profit oriented)

Business: are driven by profits and therefore should be

more responsive to changes in business world.


57/71

57

Governments Role in Business World

Example: J apan, Taiwan and South Korea governments are very

active in assisting and facilitating their businessconducts (market-driven economy). J apan government had rescued KANEBO from

bankruptcy due to unethical misconduct in the company.

UK government had rescued some industries in the1970s when they ran into financial difficulties.

MALAYSIA???


58/71

58

GM

America's biggest carmaker, G eneral Motors,declared itself bankrupt & massive reorganisationof G M would leave the US government holding60% of the company's equity. The carmaker has received $19bn of emergency aid

from the treasury to keep it afloat and a further $30bnof government funding is likely to be forthcoming to seeit through bankruptcy.


59/71

59

Business Maneuvering

Maneuver is a way of thinking about: how you move to a position of competitive

advantage ( the ability of the firm to outperform rivals

on the primary performance goal, e.g. profitability) putting your competitors at a disadvantage. must know & understand how to attack specific

segments, markets, or areas where you can

win.


60/71

Cos t leader ship advantage

Diff erent iat io n advantage

Comp et itiveadvantage

Main T ypes of C ompetitive Advantage


61/71

61

C ompetitive Advantage

According to Michael Porter, competitiveadvantage leads to higher profits, will resulteither from:

1. Differentiation of products (distinctive, moreproduct features) and selling them at a premiumprice:

Porsche, Barabus, Rolls Royce, Rolex, Tag Heuer,Tissot, Haagen Dazs, etc.

2. Cost leadership (producing products at a lowerprice than competitors)

Air Asia, G iant, Tesco, Walmart etc.


62/71

62

Maneuver V arieties in Business

Frontal attack - Direct assault to competitors.Flanking attack - Concentrate strengths againstweaknesses.Attack in echelon - Concentrate in yourstrengths. G ain market share with a strong or unique product, and

building up your brand strengths. Ex: Franchise systems reinforce brand name, identity,

products, and services are standardize to all locations.

Relocate the battle - Finding a new war.Fabian - Refusing battle, do not engage incompetitive advertising and to use the funds foranother activity.


63/71

63

Maneuver V arieties in Business

Example of attack in echelon - concentrate inyour strengths.Franchise systems reinforce strengths brandname, identity, products, and services arestandardize to all locations.


64/71

64

C ommunication in Business

Individuals spend nearly 70% of their waking h o urscomm unicating (writing, reading, speaking, listening).


65/71

65

C ommunication wit h C ustomers

You have to speak the customers language .You must listen to customers to understand theirproblems and unmet needs.

Deal with customers needs from different directions. Open-minded customers like a variety of reasons (to

justify their purchase) Find a new reason to buy that the customers hasnt

thought before.

Words alone not enough. Use pictures, charts, props,showmanship and magic to get customers attention.


66/71

66

Advertising: Instrument toC ommunicate wit h C ustomers

W h at were P1W1max messages?


67/71

67

C ommunication in Business

G reat CEO should posses great skill incommunication: Appropriateness, identity, use multiple means and

adaptability. Honda of American Manufacturing, which operates

in a hostile environment (USA), had communicatechange very carefully and allowed employees toknow constantly about the changes and cultivatedit as a natural occurrence.


68/71

68

H ierarc h y of Media Ric h ness

O ver simp lifiedZo ne

O verl o adedZo ne

N o nr o utine/ Amb igu o us

Rich

Med iaR ic h ne ss

Si tuat io n

Lean

Ro utine/clear

Media RichnessThe data-carryingcapacity of a

comm . m ediu m ,including thevo lum e & varietyof info . that canb e trans m ittedduring a speci f ic

tim

e.


69/71

69

Dealing wit h C ustomers(C ontrol of t h e Morale F actor )

In the morning, customers resistance is high.During the day it fades.By evening, customers want to go home.

You must use your time wisely. Avoid toughresistance.Close the deal when the resistance fades andcustomers want to go home.


70/71

70

Rules in Making Sales

Do not take positions against strong feelings.Do not fight an argument based on a lack of alternatives.Do not accept those who only pretend to agree.Do not attack your strongest competition.Do not believe everything the customers tells you.Do not argue with customers who agrees with you.

G ive the customer an agreeable alternative.Dont press the customer too hard for a decision.


71/71

71

-T h e End -

lecture 4 - chapter 6 7 edited student version 2010

Documents