SPECIAL REPORT SUN TZUThe ART of WAR

Castro,Trizza Rushel V.

WHO is SUN TZU?

•a Chinese military general, strategist and philosopher•He is best known as “Master Sun”•Author of Art of War (book on Military Strategy)

Has 13 Chapters:1. Laying Plans

2. On Waging War3. The Sheathed Sword

4. Tactics5. Energy

6. Weak Points and Strong7. Maneuvering

8. Variation of Tactics9. The Army on the March

10.Terrain11.The Nine Situations12.Attack by the Fire13.The Use of Spies

It presents a philosophy of war for managing conflicts and winning battles

The ART of WAR

LAYING PLANSThe art of war is a vital importance to the state. It is a matter of life and death, a road ether to safety or to ruin. Hence under no

circumstances can it be neglected

The art of war, then, is governed by Five constant factors, to be taken into account in one’s deliberation, when seeking to

determine the conditions obtaining in the field

Moral Law – causes the people to be in complete accord with their ruler

Heaven – signifies night and day, cold and heat, times and seasons

Earth – comprises distances, great and small, danger and security; open ground and narrow passes; the chances of life and

deathThe Commander-virtues of wisdom, sincerity, benevolence,

courage and strictnessMethod and Discipline – the marshaling of the army in its proper

subdivisions; the control of military expenditure

The ART of BUSINESS WARI. LAYING PLANS

The Moral Law-Vision, Mission, Goals/ObjectivesWeather/Heaven – Outside Forces (Market)

Terrain – People, Place, Product, ProcessCommander– Leadership (wisdom, sincerity,

benevolence, courage and strictness)*Leadership is the art of motivating group of people to act towards achieving a common goal

*Effective leaders take swift and decisive action even in difficult situations, to outperform their competition, to take calculated risks and

to persevere in the face of failure.Method and Discipline – Guiding Principles ( culture, policies, methods)

“Attack him where he is unprepared, appear where you are not expected”

PLANNING•SWOT Analysis-to know the company’s capabilities•Porters Five Forces-helps understand the strength of current competitive position and the strength of position the company wants to move into ( Supplier Power, Buyer Power, Competitive Rivalry, Threat of Substitution, Threat of New Entry)•Business Intelligence-knowing the industry•Project Management-awareness of the capabilities; adjustment of plans with the resources; track the possible operations

WAGING WAR“It is only one who is thoroughly acquainted with the evils of war that can thoroughly

understand the profitable way of carrying it on”

“Now in order to kill the enemy, our men must be roused to anger; that there may be

advantage from defeating the enemy, they must have their rewards”"Rewards are necessary in order to make the soldiers

see the advantage of beating the enemy; thus, when you capture spoils from the enemy, they must be used

as rewards, so that all your men may have a keen desire to fight, each on his own account.”

II.The WAGING WAR-Accepting the CHALLENGE“Let your main objective be victory, not lengthy drawn-out

campaigns”The chapter shows the significance of decision making

and right timing.

LOGISTICS – make sure that the process involves lesser time and costs

The significance of people in the company

MORALE-employees must always be motivated and should be rewarded for the right work they’ve contributed

In case that the company has low resources and cannot accommodate more cost, the company should more focus on exploiting your competitor’s weakness rather than throwing more cash/resources at the problem

If these are present, a company can lessen the challenges , problems and costs

ATTACK BY STRATEGEM“In the practical art of war, the best thing of all is to

take the enemy's country whole and intact; to shatter and destroy it is not so good. So, too, it is better to

recapture an army entire than to destroy it, to capture a regiment, a detachment or a company

entire than to destroy them”“Hence to fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting.

Therefore the skillful leader subdues the enemy’s troops without any fighting; he captures their cities without laying siege to them, he overthrows their kingdom without lengthy operations in the

field

With his forces intact he will dispute the mastery of Empire, and thus, without losing a man, his triumph will be complete

This is the method of attacking by Strategem”

III. ATTACKING BY STRATEGEM or PLANNING OFFENSIVES

The UNITY and effort to work as a TEAM shows how STRONG and EFFECTIVE a company is

 

Avoid competing head on and using resources directly against competitors. Aim for successful operation so that no company would every dare to compete.

MARKET PENETRATIONThe company must have an initiative and able to innovate. It must engage with a pre-emptive attack on competitors through uniqueness of product.

The company should be superior in the market

Invent the most innovative product, process, be opportunistic to enter a new market

If the Company Fails:

Enclosed them assuming the company has enough resources to cover the market

But if it Fails: Divide and Conquer approach may work. Identify the

problem in each market and attack it separately

If it Fails: Price war -compete with competitor head on

If it Fails: Siege Mentality - should feel that they are being attacked

If it fails: Retreat or drop out of the market – become the victim of

defeat. Exit Strategy

Leader FAILS because of:

1.Unclear Vision and Poor Analysis2.Not Flexible / Cannot Decide

Immediately3.Wrong way of communicating or

directing the team

IV. TACTICAL DISPOSITION“To secure ourselves against defeat lies in

our own hands, but the opportunity of defeating the enemy is provided by the

enemy himself”“Security against defeat implies defensive tactics; ability to defeat the enemy means

taking the offensive”“The skilful fighter puts himself into a

position which makes defeat impossible, and does not miss the moment for

defeating the enemy”

CORRECT POSITIONING“One may know how to CONQUER without being

able to do it”

SECURING the resources and USING it EFFICIENTLY and EFFECTIVELY

The use of resources to recognize opportunities and strengthen the current positioning of the company

V. Energy- The Directing“The quality of decision is like the well-timed swoop of

a falcon which enables it to strike and destroy its victim.”

“Thus one who is skillful at keeping the enemy move mountains deceitful appearances, according to which the

enemy will attack”

Use of Direct and Indirect Method in accomplishing the company’s mission

How to be a Champion in the War

The contribution of Creativity and SurpriseDeception

Not showing your true strength, appear weak and outsmart your opponent

Guerilla Marketing-confusing the competitor

VI. WEAK POINTS AND STRONGTHE FANTASY and THE TRUTH

“Whoever is first in the field and awaits the coming of the enemy, will be fresh for the fight; whoever is second in the

field and has to hasten to battle will arrive exhausted”“Do not repeat the tactics which have gained you one

victory, but let your methods be regulated by the infinite variety of circumstances.”

How to Attack your Competitors’ Weaknesses in the Most Advantageous Way

1.Expose your competitor’s weakness2.Take initiative in considering opportunities especially in areas where your competitors are not present3. Focus on your Competitive Advantage4. Be a continuous target which cannot be captured

VII. MANUEVERING-Engaging the FORCE ”The difficulty of tactical maneuvering consists in

turning the devious into the direct, and misfortune into gain”

If we are to meet difficult challenges that we cannot escape, we must maintainGood team relationships between all levels in the organization. Through unity, internal discipline is shown. Allow then to motivated and discuss to them the big contribution they can provide in achieving your goal

Logistics – Always ensure clear lines of supply and delivery, enough to secured or to sustain the company throughout the whole processSeeking knowledge is necessary when a difficulty will occur so make sure that somehow the company must know what is really happening in the marketAttack competitors during their unproductive momentsObserve and know the motives of companys existing and future partners

VIII. VARIATION IN TACTICS“In war, the general receives his commands from the

sovereign, collects his army and concentrates his forces””In the midst of difficulties we are always ready to

seize an advantage, we may extricate ourselves from misfortune”

BEST PERCEPTION AND DECISION IS IMPORTANT-the company must also KNOW the directions NOT to follow-through analyzing the environment, the company can decide what markets that are not worth entering

FLEXIBILITY ON THE WAY THE LEADER THINK - scanning the market and be able to observe and review all the possible opportunities especially in successfully responding to shifting circumstances.

IX. THE ARMY ON THE MARCH”When envoys are sent with compliments in their mouths, it is a sign that the enemy wishes for a

truce.”OBSERVING THE ENEMY-the company will find itself into different

situations as it enter new territories or markets

-correct and timely forecasting (behaviour of your competitors, customers, stakeholders)

A great leader has the ability to  read the signs around him, track history and therefore be alert to deception or sudden changes by correctly extrapolating future behaviour

X. TERRAIN-the SITUATIONAL POSITIONING ”The power of estimating the adversary, of

controlling the forces of victory, and of shrewdly calculating difficulties, dangers and distances, constitutes the test of a

great general.”Moments of Resistance: 3 General Areas (Distance, Dangers and Barriers)

Look at The BEST positions to TAKEReminders: Make sure that no matter where the company is, it should a clear view of its mission and objectives• when the company cannot identify the current location of its

competitors, do a false retreat to draw out your prospective opponents• if the competitor has a superior position, entice them, make them focus

on something else and fool them resulting from vacating to their high slot

Secure  the company’s processes including marketing activities. Apply good communications throughout the company so that there will be no disconnection and execution of plans will be easy

XI. THE NINE SITUATIONS“Strike at its head, and you will be attacked by its tail; strike at its tail, and you will be attacked by its head; strike at its middle, and

you will be attacked by head and tail both.”

9 varieties of GROUND:

1) Dispersive Ground2) Facile Ground

3) Contentious ground or Strategically Essential Territory4) Open ground or easily Accessible territory 

5) Ground of intersecting highways6) Serious ground7) Difficult ground

8) Hemmed-in ground9) Desperate ground

XII. ATTACK BY FIRE“Unhappy is the fate of one who tries to win his battles and succeed in his attacks without cultivating the spirit of enterprise; for the result is

waste of time and general stagnation.”

5 ways to attack by fire: 1. The Soldiers  – Steal or demotivate their People2. The Stores – Attack competitors strategies and investments3. The Baggage Trains – Confuse their logistics or lines of supply4. The Arsenal and Magazines – Attack your competitors businesses that don’t profit5. Hurl fire on your enemy as Artillery – Attack their operations, exposed the weakness in their works

Use ENVIRONMENT as WEAPON

XIII. THE USE OF SPIES-use of INTELLIGENCE“Spies are a most important element in water, because on them depends an army’s ability to

move.”No need to spend a lot of money on wasteful advertising campaigns or hours of labor to initiate the campaign. Business Intelligence is enough and this may be obtained from scout masters.

5 kinds of spies:1) Local spies

2) Inward spies3) Converted spies4) Doomed spies

5) Surviving spies

Key pointers here:Reward your sincere spies SecrecyIf you wish to convert  someone into a spy – spoil them. A converted Spy is your greatest asset as they can help you recruit more.

References

www.investopedia.com/terms/l/leadership.asp

tweakyourbiz.com 

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