2. 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)
3. The ART of WAR
It presents a philosophy of war for managing conflicts and winning battles
Has 13 Chapters:
1. Laying Plans
2. On Waging War
3. The Sheathed Sword
4. Tactics
5. Energy
6. Weak Points and Strong
7. Maneuvering
8. Variation of Tactics
9. The Army on the March
10.Terrain
11.The Nine Situations
12.Attack by the Fire
13.The Use of Spies
4. LAYING PLANS
The 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 death
The Commander-virtues of wisdom, sincerity, benevolence, courage and strictness
Method and Discipline – the marshaling of the army in its proper subdivisions; the control of military
expenditure
5. The ART of BUSINESS WAR
I. LAYING PLANS
The Moral Law-Vision, Mission, Goals/Objectives
Weather/Heaven – Outside Forces (Market)
Terrain – People, Place, Product, Process
Commander– 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)
6. “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
7. 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.”
8. 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
9. 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”
10. 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 PENETRATION
The company must have an initiative and able to innovate. It must engage with a preemptive 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
11. 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
12. Leader FAILS because of:
1.Unclear Vision and Poor Analysis
2.Not Flexible / Cannot Decide Immediately
3.Wrong way of communicating or directing the
team
13. 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”
14. 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
15. 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
16. How to be a Champion in the War
The contribution of Creativity and Surprise
Deception
Not showing your true strength, appear weak and outsmart your
opponent
Guerilla Marketing-confusing the competitor
17. VI. WEAK POINTS AND STRONG
THE 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 weakness
2.Take initiative in considering opportunities especially in areas where your competitors
are not present
3. Focus on your Competitive Advantage
4. Be a continuous target which cannot be captured
18. 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 maintain
Good 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 process
Seeking knowledge is necessary when a difficulty will occur so make sure that
somehow the company must know what is really happening in the market
Attack competitors during their unproductive moments
Observe and know the motives of companys existing and future partners
19. 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
that are not worth entering
what
markets
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.
20. 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
21. 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 TAKE
Reminders:
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
22. 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 Ground
2) Facile Ground
3) Contentious ground or Strategically Essential Territory
4) Open ground or easily Accessible territory
5) Ground of intersecting highways
6) Serious ground
7) Difficult ground
8) Hemmed-in ground
9) Desperate ground
23. 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:
Use ENVIRONMENT as WEAPON
1. The Soldiers – Steal or demotivate their People
2. The Stores – Attack competitors strategies and investments
3. The Baggage Trains – Confuse their logistics or lines of supply
4. The Arsenal and Magazines – Attack your competitors businesses that don’t
profit
5. Hurl fire on your enemy as Artillery – Attack their operations, exposed the
weakness in their works
24. 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 spies
3) Converted spies
4) Doomed spies
5) Surviving spies
Key pointers here:
Reward your sincere spies
Secrecy
If you wish to convert someone into a spy – spoil them. A converted Spy is your greatest asset as
they can help you recruit more.
