UBMM1011 Sun Zi's Art of War and

Business Strategies

Chapters

Chapter 2 Waging War

( -Zuo zhan)
UBMM1011
Sun Zis Art of War and
Business Strategies

Detailed Assessment and Planning ()

Waging War ()
Strategic Attack ()
Disposition of the Army ()
Forces ()
Weaknesses and Strengths ()
Military Maneuvers ()
Variations and Adaptability ()
Movement and Development of Troops ()
Terrain ()
The Nine Battlegrounds ()
Attacking with Fire ()
Intelligence and Espionage ()

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Chapter 2: Waging War ()

The High Costs of Waging War

The costs incurred both in the home country and
at the battlefront include expenses:

for the conduct of diplomacy,

the provision of materials and supplies,

for the building of armament and weaponry.

Chapter Outline
The high costs of waging war
Importance of swiftness
6 strategies to end war quickly
Business application:

Speed

Resource planning
2.1 As a general rule, for military campaign, one would
need 1,000 speedy four-horse chariots, 1,000 heavy
wagons, and 100,000 fully equipped and combatready soldiers.
3

The High Costs of Waging

War

The High Costs of Waging

War
A protracted (prolonged) military campaign
will bring undesirable consequences:
1. the troops at the battlefield demoralized and
psychologically and mentally exhausted, poorer
fighting spirit and can easily get sickness and
diseases.
2. the citizens at home inflation would arise and
depleted the citizens wealth. More taxes and tolls
would be imposed on people to finance the war. Sun
Zi argued that people wealth will be reduced by 70%.
3. the state depletion of national wealth and
resources, supplies and provisions. Sun Zi estimated
that national treasury would shrink by 60%.
5

Week 2: Waging War by clf

Example: Vietnam War (1960s-70s)

American troops had to be rotated regularly

to prevent troops from being too exhausted.

Additional and compulsory military
recruitment --greater resentment by public.

More and more Americans began to question

the purpose (& cost) of the war.
(Decrease moral influence of ruler dao)

Estimated > 2 million people (on both sides)

were killed and injury or disablement of
many millions of others.

UBMM1011 Sun Zi's Art of War and

Business Strategies

The High Costs of Waging

War
Example: Iraq War

In March 2013, the total cost of the Iraq War was

estimated to have been $1.7 trillion by the Watson
Institute of International Studies at Brown
University. Critics have argued that the total cost of
the war to the US economy is estimated to be from
$3 trillion to $6 trillion, including interest rates, by
2053.
- complementary costs at home, such as interest paid on the
funds borrowed to finance the wars and a potential

nearly $1 trillion in
extra spending to care for veterans returning from combat through 2050.

The state depletion of national wealth and resources, supplies and

provisions. Sun Zi estimated that national treasury would shrink by 60%.

Importance of Swiftness
In war, it is better to go for swift victories rather
than engage in prolonged military campaigns. Sun Zi
2.1 As a general rule, for military campaign, one
would need 1,000 speedy four-horse chariots,
1,000 heavy wagons, and 100,000 fully equipped
and combat-ready soldiers. ~ Sun Zi
2.4 the expenses incurred will amount 1000 pieces
gold daily

The expenses incurred will

amount 1000 pieces gold daily

6 Strategies to End War Swiftly

1.

Commandeer (hijack) the resources of the enemy.

2.

Instill the troops with hatred for the enemy so that they
would not hesitate to strike at the enemy.

3.

Motivate the troops with significant rewards obtained by

stealing the resources of the enemy.

4.

Encourage risk-taking behaviors in the troops with immediate

& noticeable rewards
Confuse the enemy by applying the technique of deception.
Confuse the enemy (2.34 2.35) Treat the prisoners-of-thewar well (to win their loyalty targeted at winning the heart of

5.
6.

the enemy).

10

Summary
Waging War seek to explain the economy

(cost) of war and how success requires

making the winning play, which in turn,
requires limiting the cost of competition and
conflict.

War is a serious and expensive matter.

Business Application

In war, then, let your great objective be

SPEEDY VICTORY, not lengthy (prolonged)

campaigns.
11

Week 2: Waging War by clf

Business Is A Continuous Battle Of Survival

Its not the BIG that eat the SMALL
its the FAST that eat the SLOW
12

- J. Jennings

UBMM1011 Sun Zi's Art of War and

Business Strategies

Financial Management

Financial Management
Financial management deals with two things:
raising money
managing a companys finances in a way that achieves
the highest rate of return

FP: The need to analyze and plan the short-term and long-

term money flows to and from the firm.

Economic realities of new ventures - Liquidity:

Need to budget in detail before setting up any

business.

Large company requires big start-up capital.

Too little profit destroys thousands of new

enterprises (Remember: 80% of small business
go out of business within their 2 years!!!)

Financial Objectives of a Firm

13

14

Why Most New Ventures Need Financing or

Funding

Cost of Doing Business

Invest adequate resources so the operation can be sustained.

Business Operating Costs (Expenses):

10-15

Capital Costs, Fixed Costs, Variable Costs

supply of raw materials.
hiring and retaining high quality and reliable employees.
operating expenses ie rent, salaries, supplies, utilities,
insurance, advertising cost etc.

Goal: To minimize your business expenses to

necessities of you want more profit.

The art of bootstrapping

Finding ways to avoid the need for external financing
or funding thru creativity, thriftiness, cost-cutting or any
16 necessary means

Examples of Bootstrapping Methods

~ THANK YOU ~

Coordinate purchases
with other businesses.

Leasing equipment
instead of buying.

Obtaining payments in
advance from
customers.

Minimizing personal
expenses.

Avoiding unnecessary
Expenses.

Buying items cheaply but

prudently via options
such as eBay.

Sharing office space or

employees with other
Businesses.

Hiring interns.

10-17

Buying used instead of

new equipment.

Week 2: Waging War by clf

Please DO NOT miss the replacement

Lecture as we will go through the
assignment requirements in details