Sun Tzu on Management

The Art of War in Contemporary Business

Strategy
(Based on a Major Study of ASEAN
Corporations)

By

Foo Check Teck

Peter Hugh Grinyer
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 Sun Tzu on Management

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 Preface

 Sun Tzu’s prescriptions on organising aspects are

analogically relevant to strategic planning;
 Obviously, it is difficult to draw parallels- Sun Tzu’s
work was based on a different context;
 The Authors try to emulate the model set by Sun
Tzu to present the essence on organising strategy;
 Strategic planning is much more than annual
exercise – it is the art of continuous shaping and
positioning of an organisation – to win against
competitors.

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 The book is distinctive in 2 aspects

 Its findings are based on the results of surveys of

strategic planning processes in public listed
companies within ASEAN region;

 Able to relate these findings to the prescriptions of

Sun Tzu (the ancient but influential military
strategies);

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 Part I: The Strategy Process

 Implementation of strategic planning rationale –

Method of organisation in terms of major
organisational characteristics and the activities
involved;
 To seek competitive advantages in a planned
and rational manner - ….Anciently the skilful
warriors first made themselves invincible and
awaited the enemy’s moment of vulnerability…..
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 Part I: The Strategy Process…..

 Abilityto formulate timely counter strategies …

what is of supreme importance in war is to attack
the enemy’s strategy…
 Sun Tzu fully recognised the importance of
assessing opportunities, threats and relative
strengths and weaknesses – SWOT Analysis
 ….generally, management of many is the same as
management of few. It is a matter of
organisation…

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 Part I: The Strategy Process…..

 Utilisation of forecasts – management is better able

to read the signs of danger presented by the
immediate environment - …birds rising in flight is a
sign that enemy is lying in ambush…
 Survey result: ASEAN companies evaluate
themselves by their relative competitive strength –
i.e. wider product range, better product quality and
competitive prices.
 In organising, Sun Tzu stressed the role of the
command – company CEO – role of formal corporate
planning – mapping of strategies.
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 Part II: Critical Success Factors

 CEO’s role – the CEO as the ruler or General (in

Sun Tzu terms) of an organisation continues to be
critical in shaping corporate strategies.
 Environmental Factors - …now in fire attacks one
must respond to the changing situation… - strategic
planning process – respond effectively in changing
external situations.
 Effective and skilful command - …thus the
potential of troops skillfully commanded in battle may
be compared to that of round boulders which roll
down from the mountain heights….

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 Part II: Critical Success Factors…

 Esprit de Corps - …anciently, those described

as skilled in war made both large and small to
mutually cooperate; for the good troops to
succour the poor and for superiors and
subordinates to support each other….
 People participating in strategic planning – BOD,
CEO, Executives

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 Part III: Performance Consequences

 Adaptability to changes
– Strategic insights
– Goal achievements
– Industry competitiveness
 Coping with change, is clearly of central
importance to the modern business corporation
just as it was to Sun Tzu’s armies

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 Part III: Performance Consequences…

 Achieving goals in waging wars –

concentration of forces or resources
 Role of strategic planning in organisation’s
achieving goals – build understanding of the
constitution businesses of the company,
regular discipline, systematic process of the
strategy development, written plans, sets
explicit goals and basis of strategy
implementation

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 Conclusion

 Why this book?

– Applied Theory – between ancient and modern
times and between military and business
operations
– Increase level of knowledge (Sun Tzu = Strategic
Planning Process)
– Art of War = for winning the war = strategic
planning = to manage the organisation

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 Thank you

Mohamad Farid Sahat

29 October 2009

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