To show something new or different interpretation

1. Art of War (孙子兵法)
from Business Perspective
Purpose:
 To show something new or different interpretation
 To show Art of war linking with MBA course
 Select the most related material
https://www.linkedin.com/in/a111chen @2022

2. External view (PESTLE)
 Political
 Economic
 Social
 Technology
 Legal
 Environment
始计 (Strategy Formulation)
Internal Views (Firm itself)
 Resource Tangible
 Resource Intangible
 Value Chain Activities
 Firm Infrastructure
 Human Resource Management
 Technology Development
 Procurement
 Inbound Logistics
 Operations
 Outbound Logistics
 Marketing and Sales
 Service
Set strategy and objectives
 Mission Statement
 Vision Statement
 Goal Setting
Simulation to predict using the
Weighted average score
Reference: David Fred R, 2008, Strategic Management: Concepts and Cases (12th Edition), PEARSON Prentice Hall

3. 作战 (Effectiveness and Efficiency)
As Peter Drucker put it simply, effectiveness is doing the right things, while efficiency is doing things right.
Effectiveness: Efficiency:
For example you want to print something.
When you press other than print function and
you keep pressing, the computer will not print
the document. Only you press the print
function the computer will print the document
For example you want go to Supermarket
You have a few choose A, B, and C.
So, you need to calculate the final result for
the selected action whether you can accept or
not.
What actually you want? the final result
So you will select the best choose with criteria
like shortest path, lower cost, convenient
What is the best choice you have?
Compare the Budget or Forecast
 Cost for decision Making
 Cost-Volume-Profit Analysis
 Discounted Cash flow Technique
Compare the Financial Ratio
 Return on Equity
 Profit Margin
 Asset turnover
 Financial Leverage
Reference: Robert C. Higgins, Jennifer L. Koski, Todd Mitton., 2019, Analysis for Financial Management 12e, McGraw-Hill, Inc.

4. 谋攻 (Marketing Management)
Segmentation
 Behavioral
 Nature of the purchase (Benefit
Sought, Usage pattern)
 Psychographic
 why customer buy? (Personality,
Activities, Interest, Opinion, lifestyle)
 Demographic
 who your buyer is? (Age,
Generational group, gender, family,
race and ethnicity, income,
occupation, education, social class)
 Geographic
 (Region, density of population, size
and growth of population, climate)
Target Market
 Analyze market segments.
 Segment Size and Growth Potential
 Competitive Forces Related to the Segment
 Strategic Fit of the Segment
 Develop profiles of each potential target
market.
 Primary target markets
 Secondary target markets
 Tertiary target markets
 Target markets to abandon for future
development
 Select a target marketing approach.
Position
 Competitive force
 Buyer
 Supplier
 Substitute
 New Entrance
 Competitor (4p)
 Marketing Mix (4p)
 Product/Service
 Price
 Place
 Promotion
Reference: Marshall, G. W. & Johnston, M. W. , 2019, Marketing Management, 3rd ed.,McGraw Hill.

5. OD Strategy
 Integrated Strategic Change
 Culture Change
 Self-Designing Organizations
 Learning Organizations
 Knowledge Management
 Built to Change Organization
 Strategic Alliance
OD Structure and Technical
 Organization Design
 Network
 Downsizing
 Reengineering
 Employee Involvement
 Total Quality Management
OD Human process - Behavior
 Career Life Planning
 Organization confrontation Meeting
 Microcosm Groups
 Resolving Intergroup conflict
 Large-Group
Human Process
 Task performance behavior
 Group maintenance behavior
 Participation in decision making
 Traits leader
 Effective follower
Organisation Chart
 Total system
 Group
 Individual
Policy and rules
 Complementarity and Consistency
 Control and Coordination Systems
 Compensation and Incentive Systems
 Culture and Learning
军形 (Corporate, Business and Functional Level)
主孰有道？ 将孰有能？
法令孰行？
Reference: Donald R. Brown and Don Harvey, 2006, An Experiential Approach to Organization Development, 7th Edition,
Prentice Hall

6. Reward them
 Pay Structure Decisions
 Recognizing Employee
contributions with pay
 Employee benefit
兵势 (Human Resource Management)
Trains them
 Need Assessment
 Ensuring employees readiness for training
 Creating a learning environment
 Ensuring transfer of training
 Selecting training method
 Evaluating training programs
 Special Training Issues
Right people
 Planning and recruitment
 Selection and Placement
 Performance management
OD Reward them
 Performance appraisal
 Gain-sharing systems
OD Trains them
 Coaching and mentoring
 Management and leadership development
OD Right people
 Goal Setting
 Management by Objective
兵众孰强？
士卒孰练?
赏罚孰明?
Reference: Raymond A. Noe, John R. Hollenbeck, Barry Gerhart, Patrick M. Wright., 2019, Human Resource Management:
Gaining a Competitive Advantage, McGraw Hill Education, New York.

7. 虚实 (Oligopoly and Game Theory)
Oligopoly
 A Few Large Producers
 Homogeneous or Differentiated
Products
 Control over Price, but Mutual
Interdependence
 Entry Barriers
 Mergers
Mutual
Interdependence
Revisited
Incentive to
Cheat
Incentive to
Cheat
Collusion
Oligopoly Behavior: A Game-Theory Overview
 The best way to play such a game depends on the
way one’s opponent plays. Players must pattern their
actions according to the actions and expected
reactions of rivals. The study of how people behave in
strategic situations is called game theory.
Reference: McConnell, Campbell R., Brue, Stanley L., and Flynn, Sean M., 2018, Economics: Principles, Problems, and Policies,
Malaysia Edition, 21st Edition.,McGraw Hill

8. Practical considerations
 Reduce project duration
 Resource allocation method, if overallocation
 Options when (resources are constrained: people,
material and equipment)
 Options when resources are not constrained or (times are
constrained)
 What if cost is the issue, Not time?
Multi project resource schedules
 First come-First serve
 Scheduling heuristics
 Centralized project scheduling
 Outsourcing or temporary workers
Activity Description
Immediate
Predecessor
Estimated
Time (weeks)
1 A. obtain funding approval 1
2 B. finalize engineering 1 1
3 C. deliver new equipment 1 8
4 D. build dies/tools 2 12
5 E. install equipment 3 1
6 F. train workers 4,5 1
7 G. de-bug process 6 1
8 H. establish advertising plan 1 1
9 I. finalize package and artwork 8 2
10 J. advertise 8 12
11 K. raw material delivery 4,9 2
12 L. initial production run 7,11 3
13 M. ship product 10,12 1
Network Diagram and Critical path
军争 (Speed Up Your Project)
Reference: Erik Larson,2019, Project Management: The Managerial Process, 7th Edition, McGraw Hill
Example:

9. Risk Identification
 Analyze the project to identify sources of risk
 Focus on event not objective
 Risk profile is a list of question of uncertainty
Risk Assessment
 Probability Analysis
 Simulation - random generation
 Assess risks in terms of: Severity of impact, Likelihood of
occurring, Controllability
Risk Response Development
 Develop a strategy to reduce possible damage:
Mitigating, Avoiding, Transferring, Accept
 Develop contingency plans: select best plan among
alternative
Risk Response Control
 Implement risk strategy
 Monitor and adjust plan for new risks
 Change management: identify line person
responsibility and documentation!!!
九变 (Risk Event)
No Type
Date
Identified
Risk Owner
Description of
the risk
Existing Control
Probability
(1 - 5)
Impact
(1 - 5)
Weigh
(1 - 5)
Date response
implemented
Signed off
Risk Owner
Detailed
Response
Strategy
Risk Rank
R1 3 1 1 3 5
R2 4 2 2 16 3
R3 5 3 3 45 1
R4 2 4 5 40 2
R5 1 5 1 5 4
1
2
3
4
Reference: Erik Larson,2019, Project Management: The Managerial Process, 7th Edition, McGraw Hill
Example:

10. Start Date End Date Budget Manager Department Duration
Redevelop Website 01-Dec-09 01-Jan-10 RM 2,500 MG (OF) Marketing 31
List Website on Databases 01-Jan-10 15-Jan-10 RM 500 MG (OF) Marketing 14
Change Yellow Pages ads 01-Jan-10 15-Jan-10 RM 500 MG (OF) Marketing 14
Search Engine Marketing 01-Jan-10 31-Dec-10 RM 12,000 MG (OF) Marketing 364
Expand Website Best Practices Section 01-Dec-09 28-Feb-10 RM - MG Marketing 89
Redevelop Brochure 01-Dec-09 01-Jan-10 RM 1,000 MG (OF) Marketing 31
Print New Brochures 01-Jan-10 15-Jan-10 RM 3,000 MG (OF) Marketing 14
Promotion to Clients 01-Jan-10 31-Jan-10 RM - MG Sales 30
Promotion to Client Referrals 01-Feb-10 28-Feb-10 RM - MG Sales 27
Develop Print Ad 01-Dec-09 15-Dec-09 RM 500 MG (OF) Marketing 14
Run first print ads 01-Feb-10 15-Feb-10 RM 5,000 MG (OF) Marketing 14
Totals RM 25,000
Example:
Accountability and Schedule
 Develop Plan
 Work package
 Organization responsibility
 Responsibility Matrices
Evaluate /Review
 What information
 Target audience
 When
 Method of
communication
 Provider
Priority Matrix
 Classification
 Criteria and constraint
 Weighted scoring
 Ranking
 Selection align with mission
Define task, plan or scope
 Objective
 Deliverables
 Milestones
 Technical Requirements
 Limits and exclusions
 Reviews with customer
行军(Define, Priority, Review)
1 2 3 4
Reference: Erik Larson,2019, Project Management: The Managerial Process, 7th Edition, McGraw Hill

11. 地形 九地 (Product, Market and Process)
Product mix and product lines:
 List all the company’s product lines.
 Evaluate the company’s product lines.
Product and Process: Strategy over Time
 Firms must add or eliminate products, activities, and
people.
 Firms must combine the resources in ways that give the
organization capabilities
 Firms need to leverage or exploit their resources.
 Firms grow over the industry life cycle by maintaining a
high level of productivity through innovation
 All industries evolve as new firms enter and failing firms
exit. Entry is driven by expectations of profitable sales and
exit by the inability to achieve them.
 The more a firm resists evolutionary change, the less
likely it is to endure(Survive).
天地孰得？
Reference: Gordon Walker, Tammy L. Madsen, 2015,Modern Competitive Strategy,4 Edition,McGraw Hill

12. 火攻 (Ambidextrous Organization)
is simultaneously good at
• Exploitation (using what it knows to efficiently and quickly perform as needed)
• Exploration (seeking and creating new ways to meet future needs)
Compared with the mechanistic structure, in the Organic Structure:
1. Jobholders have broader responsibilities, and they change as needs arise.
2. Communication occurs through advice and information rather than through orders and instructions.
3. Decision making and influence are more decentralized and informal.
4. Expertise is highly valued.
5. Jobholders rely more heavily on judgment than on rules.
6. Commitment to the organization’s goals is more important than obedience to authority.
7. Employees depend more on one another and relate more informally and personally.
Reference: Ian Palmer, Richard Dunford and David Buchanan,2016, Managing Organizational Change: A Multiple Perspectives
Approach 3rd Edition,McGraw-Hill Education, New York

13. 用间 (Information and Process, Not for Storage )
Current awareness
 In one place,
 Not by topic
 Fleeting notes
 Reminders of a thought
 Literature notes
 Highlight
 Reference
 Bibliographical
 Project
 To do list
Targeted Intelligence
 12 favourite problem
 Directed at one thing at a time
 Go through the notes you made
 Progressive summarization
 Bold, Yellow Highlight
 Elaboration thinking about the
meaning of what we read
 Executive summary
Basic Intelligence
 Develop your
 Topics,
 Questions
 Research
 Interest
 Using Keywords to tag
 Adding a link on this and/or the
other note
 Possible connections to further
inquires
Mind Mapping
Express: Show Your Work
Reference: Sönke Ahrens, 2017, How to Take Smart Notes, CreateSpace Independent Publishing Platform
Reference: Tiago Forte, 2022, Building a Second brain, Atria Books
Capture: Keep What Resonates
Organize: Save for Actionability
Distill: Find the Essence

14. ROE Profit Margin
(Profit/Sales)
Asset Turnover
(Sales/Asset)
Financial Leverage
(Asset/Equity) or (Debt+Equity)/Equity
Items Revenue Asset Growth
Dimension Customer Internal Process Product and Process
Elements •Product
•Price
•Place
•Promotion
•Structure
•Human Resource
•Technology
•Procurement
•Stage one-Growth
•Stage two-Shake out
•Stage three-Maturity
Competitive Advantage Offence
•Increase Value driver
•Lower Cost driver
Defend
•Switching cost
•Prevention imitation
Cooperation for mutual gain
•Complementary
•Cooperation with buyers and
suppliers
•Coordination among competitors
Corporate Level
•Resource Allocation
•Portfolio management
•Interbusiness relationships
•Centralize activities
•Top-down initiatives
Business Level (Product)
•Control and coordination
•Compensation and incentive
•Culture
Functional Level
•Structure
•Human Resource
Making the New Business Successful
•Financial Capital as a Corporate Input
•Leveraging Resources
•Leveraging Capabilities in Activities
•Leveraging Entrepreneurial Capabilities
•Core Competence
•Leveraging Management Expertise in a Type of
Strategy
Conclusion (Balance Scorecard)
Reference: Gordon Walker, Tammy L. Madsen, 2015 Modern Competitive Strategy,4 Edition, McGraw Hill