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Sun Tzu & His Contributions to Entrepreneurship


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Sun Tzu & His Contributions to Entrepreneurship

  2. 2. WHO WAS SUN TZU• born in 544BC in Qi of ancient China• Family was a member of the Shi class, an ancient class of aristocrats• a Chinese military general, strategist and philosopher serving under King Helü of Wu• believed to be the author of The Art of War, an influential ancient Chinese book on military strategy and the foundation of strategy for the military and business
  3. 3. KING OF WU’S TEST• train 180 concubines into soldiers• ordered the execution of the kings two favored concubines, to the kings protests after they giggled and did not follow Sun Tzu’s command when the latter reiterated the command for the 2nd time• He explained that if the generals soldiers understood their commands but did not obey, it was the fault of the officers• Sun Tzu also said that, once a general was appointed, it was his duty to carry out his mission, even if the king protested• aware of the costs of further frivolity, performed their maneuvers flawlessly
  4. 4. THE ART OF WAR • one of the most widely read military treatises written during the so-called Warring States of ancient China • presents a philosophy for managing conflicts and winning battles • interpreted in the context of  Taoist thought and practice
  5. 5. HOW POWERFUL IS THE BOOK THE ART OF WAR Qin Shi Huang(emperor of a unified China) General  Vo Nguyen Giap
  7. 7. THE 13 CHAPTERS OF THE ART OF WAR CHAPTER Lionel Giles (1910) I Laying Plans II Waging War III Attack by Stratagem IV Tactical Dispositions V Energy VI Weak Points and Strong VII Maneuvering VIII Variation of Tactics IX The Army on the March X Terrain XI The Nine Situations XII The Attack by Fire XIII The Use of Spies
  8. 8. PARALLELISM WAR ENTREPRENEURSHIP• dynamic, fast-paced, and • dynamic, fast-paced, and requires an effective and requires an effective and efficient use of scarce efficient use of scarce resources resources
  9. 9. SUN TZU (Ch 1) ENTREP General = Commander P Leadership ALEADER LEADER R Heaven = Season = Weather A Outside Forces/ Variables: Market, Fashion, Economy LEXTERNAL EXTERNALFORCES Ground = Earth = Terrain in L FORCES Constants: geography, the scene of action E roads, etc CURRENT L SITUATION Moral Law = WAY I Mission, Goal Believing what you are doing is right & worth fighting for SINTERNAL M INTERNALFORCES = Doctrine Law = Method FORCES Organization, Control, Work ethic, Time management (Culture, & Discipline Guiding Policies, Methods) Principle WITHIN YOUR
  10. 10. KEY CONCEPTSFundamental Factors Governing War The Leader The External Forces The Internal Forces Always look to advance your position o Only go to battle when you will win.
  12. 12. LEADERSHIP
  13. 13. TRAITS OF A LEADERCHAPTER 1• Knowledge /Wisdom• Sincerity• Benevolence (Ch 10)• Strictness / Discipline (Ch 9)• Courage: must be able to face dangers
  14. 14. TRAITS OF A LEADER• Right character• Work to make nation stronger and put its needs before his own •Make the right decision Weigh situation Know current sate
  15. 15. COMPETENCIES OF A LEADER • Know when to fight and when not to  Strike only when situations assure victory • When he sees opportunity, acts swiftly and decisively
  16. 16. COMPETENCIES OF A LEADER• Lead by example• Motivate troops / men• Share soldier’s / employees trials• Provide clear directions
  17. 17. SUN TZU DANGEROUS ENTREPFAULTS OF THE GENERAL (Ch 8) Recklessness Recklessness (lack of leading to thought & empathy) destruction P Cowardice leads to A Cowardice = “analysis from capture R desk” ( hypothesis; assumptions) A L Hasty Temper (rejection of Hasty Temper (provoked by insults) L critique which exposes chinks in the armor ) E L Delicacy of honor Delicacy of honor (sensitive to shame) I (afraid to ask because of shyness or S em barrassment M Over solitude for his Over-solitude (too much attention to detail; analysis paralysis) mean exposes him to worry & trouble
  19. 19. WINNING WHOLE (Ch 3)• Philosophy of winning without fighting• Succeed with your resources and your objective intact – winning with the least damage and swiftest resolution; did not advocate sacrificing lives or exhausting treasury – Capture your market! in such a way that your market is not destroyed in the process  market that are underserved  avoid a price war: leaves the market drained of profits
  20. 20. AVOID STRENGTHS & ATTACK WEAKNESSES• How to find the best path to An army may be likened to water. Just as water the goal avoids heights and always flows downhill, an army will always avoid the enemy’s strengths and• Focus on the competition’s attack him where he is weak. And like water weaknesses / vulnerabilities whose flow is adapted to the nature and form of the which maximize our gains ground, an army will have while minimizing the use of to adapt to the nature and situation of the enemy. resources hence increasing And just as water has no immutable form, in battle profit there are no immutable conditions. He who achieves victory by adapting his tactics to the situation of the enemy can be divine. Sun Tzu (Ch 7)
  21. 21. INDIRECT METHODS OF FIGHTING TO SECURE VICTORY Indirect tactics, We cannot enter into alliances efficiently applied,… until we are acquainted with unending as the flow of the designs of our neighbors rivers and streams… Sun Tzu (Ch 7) There are not more than five musical notes, yet the combinations of these five give rise to more melodies than can ever be heard Sun Tzu By building strong alliances, (Ch 5) moves of competitors can be limited
  22. 22. SHAPING THE ENEMY SUN TZU ENTREPRENEURSHIP• Whoever is first in the field and • This refers to taking control of awaits the coming of the enemy, the situation or market place / will be fresh for the fight; PTM and the ability to change whoever is second in the field and the rules of the contest and has to hasten to battle will arrive making the opponents conform exhausted.  to your desires and actions• Therefore the clever combatant imposes his will on the enemy, but  By controlling strategic points in does not allow the enemys will to the industry, you will be able to be imposed on him … call the tune to which your competitors dance (Jose Lontoc)• Hold the enemy’s fate in your hands (Chap 6)
  23. 23. TREATMENT OF THE ENEMY(Ch 2)• Captured soldiers should be kindly treated and kept• Use conquered foe to augment one’s own strength(Ch 11)• For the men of Wu and the men of Yueh are enemies; yet if they are crossing a river in the same boat and are caught by a storm, they will come to each others assistance just as the left hand helps the right
  25. 25. FOREKNOWLEDGE (Ch 13)• deep understanding of the enemy, his capabilities and environment (Ch 3, 9)• sound information• proactive elicitation• Spies (Ch 13)• Develop a network that can provide information and establish a method of processing information
  26. 26. BENCHMARKING (Ch 6) FLEXIBILITY (Ch 6)• Carefully compare the • Do not repeat the tactics opposing army with your which have gained you own, so that you may one victory, but let your know where strength is methods be regulated by superabundant and the infinite variety of where it is deficient. circumstances • the soldier works out his victory in relation to the foe whom he is facing
  27. 27. DECEPTION
  30. 30. IN A NUTSHELL Sun Tzu gave us timeless , relevant, and simplified principles of STRATEGIC THINKING which can be applied in the various facets of our lives. Whether it isbusiness or our personal life, we have to think strategically and tactically as we plan and maneuver forward.
  31. 31. REFERENCES••••••••• Images from the net