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Prof. Mazhar Thakur

1
Chanakya
7 Pillars of a Business as per
Arthashastra
Introduction.
• A strong foundation is the key to any
successful business.
• Your vision, your commitment, your purpose all form the basis for an organisation.
• They are the all-important pillars, the most
essential part of any building.
• In his groundbreaking Arthashastra, Chanakya
a.k.a. Kautilya (c. 350 - 283 BC) lists seven
pillars for an organisation.
Prof. Mazhar Thakur

3
"The king, the minister, the country,
the fortified city, the treasury, the
army and the ally are the
constituent elements of the state"
(6.1.1): Arthashastra
1. THE KING (The leader)
• The leader is the visionary, the captain, the
man who guides the organisation.
• In today's corporate world we call him the
Director, CEO, etc.
• Without them we will loose direction.
• Infosys)
• Narayan Murthy (Chief Mentor now full time
director for Infosys)
Prof. Mazhar Thakur

5
2. THE MINISTER (The manager)
• The manager is the person who runs the show the second-in-command of an organisation.
• He is also the person whom you can depend
upon in the absence of the leader. He is the man
who is always in action.
• An extra ordinary leader and an efficient manager
together bring into existence a remarkable
organisation.

• Mr Nandan Nilekani (Top Officer in team of
Infosys, now with UIDAI)
Prof. Mazhar Thakur

6
3. THE COUNTRY (Your market)
• No business can exist without its market.
• The place from where you get your revenue
and cash flow.
• You basically dominate this territory and
would like to keep your monopoly in this
segment.
• Infosys key market for revenues USA &
EUROPE
Prof. Mazhar Thakur

7
4. THE FORTIFID CITY (Head office)
• You need a control tower - a place from where
all planning and strategies are made.
• It's from here that your central administrative
work is done.
• It's the nucleus and the center of any
organisation.
• Bangalore Campus

Prof. Mazhar Thakur

8
5. THE TREASURY (Finance)
• Finance is an extremely important resource.
• It is the backbone of any business.
• A strong and well-managed treasury is the
heart of any organisation.
• Your treasury is also your financial hub.

Prof. Mazhar Thakur

9
6. THE ARMY (Your team)
• When we go to war, we need a well-equipped
and trained army.
• The army consists of your team members.
• Those who are ready to fight for the
organisation.
• The salesmen, the accountant, the driver, the
peon - all of them add to your team.
• In 1981, seven engineers started Infosys
Limited with just $250.
Prof. Mazhar Thakur

10
7. THE ALLY (friend / consultant)
• In life you should have a friend who is just like you.
Being, in the same boat, he can identify with you and
stay close.
• The one whom you can depend upon when problems
arise.
• After all, a friend in need is a friend in deed.

• Ms. Sudha Murthy – friend, philosopher,
guide, consultant & a life partner.

Prof. Mazhar Thakur

11
Conclusion.
• Only when these are built into firm and strong
sections can the organisation shoulder any
responsibility and face all challenges.

Prof. Mazhar Thakur

12

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Chanakya

  • 2. Chanakya 7 Pillars of a Business as per Arthashastra
  • 3. Introduction. • A strong foundation is the key to any successful business. • Your vision, your commitment, your purpose all form the basis for an organisation. • They are the all-important pillars, the most essential part of any building. • In his groundbreaking Arthashastra, Chanakya a.k.a. Kautilya (c. 350 - 283 BC) lists seven pillars for an organisation. Prof. Mazhar Thakur 3
  • 4. "The king, the minister, the country, the fortified city, the treasury, the army and the ally are the constituent elements of the state" (6.1.1): Arthashastra
  • 5. 1. THE KING (The leader) • The leader is the visionary, the captain, the man who guides the organisation. • In today's corporate world we call him the Director, CEO, etc. • Without them we will loose direction. • Infosys) • Narayan Murthy (Chief Mentor now full time director for Infosys) Prof. Mazhar Thakur 5
  • 6. 2. THE MINISTER (The manager) • The manager is the person who runs the show the second-in-command of an organisation. • He is also the person whom you can depend upon in the absence of the leader. He is the man who is always in action. • An extra ordinary leader and an efficient manager together bring into existence a remarkable organisation. • Mr Nandan Nilekani (Top Officer in team of Infosys, now with UIDAI) Prof. Mazhar Thakur 6
  • 7. 3. THE COUNTRY (Your market) • No business can exist without its market. • The place from where you get your revenue and cash flow. • You basically dominate this territory and would like to keep your monopoly in this segment. • Infosys key market for revenues USA & EUROPE Prof. Mazhar Thakur 7
  • 8. 4. THE FORTIFID CITY (Head office) • You need a control tower - a place from where all planning and strategies are made. • It's from here that your central administrative work is done. • It's the nucleus and the center of any organisation. • Bangalore Campus Prof. Mazhar Thakur 8
  • 9. 5. THE TREASURY (Finance) • Finance is an extremely important resource. • It is the backbone of any business. • A strong and well-managed treasury is the heart of any organisation. • Your treasury is also your financial hub. Prof. Mazhar Thakur 9
  • 10. 6. THE ARMY (Your team) • When we go to war, we need a well-equipped and trained army. • The army consists of your team members. • Those who are ready to fight for the organisation. • The salesmen, the accountant, the driver, the peon - all of them add to your team. • In 1981, seven engineers started Infosys Limited with just $250. Prof. Mazhar Thakur 10
  • 11. 7. THE ALLY (friend / consultant) • In life you should have a friend who is just like you. Being, in the same boat, he can identify with you and stay close. • The one whom you can depend upon when problems arise. • After all, a friend in need is a friend in deed. • Ms. Sudha Murthy – friend, philosopher, guide, consultant & a life partner. Prof. Mazhar Thakur 11
  • 12. Conclusion. • Only when these are built into firm and strong sections can the organisation shoulder any responsibility and face all challenges. Prof. Mazhar Thakur 12