1. TALLINNA TEHNIKAÜLIKOOL
Majandusteaduskond
Ärikorralduse instituut
Organisatsiooni ja juhtimise õppetool
Maarit Kiinros, Rait Paalpere, Aleksandr Žigalov
SUN TZU „THE ART OF WAR”
Strategic Management Course
Supervisor: Alar Kolk

2. TABLE OF CONTENTS
TABLE OF CONTENTS..................................................................................................2
1. INTRODUCTION.........................................................................................................3
2. SUN TZU „THE ART OF WAR”.................................................................................5
2.1 The Master...............................................................................................................5
2.2. The Book................................................................................................................8
2.3. The Text of The Art of War....................................................................................9
Key principles..........................................................................................................10
Chapters...................................................................................................................11
3. SUN TZU PRINCIPLES USED IN WARFARE........................................................13
3.1.Wu vs. Chu ...........................................................................................................13
3.2. The American Civil War......................................................................................14
3.3. World War II........................................................................................................16
3.4. Vietnam War.........................................................................................................19
3.5. The Cold War.......................................................................................................22
4. SUN TZU IN BUSINESS...........................................................................................23
4.1.Honor the cutsomer...............................................................................................23
4.2. Organization of intelligence and deception..........................................................24
4.3 WIN WITHOUT FIGHTING................................................................................26
4.4. Maintenance of the objective................................................................................27
4.5 Secure position. Avoid strength/attack weakness.................................................28
4.6 Attacking psychological weaknesses ....................................................................29
4.7. Speed and preparation .........................................................................................30
4.8. Shape your opponent............................................................................................31
4.9. Alliance.................................................................................................................31
4.10. Personal leadership.............................................................................................32
CONCLUSION...............................................................................................................33
BIBLIOGRAPHY...........................................................................................................34
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3. 1. INTRODUCTION
Sun Tzu: The Art of War is one of those rare texts that transcends time. Although it was
written on the bamboo scrolls over 2,000 years ago, it is probably still the most
important work written on the strategy today.
Author of book, Sun Wu, Chinese general of the State of Wu, has written it for
the military elite of his time. However, this appeared to be useful for everyone - from
the fearless samurai in feudal Japan of the 21st Century intelligent entrepreneurs.
The book even more fascinating than the background – it is full of the timeless
principles of truth, the pragmatic and universal words applicable to almost any situation,
to the the absolute victory. No less important, a person can learn how to avoid disaster.
The text of this book was kept secret for ages, available only for the wealthy
kings and generals. It was brought to the West only in late 18th Century, only
translated into English for the first time in 1905.
The book is not only popular with the military theorist, but it is also increasingly
popular among political leaders and those in business management. Despite its title, The
Art of War deals with the strategy in a broad, focusing on public administration and
planning. The text presents the theory of combat, but also acts of diplomacy and
maintaining relationships with other
The purpose of this paper is to give an overview of the book „The Art Of War“,
describe the author- Sun Tzu and introduce his main principles of strategy and war.
Chapter three gives examples of Sun Tzu’s principles being used in war. Chapter
four is focused on Sun Tzu’s principles that can and are being used in business.
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4. 4

5. 2. SUN TZU „THE ART OF WAR”
Hundreds of years before the birth of Christ,
there was a period in China known as the
Age of Warring States. This was an age of
great conflict and uncertainty as seven states
fought for survival & control of China. For
these states to win they sought out any
means of gaining advantage over their
opponents; those with knowledge on
strategy & leadership was especially sought
after. It was during this time that there arose
a general from the state of Ch'i known as
Sun Tzu. His ability to win victories for his
warlord gained him fame and power.
(McNeilly)
2.1 The Master
Sun Tzu (pronounced SOON-zuh) means Master Sun. His first name was Wu.
According to Ssu-ma Ch'ien's Shih chi, also called the Records of the Grand
Historian, Sun Tzu was a Chinese military general during the Spring and Autumn
period (722-481 BC). The Spring and Autumn Annals of Wu and Yueh confirms
this account except it claims he originates from the state of Wu, not Ch'i. Most
scholars surmise he lived from 544 BC to 496 BC. (http://www.sonshi.com)
Sun Tzu was a native of the Ch`i State. Sun Tzu's father, Sun P`ing, rose to be a
Minister of State in Ch`i, and Sun Tzu himself, whose style was Ch`ang-ch`ing, fled to
Wu on account of a rebellion. He wrote the ART OF WAR in thirteen chapters for Ho
Lu, King of Wu and he was subsequently made a general by the king. He led an army
5

6. westwards, crushed the Ch`u state and entered Ying the capital. In the north, he kept
Ch`i and Chin in awe. His descendant, Sun Pin, born about a hundred years after his
famous ancestor's death, was also an outstanding military genius of his time. (Giles)
Sun Tzu originally named Sun Wu and also called Chang Qing, authored The
Art of War in the sixth century BC. This military strategy book became one of the most
influential books of war and Sun Tzu became well known as not only a military
strategist but also a realist in international relations theory.
There are no exact records of Sun Tzu's birth or death. The only known records
of his life were from a biography written in the 2nd century BC by a historian named
Sima Qian. Sun Tzu is believed to have been born in 544 BC under the name Sun Wu,
possibly in the state of Qi in ancient China. His family were members of the shi, an
ancient class of landless aristocrats who lost their land during the Spring and Autumn
Period of territorial consolidation. During Sun Tzu's time, most shi travelled as
academic scholars, but Sun Tzu decided to work as a mercenary.
Historically, there were two "Master Suns" involved with the military treatise.
Sun Wu (544-496 BC) was the original author. His descendant, Sun Ping (or Bing)
(380-316 BC), worked for the state of Ch’i and added to and popularized his own
version of the work. The two are often confused. (Note: According to an e-mail, "Most
Chinese recent historians generally agree that he [Sun Wu] was born in around 536 BC.
By 516, he was 18, recorded as 'Qing Chun' which means 'still young.') (woopidoo.com)
After working throughout the country, the ruling king, King Helu of Wu, hired
Sun Tzu as a general in 512 BC. Sun Tzu consequently authored The Art of War,
which, at the time was named Sun Tzu based on the custom to name a work after its
author.
Sun Tzu's military strategy soon became legendary and he even proved his
knowledge by training battalions of previously untrained female soldiers. Sun Tzu gave
control of each battalion to King Helu's concubines. After they disobeyed orders and
laughed at him, Sun Tzu executed two of the concubines, per military law, and finished
his training with a powerful team with exceptional leadership skills.
At the time of Sun Tzu's generalship, the kingdom of Wu was considered a
semi-barbaric state and incapable of military regulation or cultural power. After Sun
6

7. Tzu took control, however, the military in Wu went on to conquer the state of Chu, the
most powerful state in the Spring and Autumn Period in Chinese history.
After the defeat of Chu, Sun Tzu disappeared, wanting a quiet, peaceful life as
opposed to one of constant conflict. His teachings, however, went on to influence not
only military strategies, but also martial arts in both armed and unarmed combat. In fact,
his teaching known as Bing Fa became the basis for most Asian martial arts.
Historians argue that Sun Tzu's work did not advocate war but, instead, told of
strategies to employ should conflict arise. In fact, according to historians, Sun Tzu's
philosophies were more about how to avoid war while still maintaining control over an
enemy in tight situations rather than war itself.
Sun Tzu had a dramatic impact on Chinese history. After his hiring, the kingdom
of Wu went on to become the most powerful state of the period.
Sun Tzu supposedly died when King Helu was killed in 496 BC, but since the
military success of Wu continued after that year, stories of his death may have been
exaggerated for political reasons. Sun Tzu teaches that the first principle of war is
deception. (woopidoo.com)
Although there are no confirmations that the two met, Sun Tzu lived during the
time of Confucius and may have been influenced by the man's work. (woopidoo.com)
7

8. 2.2. The Book
To hand down the wisdom he had gained
from his years of battles Sun Tzu wrote
a book, The Art of War, that became the
classic work on strategy in China. His
book, which details a complete
philosophy on how to decisively defeat
one's opponent, has given guidance to
military theorists and generals
throughout the ages. In The Art of War,
military readers found a holistic
approach to strategy that was powerful
and deep - it is truly a masterpiece on
strategy.
Today, Sun Tzu's appeal has extended
beyond the military realm into the world
of business. Because business by
definition deals with competition, Sun
Tzu's principles are ideally suited to
competitive business situations. Because
business, like warfare, is a contest of
wills, dynamic and fast-paced, based on
both morale and machines, and deals
with the effective and efficient use of
scarce resources, many business people
Allikas: Science of Strategy Institute,
across the globe have found value in Sun Seattle, WA, USA http://scienceofstrategy.org
Tzu's teachings. (McNeilly)
8

9. 2.3. The Text of The Art of War
The text was preserved in China for
over 2,000 years. Versions are still
being found in royal Chinese tombs
unearthed today. Those version are
remarkably similar to the text we
have always known. The text was
brought to the West by the French. It
is rumored that Napoleon used its
strategy to conquer Europe. It has
gone through many English
translations from a variety of sources.
In China
China preserved the text of The Art of War, known in Chinese as the Bing-Fa, even
through the famous book-burning by the first Emperor of Chi around 200 BC. The text
was treasured and passed down by the Empire's various rulers. Sections of the work
have been found in a number of
archeological digs uncovering the ancient
rulers of China. New versions are still
being found. In the Chinese-speaking
world, there were two main textual
traditions, known as the and
versions, in circulation into the twentieth
century. Today, what we call The Art of
War is the basic work of the original
Master Sun, Sun Wu, though many
related works were made by later
scholars, including his descendant, Sun
Ping.
9

10. Brought to the West
A Jesuit missionary, Father Amiot, first brought The Art of War to the West, translating
it into French in 1782.
Soon after its publication in France, it was discovered by a minor French military
officer. After studying it, this officer rose to the head of the revolutionary French army
in a surprising series of victories. The legend is that Napoleon used the work as the key
to his victories in conquering all of Europe. It is said that he carried the little work with
him everywhere but kept its contents secret (which would be very much in keeping with
Sun Tzu's theories).
However, Napoleon must have started believing his own reviews instead of sticking
with his study of Sun Tzu. His defeat at Waterloo was clearly a case of fighting on a
battleground that the enemy, Wellington, knew best. Wellington's "trick" at Waterloo
was hiding his forces by having them lie down in the slight hollows of this hilly land.
This is exactly the type of tactic Sun Tzu warns against in his discussion of terrain
tactics. (Reilly)
Key principles
• Know your enemies and know yourself
• To win 100 battles is not the height of skill, to subdue the enemy without
fighting is
• Avoid what is strong, attack what is weak
10

11. Chapters
1. Laying Plans/The Calculations explores the five fundamental factors (the
Way, seasons, terrain, leadership, and management) and seven elements that
define a successful outcome. By thinking, assessing and comparing these points
you can calculate a victory, deviation from them will ensure failure. Remember
that war is a very grave matter of state.
2. Waging War/The Challenge explains how to understand the economy of war
and how success requires making the winning play, which in turn, requires
limiting the cost of competition and conflict.
3. Attack by Stratagem/The Plan of Attack defines the source of strength as
unity, not size, and the five ingredients that you need to succeed in any war. In
order of importance: Attack, Strategy, Alliances, Army, lastly Cities.
4. Tactical Dispositions/Positioning explains the importance of defending
existing positions until you can advance them and how you must recognize
opportunities, not try to create them.
5. Energy/Directing explains the use of creativity and timing in building your
momentum.
6. Weak Points & Strong/Illusion and Reality explains how your opportunities
come from the openings in the environment caused by the relative weakness of
your enemy in a given area.
7. Maneuvering/Engaging The Force explains the dangers of direct conflict and
how to win those confrontations when they are forced upon you.
8. Variation in Tactics/The Nine Variations focuses on the need for flexibility in
your responses. It explains how to respond to shifting circumstances
successfully.
9. The Army on the March/Moving The Force describes the different situations
in them.
10. Terrain/Situational Positioning
11. The Nine Situations/Nine Terrains
12. The Attack by Fire/Fiery Attack explains the use of weapons generally and
the use of the environment as a weapon specifically. It examines the five targets
11

12. for attack, the five types of environmental attack, and the appropriate responses
to such attack.
13. The Use of Spies/The Use of Intelligence focuses on the importance of
developing good information sources, specifically the five types of sources and
how to manage them.
(sonshi.com)
12

13. 3. SUN TZU PRINCIPLES USED IN WARFARE
This following section gives an overview of some of Sun Tzu’s principles used in
warfare throughout history. From the battles between Chinese states of Wu and Chu in
which Sun Tzu himself took part; to World War II and Cold war between east and west.
Most of the material used in this section was obtained from History Channel’s
documentary “Sun Tzu - the art of war”.
3.1.Wu vs. Chu
Sun Tzu was the commander of the Chinese state Wu and trained its army to defend it
self from a power state of Chu to the west. The outset of that war between Wu and Chu,
when Sun Tzu was given command of the army of Wu, it seemed that Chu holds all the
advantages. Sun Tzu had an army of 33,000 and Chu hundreds of thousands of men.
Outnumbered ten to one, Sun Tzu could prepare its defenses and waited for the
Chu onslaught, but being Sun Tzu he does the unexpected- he invades Chu. He did not
attack Chu head on; he chose soft targets, like remote outposts and border crossings. He
attacked with speed and brutal efficiency. Chu immediately launched counter
offensives, but when the reinforcements arrive Sun Tzu’s soldiers are gone attacking
other objectives. He frustrated the leaders of Chu and gained a better picture of how the
Chu army is likely to fight. He downplays the value of direct attack and puts the
emphasis on maneuver, surprise, deception.
Sun Tzu’s strategy was similar to a Chinese game called go. The game starts
with the game board empty and as few pieces as possible are used to acquire as much
territory as one can. The objective is not the destruction of opponents force but the
conquest of space. Therefore it’s a very resource efficient strategy. Using a go-like
strategy ST decided when and where he fights. He awards the strongest and attacks the
weakest parts.
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14. “To move your enemy, entice him with something he is certain to take”
It means to control your enemy’s movement by your own movement.
“Put the army in the face of death where there is no escape and they will not flee or be
afraid-there is nothing they cannot achieve”
Among other things, ST studied the psychology of soldiers facing imminent death
When soldiers know that they are on death ground they transform to fearless fighters
and will fight with all they have in order to win. Death ground was exactly where ST
wanted his men to be.
3.2. The American Civil War
The American Civil War (1861–1865), also known as the War Between the States
(among other names), was a civil war in the United States of America. Eleven Southern
slave states declared their secession from the United States and formed the Confederate
States of America, also known as "the Confederacy." Led by Jefferson Davis, the
Confederacy fought against the United States (the Union), which was supported by all
the free states (where slavery had been abolished) and by five slave states that became
known as the border states(Wikipedia)
America’s Civil War of 1861-1865, though it succeeded in holding the union of
American states together, demonstrated a progression into all the war-fighting methods
Sun Tzu said to avoid. Sun Tzu said (Cantrell 2003, 11).
“Thus the highest form of generalship is to defeat the enemy’s plans;”
In 1861, Abraham Lincoln, the newly elected President of the United States,
could not find a way to peacefully defeat the secessionist plans of Jefferson Davis, the
President of the Confederate States of America. When Confederate forces shelled Fort
Sumter in Charleston Harbor, they sealed Lincoln’s failure (Ibid,11).
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15. “...the next best is to keep the enemy’s forces divided;”
From 1861 through 1863, Lincoln attempted to divide the Confederacy by taking
control of the Mississippi River. At the same time, he made no fewer than three
attempts to march on the Confederate Capital in Richmond, Virginia. Lincoln failed in
part because Confederate officers, like Gen. Robert E. Lee, outclassed their Union
counterparts on the battlefield.
“...the next best is to attack the enemy’s army in the field;”
In 1864, Lincoln assigned Gen. Ulysses S. Grant, a general who had earlier
succeeded in capturing the key control city on the Mississippi, Vicksburg, to target
Lee’s Army of Northern Virginia itself instead of Richmond. Grant sent Gen. William
T. Sherman down through the west to continue with the plan to divide the Confederacy.
To Gen. George G. Meade of the Army of the Potomac, who Grant sent to destroy Lee’s
army in Virginia, Grant commanded: “Wherever Lee goes, there you will go
also.”(Ibid,11-12).
“...and the worst policy is to besiege walled cities”
After a bloody series of battles that failed to destroy Lee’s army, Grant laid siege to
Lee’s army in the fortified city of Petersburg from the summer of 1864 to the spring of
1865. His need to lay siege meant adding 10 months to an effort that was taking some
200,000 casualties to whittle Lee’s army from 60,000 soldiers at the beginning of 1864
to fewer than 10,000 by its surrender in 1865. Sherman’s advances in the meantime
destroyed vital Confederate cities south of Richmond and Petersburg, plus much of the
region’s railways and infrastructure. Though the war reunited the nation, the south
arguably required more than one hundred years to recover from the method.
The American Civil War ended with America intact but with the south in ruin. It
became a precursor of total wars to come that would see the devastation of fighting
escalate sharply (Cantrell 2003,12).
15

16. 3.3. World War II
World War I became the devastation of armies, and World War II became a total
devastation of great cities and populations as well. Militarily, the great nations of
Europe, both the winners and the losers, became a shadow of their former selves on the
world stage and so relinquished the title of world superpowers to the United States and
the Soviet Union. Errors on both sides – Allied weakness that allowed Axis forces to
conquer Europe and the Asian Pacific with little loss to themselves, and Axis
miscalculations regarding their ability to hold their gains for the long term – resulted in
more death and destruction by war than the world has yet seen. This final result was not
in accord with the Way of life and therefore not in accord with the principles of Sun Tzu
(Cantrell 2003,12).
A proper assessment of a situation is a critical part of Sun Tzu’s overall
philosophy that ensures an army engages in battles it can win. Engaging in battles you
cannot win is waste of time and resources and not in accord with the Way of life (Ibid)
The invasion of Normandy was the invasion and establishment of Allied forces
in Normandy, France, during Operation Overlord in World War II. The invasion was
the largest amphibious operation in history.
Allied land forces that saw combat in Normandy on 6 June came from Canada,
the Free French Forces, the United Kingdom, and the United States. In the weeks
following the invasion, Polish forces also participated, as well as contingents from
Belgium, Czechoslovakia, Greece, and the Netherlands (Williams 1988). Most of the
above countries also provided air and naval support, as did the Royal Australian Air
Force, the Royal New Zealand Air Force, and the Royal Norwegian Navy.
June 6. 1944 allied troops in World War II invade Europe. They land on the
beaches of Normandy France. If you put troops on a beach on which there is no retreat
then they will fight in order to survive. There was no other alternative than death (and
swimming back to England). By fighting together and never giving up they survived.
“All warfare is deception”
16

17. If you can deceive your enemy before battle you are more likely to win. Supreme allied
commander Dwight D. Eisenhower took this principle to heart as he prepares to invade
Europe in World War II. His invasion strategy in Normandy is one of the most daring in
history and is foreshadowed in ST art of war.
By 1944 Nazi Germany knew the allies were coming, but they did not know
where or when. The buildup in England was most likely; therefore the most likely place
they would hit was France. The only question was where?
There were only three feasible locations where the allies could land: Pas de
Calais, Cherbourg peninsula or the Normandy beaches. One was for sure- the allies
would only attack locations that they could provide air support to. The range of allied
air fighters was 400 miles, therefore any landing sight would have been 200 miles from
the attack location. Even with air support the allies know that beach invasion of Europe
is nearly impossible. To succeed they must employ more of a GO-strategy than a chess
strategy. Instead of a direct attack, the allies follow ST principle of deception and
convinced the Germans that the attack would not occur at Normandy. What the allies
were able to do with the clever use of deception as well as with clear military logic was
to convince the Germans when it came it would come from Pas de Calais and when in
fact they were coming from Normandy. It was called operation Fortitude and was one of
the most complex deception campaigns ever attempted. The allies create a fake army
that appears to strike Pas de Calais with inflatable tanks and planes, truck to fool
Germans. The phantom army needed to be seen and heard so allied army personnel
broadcast hours of fake transmissions about supply movements. Eisenhower shows the
Germans his fake army but keeps his real fighting force in absolute secret. For weeks
they were successful in their deception campaign but one month before the D-day
campaign was set to begin the allies feared their secret is out.
“The way a wise general can achieve greatness beyond ordinary men is through
foreknowledge”
ST teaches the importance of deception and foreknowledge to uncover the enemy’s
intentions. The allies gained foreknowledge by breaking German codes. For years the
Germans believed their coding machine called Enigma is completely unbreakable, but
17

18. with the help of a polish mathematician the British are able to break German codes
within hours. Their code breaking system is called Ultra. Through ultra, the British
knew what the Germans are thinking, what their perceptions are of the battle field. Thus
they are able to feed German spies information that reinforces those misconceptions. In
order to win your enemy, you must be able to read the mind of your enemy.
The allies also benefitted from another ST principle: the poor judgment of their
enemy’s leader.
“It is essential for victory that general are unconstrained by their leaders”
The allied command structure gave total authority to Gen. Eisenhower as supreme
commander of all forces on the western front. Beneath him are four commanders: one
for the navy, air force, US army group and the British army group. In the business world
this would be a very clear organizational chart with well defined responsibilities. One
would expect that a dictator like Hitler to have an even more efficient chain of
command than the allies but it was just the opposite. Hitler set up an confusing of over
lapping in the authority. No one beneath him had all of the information and all of the
control over forces at their disposal. Hitler was always the one who made the final
decision. He was always interfering in the decisions of his subordinates, the generals.
Hitler failure is a perfect example of why ST says the enlightened general must be free
to conduct war without the interference of the leader.
Through out the Normandy invasion ST invisible hand guided the Allies to victory.
Through the use of deception, foreknowledge and a superior command structure that
motivates the entire army to fight as one.
“Put the army in the face of death where there is no escape and they will not flee or be
afraid-there is nothing they cannot achieve”
Among other things, Sun Tzu studied the psychology of soldiers facing
imminent death. When soldiers know that they are on death ground they transform to
fearless fighters and will fight with all they have in order to win. This was clearly seen
in Normandy and death ground was exactly where Sun Tzu wanted his men to be.
18

19. 3.4. Vietnam War
The Vietnam War was a Cold War military conflict that occurred in Vietnam, Laos,
and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war
followed the First Indochina War and was fought between North Vietnam, supported by
its communist allies, and the government of South Vietnam, supported by the US and
other anti-communist nations( Vietnam War, Wikipedia)
The Viet Cong, a lightly armed South Vietnamese communist-controlled
common front, largely fought a guerrilla war against anti-communist forces in the
region. The Vietnam People's Army (North Vietnamese Army) engaged in a more
conventional war, at times committing large units into battle. U.S. and South
Vietnamese forces relied on air superiority and overwhelming firepower to conduct
search and destroy operations, involving ground forces, artillery and airstrikes.
The US government viewed involvement in the war as a way to prevent a
communist takeover of South Vietnam and part of their wider strategy of containment.
The North Vietnamese government viewed the war as a colonial war, fought initially
against France, backed by the US, and later against South Vietnam, which it regarded as
a US puppet state (Wikipedia).
“It is more important to outthink your enemy than outfight your enemy”
It was was tactics and strategy not firepower that caused the US to ultimately lose the
war in Vietnam- a loss that Sun Tzu predicted thousands of years ago.
“In wars, numbers alone confer no advantage.
Do not advance relying on sheer military power”
In 1960 US general W.W. Moreland orders intense aerial bombardments. The US
eventually dropped over seven million tons of bombs into Indochina during the war
more than twice the tonnage of all the bombs dropped by the US in WWII. But the
American were about to learn Sun Tzu’s lesson the hard way, that despite the
overwhelming military power and its soldiers, the US could not win this war. Gen. Wes
Moreland used a chess-inspired strategy stop the communist spread by killing as many
19

20. North Vietnamese and Vietcong’s as possible. Conversely, Wes Moreland’s adversary,
the North Vietnamese Gen. Giap uses more of a Sun Tzu go-strategy (see Wu vs. Chu).
While one concentrated more on killing as many possible, the other one on winning
more territory and thus defeat the enemy. To combat the American bombardments Gen.
Giap looks to a key Sun Tzu principle:
“Know your enemy and know yourself and in 100 battles you will never be in peril”
The way Americans often acted was somewhat predictable, they would prepare a
landing zone through artillery strikes and air strikes and then bring the troops in. Giap
recognized this and realized if he could have his troops survive the airstrikes they could
then ambush the American troops and take them off.
The American bombs didn’t destroy the enemy; they merely telegraphed that the
US infantry is on its way. Giap also ordered its fighters to stay as close to American
soldiers as possible. He understood the danger of air attacks and by having his men near
the Americans, he knew that Americans would not call in the strike. You close with the
enemy; you intermingle so they can’t bring air support without hurting their own troops.
Guerilla attacks, ambushes, hand grenade traps and snipers in this case where highly
effective. By forcing the enemy to maneuver, to respond to you, he reveals strengths
and weaknesses, and the more you know its strengths and weaknesses, the more you can
exploit the weaknesses and avoid the strengths.
The major US weakness in that war was not on the battlefield. It was the
American people. Giap knew that by turning the American people against the war he
could defeat the overpowering US military. He did not try to defeat them in Vietnam,
but in US. In the beginning of the war, nearly 80% of Americans supported the war in
Vietnam.
Moreland ordered an operation called Seek and Destroy to cope with Giap’s
guerilla attacks. He believed that he was successfully out rooting Vietcong insurgents
but a Pentagon report showed that 80% of the incidents where leaded by the insurgents.
Meaning that Americans where not searching and destroying anything. If the enemy did
not want to fight they stayed in the “bushes” and when they wanted to fight they picked
the time and place.
20

21. Giaps guerilla tactics where working but his Sun Tzu inspired strategy is
suddenly overruled by his commanding officers. He is ordered to plan a full scale direct
offensive against the US forces. Giap knew that it was suicide. Instead he modified the
plan. Returning to ST principles, he decides to coordinate a simultaneous attack in
hundreds of locations across South Vietnam. It turned out a powerful turning point of
the war.
“Let you plans be as dark as night-Then strike like a thunderbolt”
Just like Sun Tzu, Giap used spies. He created a spy network. Every barman, taxi
driver- anyone who dealt with Americans was potentially a source for the Vietcong.
Overhearing what Americans were talking, what the soldiers told to prostitutes
etc.Collecting this information able them to predict the movement of American units.
As a result it showed that Americans did not surprise anybody. Insurgents knew it all
the time.
To surprise Americans, Giap needed his men to be sufficiently armed. Giaps
next challenge was to figure out how to smuggle in and hide thousands of weapons
through out Vietnam. The solution was all ST - deception and secrecy: Giap goes
underground.
They had well equipped tunnels, some even under the US base camps and some even
exceeding 100 km in length.
“In a battle use a direct attack to engage and an indirect attack to win”
In the art of war you should always try to deceive your enemy. Pick a place you want to
attack, then attack somewhere else to divert its attentions. While his distracted, capture
your real objective.
A week before the TET offensive, Giap launches a surprise attack on remote US
base in Khe Sanh. The US is determined not to lose Khe Sanh. Nevertheless Khe Sanh
is not Giaps real objective, it is a ploy to draw US attention from the cities before TET.
January 31, 1968 while New Year celebrations the attack is carried out. More
than 80,000 Vietcong troops carry out simultaneous individual attacks on more than a
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22. hundred cities, villages and US bases all across South Vietnam the TET offensive had
begun. South Vietnamese and Americans were shocked and surprised, they thought they
had their enemy on his last legs. The TET offensive looked like it might succeed but the
North has ignored one important ST rule, at will cost them. According to ST there are
five fundamental factors for success in war: “Weather, terrain, leadership, military
doctrine and most importantly - moral influence”. But the North Vietnamese failed at
moral influence. Meaning that a leader must have the will of people behind him,
otherwise the war will ultimately fail. North Vietnamese carried blacklists and killed a
lot of opposing South Vietnamese, even nuns. That brutality backfired. Vietnamese
people realized that they do not want to live under that kind of leadership. Without the
will of the people Giaps forces are left without reinforcements. The fragmented North
Vietnamese weakened; over 10,000 got killed in the first few days, when only 250
Americans died. But the moral influence cuts both ways. US popular support for the
war eroded when people saw scenes from Vietnam. Despite losing the battle, Giaps was
well on his way of winning the war by defeating The US where it matters most- at
home.
3.5. The Cold War
From 1945 to 1990, the United States and its allies fought a Cold War against the Soviet
Union and its allies. This war threatened to become the most devastating Hot War
imaginable. The United States and its allies won the Cold War with little bloodshed,
particularly when compared to the preceding global conflict, World War II. The United
States and its allies maintained a sufficiently strong conventional military force to deter
Soviet aggression and supplemented that force with nuclear weapons. The victors
indirectly won the Cold War economically. The Soviet Union collapsed on itself
without a direct military attack by the United States and his allies. Economies under
Soviet-style communism could not afford to pay for the enormous militaries arrayed
against the West. Bottom line: the Cold War ended and the world stayed whole
(Cantrell 2003, 12).
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23. 4. SUN TZU IN BUSINESS
Sun Tzu provides many insights about the most basic nature of strategy analysis,
formulation, and implementation. Sun Tzu actually never used the term “strategy”
(Bamford and West 2009, 19)." Sun Tzu's approach is holistic, integrated, and
synergistic, with each principle interlocked with the others to form a sum greater than
its parts. Think of them as the cords in a very strong rope; separate from one another
they may be strong, but woven together they become unbreakable. (McNeilly 1996, 22)
There are many principles of Sun Tzu that can be used for winning the war of
competition. We are going to discuss these principles and how they apply in the real
world of business. The following thesis gives an overview of a systematic way of
creating winning strategies based on the timeless ideas of Sun Tzu. While there is much
that businesses can learn from military strategy and examples, businesspeople should
not follow the philosophy of the destruction created by total war. Business must be
performed ethically. (McNeilly 1996, 8)
4.1.Honor the cutsomer
One of the principles says that you should honor the customer. If the customer does not
purchase your product or service, nothing else matters. Strategically this means that
honoring the customer aims at building a lifelong relationship. Tactically it aims at
satisfaction with every interaction. (G. Michaelson and S. Michaelson 2004, 6)
Sun Tzu’s customers where the people – the citizens of the empire. In marketing,
people are our customers, and our customers are king – we serve at their pleasure. Every
aspect of marketing should focus on the customer. He or she is the judge and jury of our
marketing and our business. The ultimate objective of marketing is to produce products
and services that not only satisfy the customer’s needs, but delight them, so they would
return and buy again. (G. Michaelson and S. Michaelson 2004, 6). In all business
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24. situations, the emphasis is on building and maintaining a long-term relationship with the
customer. The key issue is to establish a relationship that builds repeat business.
(Strategies for Selling, Michaelsons, lk 4) If you are loyal in serving their needs, they
will be loyal to you.
Ask your customer about his or her priorities, and then prioritize your actions
according to your customer’s needs. Doing so you will increase your chances to
succeed.
Sun Tzu says that you must know what you are fighting for or else there is no sense
fighting. Knowing what your customers need and want gives you the chance to make
your moves according to this. (G. Michaelson and S. Michaelson 2004, 6)
4.2. Organization of intelligence and deception
Sun Tzu says: “Know the enemy and know yourself, and your victory will never be
endangered; know the weather and know the ground, and your victory will be then
complete”. To know your market as well as you knows yourself - you have to make a
thorough assessment. (G. Michaelson and S. Michaelson 2004, 19)
Successful strategy needs good information. Good information is a product of
good intelligence. The solution of processing information is decentralization: you break
the problem down and have decisions made by people at each level instead of sending
all the information to the top, where it will overload the head persons’ brain. Accurate
information is the bedrock of the road to business success. First, you decide who you
want your customers to be. Then, you decide what these customers need and want. You
figure out which of these needs you can meet, and you do it better than anyone else.
Much of what you want to know is readily available or can be uncovered by listening to
your customers. (G. Michaelson and S. Michaelson 2004, 17)
There are five assessment factors in modern marketing management. First of all
great strategies should have a strong moral foundation. A complete understanding of
the nature of the competitive market place is the first step in a winning campaign. A
deep understanding of the mindset of your competitors and how they might react to
various new moves enables you to anticipate competitive challenges. (Bamford and
West 2009, 19)
24

25. Every marketing plan must consider the influence of outside forces, such as
economic conditions, government regulations, political circumstances, and the
environment. Eight P’s: planning, people, positioning, products, promotion, personal
selling, persuasion and price should be considered. Sun Tzu states the importance of
wisdom, sincerity, benevolence, courage, and strictness. The same personal qualities
are important today. (G. Michaelson and S. Michaelson 2004, 19
Deception means to find the weaknesses of your competitor and keep your
competitor from discovering yours. Foreknowledge is firsthand insight and a deep
understanding of what your competitor is about: its strengths, its weaknesses, its plans,
its people. To understand and defeat your competition, you must do a very deep level of
research and analysis. It must not lack for detail. Because of lack of funding, lack of
interest or lack of skills, the competitive analysis arm of a company will often do only a
skin-deep review of the competition. Another reason some firms may not perform a
good job of competitive analysis is that they feel it is somehow unfair or unethical.
(McNeilly 1996, 40)
Companies make the same mistake. They attack markets they know little about.
They take on new competitors without learning their strengths, weaknesses, and
capabilities. To beat the competition, you must know your competition, know your own
company, and know your marketplace. You need to know your competitor's financial
results, the products of the company, its annual and quarterly reports, its advertising,
and announcements. Also, look closely at your competitor's past behavior. You must
learn as much as possible about the culture of your competitor and the mindset and
assumptions of those who run it. (McNeilly 1996, 22). You must know what the enemy
has in store for you, or what the enemy has accomplished against you up to this point.
You must learn to spot signs of trouble early. (Austin 2009, lk 7)
Foreknowledge does not stop at knowing your competition. You must also know
your own company's strengths and weaknesses. You need to understand a broad array of
things about your company: who your customers are and why they buy your product,
what your costs are, which offerings are the most profitable and which the least, what
your critical processes are, the length of your cycle times, and who your essential
managers and employees are. You must know this information in detail and have access
to it on a real-time basis. (McNeilly 1996, 47)
25

26. In addition to knowing the strengths and weaknesses of yourself and your
competitor, you must also know the "terrain" on which you will be fighting, the
business environment in which you will operate. To know the business terrain, you need
to perform in-depth market research and analysis. You must know the size of the
markets you wish to battle over, how fast they are growing, and the industry forces in
each market. (McNeilly 1996, 49)
The other side of the equation is ensuring that your competition is unable to
know you. This is where deception comes in. To beat your competitor, you must first
deceive its executives about the true nature of your plans. If they do not know where
you will attack next, they will be confused and unable to respond effectively. Deception
not only allows you to force your competitor to waste resources by allocating them
incorrectly, it also creates weak spots to attack. (McNeilly 1996, 52)
When asked about the strengths of your company do not list them all or tell
everyone how you do things. You may as well give away your products or services for
free! Instead, be opaque about the workings of your firm and hide the secrets of your
success. (McNeilly 1996, 54)
4.3 WIN WITHOUT FIGHTING
The realization that preparation, understanding and deep commitment to excellence
allows one to anticipate and preempt competition. An organization that it focused on its
business, that is constantly refining and improving its ability to compete with attention
to the finer details, and one that is one the cutting edge of best practices in its
competitive arena may prevent others from attempting to compete. Therefore victory is
defined as never having to enter battle. An evaluation of the resources and capabilities
of your organization will point out the best ways to compete and win. (Bamford and
West 2009, 19)
While market share and industry dominance are your end goal, they should not
be pursued blindly. In a business context, this means your battles for market dominance
should not destroy the profitability of your industry in the process. In strategy, as in
life, you make your decisions, and then they make you. (McNeilly 1996, 12)
26

27. You should seek to control the most market territory with the smallest
investment, not to destroy your competitor and your company in endless fighting. You
will win by avoiding fighting and moving strategically to achieve relative market
dominance, survival, and prosperity. This approach leaves your industry intact, allowing
your firm to dominate a healthy industry rather than a sick one. (McNeilly 1996, 17)
Research of competitive industries has shown that subtle, indirect, less visible
attacks are much less likely to prompt a competitive response. For example, some
attacks were not responded to for up to four years. (McNeilly 1996, 18)
Clearly, if you hope to win all without fighting, you must utilize strategy and
tactics that enable you to gain share prosperously, without destroying your industry. The
essence of fighting is not fighting. (McNeilly 1996, 18)
4.4. Maintenance of the objective
You must have a clear attention and a steady aim. Strategically you must have an
objective that provides one main direction. Tactically the objective is a specific goal.
Some strategists say that the objective is the most important principle because
without an objective, all of the other principles are pointless. The business objective
must be clearly defined, decisive, and attainable. Actions must be clearly
communicated, and results must be measurable. The objective should be stated in
specific terms that are measurable. The statement of the objective should be targeted
toward a goal that is strategically and tactically meaningful. Focus should be on
objectives that make a difference. (G. Michaelson and S. Michaelson 2004, 41)
Objectives that are impossible can demoralize. Conversely, objectives that are
too easy to attain are useless. The statement of the objective should allow the
organization to choose side roads, as long as they do not lead to a dead end. The reason
you have an objective is to clarify where you are going so you can get everyone
marching in the same direction. Everyone has to know the high-level game plan and
where they fit in (McNeilly 1996, 137). (G. Michaelson and S. Michaelson 2004, 41)
Sun Tzu offers this advice: You must define the markets you are going after and
commit to achieving relative market dominance in those markets. By doing so, your
company will ensure its survival and prosperity. There are many examples of companies
27

28. that began as seedlings, but used creative strategy to bring value to the marketplace,
grow quickly, and continue doing business successfully for a number of years. They had
to be able to gain a position in their industry or niche that enabled them to protect
themselves and shape the forces in their industry in their favor. (McNeilly 1996, 10)
4.5 Secure position. Avoid strength/attack weakness
Avoiding strength and attacking weakness maximizes your gains while minimizing the
use of your resources. This, by definition, increases profits. To find and exploit your
competitor's weakness requires a deep understanding of their executives' strategy,
capabilities, thoughts, and desires. (McNeilly 1996, 19)
A direct attack is one that occurs in an expected place at an expected time. An
indirect assault is one that comes as a surprise, both in location and timing. By
combining direct attacks on your competitor to fix their executives' attention and
deceive them, you can then use indirect attacks to win complete victory. (McNeilly
1996, 21)
You should occupy a position that can not easily be taken by your opponents and
strengthen your core competencies. The leaders must take up a strong position, inspire
others to follow him. Strategically this means that a secure position establishes the basis
for an offensive. Tactically - a secure position helps you make use of your natural
strength. (G. Michaelson and S. Michaelson 2004, 69)
Avoid strength and attack weakness is the key to achieving that goal. By
focusing your company's resources against your competitor's critical weak point, you
achieve success. Attacking your competitor's weak points is a much more effective and
uses less resources than attacking its strength. Attacking strength wastes resources. In
sum, avoiding strength and attacking weakness achieves the maximum return for the
least expenditure of resources in the shortest possible time, thereby maximizing profits.
(McNeilly 1996, 24)
You only need to imitate the best practices of your competitors and you can
become the market leader. This strategy of competitive imitation leads many executives
to attack strong competitors at their strongest point. (McNeilly 1996, 26)
28

29. Even if you have several times the resources of your competitor and a very
strong will, your probability of winning the battle is still low if you attack your
competitor's strength. You may have "defeated" your competitor, but paid a high cost in
resources. Even if you are now aware of other opportunities, the resources may no
longer exist to pursue them. (McNeilly 1996, 27)
One way is to attack the weakest part of your competitor's value chain. If they
are strong in manufacturing but have a weak tie to their distributors, attack them there.
Reinforce your distribution channels to take their customers away. Better yet, woo away
their distributors and make them your own. Without them, their manufacturing process
will prove worthless. (McNeilly 1996, 28)
4.6 Attacking psychological weaknesses
For your attacks to be successful, they do not necessarily have to be physical. They can
also be psychological, directed at and focused on the mind of your competitor.
(McNeilly 1996, 34)
This is the least resource-intensive means of attacking a competitor. It requires
little investment, yet it can be a very effective technique if properly executed. That is
why Sun Tzu is adamant that "the supreme excellence in war is to attack an enemy's
plans. (McNeilly 1996, 35)
Obviously, the best weakness to attack would be one that not only is extremely
vulnerable but, if attacked successfully, would be especially damaging to your
competition. You must concentrate your efforts physically in time and space. (McNeilly
1996, 35)
Surprise is the best way to gain psychological dominance and deny the initiative
to your opponent. Your opponent will not know neither where to attack or defend. (G.
Michaelson and S. Michaelson 2004, 69)
At this point, you may be thinking that Sun Tzu's philosophy means that one
should not make the effort to improve those parts of your own organization that are
weak or failing. This is not the case. Competition is a relative concept. (McNeilly 1996,
37)
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30. However, the majority of your resources must be concentrated to build strength
that can be used against your competitor's weak point. Being strong everywhere is to be
strong nowhere. (McNeilly 1996, 37)
As a strategist, it is critical not only that you determine where weakness exists
and attack there, but also that you have the personal fortitude to avoid attacking when
the situation has changed.(McNeilly 1996, 37)
4.7. Speed and preparation
Speed in execution is essential for a number of reasons; speed is a substitute for
resources, it shocks and surprises your competitors, it is critical to exploiting
weaknesses and opportunities. Greater speed equals fewer resources, which in turn
equals better return on investment. (McNeilly 1996, 59)
If you wish to act with speed, you must focus on improving your
information/decision/action cycle time. You must not only be able to deal with a fast-
changing business environment, you must desire it, thrive on it and nourish it.
(McNeilly 1996, 70)
Therefore, the key is to understand which issues must be decided immediately,
to limit the information to only those pieces that have a direct bearing on those issues.
The speed with which your company fixes customer satisfaction problems should be
improved. Companies must have a corporate culture and measurement system that
ensures that management and employees focus on customer satisfaction is critical.
(McNeilly 1996, 74)
In addition to basic strategic planning you must also do war gaming and scenario
planning. All moves should be played out and critiqued, it should be clear which moves
have the best potential and which are most likely candidates for the strategy trash can.
(McNeilly 1996, 80)
To be innovative and creative, your company must encourage organizational
learning. It too must be willing to consider new ideas, trust its junior managers, foster
professional education, promote the sharing of ideas across organizational boundaries,
30

31. and keep people in jobs long enough so that they actually know what they're doing.
(McNeilly 1996, 87)
4.8. Shape your opponent
To defeat the competition, you must first make them conform to your strategy, your
rules, your will. You must seize the advantage and make your competitor meet you at
the time and place of your choosing. To shape the competition, you must also gain and
hold strategic positions in the marketplace, using technology, key buyers, and
distribution channels to deny competitors access to key markets. You can lead your
competitors to enter market so that they will prove unprofitable or directing them away
from markets you desire. Another way to shape your opponent's moves is to hold a
strategic position in the industry. (McNeilly 1996, 90)
A final consideration in shaping the competition is to consider leaving your
competitor an easy way out of the market to avoid fighting over it with you. To increase
your probability of success, you must prevent your competition from combining to
oppose you. This can be done by forcing them to consider the consequences of opposing
you. (McNeilly 1996, 102)
4.9. Alliance
The rule of alliances is, if you are faced with a competitor that has strong allies, you
must avoid attacking them. Before launching an attack, you should find ways to
separate your competitor from its allies. You may consider making allies of former
competitors. Once you have created an alliance, you must make skillful use of your
allies. Choosing the right allies is only the beginning; you must also know how to
maintain your alliances and how to end them when they are no long useful. (McNeilly
1996, 107)
An alliance works when there is trust between the allies, true cooperation,
perceived fairness, and, most important, a mutual interest. It is the mutual interest that
should be the seed of the alliance. (McNeilly 1996, 107)
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32. 4.10. Personal leadership
Sun Tzu says that if words of command are not clear and distinct, if orders are not
thoroughly understood the general is to blame. But if orders are clear, and the soldiers
nevertheless disobey, then it is the fault of their officers. Personal leadership requires
the leader’s faith in his or her people and their faith in the leader’s ability to win.
In order to be a successful leader you should:
• Build your character, not just your image
• Lead with actions, not just words.
• Share employee's trials, not just their triumphs.
• Motivate emotionally, not just materially.
• Assign clearly defined missions to all, avoiding mission overlap and confusion.
• Make your strategy drive your organization, not the reverse.
"Leadership is the ability to get men to do what they don't want to do and like it" -
Harry S. Truman
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33. CONCLUSION
Sun Tzu: The Art of War is one of those rare texts that transcends time. Although it was
written on the bamboo scrolls some 2500 years ago, it is probably still the most
important work written on the strategy today.
Sun Tzu “The Art of War” provides strategies easily applicable to both war and
business situations. If you follow his principles you will be victorious, if you ignore him
you will definitely lose. Fighting costs lives and money. Sun Tzu prizes the general who
can outwit, instead of outfight is opponent.
”For to win one hundred victories in one hundred battles is not the acme of skill.
To subdue the enemy without fighting is the acme of skill.“ Although Sun Tzu was an
army commander he did not always support fighting. Mainly because war costs money
and lives, therefore waging war had to be the last resort or with as little bloodshed as
possible. Although advocating diplomacy at first, he also gave instructions on how to
win battles.
In war, the most important thing is to know your enemy and know your self,
most importantly strengths and weaknesses. Avoid the strengths, attack the weaknesses.
In business Honoring the customer builds a lifelong relationship which satisfies
both the customer and the company. It is vital to know your market, customers,
competitors and yourself. Studying strengths, opportunities, threats and weaknesses
gives you the opportunity to beat your competitor. The core beliefs and values of the
leaders form the culture of the organization and the organization needs a strong leader
who trusts in his or her people and his her people have faith in the leader’s ability to
win.
Sun Tzu and his principles have played an important role in strategy and strategy
making for 2500 year. Many have been victorious by using his principles; many have
lost for not doing, but one is for certain-you can never underestimate the power of
strategy. Sun Tzu did not.
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Marketing: 12 Essential Principles for Winning the War for Customers. New York,
McGraw-Hill.
Mark McNeilly. (1996). Sun Tzu and The Art of Business: Six Strategic Principles for
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McNeilly, Mark (2003). Sun Tzu and the Art of Modern Warfare. Oxford University
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