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Chapters

Chapter 2 Waging War


( -Zuo zhan)

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UBMM1011
Sun Zis Art of War and Business
Strategies

Detailed Assessment and Planning ()


Waging War ()
Strategic Attack ()
Disposition of the Army ()
Forces ()
Weaknesses and Strengths ()
Military Maneuvers ()
Variations and Adaptability ()
Movement and Development of Troops ()
Terrain ()
The Nine Battlegrounds ()
Attacking with Fire ()
Intelligence and Espionage ()

Chapter 2: Waging War ()

The High Costs of Waging War

Chapter Outline

The high costs of waging war

Importance of swiftness

6 strategies to end war quickly

Business application:

The costs incurred both in the home country and at the


battlefront include expenses:

for the conduct of diplomacy,


the provision of materials and supplies,
for the building of armament and weaponry.

Financial Management
Cost of doing business

Importance of Swiftness

The High Costs of Waging War

In war, it is better to go for swift victories rather


than engage in prolonged military campaigns. Sun Zi
2.1 As a general rule, for military campaign, one
would need 1,000 speedy four-horse chariots,
1,000 heavy wagons, and 100,000 fully equipped
and combat-ready soldiers. ~ Sun Zi
2.4 the expenses incurred will amount 1000 pieces
gold daily

A protracted (prolonged) military campaign will bring


undesirable consequences:
1. the troops at the battlefield demoralized
2. the citizens at home inflation
3. the state depletion of national wealth and resources

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Summary

6 Strategies to End War Swiftly


1.

Commandeer (hijack) the resources of the enemy.

2.

Instill the troops with hatred for the enemy so that they
would not hesitate to strike at the enemy.

3.

Motivate the troops with significant rewards obtained by


stealing the resources of the enemy.

4.

Encourage risk-taking behaviors in the troops with

Waging War seek to explain the economy (cost)


of war and how success requires making the
winning play, which in turn, requires limiting the
cost of competition and conflict.

War is a serious and expensive matter.

immediate & noticeable rewards


5. Confuse the enemy by applying the technique of
deception.
6.

Treat the prisoners-of-the-war well (to win their loyalty


targeted at winning the heart of the enemy).

In war, then, let your great objective be SPEEDY


VICTORY, not lengthy (prolonged) campaigns.

Deployed as spies or serve in other roles against the enemy

Financial Management
Financial management deals with two things:
raising money
managing a companys finances in a way that achieves
the highest rate of return

Financial Objectives of a Firm


Business Application

Business Is A Continuous Battle Of Survival


Its not the BIG that eat the SMALL
its the FAST that eat the SLOW

Profitability
Liquidity
Efficiency
Stability

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- J. Jennings

Why Most New Ventures Need Financing or


Funding ?????

Financial Management
FP: The need to analyze and plan the short-term and

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long-term money flows to and from the firm.


Economic realities of new ventures - Liquidity:
Need to budget in detail before setting up any business.
Large company requires big start-up capital.
Too little profit destroys thousands of new enterprises
(Remember: 80% of small business go out of business within
their 2 years!!!)
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Cost of Doing Business


Invest adequate resources so the operation can be
sustained.

Business Operating Costs (Expenses):


Goal: To minimize your business expenses to necessities of you
want more profit.

- The End -

The art of bootstrapping

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