Secret Art of War for Todays Entrepreneurs

Adapted and Illustrated by Wang Xuanming

Translated by Geraldine Goh & Y N Han

About the Illustrator

Wang Xuanming
, a contemporary cartoonist in China, was born
in Beijing in 1950. He was trained formally in commercial art and industrial
art. Since 1972, he has been engaged in various aspects of artistic work.
He frequently explores various ways of expressing his artistic talents.
Besides a lot of cartoons, picture books and illustrations, he makes oil
paintings and posters. His works have on many occasions won awards in
several art competitions and have been included in various art albums.
Wangs works have been serialised in all the major newspapers
and publications in Beijing since 1980. His cartoons entitled Different
Gravitational Force are praised by famous Chinese artists. In 1987, he
participated in the creation of the animated cartoon Brother Elephant,
which won the hearts of many children when it first appeared on television.
In his Strategy and Leadership Series, he uses a simple and
humorous art form to introduce ancient Chinese military classics to modern
readers. The books were very well received when they were first published
in China; the Beijing Radio Station reviewed and highly recommended
them to the public.

Introduction
Until recently, not many people may have read the book The 36
Stratagems. But they certainly would have come across the saying: Of
the 36 stratagems, running away is the best option, or Lure the tiger out
of the mountain. The popular saying, Of the 36 stratagems, running
away is the best option, first appeared in the official history of Southern
Qi about 1,500 years ago. Since then, it has gained increasing popularity.
About 300 years ago, either towards the end of the Ming Dynasty or
the beginning of the Qing Dynasty, an unknown scholar decided to compile
all the 36 stratagems into a small book called Secret Art of War: The 36
Stratagems. It initially only circulated and survived in handwritten copies.
It was first published in 1941 by the Xinghua Printing House in Chengdu,
Sichuan. Since then, several editions have appeared in Chinese and other
East Asian languages.
The 36 stratagems are grouped into six sets; the first three are designed
for use when one holds the advantage, and the second three when one is
at a disadvantage. This categorization, however, was never meant to be
rigid. On the contrary, several millennia of practising and refining battle
tactics have taught the Chinese military strategists that the highest principle
of all was flexibility.
In most modern books on the 36 stratagems, examples from the
many battles of ancient China are given on the application of the stratagems.
The examples show the ingenuity, folly, bravery and even calculated
brutality of the Chinese in warfare. Although the examples of the use of
the stratagems are drawn from Chinese history, there is no doubt that
their application can be universal as human nature is basically the same
everywhere. War is a human activity, therefore it follows certain patterns
which are a projection of human nature. As long as human nature does
not change, war will continue to follow certain patterns which can be
observed by a discerning mind.
The application of The 36 Stratagems is not limited to the battlefield.
Now in 36 Business Stratagems, you can witness its relevance and power
in everyday business situations.
Koh Kok Kiang

Contents
Prologue

Stratagems When in Superior Position

Cross the Sea Under Camouflage
Besiege Wei to Rescue Zhao
Kill with a Borrowed Knife
Wait at Leisure for the Exhausted Enemy
Loot a Burning House
Make a Noise in the East While Attacking in the West

2
9
16
22
31
38

Stratagems for Confrontation

Create Something Out of Nothing
Advance to Chencang by a Hidden Path
Watch a Fire from Across the Riverbank
Conceal a Dagger in a Smile
Sacrifice the Plum for the Peach
Lead Away a Goat in Passing

45
51
57
65
72
77

Stratagems for Attack

Beat the Grass to Startle the Snake
Use a Corpse to Resurrect a Dead Soul
Lure the Tiger Out of the Mountain
Let the Enemy Go in order to Snare Him
Cast a Brick to Attract Jade
To Catch the Rebels, Nab Their Leader First

84
90
94
99
104
109

Stratagems for Confused Situations

Remove the Firewood From Under the Cauldron
Seize a Fish in Turbid Water
The Cicada Sheds its Shell
Bolt the Door to Catch the Thief
Befriend a Distant State While Attacking a Neighbour
Borrow a Route to Conquer Guo

116
122
126
130
136
140

Stratagems for Gaining Ground

Steal the Beams and Change the Pillars
Point at the Mulberry and Curse the Locust
Feigning Foolishness
Remove the Ladder after the Ascent
Putting False Flowers on the Tree
The Roles of Host and Guest Reversed

146
151
156
162
168
174

Stratagems for Desperate Situations

Beauty Trap
The Ploy of an Empty City
Bring About In-fighting in the Enemys Camp
Self-inflicted Injury to Hoodwink the Enemy
A Series of Stratagems
When Beating a Retreat is the Best Way Out

180
185
191
197
203
209

Stratagems
When in Superior Position
Cross the Sea Under Camouflage
Besiege Wei to Rescue Zhao
Kill with a Borrowed Knife
Wait at Leisure for the Exhausted Enemy
Loot a Burning House
Make a Noise in the East While Attacking in the West

Stratagem 1

Cross the Sea Under Camouflage

Under the perception that defence is foolproof, ones guard is lowered
and fighting spirit slackened. No suspicion is attached to things that are
often seen. But conspiracy can be hidden most naturally in things that
are open. We should learn to recognize dangers concealed perfectly,
not in the dark, but in the open.

Historical War Stratagem Case Study

Ive been
hoodwinked!

On the 17th year of Zhenguan, Emperor Tang Taizong led an

army of 300,000 strong to the east to wage war. The march came
to a stop when they reached the sea. Taizong was overawed by
the high, rolling waves. It was then that a wealthy man invited the
Emperor and his officials to his manor. While they were drinking,
strong winds began to blow and they heard the roaring of waves.
Taizong lifted the curtain, looked out of the window and realized
they were actually on a ship sailing on the rolling sea.

Xue Rengui, a valiant

warrior, had disguised himself
and camouflaged the ship as a
luxurious manor. Emperor
Taizong did not notice anything
amiss and managed to cross the
sea successfully.

Business Stratagem
To cross the sea under
camouflage is a tactic to
achieve ones goals by hiding
the truth under a shroud of
false indications. Common
occurrences are unlikely to
create suspicions. This is a
common error of observation.

When competition is stiff, entrepreneurs must be

creative to produce false signs to camouflage their
business plans. This is one of the ways to gain greater
business opportunities.
Points to remember when applying the stratagem:
1. Resort to every means to camouflage your goals
so that your opponents will have no inkling of
your plans and will not take precautionary
measures.
2. Pick an opportune time to cross the sea and
do so before your goals are discovered. This will
ensure success.

Guarding business
secrets is of utmost
importance. If your business
plans become the talk of the
town, your rivals will be
warned and will step up
precautionary measures. This
will throw obstacles in your
way and may even result in
losses.
Keep yourself informed, know
your opponents temperament,
thinking and behaviour. All this
will help in the formulation and
implementation of your
strategy. It is another way to
ensure success.

Business Stratagem
Case Study 1

In Pennsylvania, America, the owners of two stores

located side by side became arch-enemies.

Seeking the most

reasonable price
Bedsheets
$6.50
each

Your
goods are
inferior!

You jacked
up the prices!
Liar!

Bedsheets
$5.95
each

Their rivalry drew a lot of

attention.

With the price war,

customers were able
to make many happy
purchases.

Itll be sold
out if youre
too late.

One day, one of the bosses passed

away. A few days later

The other boss closed down his store and

moved out of Pennsylvania.

Closingdown sale!
No more
bargains.

When the new shop-owner cleaned up the place,

he discovered a secret passageway linking the
bedrooms of the two bosses.

The price war was actually a

means of finding the most
reasonable price.
Theyre
actually
brothers.

The shop with the most acceptable

price would sell all the goods of both
shops.

By distracting the
customers, they succeeded
in achieving their sales
targets.

Business Stratagem
Case Study 2

A Japanese firm met up with an American firm to discuss

a technical cooperation.

Conceal oneself,
know ones rival
Statistics, issues
for discussion,
expenditure,
costs

The Americans spoke for

a few hours

What are
your views?

Well Were
not prepared
yet and
cant give you
the data.

In the following few months, the

two parties held two more
discussions. The Japanese
always seemed unprepared and
nothing was achieved.

Dont release any more information

and stop negotiations. If the
Japanese dont change their
attitude in six months, call
off the deal.

Listen
attentively
Record in
detail

To their surprise, a few days later, the

Japanese sent a huge negotiation team
comprising the original key members to
America.

This time, the Japanese

had brought massive
amounts of data. They
had made careful plans in
the aspects of technical
skills, resources and
manpower.

The Americans
were caught
unprepared.

Weve drafted
the agreement.
Perhaps youd
like to peruse it.

In the first few discussions, the Japanese had

pretended to be unprepared with the motive of
studying the Americans plan more closely.
Once they had a clear picture, they
immediately worked on the details of the
agreement.

Quick, gather
the negotiation
team!

The Americans were too taken aback to

offer any comments or suggestions.
Reluctantly, they signed the agreement.
Later, they discovered that certain terms
of the agreement favoured the
Japanese more.

A thin line
divides skilful
deception and plain
cheating. Never
cheat in business
or your credibility
will be lost and
youll have little
to gain.

Business Stratagem
Case Study 3

Some toothpaste
manufacturers sold toothpaste
and toothbrush as a package.

Hidden
opportunities in
selling through
bundling of
products

Cheap sale!
Selling at the price
of the toothpaste
only!

Big
Discounts

Consumers made the

purchases happily.
Quick, go now.
You can get a free
toothbrush.

The toothpaste ran out fast. This meant that

consumers had to buy toothpaste more often.

Run out
again?

The free toothbrush had a head

longer than that of the average
toothbrush. When you use the
toothbrush, youll naturally
squeeze more toothpaste on it.

Some entrepreneurs use the

bundling technique of buy-oneget-one-free to promote sales. It
looks like a losing proposition but
in actual fact, entrepreneurs would
apply this technique only after
careful calculation.