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The Art of War in Contemporary BusinessStrategy

(Based on a Major Study of ASEANCorporations)

By

Foo Check Teck

Peter Hugh Grinyer

Sun Tzu on Management

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Sun Tzu on Management

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Preface

Sun Tzus prescriptions on organising aspects areanalogically relevant to strategic planning;

Obviously, it is difficult to draw parallels- Sun Tzuswork was based on a different context;

The Authors try to emulate the model set by SunTzu to present the essence on organising strategy;

Strategic planning is much more than annualexercise it is the art of continuous shaping andpositioning of an organisation to win againstcompetitors.

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The book is distinctive in 2 aspects

Its findings are based on the results of surveys of

strategic planning processes in public listedcompanies within ASEAN region;

Able to relate these findings to the prescriptions of

Sun Tzu (the ancient but influential militarystrategies);

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Part I: The Strategy Process

Implementation of strategic planning rationale

Method of organisation in terms of majororganisational characteristics and the activities

involved;

To seek competitive advantages in a planned

and rational manner - .Anciently the skilfulwarriors first made themselves invincible and

awaited the enemys moment of vulnerability..

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Part I: The Strategy Process..

Ability to formulate timely counter strategies

what is of supreme importance in war is to attack

the enemys strategy

Sun Tzu fully recognised the importance of

assessing opportunities, threats and relative

strengths and weaknesses SWOT Analysis

.generally, management of many is the same as

management of few. It is a matter of

organisation

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Part II: Critical Success Factors

CEOs role the CEO as the ruler or General (inSun Tzu terms) of an organisation continues to be

critical in shaping corporate strategies. Environmental Factors - now in fire attacks one

must respond to the changing situation - strategicplanning process respond effectively in changingexternal situations.

Effective and skilful command - thus thepotential of troops skillfully commanded in battle maybe compared to that of round boulders which rolldown from the mountain heights.

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Part II: Critical Success Factors

Esprit de Corps - anciently, those described

as skilled in war made both large and small tomutually cooperate; for the good troops to

succour the poor and for superiors and

subordinates to support each other.

People participating in strategic planning BOD,CEO, Executives

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Part III: Performance Consequences

Adaptability to changes

Strategic insights Goal achievements

Industry competitiveness

Coping with change, is clearly of central

importance to the modern business corporation

just as it was to Sun Tzus armies

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Part III: Performance Consequences

Achieving goals in waging wars concentration of forces or resources

Role of strategic planning in organisationsachieving goals build understanding of theconstitution businesses of the company,regular discipline, systematic process of thestrategy development, written plans, setsexplicit goals and basis of strategyimplementation

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Conclusion

Why this book?

Applied Theory between ancient and moderntimes and between military and business

operations

Increase level of knowledge (Sun Tzu = Strategic

Planning Process)

Art of War= for winning the war = strategic

planning = to manage the organisation

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Thank you

Mohamad Farid Sahat

29 October 2009