The Art of War and Business Strategies
孫子兵法與企業策略
Minder Chen, Ph.D.
Martin V. Smith School of Business and Economics
CSU Channel Islands
Minder.Chen@csuci.edu
© Minder Chen, 2010-2014
Art of War - 1
The Art of War References
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http://en.wikipedia.org/wiki/Sun_Tzu
[pdf] Art of War (Dr. Lionel Giles) http://www.feedbooks.com/book/168.pdf
http://www.sonshi.com/learn.html
http://www.chinapage.com/sunzi-e.html
http://www.learntheartofwar.com/
http://suntzusaid.com/
History Channel Sun Tzu's The Art Of War
http://www.youtube.com/watch?v=g0v1dtWYCTk or
*http://v.youku.com/v_show/id_XNTYyNDg2MDY4.html
• http://www.learntheartofwar.com/
• http://learn.bowdoin.edu/suntzu/index.html
• Gerald A. Michaelson and Steven W. Michaelson, Sun Tzu:
The Art of War for Managers: 50 Strategic Rules Updated
for Today's Business, 2nd revised edition, 2010.
© Minder Chen, 2010-2014
Art of War - 2
The Art of War
The Oldest Military Treatise in the World
© Minder Chen, 2010-2014
Chow Hou Wee, Khai Sheang Lee, Bambang Walujo
Hidajat, Sun Tzu: War and Management : Application to
Strategic Management and Thinking
Addison-Wesley, 1996, 307 pages.
Art of War - 3
Confucius and Sun Tzu
Confucius, 孔夫子 Master Kong; 孔子 Kǒng zǐ; Kong Qiu
551 – 479 BC
Sun Wu 孫武 / Sun Tzu 孫子
544-496 BC
http://en.wikipedia.org/wiki/File:Enchoen27n3200.jpg
http://upload.wikimedia.org/wikipedia/commons/5/54/Confucius_Tang_Dynasty.jpg
© Minder Chen, 2010-2014
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Besiege Wei to rescue Zhao
• http://www.chinesewiki.com/36_Strategies
• 36 Strategies - Strategy No 2:
Besiege Wei to rescue Zhao, 围魏
救赵
• To defeat a stronger enemy, one
should try to make the enemy
disperse his forces and attack
each troops separately. Instead of
making a head-on attack, one
should consider attacking the
rear where the defenses are
weaker.
© Minder Chen, 2010-2014
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Besiege Wei to Rescue Zhao
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This strategy derives its name from a famous incident that occurred in 354 BC. At this
time one of China's most renowned strategists, Sun Bin (A descendent of Sun Zi) was an
advisor to the Lord of State of Qi. Sun had earlier been at the court of State of Wei but
another minister, Pang Juan who is believed to have the same teacher as Sun Bin,
became jealous of Sun's cleverness. He had Sun framed as a spy, sentenced to
mutilation (removing the kneecaps), and imprisoned. Sun escaped and fled to State of Qi.
Several years later, the Lord of State of Wei appointed the same Pang Juan as
commander of the army and sent him to attack the capital of State of Zhao, Han Dan. The
Lord of Zhao immediately appealed to State of Qi for help. The Lord of Qi consulted his
advisors who all spoke in favour of immediately sending aid their ally, only Sun Bin
recommended against attacking immediately. Sun advised: " To intervene between two
warring armies is like trying to divert a tidal way by standing in its path. It would be better
to wait until both armies have worn themselves out." The Lord agreed to wait.
The siege of Zhao had lasted more than a year when Sun Bin decided the time was ripe to
come to Zhao's aid. The king of Qi appointed prince Tian Ji as general and Sun as
military advisor. Tian Ji wanted to attack the Wei forces directly to lift the siege of Zhao,
but again Sun advised against direct intervention saying: " Since most of Wei's troops
are out of the country engaged in the siege, their own defence must be weak. By
attacking the capital of Wei, we will force the Wei army to return to defend their own
capital thereby lifting the siege of Zhao while destroying the Wei forces in turn." Tian Ji
agreed to the plan and divided his army into two parts, one to attack the capital of Wei,
and the other to prepare an ambush along the route to the capital.
When the Wei general, Pang Juan, heard that the capital was being attacked, he rushed
his army back to defend the capital. Weakened and exhausted from the year long siege
and the forced march, the Wei troops were completely caught by surprise by the ambush
and suffered heavy losses. Zhao was thus rescued while Pang Juan barely escaped back
to Wei to recoup his losses.
© Minder Chen, 2010-2014
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Another Battle
© Minder Chen, 2010-2014
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Books
© Minder Chen, 2010-2014
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Sun Tzu for Managers
• A quick search on Amazon will yeild will over
50 different versions of the book.
Gerald A. Michaelson, Sun Tzu, Sun Tzu: The Art of War for Managers; 50 Strategic Rules,
Adams Media Corporation, 2001.
© Minder Chen, 2010-2014
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Sun Tzu in Modern Day China
© Minder Chen, 2010-2014
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Guess who is reading Sun Tzu? You should too.
© Minder Chen, 2010-2014
http://www.sonshi.com/paris-hilton-suntzu.jpg
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Novel
• Three Kingdoms: Chinese Classics (Classic Novel in 4Volumes) , Luo;Kuan-Chung, translated by Moss
Roberts http://www.amazon.com/gp/product/7119005901
• Romance of Three Kingdoms
–
Cao Wei, Shu Han, and Eastern Wu
© Minder Chen, 2010-2014
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滾滾長江東逝水，浪花淘盡英雄。
是非成敗轉頭空。
臨江仙 明 楊慎
青山依舊在，幾度夕陽紅。
白髮漁樵江渚上，慣看秋月春風。
一壺濁酒喜相逢。古今多少事，都付笑談中。
•
http://video.baidu.com/s?f=1002&n=1&id=168838&word=%C8%FD%B9%FA%D1%DD%D2%E5&fr=vsald&site=letv.com
•
*http://v.youku.com/v_show/id_XNTgzOTYxODE2.html
• http://www.youtube.com/watch?v=J0L82LwHR1g&feature=related
© Minder Chen, 2010-2014
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United or Divided
The trend in the world is that
The empire, long divided will unite;
long united, will divide.
話說 天下大勢，
分久必合，
合久必分。
HP – PC Division
Netflix – DVD and Streaming
© Minder Chen, 2010-2014
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Brotherhood
© Minder Chen, 2010-2014
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Oath of the Peach Garden
• “Oath of the Peach Garden” at Long Corridor,
Summer Palace in Beijing
• 桃園三結義，頤和園長廊
© Minder Chen, 2010-2014
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Visiting the Thatched Hut Three Times
• Liu Bei recruiting
ZhuGe Liang, from
Visiting the Thatched
Hut Three Times (三顧
茅蘆), a Ming Dynasty
painting by Dai Jin
大夢誰先覺，
平生我自知；
草堂春睡足，
窗外日遲遲。
© Minder Chen, 2010-2014
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LongZhong Plan
Cao
Wei
Shu Han
Eastern Wu
© Minder Chen, 2010-2014
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Cooporation and Competition
• Smartphone industry:
– Apple, Samsung, Nokia, RIM
– HTC, Google (Android), Microsoft
© Minder Chen, 2010-2014
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ZhuGe Liang
• Chairman of Joint Chiefs of
Staff (principal military and
political adviser) of Shu
© Minder Chen, 2010-2014
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草船借箭
因「糧」于「敵」
Leverage the
resources from
others
• http://v.youku.com/v_show/id_XNTUwNTI3ODQ4.html
• http://www.youtube.com/watch?v=gyQzlQRtFhU&feature=related
at 12 minutes mark
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© Minder Chen, 2010-2014
The Battle at the Red Cliff 赤壁之戰
• http://www.amazon.com/Red-Cliff-English-Subtitled/dp/B002TUQBMK
• Throughout the centuries, every Chinese schoolboy is
familiar with the stories from Luo Guanzhong's Romance of
The Three kingdoms. And those who cannot read listen
intently to the tales of battles and wily stratagems
recounted by storytellers in the market place or on stage
performed by traveling troops of regional operas. The
moment, Cao Cao, the villain, with a white painted face
steps on stage, he is booed. However, when Liu Bei of Shu,
the hero, and his sworn brothers, Zhang Fei and Guan Yu,
and Zhuge Liang, and appear, cheers are heard. Often, after
a particular favorite incident is recited, the storyteller says,
"that's enough now; come back tomorrow." And then, the
young and the old linger a little longer in case the
storyteller has changed his mind.
© Minder Chen, 2010-2014
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Conducting Business in Asisa
• Japanese business success in the 1980s
spurred the interest of western
businesspeople in Sun Tzu's Art of War
as studied by Japanese businessmen.
• The rise of Chinese business power
causes a similar interest for similar
reasons.
• Sun Tzu's ideas are deeply embedded in
Asian culture and understanding them is
key to understanding how to conduct
business in Asia successfully.
• http://www.artofwarsuntzu.com/america_experiences_sun_tzu.htm
© Minder Chen, 2010-2014
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Military
武
• 武: Military (wǔ)
• Ideogrammic compound (會意):
止 (“stop”) + 戈 (“spear”)
• 武 is to denote “to stop a weapon”
or “to stop violence” (止戈為武).
•楚莊王曰:夫文,止戈為武。
•又曰:夫武禁暴、戢兵、保大、定功、安民、
和財者也。
- 《左氏春秋·宣公十二年》
© Minder Chen, 2010-2014
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13 Chapters of the Art of War
1. Detail Assessment and Planning 始計
2. Waging War 作戰
3. Strategic Attack 謀攻
4. Disposition (Strategic Deployment) of the Military Force 軍形
5. Forces (Momentum, Energy) 兵勢
6. Weaknesses and Strengths 虛實
7. Military Maneuvers 軍爭
8. Variations and Adaptability 九變
9. Movement and Deployment of Troops 行軍
10. Terrain (Geographic) 地形
11. The Nine Battlegrounds 九地
12. Attacking with Fire (Weapons of Mass Destruction) 火攻
13.Intelligence and Espionage 用間
© Minder Chen, 2010-2014
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Tao Te Ching (Lao-tzu) Chapter 46
Anti-war theme in Taoism
•Victor Mair’s trans.
"When the Way prevails under heaven,
swift horses are relegated to fertilizing fields.
When the Way does not prevail under heaven,
war-horses breed in the suburbs."
•Steve Mitchell’s trans.
"When a country is in harmony with the
Tao,
the factories make trucks and tractors.
When a country goes counter to the Tao,
warheads are stockpiled outside the cities."
天下有道，卻走馬以糞。天下無道，戎馬生於郊。
禍莫大於不知足；咎莫大於欲得。故知足之足，常足矣。
© Minder Chen, 2010-2014
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Tao Te Ching (Lao-tzu) Chapter 31 – S. Mitchell
Weapons are the tools of violence;
all decent men detest them.
Weapons are the tools of fear; a decent man will avoid
them except in the direst necessity and, if compelled,
will use them only with the utmost restraint.
Peace is his highest value.
If the peace has been shattered, how can he be content?
His enemies are not demons,
but human beings like himself.
He doesn't wish them personal harm.
Nor does he rejoice in victory.
How could he rejoice in victory
and delight in the slaughter of men?
He enters a battle gravely,
with sorrow and with great compassion, [he attends the
victory ceremony] as if he were attending a funeral.
© Minder Chen, 2010-2014
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LaoZi Chapter 31
夫佳兵者，不祥之器，物或惡之，故有道者不處。
君子居則貴左，用兵則貴右。兵者不祥之器，非君
子之器，不得已而用之，恬淡為上。
勝而不美，而美之者，是樂殺人。夫樂殺人者，則
不可以得志於天下矣。
吉事尚左，凶事尚右。偏將軍居左，上將軍居右，
言以喪禮處之。
殺人之衆，以哀悲泣之，戰勝以喪禮處之。
© Minder Chen, 2010-2014
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Mapping from War to Business
• War  Competition, major initiatives against
your competitors, develop a major new
product, go to a new market, etc.
• Enemies  Competitors
• Generals  Leaders/Managers
• Spying  Business intelligence, corporate
intelligence
• Deception  Keep corporate strategies and
IP as secrets; Secrecy
© Minder Chen, 2010-2014
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Chapter 1
• Sun Tzu said: The art of war is of vital importance
to the State.
• It is a matter of life and death, a road either to
safety or to ruin. Hence it is a subject of inquiry
which can on no account be neglected.
• The art of war, then, is governed by five constant
factors, to be taken into account in one's
deliberations, when seeking to determine the
conditions obtaining in the field. These are: (1) the
Moral Law; (2) Heaven; (3) Earth; (4) the
Commander; (5) method and discipline.
孫子曰：兵者，國之大事，死生之地，存亡之道，
不可不察也。 故經之以五事，校之以計，而索其
情，一曰道，二曰天，三曰地，四曰將，五曰法。
© Minder Chen, 2010-2014
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《孫子》始計篇
•道者，令民與上同意，可與之死，可
與之生，而不畏危也。
•天者，陰陽，寒暑，時制也。
•地者，遠近，險易，廣狹，死生也。
•將者，智，信，仁，勇，嚴也。
•法者，曲制，官道，主用也。凡此五者
，將莫不聞，知之者勝，不知者不勝。
© Minder Chen, 2010-2014
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Five Aspects of Comparison
•
•
•
•
•
The first factor is moral influence (the way);
the second, weather (heaven);
the third, terrain (the earth);
the fourth, commander;
and the fifth, doctrine (organization and rules).
宏碁變革以來，不斷強調自建雲是未來發展方向，但說者有心，多
數聽者卻不解，陳俊聖引孫子兵法「道天地將法」作為管理思路，
並解釋，「道」就是領導者建立遊戲規則與願景，讓所有人認同。
「天」為天時，為外在環境變化。「地」為宏碁要處於有利位置，
觀察市場變化。「將」為宏碁上下所有同仁一致努力。「法」為宏
碁內部策略與組織流程。他的種種應對，讓外界見識到這位宏碁新
任執行長的靈活與深度。
全文網址: 宏碁新CEO陳俊聖 祭出「道天地將法」5支箭 | 財經人物 | 財經產業 | 聯合新聞
網 http://udn.com/NEWS/FINANCE/FIN12/8471868.shtml
© Minder Chen, 2010-2014
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Five Factors
• The Moral Law causes the people to be in complete
accord with their ruler, so that they will follow him
regardless of their lives, undismayed by any danger.
• Heaven signifies night and day, cold and heat, times and
seasons.
• Earth comprises distances, great and small; danger and
security; open ground and narrow passes; the chances
of life and death.
• The Commander stands for the virtues of wisdom,
sincerity, benevolence, courage and strictness.
• By method and discipline are to be understood the
marshaling of the army in its proper subdivisions, the
graduations of rank among the officers, the maintenance
of roads by which supplies may reach the army, and the
control of military expenditure.
© Minder Chen, 2010-2014
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黃石公《三略》
Three Strategies by Yellow Stone Master
夫主將之法，務攬英雄之心，賞祿有功，通
志于眾，故與眾同好，靡不成與眾同惡，靡
不傾。治國安家，得人也，亡國破家，失人
也，含氣之類，咸願得其志。
軍讖曰：柔能制剛，弱能制強。柔者，德也。剛者
，賊也。弱者，人之所助。強者，怨之所攻。柔有
所設，剛有所施，弱有所用，強有所加，兼此四者
，而制其宜。
端末未見，人莫能知。天地神明；與物推移。變動
無常，因敵轉化。不為事先，動而輒隨。故能圖制
無疆，扶成天威。康正八極，密定九夷。如此謀者
，為帝王師。 -- http://ctext.org/three-strategies
© Minder Chen, 2010-2014
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5 Factors & 7 Metrics 五經七計
Therefore, in your deliberations, when seeking to
determine the military conditions, let them be made the
basis of a comparison, in this wise:
1.Which of the two sovereigns is imbued with
the Moral law?
2.Which of the two generals has most ability?
3.With whom lie the advantages derived from
Heaven and Earth?
4.On which side is discipline most rigorously 故校之以計，而索
enforced?
其情。曰：主孰有
5.Which army is stronger?
道，將孰有能，天
地孰得，法令孰行
6.On which side are officers and men more
，兵眾孰強，士卒
highly trained?
7.In which army is there the greater constancy 孰練，賞罰孰明，
吾以此知勝負矣。
both in reward and punishment?
© Minder Chen, 2010-2014
http://www.youtube.com/watch?v=2dcAUYozdmI
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The Art of Business
Source: http://zerotimepublishing.com/downloads/excerpt.pdf
© Minder Chen, 2010-2014
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PESTEL Analysis
Political, Economic, Social (Demographic),
Technological, Environmental, and Legal (Ethical)
http://www.strategicmanagementinsight.com/tools/pest-pestelanalysis.html
http://en.wikipedia.org/wiki/PEST_analysis
©2013 Flat World Knowledge, Inc.
© Minder Chen, 2010-2014
37
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Chapter 1:
• By command I mean the general's qualities of
wisdom, sincerity, humanity, courage, and
strictness.  Characteristics of Leadership
• Tu Yu’s comment:
– If wise, a commander is able to recognize changing
circumstances and to act expediently.
– If sincere, his men will have no doubt of the certainty of
rewards and punishments.
– If humane, he loves mankind, sympathizes with others,
and appreciates their industry and toil.
– If courageous, he gains victory by seizing opportunity
without hesitation.
– If strict, his troops are disciplined because they are in
awe of him and are afraid of punishment.
© Minder Chen, 2010-2014
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十一家注孫子 The Art of War with 11 Commentaries
Source: http://ctext.org/library.pl?if=en&res=2585
© Minder Chen, 2010-2014
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Comparative and Competiveness Study
Know the enemy and
know yourself;
in a hundred battles
you will never be in peril.
Vision is the driving force
that utilizes a firm’s
strengths to turn threats
into opportunities.
© Minder Chen, 2010-2014
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SWOT = Strengths, Weaknesses, Opportunities, Threats
© Minder Chen, 2010-2014
Source: http://www.bizstrategies.biz/swot-analysis.html
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Porter’s Competitive Analysis
Source: http://bcs.wiley.com/he-bcs/Books?action=resource&bcsId=4903&itemId=0470343818&resourceId=16146
© Minder Chen, 2010-2014
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Deception 欺敵 (十二詭)
• All warfare is based on deception.
• FUD: Acronym for fear, uncertainty and doubt. It is a marketing
term that is often used to cast a shadow over a competitor's product
when your own is unable to compete. FUD is a technique used by larger
companies who have a large market share. The FUD acronym was first
freely defined by Gene Amdahl after he left IBM to found his own
company, Amdahl Corp, with this statement: "FUD is the fear,
uncertainty, and doubt that IBM sales people instill in the minds of
potential customers who might be considering Amdahl products.”
-- http://www.webopedia.com/TERM/F/FUD.html
• Trust vs. Deception: Is it unethical or even illegal to “cheat”
and lie to your competitors, as well as spy on them?
兵者，詭道也。故能而示之不能，用而示之不用，近而示
之遠，遠而示之近。利而誘之，亂而取之，實而備之，強
而避之，怒而撓之，卑而驕之，佚而勞之，親而離之。攻
其無備，出其不意，此兵家之勝，不可先傳也。
© Minder Chen, 2010-2014
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Gain Relative Superiority 相對優勢
• Divide and conquer (各個擊破)
我專而敵分
• By discovering the enemy's dispositions and
remaining invisible ourselves,
we can keep our forces concentrated,
while the enemy's must be divided. (Chapter 6)
故形人而我無形，則我專而敵分。我專為一，
敵分為十，是以十攻其一也。則我眾而敵寡
，能以眾擊寡，則我之所與戰者，約矣。
© Minder Chen, 2010-2014
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Porter Competitive Strategies
Competitive Advantage
Lower Cost
Differentiation
Broad
Target
Cost
Leadership
Differentiation
Narrow
Target
Cost
Focused
Focus
Differentiation
Product/service
Competitive
Scope
*China Price/Cost
They are the three scariest words in U.S. industry. Cut your price at least 30% or
lose your customers. Nearly every manufacturer is vulnerable -- from furniture to
networking gear. The result: A massive shift in economic power is under way.
http://www.businessweek.com/magazine/content/04_49/b3911401.htm
45
© Minder Chen, 2010-2014
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Strategic and Tactic Principles and Aspects
• Three strategic principles
–
–
–
Commitment (moral influence)
Observation
Preparation
• Six tactic principles
–
–
–
–
–
–
Assessment
Adaptation
Leverage
Deception
Timing
Pace (Speed)
• Three aspects
–
–
–
Individual (Self)
Working group/Corporate level
Competitors
Soruce: Donald G. Krause, The Art of War for Executives, Perigee Trade 2007.
© Minder Chen, 2010-2014
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Chapter 2: Waging War 作戰
• In the operations of war, where there are in the field a
thousand swift chariots, ….the expenditure at home and at
the front… the cost of raising an army of 100,000 men. 
Expensive logistic support, resource-based view strategy
• Thus, though we have heard of stupid haste in war,
cleverness has never been seen associated with long
delays.故兵聞拙速，未睹巧之久也 Speed, quick win
• There is no instance of a country having benefited from
prolonged warfare.夫兵久而國利者，未之有也。 Let your
great objective be victory, not lengthy campaigns.
• Bring war material with you from home, but forage on the
enemy.  Leveraging resources from
partners/competitors. 故智將 務食于敵 (因糧于敵)
• It is only one who is thoroughly acquainted with the evils of
war that can thoroughly understand the profitable way of
carrying it on. 故不盡知用兵之害者，則不能盡知用兵之
利也。
© Minder Chen, 2010-2014
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Value Chain Analysis
© Minder Chen, 2010-2014
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Chapter 3: Attack by Stratagem 謀攻
• In the practical art of war, the best thing of all is to take the
enemy's country whole and intact; to shatter and destroy it
is not so good.  Avoid hostile takeover or price war
• Hence to fight and conquer in all your battles is not
supreme excellence; supreme excellence consists in
breaking the enemy's resistance without fighting. 
Strategy > Diplomacy > Military Deployment > Direct
Fighting
• It is the rule in war, if our forces are ten to the enemy's one,
to surround him; if five to one, to attack him; if twice as
numerous, to divide our army into two [To attack them from
the front and back]. If equally matched, we can offer battle;
if slightly inferior in numbers, we can avoid the enemy; if
quite unequal in every way, we can flee from him.
 If everything else fail, retreat.
(The last stratagem of the 36 stratagems)
© Minder Chen, 2010-2014
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謀攻
•孫子曰：凡用兵之法，全國為上，破國次
之；全旅為上，破旅次之；全卒為上，破
卒次之；全伍為上，破伍次之。是故百戰
百勝，非善之善者也；不戰而屈人之兵，
善之善者也。
•故上兵伐謀，其次伐交，其次伐兵，其下
攻城。攻城之法，為不得已；修櫓轒轀，
具器械，三月而後成；距闉，又三月而後
已；將不勝其忿，而蟻附之，殺士卒三分
之一，而城不拔者，此攻之災也。
Friendly Takeover vs. Hostile Takeover
*Compare “全” with “歼灭战(annihilation)”.
© Minder Chen, 2010-2014
Art of War - 50
The Last Stratagem of the 36 Stratagems
• If everything else fails, retreat (走為上／走为上,
Zǒu wéi shàng)
• If it becomes obvious that your current course
of action will lead to defeat, then retreat and
regroup. When your side is losing, there are
only three choices remaining: surrender,
compromise, or escape. Surrender is complete
defeat, compromise is half defeat, but escape is
not defeat. As long as you are not defeated, you
still have a chance.
• http://www.chinese-wiki.com/36_Strategies
© Minder Chen, 2010-2014
Art of War - 51
Competitive Analysis
• Know yourself and know your enemy; You will
never lose.
• If you know the enemy and know yourself, you need not
fear the result of a hundred battles. If you know yourself
but not the enemy, for every victory gained you will also
suffer a defeat. If you know neither the enemy nor yourself,
you will succumb in every battle.  Competitive
Analysis; Core competence
故曰：知彼知己，百戰不殆；
不知彼而知己，一勝一負；
不知彼，不知己，每戰必敗。
© Minder Chen, 2010-2014
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Chapter 4: Tactical Dispositions 形
• The good fighters in ancient times first put themselves beyond the
possibility of defeat, and then waited for an opportunity of defeating
the enemy. To secure ourselves against defeat lies in our own
hands, but the opportunity of defeating the enemy is provided by
the enemy himself.
• Security against defeat implies defensive tactics; ability to
defeat the enemy means taking the offensive.
• What the ancients called a clever fighter is one who not
only wins, but excels in winning with ease. Hence his
victories bring him neither reputation for wisdom nor credit
for courage. [Prevention is better than cure. An ounce of
prevention is worth a pound of cure.]
• In respect of military method, we have, firstly,
Measurement; secondly, Estimation of quantity; thirdly,
Calculation; fourthly, Balancing of chances; fifthly, Victory.
• The onrush of a conquering force is like the bursting of
pent-up waters into a chasm a thousand fathoms deep. So
much for tactical dispositions.
Art of War - 53
© Minder Chen, 2010-2014
Chapter 4: Tactical Dispositions 形
•孫子曰：昔之善戰者，先為不可勝，以待敵之可勝，不
可勝在己，可勝在敵。故善戰者，能為不可勝，不能使
敵必可勝。故曰：勝可知，而不可為。
•不可勝者，守也；可勝者，攻也。守則不足，攻則有餘
。善守者，藏于九地之下；善攻者，動于九天之上，故
能自保而全勝也。
•見勝，不過眾人之所知，非善之善者也。戰勝，
而天下曰善，非善之善者也。故舉秋毫，不為多力
；見日月，不為明目；聞雷霆，不為聰耳。古之善戰者
，勝于易勝者；故善戰者之勝也，無智名，無勇功
。故其戰勝不忒，不忒者，其措必勝，勝已敗者也。故
善戰者，立于不敗之地，而不失敵之敗也。是故勝兵先
勝，而後求戰；敗兵先戰，而後求勝。
© Minder Chen, 2010-2014
Art of War - 54
Chapter 4: Tactical Dispositions 形
善用兵者，修道而保法，故能為勝敗之政。
兵法：「一曰度，二曰量，三曰數，四曰稱，
五曰勝；地生度，度生量，量生數，數生稱，
稱生勝。」
故勝兵若以鎰稱銖，敗兵若以銖稱鎰。
勝者之戰民也，若決積水于千仞之谿，形也。
*高屋建瓴
© Minder Chen, 2010-2014
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Chapter 5: Energy (Momentum) 勢
• Managing many as managing few through divide and
conquer.  Organized hierarchically
• Fighting with a large army under your command is no
different from fighting with a small one: it is merely a
question of instituting signs and signals (for communication,
control, and coordination).
• To ensure that your whole host may withstand the brunt of
the enemy's attack and remain unshaken — this is effected
by maneuvering direct and indirect (taking turns as a circle).
• That the impact of your army may be like a grindstone
dashed against an egg — this is effected by the science of
weak points and strong.  Relative advantages
孫子曰：凡治眾如治寡，分數是也。
鬥眾如鬥寡，形名是也。
三軍之眾，可使必受敵而無敗者，奇正是也。
兵之所加，如以碬投卵者，虛實是也。
© Minder Chen, 2010-2014
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Chapter 5: Energy (Momentum) 勢
• When torrential water tosses boulders, it is
because of its momentum; when the strike of a
hawk breaks the body of its prey, it is because of
timing. Thus, in battle, a good commander creates
a posture releasing an irresistible and
overwhelming momentum, and his attack is
precisely timed in a quick tempo. The energy is
similar to a fully drawn crossbow; the timing, the
release of the trigger.
激水之疾，至于漂石者，勢也。
鷙鳥之擊，至于毀折者，節也。
是故善戰者，其勢險，其節短，
勢如張弩，節如機發。
© Minder Chen, 2010-2014
Art of War - 57
Energy
• Amid turmoil and tumult of battle, there may be
seeming disorder and yet no real disorder in one's own
troops. In the midst of confusion and chaos, your
troops appear to be milling about in circles, yet it is
proof against defeat.
•紛紛紜紜，鬥亂，而不可亂也。
渾渾沌沌，形圓，而不可敗也。
• Apparent disorder is born of order; apparent
cowardice, of courage; apparent weakness, of
strength. Order or disorder depends on organization
and direction; courage or cowardice on postures;
strength or weakness on dispositions.
•亂生于治，怯生于勇，弱生于強。治亂，數也。
勇怯，勢也。強弱，形也。
Art of War - 58
© Minder Chen, 2010-2014
Rolling a Round Stone on the Mountain Top
故善戰者，求之于勢，不責于人，故能擇人任勢；
任勢者，其戰人也，如轉木石，木石之性，安則靜
，危則動，方則止，圓則行。故善戰人之勢，如轉
圓石于千仞之山者，勢也。
© Minder Chen, 2010-2014
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Use of Energy
• Therefore, a skilled commander sets great store by
using the situation to the best advantage, and
does not make excessive demands on his
subordinates. Hence he is able to select the right
men and exploits the situation.
• He who takes advantage of the situation uses his
men in fighting as rolling logs or rocks. It is the
nature of logs and rocks to stay stationary on the
flat ground, and to roll forward on a slope. If fourcornered, they stop; if round-shaped, they roll.
• Thus, the energy of troops skillfully commanded is
just like the momentum of round rocks quickly
tumbling down from a mountain thousands of feet
in height. This is what “use of energy” means.
© Minder Chen, 2010-2014
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Situation Analysis Framework
Position 位
形
勢
High
Posture
Trends =
Full
Empty
Low
Be careful
at the beginning
© Minder Chen, 2010-2014
Initiate  Grow  Decay
The end is the start of a new
beginning
∆Posture
∆Time
時
Time
Be cautious
at the end
Art of War - 61
Chapter 6: Weakness and Strengths
虛實
• Sun Tzu said: Whoever is first in the field and
awaits the coming of the enemy, will be fresh for
the fight; whoever is second in the field and has to
hasten to battle will arrive exhausted.  First
mover advantage
孫子曰：凡先處戰地而待敵者佚，
後處戰地而趨戰者勞。
• Therefore the clever combatant imposes his will on
the enemy, but does not allow the enemy's will to
be imposed on him.
故善戰者，致人而不致于人。
© Minder Chen, 2010-2014
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Chapter 6: Weakness and Strengths
虛實
• One able to make the enemy come of his own accord
does so by offering him some advantage. And one
able to stop him from coming does so by inflicting
damage on him. Build entry barriers
能使敵人自至者，利之也；能使敵不得至者，害之
也。故敵佚能勞之，飽能飢之，安能動之。
• f the enemy is taking his ease, he can harass him; if
well supplied with food, he can starve him out; if quietly
encamped, he can force him to move.
故敵佚能勞之，飽能飢之，安能動之。
• LaoZi (ch. 28): [When black is known to be
popular, one holds onto (bet on) white.
知其白守其黑
© Minder Chen, 2010-2014
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Chapter 6: Weakness and Strengths 虛實篇
• Now, the laws of military operations are like water. The
tendency of water is to flow from heights to lowlands.
• The law of successful operations is to avoid the
enemy's strength and strike his weakness.  Niche
market
• Water changes its course in accordance with the
contours of the land. The soldier works out his victory
in accordance with the situation of the enemy.
•夫兵形象水，水之形，避高而趨下：
•兵之形，避實而擊虛；
•水因地而制流，兵因敵而制勝。
© Minder Chen, 2010-2014
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Chapter 6: Weakness and Strengths 虛實篇
• Therefore, just as water has no constant shape, so in
warfare there are no constant conditions [and fixed
strategies].
• He who can modify his tactics in accordance with the
enemy situation and thereby succeeds in winning may
be said to be divine.
• Of the five elements, none is ever predominant; of the
four seasons, none lasts forever; of the days, some
are longer and others shorter, and of the moon, it
sometimes waxes and sometimes wanes.
《老子》用兵有言，
•故兵無常勢，水無常形；
吾不敢為主，而為客。
•能因敵變化而取勝，謂之神。 …禍莫大於輕敵。
•故五行無常勝，四時無常位，日有短長，月有死生。
© Minder Chen, 2010-2014
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Egg vs. Stone
Eggs
Troops thrown against the
enemy as a grindstone against
eggs is an example of the
strong beating the weak.
© Minder Chen, 2010-2014
Art of War - 66
Intended, Deliberate, Realized, and Emergent Strategies
故兵無常勢，
水無常形。
能因敵變化而取勝者，
謂之神。
The primary determinant of
realized strategy is
emergent strategy
The decisions that emerge from
the complex processes in which
individual managers interpret the
intended strategy and adapt to
changing external circumstances.
© Minder Chen, 2010-2014
10%~30%
©2013 Flat World Knowledge, Inc.
67
Art of War - 67
Pivoting
轉型
© Minder Chen, 2010-2014
©2013 Flat World Knowledge, Inc.
68
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Chapter 7: Military Maneuvers 軍爭
•孫子曰：凡用兵之法，將受命於君，合軍聚眾，交和而
舍，莫難於軍爭。軍爭之難者，以迂為直，以患為利。
故迂其途，而誘之以利，後人發，先人至，此知迂直之
計者也。故軍爭為利，軍爭為危。
• Sun Tzu says: Normally, in war, the general receives his
commands from the sovereign. During the process from
assembling the troops and mobilizing the people to deploying
the army ready for battle, nothing is more difficult than the art of
maneuvering for seizing favorable positions beforehand. What
is difficult about it is to make the devious route the most direct
and to turn disadvantage to advantage. Thus, forcing the enemy
to deviate and slow down his march by luring him with a bait,
you may set out after he does and arrive at the battlefield before
him. One able to do this shows the knowledge of artifice of
deviation. Thus, both advantage and danger are inherent in
maneuvering for an advantageous position.
© Minder Chen, 2010-2014
Art of War - 69
Chapter 7: Maneuvering 軍爭
故兵以詐立，以利動，以分合為變者也。
• In war, practice deception and move only if there
is a real advantage to be gained.
• Whether to change via concentrating or dividing
your troops, must be decided by circumstances.
• Let your rapidity be that of the wind, your
compactness that of the forest. In raiding and
plundering be like fire, in immovability like
mountain.
•其疾如風、其徐如林、
•侵掠如火、不動如山
• 『風林火山』 (a TV series by NHK)
http://www.youtube.com/watch?v=wA2k0G9Gwo4
© Minder Chen, 2010-2014
Art of War - 70
武田信玄
© Minder Chen, 2010-2014
Art of War - 71
Chapter 7 Maneuvering軍爭
餌兵勿食，歸師勿遏，圍師必闕，窮寇勿迫，此用兵之法
也。
• Do not swallow bait offered by the enemy.
• Do not interfere with an army that is returning home.
• When you surround an army, leave an outlet free. Do
not press a desperate foe too hard.
• Such is the art of warfare.
© Minder Chen, 2010-2014
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Chapter 8: Variation in Tactics 九變
• Hence in the wise leader's plans, 是故智者之慮，必雜于
considerations of advantage and of 利害，雜于利而務可信
disadvantage will be blended
也，雜于害而患可解也
together.
。是故屈諸侯者以害，
• If our expectation of advantage be
役諸侯者以業，趨諸侯
tempered in this way, we may
者以利。
succeed in accomplishing the
essential part of our schemes.
Trade-off
• If, on the other hand, in the midst
of difficulties we are always ready
to seize an advantage, we may
extricate ourselves from
misfortune.
•  Always consider both sides of a
Pros
Cons
tactic or strategy pros and cons
without any bias.
© Minder Chen, 2010-2014
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Chapter 8: Variation in Tactics九變
• The art of war teaches us to rely not on the
likelihood of the enemy's not coming, but on
our own readiness to receive him; not on the
chance of his not attacking, but rather on the
fact that we have made our position
unassailable.
• There are five dangerous faults which may
affect a general:
1.
2.
3.
4.
5.
Recklessness, which leads to destruction;
cowardice, which leads to capture;
a hasty temper, which can be provoked by insults;
a delicacy of honor which is sensitive to shame;
over-solicitude for his men, which exposes him to
worry and trouble.
© Minder Chen, 2010-2014
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Chapter 11: The Nine Situations 九變
• The skillful tactician may be likened to … a
snake…. [When you] strike at its head, and you will
be attacked by its tail; strike at its tail, and you will
be attacked by its head; strike at its middle, and
you will be attacked by head and tail both.
 Agile enterprise, coordination, flexibility
• For the men of Wu and the men of Yüeh [two long
time rivalry countries] are enemies; yet if they are
crossing a river in the same boat and are caught
by a storm, they will come to each other's
assistance just as the left hand helps the right
[hand].  If you can find common interests even
two rivalry parties can work together.
© Minder Chen, 2010-2014
Art of War - 75
Chapter 11: The Nine Situations 九變
故善用兵者，譬如率然；率然者，常山之蛇
也，擊其首，則尾至，擊其尾，則首至，擊
其中，則首尾俱至。
敢問：「兵可使如率然乎？」曰：「可。」
夫吳人與越人相惡也，當其同舟濟而遇風，
其相救也如左右手。是故，方馬埋輪，未足
恃也，齊勇若一，政之道也；剛柔皆得，地
之理也。故善用兵者，攜手若使一人，不得
已也。
© Minder Chen, 2010-2014
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Chapter 11: The Nine Situations 九變
兵之情主速，乘人之不及，
由不虞之道，攻其所不戒也。
• Speed is the essence of war. Take advantage of enemy’s
unpreparedness; travel by unexpected routes and strike
him where he has taken no precautions.
敵人開闔，必亟入之。先其所愛，微與之期，賤墨隨敵，
以決戰爭。
• The doctrine of war is to follow the enemy situation in order
to decide on battle.
是故始如處女，敵人開戶，後如脫兔，敵不及拒。
Therefore at first be shy as a maiden. When the enemy gives
you an opening be swift as a hare and he will be unable to
withstand you. -- Samuel B. Griffith translation
以靜制動，以柔克剛
© Minder Chen, 2010-2014
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Chapter 12: The Attack by Fire 火攻
• 夫戰勝攻取，而不修其攻者凶，命曰費留。
• 故曰：明主慮之，良將修之，非利不動，非得
不用，非危不戰。
• 主不可以怒而興師，將不可以慍而致戰；合于
利而動，不合于利而止。
• 怒可以復喜，慍可以復悅，亡國不可以復存，
死者不可以復生。
• 故明君慎之，良將警之，此安國全軍之道也。
© Minder Chen, 2010-2014
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Exercise Restraint
• Now, to win battles and capture lands and cities, but to fail to
consolidate these achievements is ominous and may be
described as a waste of resources and time. And, therefore, the
enlightened rulers must deliberate upon the plans to go to
battle, and good generals carefully execute them.
• If not in the interests of the state, do not act. If you are not sure
of success, do not use troops. If you are not in danger, do not
fight a battle.
• A sovereign should not launch a war simply out of anger, nor
should a general fight a war simply out of resentment. Take
action if it is to your advantage; cancel the action if it is not. An
angered man can be happy again, just as a resentful one can
feel pleased again, but a state that has perished can never
revive, nor can a dead man be brought back to life.
• Therefore, with regard to the matter of war, the enlightened ruler
is prudent, and the good general is full of caution. Thus, the
state is kept secure and the army preserved.
© Minder Chen, 2010-2014
Art of War - 79
Zhang Liang Picked Up Shoes for the Master of Yellow Stone
© Minder Chen, 2010-2014
Art of War - 80
張良與黃石公
良嘗閒從容步游下邳圯上，有一老父，衣褐，至良所，
直墮其履圯下，顧謂良曰：「孺子，下取履！」良鄂然
，欲毆之。為其老，彊忍，下取履。父曰：「履我！」
良業為取履，因長跪履之。父以足受，笑而去。良殊大
驚，隨目之。父去里所，復還，曰：「孺子可教矣。後
五日平明，與我會此。」良因怪之，跪曰：「諾。」五
日平明，良往。父已先在，怒曰：「與老人期，後，何
也？」去，曰：「後五日早會。」五日雞鳴，良往。父
又先在，復怒曰：「後，何也？」去，曰：「後五日復
早來。」五日，良夜未半往。有頃，父亦來，喜曰：「
當如是。」出一編書，曰：「讀此則為王者師矣。後十
年興。十三年孺子見我濟北，穀城山下黃石即我矣。」
遂去，無他言，不復見。旦日視其書，乃太公兵法也。
良因異之，常習、誦、讀之。
© Minder Chen, 2010-2014
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Business Lessons
© Minder Chen, 2010-2014
Art of War - 82
Winning the Competition
1.
2.
3.
4.
5.
6.
Fight with foreknowledge.
Be invincible.
Attain strategic superiority
Business a cohesive team.
Coordinate momentum and timing for attacks.
Ensure a solid military/organizational
structure.
7. Plan by surprise.
8. Be flexible.
9. Seek knowledge (business intelligence)
constantly.
10. Develop effective internal communication.
© Minder Chen, 2010-2014
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McNeilly's Six Principles Based on Sun Tzu
1. Win all without fighting: Achieving the
objective without destroying it.
2. Avoid strength, attack weakness: Striking
where the enemy is most vulnerable.
3. Deception and foreknowledge: Winning the
information war.
4. Speed and preparation: Moving swiftly to
overcome resistance.
5. Shaping the enemy: Preparing the battlefield.
6. Character-based leadership: leading by
example.
Source: http://www.suntzu1.com/content/six_principles_from_the_art_of_modern_warfare/
© Minder Chen, 2010-2014
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Sun Tzu’s The Art of War Model
Situation Appraisal
Formulation of Goals
and Strategies
Evaluation of Strategies
Implementation of
Strategies
Strategic Controls
© Minder Chen, 2010-2014
Chow Hou Wee, Khai Sheang Lee,
Bambang Walujo Hidajat, Sun Tzu: War
and Management : Application to
Strategic Management and Thinking,
Addison-Wesley, 1996.
Art of War - 85
Situation Appraisal
• Assessing self and enemy
–
–
–
–
–
Employee morals
Environmental factors
Location advantages
Capability of management teams
Management systems (rewards and punishment) and
business processes
• Desirability of War
– As a last resort; Achieve definite advantages via
relative superiority, and invincibility through defense
– Yes  Prepare for the War: Goals and strategies,
resources and logistic management
– No  See non-military alternatives: Strengthen defense
and consolidate resources
© Minder Chen, 2010-2014
Art of War - 86
Strategy Implementation
Natural resources
Chow Hou Wee, Khai Sheang Lee, Bambang
Walujo Hidajat, Sun Tzu: War and Management :
Application to Strategic Management and
Thinking, Addison-Wesley, 1996.
© Minder Chen, 2010-2014
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