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22 PART 1 • OVERVIEW OF STRATEGIC MANAGEMENT

environment and competitive conditions dictate the need to change. Gluck offered a classic
military example of this:
When Napoleon won, it was because his opponents were committed to the strategy,
tactics, and organization of earlier wars. When he lost—against Wellington, the
Russians, and the Spaniards—it was because he, in turn, used tried-and-true strategies
against enemies who thought afresh, who were developing the strategies not of the
last war but of the next. 23

Similarities can be construed from Sun Tzu’s writings to the practice of formulating
and implementing strategies among businesses today. Table 1-4 provides narrative

TABLE 1-4 Excerpts from Sun Tzu’s The Art of War Writings

• War is a matter of vital importance to the state: a matter of life or death, the road either to survival or ruin. Hence, it is imperative
that it be studied thoroughly.
• Warfare is based on deception. When near the enemy, make it seem that you are far away; when far away, make it seem that
you are near. Hold out baits to lure the enemy. Strike the enemy when he is in disorder. Avoid the enemy when he is stronger.
If your opponent is of choleric temper, try to irritate him. If he is arrogant, try to encourage his egotism. If enemy troops are well
prepared after reorganization, try to wear them down. If they are united, try to sow dissension among them. Attack the enemy
where he is unprepared, and appear where you are not expected. These are the keys to victory for a strategist. It is not possible
to formulate them in detail beforehand.
• A speedy victory is the main object in war. If this is long in coming, weapons are blunted and morale depressed. When the army
engages in protracted campaigns, the resources of the state will fall short. Thus, while we have heard of stupid haste in war, we
have not yet seen a clever operation that was prolonged.
• Generally, in war the best policy is to take a state intact; to ruin it is inferior to this. To capture the enemy’s entire army is better
than to destroy it; to take intact a regiment, a company, or a squad is better than to destroy it. For to win one hundred victories in
one hundred battles is not the acme of skill. To subdue the enemy without fighting is the supreme excellence. Those skilled in war
subdue the enemy’s army without battle.
• The art of using troops is this: When ten to the enemy’s one, surround him. When five times his strength, attack him. If double his
strength, divide him. If equally matched, you may engage him with some good plan. If weaker, be capable of withdrawing. And
if in all respects unequal, be capable of eluding him.
• Know your enemy and know yourself, and in a hundred battles you will never be defeated. When you are ignorant of the enemy
but know yourself, your chances of winning or losing are equal. If ignorant both of your enemy and of yourself, you are sure to
be defeated in every battle.
• He who occupies the field of battle first and awaits his enemy is at ease, and he who comes later to the scene and rushes into the
fight is weary. And therefore, those skilled in war bring the enemy to the field of battle and are not brought there by him. Thus,
when the enemy is at ease, be able to tire him; when well fed, be able to starve him; when at rest, be able to make him move.
• Analyze the enemy’s plans so that you will know his shortcomings as well as his strong points. Agitate him to ascertain the
pattern of his movement. Lure him out to reveal his dispositions and to ascertain his position. Launch a probing attack to learn
where his strength is abundant and where deficient. It is according to the situation that plans are laid for victory, but the
multitude does not comprehend this.
• An army may be likened to water, for just as flowing water avoids the heights and hastens to the lowlands, so an army should
avoid strength and strike weakness. And as water shapes its flow in accordance with the ground, so an army manages its victory
in accordance with the situation of the enemy. And as water has no constant form, there are in warfare no constant conditions.
Thus, one able to win the victory by modifying his tactics in accordance with the enemy situation may be said to be divine.
• If you decide to go into battle, do not anounce your intentions or plans. Project “business as usual.”
• Unskilled leaders work out their conflicts in courtrooms and battlefields. Brilliant strategists rarely go to battle or to court; they
generally achieve their objectives through tactical positioning well in advance of any confrontation.
• When you do decide to challenge another company (or army), much calculating, estimating, analyzing, and positioning bring
triumph. Little computation brings defeat.
• Skillful leaders do not let a strategy inhibit creative counter-movement. Nor should commands from those at a distance interfere
with spontaneous maneuvering in the immediate situation.
• When a decisive advantage is gained over a rival, skillful leaders do not press on. They hold their position and give their rivals
the opportunity to surrender or merge. They do not allow their forces to be damaged by those who have nothing to lose.
• Brillant strategists forge ahead with illusion, obscuring the area(s) of major confrontation, so that opponents divide their forces
in an attempt to defend many areas. Create the appearance of confusion, fear, or vulnerability so the opponent is helplessly drawn
toward this illusion of advantage.
(Note: Substitute the words strategy or strategic planning for war or warfare)
Source: Based on The Art of War and from www.ccs.neu.edu/home/thigpen/html/art_of_war.html