ATENEO DE DAVAO UNIVERSITY

Jacinto St., Davao City

MASTERS IN BUSINESS ADMINISTRATION

STRATEGIC MANAGEMENT

Book Critique on Sun Tzu’s

The Art of War

Submitted to:

PROF. STEPHEN ANTIG

Submitted by:

NEIL JONATHAN D. NADUA

 Sun Tzu’s the Art of War is basically about strategy in competition and implemented in a

military perspective. Although these strategies in the military perspective, we can always translate

and apply most of its ideas to management decision-making tool. This book is very informative,

educational, instructive to the detail and quite helpful in formulating my own strategies.

The first chapter introduces the five key elements that define the competitive position,

which is the mission, climate, ground, command, and method. It explains how to gauge your

competitive strengths and advantages against those of your competition. The chapter ends with the

idea that the difference between objective and subjective information is one of the leverage points

for the working of his strategic system. This chapter basically calls leaders to do a SWOT analysis

to asses and be aware of your capabilities and surroundings, adjust your plans to suit your resources

and track or monitor your operations against possible threats.

The second chapter focuses on the economic nature of the competition, the importance of

decisive behavior, and the correct timing. This chapter explains how success requires planning and

preventing overextension of one’s resources. The main takeaway for decision makers is about

choosing our battles that is the least costly. This can be easily translated in choosing advertising

campaigns for marketers, which is to be short, effective and least costly and not those long drawn-

out campaigns.

The third chapter defines the nature of strength with and that what Sun Tzu meant about

the word “attack,” he meant moving into new territory. This tells us that we must exploit or expand

your existing position in order to survive. In other words, this chapter suggests that in a business

environment to avoid competition head on and avoid using resources directly against competitors

by being the first to market or innovate product, processes or be the first to secure the marketplace.

My main takeaway from this chapter is that being an indecisive leader, who does not exploit

opportunities, who has poor management skills and who does not communicate your goals clearly

to your organization can result in an improper use of resources and the downfall of your business.

The fourth chapter emphasizes on how we should use secure and consolidate the resources

you have and use them effectively. Basically, this chapter tells us to be efficient and have
insurances before embarking on anything new or risky.

The fifth chapter explores the drivers for all human endeavors: imagination. Sun Tzu

encourages us to be not so obvious to accomplish your mission. One of the tips in winning a battle

is the element of surprise. You can win a battle by masking your true strength when trying to outwit

your opponent or using bait to draw the opponent true intentions and positions. Lastly, he suggests

us to not rely on one person but instead focuses on the discipline and unity of your team.

The sixth chapter teaches us how to spot that the best opportunities, how to spot weaknesses

in your opponent and how to position yourself in the most advantageous way. In a business setting,

this chapter gives advice like taking risks rather than playing catch up because you could lose more

resources, like Kodak for example. At first, they were the number one brand for cameras and they

didn’t invest and took enough risk to innovate that other competitors were able to establish their

position in the market as the new leaders of DSLRs. Moreover, this chapter teaches us, business

leaders, to be aware of your competitor’s weak points, expose them and hasten to do better in these

areas. Additionally, this chapter also tells us to be aware of your competitive advantage, to make

it hard for your competitors to guess your next move, to focus on your core competencies and to

make sure you research accurate moment when to activate your plans. My favorite line in chapter

six is “Do not repeat the tactics which have gained you one victory, but let your methods be

regulated by the infinite variety of circumstances.”

Though the seventh chapter explains the dangers of direct conflict. Although conflict is

best avoided, it cannot always be avoided according to Sun Tzu. He also sees conflict as a

possibility. To emerge unscathed and maximize your tactical advantage in those situations, you

must understand maintain harmonious relationships between all levels of your organization and

ensure the “spoils” of war, make sure you have good local knowledge of your area or market to

know when your competition operates during their peak strength or attack during their downtime.

The eight chapter presents the idea that good tactics also mean knowing what not to do. In

a business environment, this means knowing what markets that are not worth pursuing, contracts

and alliances that are not good for your business. In a business setting, this chapter explains about
being mindful of all your stakeholders in any action you take.

The ninth chapter describes the diverse circumstances in which you will yourselves as you

move into new competitive grounds. A great leader has the ability to read the signs around him,

track history and be alert to sudden changes by inferring future circumstances.

The tenth chapter teaches us how we should position ourselves may result in an assorted

number of advantages or disadvantages. Sun Tzu describes the types of geographical terrain and

prescribes the best position to take. What he means is to to have a clear view of the endgame.

The eleventh chapter describes nine common situations (or stages) in a competitive

campaign and the recognition and response required in each. These nine situations can be generally

grouped into early, middle, and late-stage conditions, and they range from scattering to deadly. In

each of these situations, there is one and only one appropriate response.

The twelfth discusses environmental attacks and responses. As the most lethal form of

destruction in Sun Tzu's era. The chapter examines the five targets for attack, the five types of

environmental attacks, and the appropriate responses to such attacks. In a business environment,

this can be translated as strategies to offensively subdue competition. For example, demoralize

your competitor's personnel, cut your competitor’s logistics and key suppliers by getting these

accounts, attack your competitor’s cash cow and sources of revenue or attack their operations. By

doing these strategies, just make sure you don’t get caught up in the fire.

The final chapter focuses on information gathering. It specifically teaches us the value and

strategies for developing good information sources. Sun Tzu teaches us that all wars are

information wars. In any business setting, information is a vital element in making or

recommending our strategies to attain the desired goal.

In summary, this book is very concise, poetic and helpful. Even though the book was

written thousands of years ago, the book continues to be applicable in different eras, stages,

settings, and everyday life, most especially in making business strategies and decisions.