UBMM1011

Sun Zi’s Art of War & Business

Strategies
About the Unit UBMM1011
 UBMM1011 Sun Zi’s Art of War & Business
Strategies.
 1 credit hour.
 14 hours of lecture only.
 Attendance is compulsory unless you have reasons
for leave.
 The final assessment is by group assignment (min. 4
and max. 6 to a group).
 Submit your groups to me next week.
Introduction
 Sun Zi Art of War has 13 chapters.
 It was written by a Chinese philosopher by the name
of Sun Wu. As he is considered as a master so he
was called Sun Zi. So Confucius is also known as
Kung Zi.
 It was presented as a gift to Emperor He Lu of the
Wu kingdom during the Spring and Autumn Period.
 Apart from Chapter 1 that focuses on grand
strategies, most of the strategies discussed focus on
operations strategies of war.
Chapter 1 Detailed Assessment &
Planning
 Chapter 1 has 51 lines.
 Thorough analysis before war
 5 factors and 7 considerations
 War is about deception.
Sun Zi Chapter 1
 Sun Zi said: The conduct of war is a matter of
vital importance to the nation.
 It determines the survival or death of the country.
 It is a matter of life and death (of the people and
their ruler).
 It must be studied and examined thoroughly.
 Thus, analyze and study the five factors
carefully.
 Compare them against (those of the enemy) so as
to understand the changing conditions and
circumstances (of war) and to assess the chances
of victory.
 These five factors are moral influence, the
weather, terrain, generalship, and doctrine and
law.
 Moral influence refers to measures and policies that align
the people with the sovereign so as to be in complete
agreement and harmony with each other.
 In this way, the people will be prepared to co-exist with as
well as die for the sovereign without any fear of dangers.
 Weather refers to the contrasting changes of night and day,
the coldness of winter and the heat of summer, and
seasonal changes.
 Terrain refers to whether the route to be taken is long or
short, whether the ground is treacherous or safe, wide or
narrow with regard to ease of movement, and whether the
ground will determine the death or survival (of an army).
 The generalship of a commander refers to his
qualities of wisdom, trustworthiness,
benevolence, courage and discipline.
 Doctrine and law refer to organization and
control, management systems and procedures,
and the command and control structure for the
deployment of resources.
 Every general must know these five factors.
 Those who can master them will win.
 Those who do not understand them will not win.
 Thus, in planning, there are (seven) dimensions which a
general must analyze and compare with those of the
enemy so as to understand the changing conditions and
situations during war and assess the chances of victory.
 Thus, which ruler has greater moral influence?
 Which general is more able and has greater abilities and
skills?
 Which side (army) is able to better exploit the weather
and terrain?
 Which side (army)is able to execute and implement law
and order more effectively?
 Which side (army) has more and stronger troops?
 Which side (army) has better trained officers and
men?
 Which side (army) is more enlightened in the
administration of rewards and punishments?
 From these (seven) dimensions, I will be able to
diagnose and predict victory and defeat.
 The general who adopts my strategies and plans
will win when he is deployed (for battle); he
should be retained.
 The general who does not adopt my strategies
and plans will be defeated when he is deployed
(for battle); he should be removed.
 Besides adopting the effective proposed plans
and strategies, the general must create and take
advantage of situations that are beyond the
normal rules of military engagement.
 Creating situations demands that one (the
general) must act advantageously so as to control
the balance of power.
 All warfare is based on the principle of deception.
 Thus, when you are capable, feign that you are incapable.
 When you are able to deploy your forces, feign that you
are unable to do so.
 When you are near the objective, feign that you are far
away; and when you are far away from the objective,
feign that you are near.
 When the enemy is greedy for small advantages, offer
baits to lure him.
 When the enemy is in a state of chaos and disorder,
launch an attack and capture him.
 When the enemy is strong and effective, be well-
prepared and ready to confront him.
 When the enemy is far superior and highly ferocious, it is
best to avoid him.
 When the enemy is easily angered, seek ways to provoke
and irritate him.
 When the enemy has a low opinion of you, encourage his
arrogance even more.
 When the enemy is well rested, use methods to tire him.
 When the enemy is in harmony and united, use schemes
to divide him (and his troops).
 Attack the enemy when he is not prepared.
 Move, appear and strike at areas where the enemy least
expects you.
 These are the secrets and principles for winning wars.
 However, they cannot be discussed, decided nor divulged
beforehand.
 Thus, those who carry out planning in the temple prior to
the outbreak of war will win if the plans are thorough
and detailed.
 Those who carry out planning in the temple prior to the
outbreak of war will not win if the plans are neither
thorough nor detailed.
 With thorough and detailed planning, one can
win.
 With less thorough or detailed planning, one
cannot win.
 How much more certain is defeat when one does
not plan at all!
 By observing how planning is done, I can predict
victory and defeat.
Commentary & Discussions
 Professor Wee outlines  Michaelson outlines
Chapter 1 into 3 broad Chapter 1 also into 3
headings: broad headings:
 Need for detailed planning  Thoroughly assess
(L1-L29) conditions (L1-L16)
 Deception as a tool to  Compare attributes (L17-
create advantage (L30- L27)
L33)  Look for strategic turns
 Strategies against the (L28-L51)
enemy (L34-L51)
 Moral influence  Spirit of mission
 Weather  Outside forces
 Terrain  Marketplace
 Commander  Leadership
 Doctrine  Guiding principles
Business Application
 Importance and elements of planning and in
our case strategic planning
 SWOT analysis
How Boeing is going to compete and
win Airbus?
 SWOT analysis
 The 787 Dreamliner
 Change the game.
The 787 Dreamliner Story
 The Boeing 787 was offered for
bookings in March 2003.
 It is the all new mid-sized airplane
since the Boeing 777.
 While the airlines were expecting a
jumbo-jet competitor for the Airbus
380, the Boeing management thought
the market for jumbo-jets was limited
to 1000 airplanes for the next 20
years.
 Air travel will still operate based on
the spoke-to-hub. However, in the
near future when most airport hubs
such as Changi Airport in Singapore
and Heathrow Airport in London
become congested, airlines will fly
point-to-point. Then there will be
more direct flights airport-to-airport.
The 787 Dreamliner Story
 In such case, the number of passengers per flight will not
be many and it does not need big airplanes such as the
A380. Mid-size airplanes will be needed and at the same
time those airplanes must have the range to fly long haul.
Routes such as Sidney-New York, Singapore-Canada are
examples. As there will be more direct flight, more of these
mid-size aircrafts will be needed. Boeing estimates the
demand for these airplanes to be 8,000 for the next 20
years.
 The Boeing 787 was offered to the world airlines with these
selling points: Use 20% less fuel than competitors in the
same size, can fly long range up to 15,000 km, new
technology for new flying experience.
 The Boeing 787 was offered in 3 configurations: 787-3,
787-8, and 787-9
 787-10 will be offered for bookings in 2010
 By July 2007 just before the first roll-out (8 July 2007),
there are 645 bookings from 40 airlines all over the world.
 Boeing appeared to have studied the air travel industry
correctly.
The major parts of the 787
 The 787 is to be made of mostly
composite material (a type of new
technology plastic).
 The main structure of the 787
comprises 7 major parts: The nose,
forward fuselage, centre fuselage,
aft fuselage, the wings, the
horizontal stabilizers, and the tail
fin.
 All the major parts are made of
composite material. This is because
the material is lighter and stronger
than aluminium.
 These parts are made in many
different countries: US, Japan, Italy,
Who make the parts for 787?
The logistics plan for the major
parts
The Dreamlifter is the Enabler
 Because the parts are made
in several different, far-
flung locations,
transportation is needed to
move these large pieces to
the Everett assembly plant.
 It is not fast and efficient
enough to transport these
parts with cargo ships or
trains.
 The decision came down to
the Dreamliner, a converted
747.
The painted Dreamlifter
 The Dreamlifter is a
converted 747 with the
space large enough to
transport the big sections
of the 787 to the Boeing
Everett assembly site.
 Until it is named
Dreamlifter, it was aptly
called B-U-F (Big Ugly
Fellow). It literally looks
like a whale with wings.
Dreamlifter operations
The first nose completed
The aft fuselage (Section 47 & 48)
Arrival of the fuselage sections
The wings delivered from Japan
The first assembly of the 787
 With the delivery of the
middle fuselages from
Charleston, the first
assembly of the 787
started.
 Boeing opened up the 787
Dreamliner assembly bay
in Everett to journalists on
21 May 2007.
 It is a new method of
building airplanes.
The first assembly of the 787
Just behind the main aircraft
assembly position, the two
horizontal tailpieces of the
first Dreamliner are
assembled separately.
When ready, they are put
into the big holding fixture
called MOATT – Mother
of All Tooling Towers –
where they’ll be joined to
the aft fuselage.
Another shot of the first assembly
The wings attached to central
fuselage
The first 787 roll-out after a month
The first 787 roll-out
 The first 787 completely
assembled and rolled out
from the assembly site to
be painted on 26 June
2007
 The official first preview
of the new Boeing 787
is scheduled to be on 8
July 2007 (7-8-07,
American dating)
Something went wrong ……..
 The first delivery was supposed to All Nippon
Airlines to carry passengers for the Beijing
Olympics 2008.
 The game changing plane was delayed by 2
years.
 Building the plane in an entirely new way is
challenging. They faced shortage of materials,
the suppliers were not able to keep up, their
workers went on strike for 3 months, etc.
So the competitive forces changing
again.
 So Airbus now has a chance with their new
350 XWB.
 They have 350 of the plane on order to be
delivered by 2013.
 But who knows, that plane may also be
delayed?
 Then, by then the game changes again?
 SO PLAN PROPERLY.
Finally…..
 Sun Zi said: The conduct of war is a matter of
vital importance to the nation.
 It determines the survival or death of the country.
 It is a matter of life and death (of the people and
their ruler).
 It must be studied and examined thoroughly.