Lecture 6

UBMM1011
Sun Zi’s Art of War and Business
Strategies

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 Chapters
1. Detailed Assessment and Planning ( 始计 )
2. Waging War ( 作战 )
3. Strategic Attack ( 谋攻 )
4. Disposition of the Army ( 军行 )
5. Forces ( 兵势 )
6. Weaknesses and Strengths ( 虚实 )
7. Military Maneuvers ( 军争 )
8. Variations and Adaptability ( 九变 )
9. Movement and Development of Troops ( 行军 )
10. Terrain ( 地形 )
11. The Nine Battlegrounds ( 九地 )
12. Attacking with Fire ( 火攻 )
13. Intelligence and Espionage ( 用间 )

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 Chapter 10: Terrain ( 地形 )

Chapter Outline
• 6 kinds of ground
• 6 calamities of army
• Treatment of troops
• Business application:
 Importance of SWOT analysis
 Business location

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 Six Kinds of Ground
1. Communicative ground 
- Plenty of roads and means of communication to the area.
Accessible from all sides. It is better to occupy the high ground
where a continuous flow of supplies will help to win the battle.
2. Entrapping ground 
- An area that is easy to enter but difficult to retreat from is not an
ideal area to camp in case the enemy blocks the escape route.
But it can be very useful for a sudden attack when the enemy is
unprepared.

3. Indifferent ground  
- Not an ideal place to conduct a battle, unless one manages to
trick the enemy into the area, waiting until half of them have
entered then attack with full force to win the battle.
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 Six Kinds of Ground
4. Constricted ground
- Occupying the entrance to the pass will lead to victory. Never
attack when the enemy occupies the entrance. But you may
have a chance to win if you attack before the enemy has
reached there.
5. Key ground
- It is vital to occupy the top of this terrain but withdraw if the
enemy is there first.
6. Distant ground 
- It is difficult to win the battle if the enemy is within sight and both
armies are of equal strength.

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 Six Calamities
1. Flight
- If both armies are of equal strength, but
one army is scattered around the arena,
and the odds are less than 1 to 5, then it
is better to escape to fight. Avoid strong
enemy.
2. Insubordination I
- A good army with weak officers will lead
to a no win situation.
3. Collapse
- Good officers with an undisciplined army
will lead to collapse.

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 Six Calamities
4. Ruin
- Humble and total obedience of senior
officers is vital, else the whole
structure of the army will fall into
disarray.
5. Disorganization
- Indiscipline in the ranks will lead to the
ruin of the whole company.
6. Rout
- If the general is not able to assess the
situation thoroughly, attacking when
his unit is weak will inevitably lead to
defeat.
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 Treatment of Troops
• When the general regards his troops as infants, the will
be willing to follow him through the greatest threats and
gravest dangers.
• When the general treats his troops like beloved sons,
they will be willing to support and die with him.
• An army may be so overly pampered (by the general)
that it cannot be useful, so excessive loved that it cannot
be commanded and so disorderly that it cannot be
disciplined.

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 Winning War
• Using terrain is a part of the tactics necessary to win the
battle. 
• Calculates thoroughly regarding situation, distances,
dangers, difficulties, army capabilities, enemy capabilities etc.
• Don't fight if battle cannot be won.
• During the heat of battle, a sovereign order (e.g. order to
retreat if this is a sure win) needs to be shelved for the time.

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 A Good General
• Knows to fight for the cause rather than for fame.
• Will take full responsibility for any action taken.
• Always put good of his country first. 
• For victory in any battle, the General MUST KNOW:
– Enemy & his self.

– The seasons of heaven.

– The natural advantages of earth.

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 Summary
• Terrain (topography) = Fixed ground to
compete
• This chapter, terrain, looks at the THREE general areas
of resistance (distance, dangers, and barriers) and the
SIX types of ground positions that arise from them.
Each of these six field positions offer certain advantages
and disadvantages.

You need to be aware of the terrain and its affect on

your soldiers, as well as the enemy. A good general will
avoid calamities and take advantage of the terrain.
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BUSINESS APPLICATION

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 Business Application

• In business, company has to overcome these 3

primary obstacles:
– Environment,
– Competitors,
– Consumers.

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 Business Application
• SWOT analysis can provide multiple benefits to
business:
– Insight into where your business can focus to grow.
– Focus your advertising and marketing on areas that give you a
competitive advantage in the marketplace.
– The foresight to see looming threats and react proactively.
– Chose a suitable location to set up a business.
– Assist company to strategize according to changes in business
environment
– Help company to overcome weaknesses & threats
– Maximize sales, profit, customer’s confidence & trust, retain
employment, expand etc…

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 Business Location
• Typically, businesses will seek locations that can
maximize revenues and minimize costs of production.
– High revenue - Low cost = High profit.
– Low cost = low labor costs etc.

• The nature of the business will influence location

decisions:
– Type and nature of market
– Type of business – production of goods or services, retail,
wholesale????
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 Choosing A Business Location
1. Closeness to market.
- i.e. fresh product such as bread, many supermarkets operate their own
bakeries, shopping complex in busy city.
2. Communications & transportation links to support the access to
markets.
3. Closeness to raw materials.
- i.e. steel company, which uses large quantities of iron ore in the
production process. A coal mine has to be near a source of coal but
transporting the coal to where it is needed can be expensive
4. Availability of skilled employees. Some industries rely heavily on
a highly skilled workforce.
- However, other industries that require cheap labor will seek locations
where there are a lot of people looking for work that are prepared to
accept low wages.
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 Choosing A Business Location
5. Opportunity for waste disposal. 
- Firms that produce a lot of toxic material (e.g. some chemical
plants) will seek to locate where there are facilities available
for recycling and safe disposal of their products.

6. Availability of land.
- Land is becoming increasingly scarce particularly in urban
locations, forcing rental prices up.

7. Government incentives.
- (i.e. Malaysian government set up Free Trade Zone such as Sg
Way Free Trade Zone)

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 Lecture 6

UBMM1011
Sun Zi’s Art of War and Business
Strategies

18
 Chapters
1. Detailed Assessment and Planning ( 始计 )
2. Waging War ( 作战 )
3. Strategic Attack ( 谋攻 )
4. Disposition of the Army ( 军行 )
5. Forces ( 兵势 )
6. Weaknesses and Strengths ( 虚实 )
7. Military Maneuvers ( 军争 )
8. Variations and Adaptability ( 九变 )
9. Movement and Development of Troops ( 行军 )
10. Terrain ( 地形 )
11. The Nine Battlegrounds ( 九地 )
12. Attacking with Fire ( 火攻 )
13. Intelligence and Espionage ( 用间 )

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 Chapter 11
The Nine Battlegrounds ( 九地 )

Chapter Outline
• Matching strategies with group characteristics
• Principles governing military campaigns
• Business application:
– Winning factors in competition

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 Matching Strategies With
Group Characteristics
1. Dispersive Ground 
Fighting in one's own territory. 
Action:- Not to fight.
2. Frontier Ground 
Fighting in enemy's ground but near to our own territory.
Action:- Do not stop and continue to fight and advance into
enemy territory.
3. Key Ground  
Ground which have great advantages to both sides.
Action:- Do not attack if enemy already occupies the ground.

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 Matching Strategies With
Group Characteristics
4. Communicative Ground 
Either side has freedom of movement in this ground. 
Action:- Ensure that your forces are not separated.
5. Focal Ground
Ground forms the key to three neighboring states. Those
who occupy one state will also control the rest. 
Action:- Form alliance with neighboring states.
6. Serious Ground 
When army penetrates into the heart of a hostile country,
leaving a number of fortified cities behind. 
Action:- forage on supplies and resources of the enemy.

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 Matching Strategies With
Group Characteristics
7. Treacherous Ground   
Marshes, fens, rugged slopes, mountains or forests all are
difficult to traverse. 
Action:- Do not en-camp in this area.
8. Constricted Ground
Ground which is reached via narrow gorges and pathways.
Action: - Plan and strategize.
9. Deadly Ground
An area which one can only survive through fearless fighting
and will definitely perish if one does not fight relentlessly.
Action:- Fight relentlessly.

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Afghanistan has one of greatest concentrations of landmines in
the world. It is estimated that approximately 10 million landmines
and unexploded ordnance contaminate the landscape.

 The UN Mine Clearance

Programme in cooperation with
eight NGOs, includes 50 de-mining
teams and 10 mine dog groups, as
well as male and female mine
awareness teams, staffed by some
3,000 Afghans.
 By the end of 1996 some 158.8
square kilometres were cleared and
300,000 mines destroyed.
 Due to continuing hostilities,
however, several de-mined areas
have been re-mined.

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 Booby Traps…

• The Vietcong frequently used booby traps.

• They would salvage just about anything including US
materials, to build the traps and then carefully conceal
them.
• The traps could be made of anything from explosives to
being hidden pits with stakes in them (known as punji
pits).
• Hand grenades or other explosives would be attached to
trip wires and wicker baskets filled with clay and laced
throughout with sharp bamboo sticks, would swing down
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from the trees, killing a soldier immediately.
Principles Governing Military Campaigns

• Rapid military maneuvers should

resemble to the movements of a
snake:
•
(1)  Strike its head, tail attack.
(2) Strike its tail, head attack.
(3)  Strike its middle; head and
tail will attack together.

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 Principles Governing Military Campaigns
• Before battle begins
– (1) Alliance with neighboring countries is a must.
– (2) Familiarize with the enemy's terrain.
– (3) Use local guides to help maneuvering.

• Speedily winning the battle

– The battle will be won when the enemy does not expect the time
and location of the first attack.
– Just like the coyness of a maiden, wait until the enemy opens
the door; then move like a rapid running hare, and it will be too
late for the enemy to engage in combat.

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 Summary

• The NINE battlegrounds describe NINE common

situations (or stages) in a campaign, from scattering to
deadly, and the specific focus you need to successfully
navigate each of them.

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BUSINESS APPLICATION

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Each of NINE terrains demands
a specific form of response.
When defending against specific competitors, you must try to
divide their focus, resources an positions.
1. Avoid dissipating stage by distracting the competition.
2. During easy stage, you must keep moving.
3. During contentious stage, avoid tempting new markets.
4. In open stage, keep up with your competitors.
5. In shared stage, make partnership.
6. In serious stage, concentrate on generating income.
7. In difficult stage, press forward
8. In limited stage, must do the unexpected.
9. In desperate stage, use everything you have.
-Gary Gagliardi
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Each of NINE terrains demands
a specific form of response.
• The key to moving forward quickly is to instantly recognizing
and reacting to difficult situations as they arise.

• Business people should train themselves to instantly

recognize these situations and to respond.

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TREACHEROUS GROUND : 

DIFFICULT TO TRAVERSE. 

ACTION  DO NOT ENCAMP IN THIS AREA.

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 New Business Opportunities: e-book

• E-book?

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Winning Factors In Competition

Location

Understand
customer’s
Winning Quick
wants & needs
Factors Responses
& theirs unmet
needs

Flexible
policies,
rules ...etc.

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 Winning Factors as Entrepreneurs

• You must think competitively.

• You need to develop quick reflexes.

• You must respond to situations automatically.

• You must be able to act on instinct.

-Gary Gagliardi
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The End

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