CHAPTER 2

WAGING WAR ( 作战 zuò zhàn)

• The high costs of waging war
• Losing by default
• Strategies to end wars quickly
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 )
 The High Costs Of Waging War
• 2.1 Sun Zi said: As a general rule, for military
campaign, one would need 1,000 speedy
four-horse chariots, 1,000 heavy wagons,
and 100,000 fully equipped and combat-
ready soldiers.
• 2.2 Food and supplies will have to be
transported for 1,000 miles.
• 2.4 The expenses incurred will amount 1000
pieces gold daily.
 The High Costs Of Waging War
• 2.3 There is a need to provide for expenses
incurred at home and at the battlefront; for
the entertaining of guests, visitors, advisors
and emissaries; for procuring of materials and
supplies such as glue and paint; and for
maintaining the armament, chariots and
troops.
Business Application
 Business Resources
• Tools, Space, Locations
• Personnel (Qualification, In-house or Sub-con)
• Equipment (Lease or Buy)
• Licenses, Intellectual Property
• Supplies (Components, Assemblies)
• Financial Requirements
• Invest adequate resources so the operation can be
sustained.

• Often, business failures are accompanied by an

announcement that the company ran out of capital
before it could generate enough business to be
profitable.

• Adequate resource is critical, especially for those

start-up companies. Why?
– They do not have the base of loyal customers that
sustains mature business in an economic downturn.
Losing By Default
“In war, it is better to go for swift victories
rather than engage in prolonged military
campaigns.” 2.36
 Losing By Default
• 2.10 When military weapons are blunt, the morale of the troops
is low, the army very exhausted and supplies of the state are
depleted, the neighbouring warlords will capitalize on such
misfortunes and vulnerabilities by launching attack (against you).
• 2.11 Thus, even if there are capable and wise strategists (and
advisors), they will not be able to deal with the inevitable
consequences.
• 2.12 While blunders are known to occur when military operations
are conducted swiftly, one has yet to witness a skillful military
operations where there are long delays.
• 2.13 There has never been a case where a nation has gained from
protracted military operations.
 Consequences Of Protracted War
• Soldiers:
– Weapons are blunt
– Morale (motivation) is low
– Exhausted
• Long-distance transportation:
– Impoverish people
– Prices are high around the location of the army
• Wealth of ordinary people eroded (-70%)
• Public assets (-60%)
– Harsher tolls and taxes
– Household – empty provisions
 Strategies To End Wars Quickly
• 2.16 Military weapons and equipment should be
obtained from the home country while food and
provisions should be obtained from the enemy.
• 2.28 Consuming one cartload of provisions of
the enemy is tantamount to twenty cartloads of
your own.
• 2.29 Similarly, consuming one picul of the
enemy’s fodder is tantamount to twenty piculs
of your own.
 Strategies To End Wars Quickly
• 2.30 In order to kill the enemy, the troops must hate him.
• 2.31 For the troops to plunder the resources of the
enemy, they must be motivated by material rewards.
• 2.32 Therefore, the first person who succeeds in capturing
ten chariots in a chariot battle should be rewarded.
• 2.33 Subsequently, remove and replace the banner of the
enemy with yours and use the captured chariots together
with yours.
• 2.34 Treat the captured soldiers well (so that they can be
used).
Business Application
 Make Time Your Ally
• Just-In-Time system – producing with minimum
waste

• Ponoko.com
– Doesn’t begin production until someone orders
– Manufacturer -> customer
Make Time Your Ally
 Know Your Craft
• 2.37 Thus, the general who is knowledgeable
in military matters is the controller of the fate
of the people and the guardian of peace or
advocate of crisis for the nation.
Star executives:
• Apple: Steve Jobs since 1997
• Berkshire Hathaway: Warren Buffet >40 yrs
• General Electric: Jeffrey Immelt >10 yrs
• Google: Eric Schmidt since 2001
• Toyota: Katsuaki Watanabi – has been working in Toyota for
45 years before becoming CEO
Waging War seek to explain the economy (cost)
of war and how success requires making the
winning play, which in turn, requires limiting the
cost of competition and conflict.

War is a serious and expensive matter.

THANK YOU