Lecture 3 Waging War. May 2013 (1)

8/13/2019 Lecture 3 Waging War. May 2013 (1)

1/20

1

Chapter 2 Waging War(-Zuo zhan)

UBMM1011

Sun ZisArt of War and Business

Strategies


2/20

Chapters

1. Detailed Assessment and Planning ()2. Waging War ( )3. Strategic Attack ()

4. Disposition of the Army ()

5. Forces ()

6. Weaknesses and Strengths ()

7. Military Maneuvers ()

8. Variations and Adaptability ()

9. Movement and Development of Troops ()

10. Terrain ()

11. The Nine Battlegrounds ()

12. Attacking with Fire ()

13. Intelligence and Espionage ()

2
http://en.wikipedia.org/wiki/File:Bamboo_book_-_binding_-_UCR.jpg


3/20

Chapter 2: Waging War ()

Chapter Outline

The high costs of waging war

Importance of swiftness

6 strategies to end war quickly

Business application:

Speed

Resource planning

3


4/20

The High Costs of Waging War

The costs incurred both in the home country and at thebattlefrontinclude expenses:

for the conduct of diplomacy,

the provision of materials and supplies,

for the building of armament and weaponry.

4


5/20


A protracted (prolonged) military campaign will bring

undesirable consequences:

1. the troops at the battlefield demoralizedandpsychologically and mentally exhausted, poorer fighting

spirit and can easily get sickness and diseases.2. the citizens at homeinflationwould arise and depleted

the citizens wealth. More taxes and tolls would be

imposed on people to finance the war. Sun Zi argued that

people wealth will be reduced by 70%.

3. the statedepletion of national wealth and resources,supplies and provisions. Sun Zi estimated that national

treasury would shrink by 60%.5


6/20


Example: Vietnam War (1960s-70s)

American troops had to be rotated regularly to

prevent troops from being too exhausted.

Additional and compulsory militaryrecruitment wasintroduced, causing greater resentment by public.

More and more Americans began to question the

purpose (& cost) of the war.

Estimated that over 2 million people (on both sides)were killed and injury or disablement of many

millions of others.6


7/20


Example: Iraq War (started on 20 March 2003)

Was originally planned to be a SHORT war, which will end within

few weeks. Iraqi citizens were supposed to rebel against Saddams

regime and welcome the liberation.

Encountered a severe resistance and constant harassment andattacks from Iraqi guerilla soldiers.

As a result, US had to increase its troopsby more than double

(over 200,000) to speed up the war.

Financial cost: $9 billion to UK, and $845 billion to U.S. (Totalcost to the U.S. economy estimated at $3 trillion)

7


8/20

Importance of Swiftness

In war, it is better to go for swift victoriesratherthan engage in prolonged military campaigns. -

Sun Zi

2.1 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. ~ Sun Zi

8


9/20

Iraq War 2003, US had to transport a lot of equipment and armament

to Iraq; not only over a long distance but an extended period

of time.

As a result, it cost America over US$20 billion.

9


10/20

6 Strategies to End War Swiftly

1. Commandeer (hijack) the resources of the enemy.

2. Instill the troops with hatred for the enemy so that theywould not hesitate to strike at the enemy.

3. Motivate the troops with significant rewards obtained by

stealing the resources of the enemy.

4. Encourage risk-taking behaviors in the troops with

immediate & noticeable rewards

5. Confuse the enemy by applying the technique of deception.

6. Treat the prisoners-of-the-war well (to win their loyaltytargeted at winning the heart of the enemy).

Deployed as spies or serve in other roles against the enemy10


11/20

USSBunker Hillhit by kamikazes piloted by Ensign Kiyoshi Ogawa

(see below) and another man on May 11, 1945. 372 personnel

were killed from a crew of 2,600.

11


12/20

Rewards are necessary in order to

make the soldiers see the advantage

of beating the enemy; thus, when youcapture spoils from the enemy, they

must be used as rewards, so that all

your men may have a keen desire to

fight, each on his own account. ~ TuMu

12


13/20

Summary

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.

In war, then, let your great objective be SPEEDY

VICTORY, not lengthy (prolonged) campaigns.

13


14/20

14

Business Application

Business Is A Continuous Battle Of Survival

Its not the BIG that eat the SMALL

its the FAST that eat the SLOW

- J. Jennings


15/20

Financial Management

Financial management deals with two things:

raising money

managing a companys finances in a way that achieves

the highest rate of return

15

Financial Objectives of a Firm


16/20

Financial Management

FP:The need to analyze and plan the short-term andlong-term money flows to and from the firm.

Economic realities of new ventures:

Need to budget in detail before setting up any business.

Large company requires big start-up capital.

Too little profit destroys thousands of new enterprises(Remember: 80% of small business go out of business within

their 2 years!!!)

16


17/20

Why Most New Ventures Need Financing or

Funding

10-17


18/20

Cost of Doing Business

Invest adequate resources so the operation can be sustained.

Business Operating Costs (Expenses): Capital Costs, Fixed Costs, Variable Costs

supply of raw materials.

hiring and retaining high quality and reliable employees. operating expenses ie rent, salaries, supplies, utilities, insurance,

advertising cost etc.

Goal: To minimize your business expenses to necessities of youwant more profit.

The art of bootstrapping Finding ways to avoid the need for external financing

or funding thru creativity, thriftiness, cost-cutting orany necessary means

18


19/20

Examples of Bootstrapping Methods

10-19

Buying used instead of

new equipment.

Coordinate purchases

with other businesses.

Leasing equipment

instead of buying.

Obtaining payments in

advance from

customers.

Minimizing personal

expenses.

Avoiding unnecessary

Expenses.

Buying items cheaply but

prudently via options

such as eBay.

Sharing office space or

employees with other

Businesses.

Hiring interns.


20/20

20

- The End -

Documents

Lecture 3 Waging War. May 2013 (1)