The Art of War: Quotes

Business and Management Theories

The principles of industry attractiveness and business strength [Hax and Majluf]

The principles of consolidating business units (7-S Framework) [McKinsey]

The principles of various business strategies (more to come!)

PRINCIPLES OF ANALYSIS OF INDUSTRY ATTRACTIVENESS

We are not fit to lead an army on the march unless we are familiar with the face of the country--its mountains and forests, its pitfalls and precipices, its marshes and swamps. [7:13]

If we know that the enemy is open to attack, and also know that our men are in a condition to attack, but are unaware that the nature of the ground makes fighting impracticable, we have still gone only halfway towards victory. [10:29]

PRINCIPLES OF ANALYSIS OF BUSINESS STRENGTH

Hence the saying: If you know the enemy and know yourself, your victory will not stand in doubt; if you know Heaven and know Earth, you may make your victory complete. [10:31]

Carefully compare the opposing army with your own, so that you may know where strength is superabundant and where it is deficient. [6:24]

PRINCIPLES OF CONSOLIDATING BUSINESS UNITS

Shared Objective

Strategy

Structure

System

Staff

Skill

Style

Shared objective

The Moral Law causes the people to be in complete accord with their ruler, so that they will follow him regardless of their lives, undismayed by any danger. [1:5-6]

The principle on which to manage an army is to set up one standard of courage which all must reach. [11:32]

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Strategy (...and tactics)

All men can see the tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved. [6:27]

Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances. [6:28]

Therefore, just as water retains no constant shape, so in warfare there are no constant conditions. He who can modify his tactics in relation to his opponent and thereby succeed in winning, may be called a heaven-born captain. [6:32-33]

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Structure

By method and discipline are to be understood the marshaling of the army in its proper subdivisions, the graduations of rank among the officers... [1:10]

The consummate leader cultivates the moral law, and strictly adheres to method and discipline; thus it is in his power to control success. [4:16]

He will win who has military capacity and is not interfered with by the sovereign. [3:17e]

When the general is weak and without authority; when his orders are not clear and distinct; when there are no fixes duties assigned to officers and men, and the ranks are formed in a slovenly haphazard manner, the result is utter disorganization. [10:18]

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System

...On which side is discipline most rigorously enforced? ...In which army is there the greater constancy both in reward and punishment? By means of these considerations I can forecast victory or defeat. [1:13d,13g,14]

The consummate leader cultivates the moral law, and strictly adheres to method and discipline; thus it is in his power to control success. [4:16]

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Staff

When the common soldiers are too strong and their officers too weak, the result is insubordination. When the officers are too strong and the common soldiers too weak, the result is collapse. [10:16]

The general who advances without coveting fame and retreats without fearing disgrace, whose only thought is to protect his country and do good service for his sovereign, is the jewel of the kingdom. [10:24]

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Skill

On which side are officers and men more highly trained? [1:13f]

The clever combatant looks to the effect of combined energy, and does not require too much from individuals. Hence his ability to pick out the right men and utilize combined energy. Thus the energy developed by good fighting men is as the momentum of a round stone rolled down a mountain thousands of feet in height. So much on the subject of energy. [5:21,23]

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Style

If soldiers are punished before they have grown attached to you, they will not prove submissive; and, unless submissive, then will be practically useless. If, when the soldiers have become attached to you, punishments are not enforced, they will still be useless. Therefore soldiers must be treated in the first instance with humanity, but kept under control by means of iron discipline. This is a certain road to victory. [9:42-43]

Regard your soldiers as your children, and they will follow you into the deepest valleys; look upon them as your own beloved sons, and they will stand by you even unto death. [10:25]

Throw your soldiers into positions whence there is no escape, and they will prefer death to flight. If they will face death, there is nothing they may not achieve. Officers and men alike will put forth their uttermost strength. [11:23]

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PRINCIPLES OF VARIOUS BUSINESS STRATEGIES

Niche-ing

Innovation Leadership

Mergers and Acquisitions

Niche-ing

Hence, though an obstinate fight may be made by a small force, in the end it must be captured by the larger force. [3:10]

You can be sure of succeeding in your attacks if you only attack places which are undefended. You can ensure the safety of your defense if you only hold positions that cannot be attacked. [6:7]

If, on the other hand, in the midst of difficulties we are always ready to seize an advantage, we may extricate ourselves from misfortune. [8:9]

Innovation Leadership

Sun Tzu said: Whoever is first in the field and awaits the coming of the enemy, will be fresh for the fight; whoever is second in the field and has to hasten to battle will arrive exhausted. [6:1]

You may advance and be absolutely irresistible, if you make for the enemy's weak points; you may retire and be safe from pursuit if your movements are more rapid than those of the enemy. [6:10]

Mergers and Acquisitions

Therefore in chariot fighting, when ten or more chariots have been taken, those should be rewarded who took the first. Our own flags should be substituted for those of the enemy, and the chariots mingled and used in conjunction with ours. The captured soldiers should be kindly treated and kept. This is called, using the conquered foe to augment one's own strength. [2:17-18]

We cannot enter into alliances until we are acquainted with the designs of our neighbors. [7:12]