Strategy Development And Implementation - Term Paper Example

Applying of Sun Tzu’s Art of War to strategy development and implementation Introduction The success of businesses in the modern market is usually depended on the ability of their leaders to identify and promote effective strategies (Hill & Jones 2007). Then, the incorporation of these strategies in all organizational activities is related to the level at which these strategies will be welcomed and supported by employees (Hill & Jones 2007). The above methodology commonly leads to organizational success. Still, in quite competitive markets additional terms need to be met. Innovation and flexibility have become critical elements of organizational plans in firms operating in different industries (Kleiner 2003). In this context, the use of practices that can secure the uniqueness of an organization compared to its competitors is often set as a priority by business planners (Smith, Smith & Bliss 2011). Current paper focuses on the potential use of the book ‘Art of War’, a book written by Sun Tzu, for developing successful organizational plans. The above book refers to military strategies but it has been proved valuable for identifying techniques that could enhance organizational performance. Reference is made to ten chapters of this book. The potential use of these chapters for developing effective business strategies is evaluated taking into consideration the literature that has been published in the particular field. 2. How every chapter of the "Art of War by Sun Tzu" influence modern business competing against each other to be in a better position by increasing market share For the needs of this paper, the book of Griffith (1963) has been used. Griffith (1963) has translated the book ‘Art of War’ of Sun Tzu aiming to help the researchers and entrepreneurs who are interested in studying the particular book. At the same time, another translation of ‘Art of War’ is used, as developed in 2010 by the firm FastPencil Inc. In order for the relationship between the book Art of War and the business strategies to be clear, each chapter of the book has been incorporated in a different section. Moreover, in each section the views of Tzu are evaluated using the literature published in regard to business management, as aligned with the theme discussed in each section. In this way, the relationship between the book ‘Art of War’ and modern business management is made clear. 2.1 Laying plans The first chapter of the book ‘Art of War’ focuses on the need for reviewing the conditions related to a particular war (Griffith 1963, p.63). The appraisal of these conditions is necessary in order to understand all aspects of the war, including the potential risks (Griffith 1963, p.63). It is suggested by Tzu that five factors would be used for appraising the terms of a war: ‘moral influence, weather, terrain, command and doctrine’ (Griffith 1963, p.63). The specific chapter of Art of Wart can be related to strategic planning, a business activity that is critical for the success of business plans. Using the issues discussed in the above chapter of Art of War, a series of assumptions can be developed in regard to the characteristics of a successful business plan. According to the above, such plan would meet certain requirements: a) it should be carefully structured so that it covers all aspects of the business project involved (Hoskisson 2008), b) it should be ethical (Roney 2004); the term ethical in the above case would refer to two different elements of the plan: a) the goals for the achievement of which the plan is developed need to be ethical (Roney 2004); b) the means used for the achievement of these goals would be ethical; for example, the hours of work required for the achievement of these goals should be within the time frame set by the law (Roney 2004). 2.2 Waging war In the second chapter of the book of Sun Tzu, reference is made to certain issues that need to be taken into consideration when starting a war: a) the resources that will be required for supporting the war, in terms of chariots, troops, supplies and ammunition (Griffith 1963, p.72), b) the funds required for supporting the war in all its aspects (Griffith 1963, p.72), c) a victory needs to be achieved with no delay; fighting for a long time can exhaust troops, a fact that makes the victory more difficult (Griffith 1963, p.73), d) the campaign, in general, should last a short time; in a different case, it would be quite difficult for the state to support the particular initiative (Griffith 1963, p.73), e) the risks related to the management of troops would be clear to the planners of the war (Griffith 1963, p.73), otherwise the war will be led to failure, f) captives ‘should be treated well’ (Griffith 1963, p.76). Following the above advice a leader can achieve the victory and increase the chances for further victories. Tzu describes that as ‘winning a battle and become stronger’ (Griffith 1963, p.76). In the context of strategic planning and implementation, the suggestions of Tzu, as included in the second chapter of Art of War, would be related to specific issues. At a first level, it is made clear that before developing a business strategy it is necessary to review a series of operational issues, such as the availability and the appropriateness of resources (Rubery 1994), the time framework and the potential of the business to support the project in case of unexpected turbulences and delays (Doole & Lowe 2005). 2.3 Offensive strategy According to the third chapter of the book ‘Art of War’ there are certain rules that would be incorporated in the offensive strategy of any war leader. These rules should be followed so that the victory is secured, as possible: a) during the war it is preferable to avoid destroying the assets of the state involved, meaning buildings, infrastructure and so on (Griffith 1963, p.77); a similar strategy should be followed in regard to the army of the enemy (Griffith 1963, p.77), b) attacking the army of the enemy is of critical importance (Griffith 1963, p.77); however, if the enemy would be forced to surrender, that victory would be considered as of higher value (Griffith 1963, p.77). When referring to businesses, the particular chapter of Art of War would be interpreted as follows: when entering the market, a business needs to be appropriately prepared. The preparation of a business for entering the market can include a variety of activities, such as strategy planning, identification of resources, market research and development of strategic alliances so that the power of the firm towards its competitors is increased (Montgomery 1991). In any case, a firm’s offensive strategy would focus on the improvement of the firm’s market position, so that the firm is less vulnerable to potential market turbulences, and on the identification of markets that are relatively secure for the particular firm, meaning that the risks involved in operating in these markets are relatively low (Brown & Eisenhart 1998). 2.4 Tactical dispositions The specific chapter of the book Art of War refers to a critical issue regarding a battle: the tactical disposition. The term tactical disposition incorporates two elements: a) securing that there is no risk of defeat from enemy, b) trying to identify a chance for defeating the enemy (Tzu 2010, p.13). In the context of business, tactical dispositions can be used for promoting strategies that have the following characteristics: a) they offer a competitive advantage towards the competitors (Hawkey 2002), and b) they can reduce the exposure of the firm to risks (Clark 2011). In other words, in this chapter of Art of War, two critical business challenges are addressed: competition and risk management. 2.5 Energy The specific chapter highlights the importance of alternative techniques for developing a battle. Indeed, Tzu (2010) notes that ‘apart from direct tactics, indirect tactics are also necessary for winning a battle’ (Tzu 2010, p.15). In this chapter emphasis is given to the ability of the leader to use appropriate the army available and to employ a variety of methods for defeating the enemy. If referring to strategy development and implementation, as activities developed in the context of a modern business, the specific chapter of Art of War could be interpreted as follows: the development and implementation of effective business strategies are depended on two criteria: a) the ability of leader to manage effectively the workforce available, and b) the flexibility and the variety of strategies involved. This means that in order for a firm to compete successfully in its industry two requirements need to be met: a) the firm’s leader would be highly competent (Hawkey 2002) and b) the firm’s strategies would vary, incorporating alternatives, so that they secure the achievement of organizational goals (Roney 2004). 2.6 Weak points and strong The specific chapter of the book Art of War is particularly important. In this chapter, Tzu (2010) emphasizes on the need for identifying the weak and strong points of the army before any battle (Tzu 2010, p.19). At the same time, it would be necessary for the commander of the army to identify the weak and strong points of the enemy, a fact that would help to defeat the enemy easier (Tzu 2010, p.19). In the context of business, the strategy proposed above is extremely valuable. Indeed, when developing a strategic plan, the planner needs to be aware of the strengths and weaknesses of his own firm; at the same time, he needs to be informed on the strengths and weaknesses of competitors, either in existing market or in the target market (Brown & Eisenhart 1998). The identification of a firm’s weaknesses and strengths is a key requirement for the development of any business plan (Mazzucato 2002); in fact, before proceeding to any project, a firm needs to ensure that all its weaknesses and strengths, as also the weaknesses/ strengths of its competitors, have been identified, so that failures are avoided, as possible (Mazzucato 2002). It should be noted that a variety of theoretical frameworks has been developed for helping organizations to identify their own strengths/ weaknesses but also those of their competitors. Reference can be made, for example, to the SWOT analysis, the Porter Five Forces model and the PESTEL analysis (Hooley et al. 2008). 2.7 Maneuvering For Tzu, maneuvering refers to the following two issues: a) concentrating on the battle and b) having a variety of alternative tactics, so that winning is secured (Tzu 2010, p.23). The identification of alternative options for covering all aspects of a battle is one of the duties of the commander of the army (Tzu 2010, p.23), a fact that denotes the need for an effective leadership style for winning a battle. In business, a similar issue appears. Referring especially to strategic planning and implementation, the following issues should be highlighted: strategic planners need to incorporate alternative options in all their firm’s strategic plans (Doole & Lowe 2005). In this way, the damages for the business in case of a failure can be controlled or even eliminated (Doole & Lowe 2005). In 1990s Intel had to face a growing competition; its existing resources were not appropriate for supporting the growth of the organization (Brown & Eisenhart 1998, p.6). In this context, the firm decided to proceed to the development of strategic alliances, increasing its power globally (Brown & Eisenhart 1998, p.6). This strategy was proved quite effective helping Intel to secure its position as a global competitor in the IT industry (Brown & Eisenhart 1998, p.6). Intel has been an example of the value of maneuvering in business. 2.8 Variation in tactics The specific chapter refers to an issue similar with that highlighted in the previous chapter, maneuvering. The difference between these two chapters is the following one: in variation of tactics, a general ‘must be aware of the advantages of variation of tactics’ (Tzu 2010, p.27). In maneuvering, alternative tactics need to be developed in advance, in case that an unexpected problem appears. A general has to be able to understand when alternative plans would be employed and which of these plans can be most appropriate in regard to each phase of a battle (Tzu 2010). In business, the variation in tactics is related to the ability of the leader, or manager, to understand the necessity for an alternative plan and to choose the plan that should be most appropriate for a specific business project. Such dilemma is common in strategic planning and implementation: when developing a strategic plan, a manager has to review a series of business issues that cannot be easily managed (Hooley et al. 2008); understanding the need for alternative initiatives, than those used commonly, is critical at this phase (Abrams & Kleiner 2003). A similar problem can appear when implementing a business plan. It is possible that certain parts of the plan cannot be promoted; the leader needs to understand the need for using alternative tactics for covering the gaps caused due to the failure of the plan (Abrams & Kleiner 2003) 2.9 The army on the march The specific chapter of the Art of War focuses on a critical issue of battles: how the army will be directed until reaching the terrain, so that troops are not exposed to the enemy (Tzu 2010, p.29). Organizing the army appropriately before entering a battle is quite important for winning the battle. As Tzu notes there are certain rules that need to be followed when directing troops to the battle; for example, ‘after crossing a river troops should get far away from it with no delay’ (Tzu 2010, p.29). In business, the particular views of Tzu would be related to human resource management. The effective management of the organization’s human resources is a prerequisite for the success of any business plan (Beam & McFadden 2001). In fact, when developing a strategic plan it is necessary to be aware of the resources available for its realization (Ireland, Hitt & Hoskisson 2008). The skills of employees working in various organizational departments have also critical value, since these employees will be asked to support, more or less, the specific plan (Ireland, Hitt & Hoskisson 2008). The specific chapter of Tzu is particularly relevant to the implementation of a strategic plan: giving to employees appropriate directions for developing a business plan is necessary term for the implementation of the plan to be completed successfully (McLoughlin & Aaker 2010). 2.10 Terrain Terrain, as explained by Tzu refers to the implications related to the place where the battle will take place (Tzu 2010, p.33). According to Tzu before entering the terrain a commander has to be aware of all terrain’s aspects, such as its condition, its risks, its structure and its potential advantages/ disadvantages for each of the parties involved in the battle (Tzu 2010, p.33). In business, choosing the appropriate place for establishing a business is critical for the success of the business (Peng 2008). In practice, it has been proved that failing in choosing appropriate place for setting up a business can lead to the failure of the business in a quite short period of time (Peng 2008). For this reason, it is suggested that before establishing a business a thorough market research is developed, so that potential risks and threats are identified and evaluated (Mascarenhas 2011). In strategic planning and implementation, the specific chapter of Tzu is also relevant at the level that place is a critical element of all business projects. When developing a strategic plan, the planner needs to define the place where the plan will be developed (Mascarenhas 2011). In other words, in business planning, the identification of the appropriate place has to occur in the planning phase (Mascarenhas 2011). If the place chosen is not appropriate, this will affect the success of the plan’s implementation (Mascarenhas 2011). In this way, the terrain, as part of the Art of War is made quite relevant to strategic planning and implementation. 3. Conclusion The identification of appropriate tactics for securing the effectiveness of a strategic business plan can be a challenging task. Moreover, it has been proved that the ability of strategic planners to identify and evaluate appropriately all risks related to a particular plan is not standardized. In fact, it seems that each strategic planner uses a different approach for evaluating business needs. In this way, most business plans are often exposed to high risks, a problem that it is usually revealed with a significant delay, when the potentials for resolving the relevant problem are limited. The use of existing theoretical models for developing effective business plans can be a method for securing the success of these plans. The views of Sun Tzu, as included in his book Art of War, would be a valuable theoretical framework of such kind. Even if the above book refers to military strategy, its involvement in business planning cannot be rejected. As proved above, the specific book can help strategic planners in increasing the effectiveness of their plans, either in the short or the long term. References Abrams, R. & Kleiner, E. (2003). The Successful Business Plan: Secrets & Strategies. 4th ed. Palo Alto: The Planning Shop. Brown, S. & Eisenhart, K. (1998). Competing on the Edge: Strategy As Structured Chaos. Watertown: Harvard Business Press Clark, A. (2011). 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