The Comparison of Business and Military Techniques - Research Paper Example

The Comparison of Business and Military Techniques Introduction In the United States, it may seem strange to even consider the military to be an influence for business organizations when it comes to their management and leadership processes. However, as it turns out, businesses all across the globe can take a few pointers from the military towards how to further improve their own operations towards development and success. First, it is important that the concept of strategy in the business industry be understood. According to Beaver (2000), in the business world, ’strategy’ can be referred to the process of delivering value for the customer’s money, by ensuring that the products and services being produced are worth every penny spent. Companies must also ensure that aside from making a profit, the shareholders should also be able to acquire returns and members have to be satisfied with the company’s performance. In addition, due to the changing environment, where business organizations come and go, companies have to learn how to deal with the uncertainty and the complexity of handling a business. According to Baden-Fuller et al. (1997), there are four Es of strategy drivers, all of which are major drives for strategic thinking and action. Organizational capacity is what gives the first E of strategy. In order to find out the capacity of an organization, it is important that the company should exert and leverage their organization’s capabilities. Business opportunity in the present situation gives the second E of strategy. In order to find out if there are business opportunities available, companies have to exploit the current market and the opportunities that it holds. The organizational at future is what represents the third E of strategy. In order to find out whether a company is able to still be around in the future, it is mandatory that the company extend and renew their organizational capabilities. Thus, product development, innovation and continuous staff training would have to be done. Business opportunities in the future represents the fourth E of strategy. In order to make sure that the company always has something to offer in the future, it is important that new market opportunities are always being explored. This way, the company would be able to establish new market niches, and gain new customers in the process. In the business industry, there are two strategic rules that must be kept in mind in order to survive, and to allow further company growth. According to Brzoska, (1997), the military has strategies that are targeted towards dealing with certain conditions. For instance, the military has strategies of when to attack, when to defend, when to enter the battlefield, when to withdraw, when to act solely, when to gather allies, or form alliances, how to isolate the enemies, outflank them and encircle them (Gatignon et al. 2002). By understanding how the military deals with different circumstances, in changing environments and where quick decisions have to be made, companies can benefit from learning how the military is able to cope with such demands. By understanding and incorporating the concept of military strategies into the system of a business organization, it is highly likely that the organization would be able to deal with unexpected problems or obstacles in a more strategic and efficient manner. In this paper, the writer would like to discuss the military strategies that have become popular in business organizations, how this came to be and the benefits that have come out as a result of such a move. Beating the Competition The business environment plays a huge role in the decision-making process. Competition with other business organizations are expected but must be acted upon in order to avoid possible conflicts between the two companies, and worse, in order to avoid a loss in profits. For companies who find themselves competing with other companies in order to gain a market, the best strategy to implement would be ‘the attack (Cernat-Gruici, 2008). Deregulation of pricing or conditions of supply increases the level of competition between companies. The lowering or prices of certain companies mean that other companies that provide similar products and/or services also have to lower their prices. Naturally, this causes strain on their profit margins. As a result, companies cope by reducing the services that they provide, or they may increase differentiation by trying to distinguish themselves from their competitors. This is done by offering different price and/or services (Kuester et al. 1999). The German military, who are known for being competent practitioners of manoeuvre warfare and the Military Appreciation Process (or MAP), believe that no operational plan shall be carried out beyond the first encounter with the main body of the enemy (von Moltke, 1891). Three of the key elements of the manoeuvre theory are namely speed, surprise and action. In the business world, these are also key elements that business organizations may find to be useful, especially when it comes to dealing with a competitor (Ho, 1997). Kuester et al. (1999), investigated various competitive reactions acted upon by a firm. In the military this is known as a retaliation strategy, and is one that can be applied in the business world as well. In the military, if the opponent performs an act to destroy an army, the army would retaliate by utilizing a strategy in order to defend themselves or to go against the opponent. For instance, in 2002, the Sri Lankan air force retaliated against the special unit of suicide operatives, known as the Black Tigers, by bombing their base. This was their response to the suicide bomb that the Black Tigers had planted at a marathon run, killing the Highways and Development Minister (Perera, 2002). In the business industry however, retaliatory activities involve product retaliation, price retaliation, and the speed and breadth of market growth. It turns out that the more innovative the rival company is with regards to their products and services, the more likely would the defender retaliate by producing new products and service as part of their counterattack mechanism. It seems that if companies bring about changes in their business strategies in a particular domain, the competitive company would also react most strongly in the same domain. In the business industry however, it turns out that being innovative is one of the most effective strategies for companies to slow down the response of their competitors (Kuestler et al. 1999). Management Techniques According to the commander of the popular USS Benfold, Captain D. Michael Abrashoff, running a navy ship at sea is very similar to running a business organization. According to him, progressive management is the key towards ensuring that the organization is able to survive. This means that members within an organization should be in constant communication with each other, and this is what builds trust. In addition, this also builds organizational cooperation between all its members so that tasks can be accomplished (Abrashoff, 2002). According to Buchanan (2009), companies often make two common mistakes. The first is not properly identifying the reason why a business strategy went wrong. The second is not knowing how to deal with such situations so that a solution to the problem can be found out and implemented. The U.S. Army is known for their debriefings or their after-action-reviews, otherwise known as AAR. During such sessions members of the army hold a professional discussion of an event, and the soldiers are allowed to discuss the arm’s performance and gauge whether their performance has come up to par with the army’s set of standards. This way, the soldiers can assess their performance for future success, by identifying their weaknesses and noting their strengths. The Decision-Making Process The Mission Analysis Process, or MAP is a framework that guides individuals at the very beginning of a task, when their initial missions are first analysed. Its success and greatest limitation lies in the fact that the same framework is utilized in the military, and has been proven to help armies in times of war. The common factor that the military and business organizations share is that both need informed, well-reasoned decisions that have to be made in a short period of time. The MAP approach is one which benefits managers by address 5 levels of the decision-making process that managers are obliged to make. According to Johnson and Scholes (1993), the first level of the framework is where the manager is in a state of awareness. At this level, he/she has to recognize the different operations that may be wrong within the organization and how to act accordingly. In addition, at this stage, it is the manager’s duty to make sure that any business opportunities are taken. The second level refers to the manager’s responsibility to provide a methodology for collecting necessary information to improve the performance of the business. The gathered information shall then be analyzed. The third level of the framework has to do with the manager facilitating the decision making process along with identifying the problems that need to be addressed. Since the business industry is a fickle industry due to its changing environment and changing trends, this level should be carried out in a rapid manner. The fourth level, on the other hand, consists of the manager choosing to provide an iterative and flexible approach in order to resolve the problems at hand, and in order to achieve the goals required. The fifth and final level of the MAP approach refers to the manager incorporating and encouraging continual learning within the organization. At the same time, the manager should also re-evaluate the company’s goals and methods, ensuring that all members of the organization are proactive. According to Pech and Slade (2003), the MAP framework has been designed by the military for unexpected yet detrimental circumstances. It is a decision-making tool for business that may find themselves in a competitive environment where the company may operate alone or operate as an executive group. Where decision platforms have been ad hoc, intuitive or non-existent, the MAP framework is the most appropriate decision-making framework for all those who are put in a position to make decisions for a company’s welfare. Furthermore, elements such as time, resources, circumstances, and the extent of the company’s mission are the ones that influence how the MAP would be used and all the individuals that are needed to make the process work. Marketing Warfare According to Philip Kotler, there are four types of business warfare theories. The first refers to the offensive marketing warfare strategy, the second refers to the defensive marketing warfare strategy, the third refers to the flanking warfare marketing strategy and the fourth refers to the guerrilla marketing warfare strategy. In this section, the writer would like to discuss all four warfare strategies that are involved in the military and which can be implemented in business organizations. The Offensive Marketing Warfare Strategy The first warfare strategy, the offensive marketing warfare strategy is one which was intended to achieve an aim or an objective. In business industries, one of the primary objectives would be to gain the market share of a competitor who may be offering the same products and services to the same market. Thus, in the business world, this strategy is advised so that companies would be able to gain as much customers as possible, in addition to gaining a high market share. Customers are also likely to be more loyal to a company if the strategy is properly and effectively implemented (Mintzberg et al, 1991).. This type of strategy has different types, or subtypes. For starters, there is the frontal attack, where companies have to guard their resources from other competitive companies. In addition to this, companies have to also be wary of their marketing strategies to make sure that their product is heavily advertised as opposed to their rival’s. This type of marketing strategy is one that is rare due to its intensiveness and the costs that are involved. In addition to this, this type of strategy has a high chance of being unsuccessful. However, this type of strategy is advised for companies that have a homogenous market. For instance, companies that are in the clothing retail industry may have to resort to this. Companies that also experience low brand equity and low customer loyalty. When target competitors happen to have limited resources compared to their attackers, companies should definitely consider applying this type of strategy to their business processes. (Gatignon et al. 2002). The envelopment strategy is also a subtype of the offensive marketing warfare strategy. This type of strategy refers to the movement of encircling the competitor company. In the business industry, this can be done by introducing new products that are similar to that of the rival company’s. This would then weaken the competitor’s hold on the market, leaving the competitor defeated. In the military, such a situation is one where if the proper tactics are implemented, then the army’s opponent would be under siege. Such a strategy is suitable for companies that have a loosely segmented market. Under such a condition, the attacker is the party that is stronger. This means that the attacker has excess resources that would be useful for development. In addition, the attacker with a more organized business system is one that is more inclined to implementing this warfare strategy. The third subtype under the same category refers to the leapfrog strategy. In the military, soldiers who follow such a strategy basically bypass their enemies altogether. However, in the business world, this type of strategy is one where new business models are created and this is done by developing new technologies that would help the business improve and develop. Such sudden and unexpected business strategies where new strategies or technologies are introduced, end ip being very effective more often than not. The flanking attack, which refers to the last subtype of the offensive marketing warfare strategies, is associated with the pressure of flanking the enemies so that they ultimately are forced to turn inward, or retreat. This strategy is one where soldiers create chaos to the detriment of the enemies, while they take advantage and achieve gains (Mintzberg et al, 1991).. Defensive Marketing Warfare Strategies This type of strategy refers to how a company protects its assets and its entire business. This means that market shares, profits, products and how they are positioned have to be protected from other companies that may use these to their own advantage. Thus, property rights also have to be protected. Just like the later warfare marketing strategy, defensive marketing warfare strategies have different types. Position defense, in the military refers to the defense of a fortified position. While the attacker gets stronger, the defender is weakened. This therefore leads to a siege. In the business industry, position defense refers to increasing barriers around a company’s product, service, brand and market. This in turn may lead to benefits such as brand equity, customer satisfaction, loyalty to the company and a return rate of customers who patronize the company’s products and/or services (McNeill, 1982). Mobile defense, on the other hand, refers to changing resources and developing new strategies, unique to the ones previously thought about before. The concept of the mobile defense is that the defender is able to have a flexible response mechanism against a target that is always moving. In the business world, this strategy is one where companies would continue introducing new offerings in order to replace their existing products. They may also opt to modify the products instead in such a way that customers are still interested in what the company has to offer. In addition to this, market segments may be changed and products may also be repositioned. Changes in the company’s advertising may also be implemented. The flank position, on the other hand refers to an army protecting their resources in cases of attack from the opponent. In the business world, companies protect their market losses by working on their competitive edge. In other words, new products and new marketing strategies need to be developed to counter attack the strategies and the products of the rival company (Mintzberg et al, 1991). The counter offensive strategy is a defense strategy where an army counters an attack through the help of an offense. In the business industry, this refers to the company working on a strategy that has not been introduced by the rival company. In other words, the company would likely work on a strategy that happens to be the weakest point of their competing company (Gatignon et al. 2002). Flanking Marketing Warfare Strategies The main goal of this type of strategy is one that is designed to minimize losses caused by confrontations. In the military, flanking moves always occurs in areas that do not have too much competition process. There are two types of flanking strategies and these are the offensive flanking strategy and the defensive flanking position strategy. The offensive flanking attack, as mentioned earlier, consists of applying pressure to the enemy line, causing the enemies to be in chaos. Thus, while such a situation in ongoing, the army would be able to make gains. In so doing, the army is able to avoid making a head front confrontation with the enemy. However, such a strategy has a major advantage and this is that as a result of the strategy, resources are drawn away from the attack’s center defense, thereby making the army vulnerable to a head-on attack by the opponents. In the business industry, the flanking attack would refer to the business organization’s market segment that the competitor does not consider to be a major loss. Thus, the competing company is most likely to only care about the market niches achieved by the defending company at its peripheral (Gatignon et al. 2002).. In order to achieve such market niches, there is a need for the company to aggressively advertise and promote their offerings in other discreet manners such as direct selling, and establishing public relations with the customer. In addition, companies may also design their products or services in such a way to target a particular market niche. The competing company then, would probably search for another area where there is no competition. Such a strategy is very suitable for companies who have a segmented market, with some markets not being served sufficiently or adequately by other competing companies. In order for this strategy to be applicable, the target competitor should be the company with relative strong resources. This way, should a head-on attack occur, the company would still be able to withstand it. However, the attacker should also have resources that are strong enough so that the company would be able to protect its market niches. The second type of flanking strategy refers to the flanking defensive position strategy, and this consists of deploying resources in order to dodge a flanking attack. In the army, soldiers are tasked to strengthen their flank if they feel that they are vulnerable to the enemy’s strategies. However, such a strategy also has the disadvantage of drawing the soldiers’ attention away from their primary goal, and may make them lose their resources at a time when they are particularly needed. In the business industry, such a strategy refers to the production of new products and services, and the development of existing products so that new and improved products emerge as a result. Naturally, there is also a need for the company to market their new product line or improved products and services, and this may entail new promotional activity by way of advertisements as well. The main idea of the concept is that companies are able to maintain their competitive edge and even strengthen it, in the efforts to avoid losing customers to their competitor. Guerilla Marketing Warfare Strategies Just as an army uses guerrilla warfare strategies in order to aggressively outdo or overthrow the enemy, businesses also utilize this strategy in order to gain more and more customers by using the most aggressive forms of marketing possible. This is because once a company is aggressive enough with regards to their marketing strategies, the competitor has no room to retaliate and this move would prevent the likelihood of the rival company from doing so. Guerilla marketing has to be one of the most cost effective marketing strategies with the main aim of reaching the customers (Argyris, 1994) However, in order to make sure that the company retains and attracts a market niche, it is very important for the company to research first what the best marketing strategies may be. This is because certain promotional strategies do not work well with all areas and with all markets. That’s why it is very important for companies to gather as much information about the situation first, before embarking on any promotional activity or marketing strategy. For more effectiveness, companies often resort to advertising directly to the customers of the competitor in order to gain a new following. Such an aggressive move has been proven to be quite effective if done correctly. However, in order for aggressive marketing to be successful for the company’s benefit, it is very important that the attacker has a good management system, with good managers who are capable of leading the members of the organization to do their job (Bartlett et al, 1994). Conclusion In this paper, the writer has discussed the different military strategies that are known to be used not only in the army but also in business organizations. It turns out that the business industry could use some pointers from the military in terms of how to handle their competitors, how to manage members of the organization as well as the business processes, and how to ensure that the company will still be able to survive amidst a fickle environment. It seems that ultimately, communication and the aggressive establishing of relations with customers and organization members are what make up the core of successful organizations, whether in the military or in business. REFERENCES: Abrashoff, M. (2002) It’s your ship- Management tips from the best damn ship in the Navy. Business Plus. Argyris, C. (1994), On Organisational Learning, Blackwell Publishers, Oxford, New York, NY Baden-Fuller, C., Volberda, H.W. (1997) Strategic renewal: how large complex organizations prepare for the future. International Studies of Management and Organization, Vol. 27 No.2 Bartlett, C.A., Ghoshal, S. 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