Sun Tzu Art of War: A Job Of A Strategist in Business

To be an effective strategist in business, let's discover the famous Sun Tzu's Art of War strategy.

There are many ways one can describe what and how a business strategist operates. Let's explore the Art of War method and ancient military strategy philosophy used by kings and generals 2,500 years ago.

What is the role of a strategist in business?

It is very crucial to define the strategist's role in business correctly.

The role of a strategist in business is to work towards and achieve the results set by the ruler (the CEO, shareholders, owners, or, in a mutual agreement, all relevant parties).

The Western VS Chinese strategist mindset in business

Based on the academic perspective, the Western Strategist look at one's strength first and then look outward to compete and achieve their goals.

For example, a classic example would be the S.W.O.T. analysis, which looks at the strengths and weaknesses, followed by opportunities and threats.

As for the Chinese strategist, most follows the Sun Tzu Art of War philosophy, they will look outward first. Outward can mean looking at the market situation or competition that they will face. Through a thorough understanding of outward factors, they will then look inward and adjust accordingly in order to achieve their objectives.

The Chinese strategist who follows Sun Tzu's "The Art of War" will look towards the competitor and make a comparison with oneself to determine whether he will win or not.

The Responsibility of a Strategist in Business

The responsibilities of a strategist in business, drawing upon the timeless wisdom found in "The Art of War," encompass a broad range of critical functions that are essential for navigating the complexities of the modern marketplace. These responsibilities can be categorized into several key areas:

1. Market Intelligence -

One of the primary responsibilities of a strategist is the diligent gathering and analysis of market intelligence. This involves not only collecting relevant information but also interpreting data to gain insights into market trends, consumer behavior, and competitive dynamics.

The business strategist dedicates a significant portion of their time to understanding the environment in which their business operates.

By employing various research methodologies, including surveys, focus groups, and competitive analysis, they can anticipate shifts in the market landscape.

Sun Tzu said every Strategist must have foreknowledge,

Foreknowledge cannot be elicited from spirits, gods, past experience, or by any calculation.

Foreknowledge can only be obtained from men who know the enemy's disposition.

This foresight allows them to develop strategies that capitalize on emerging opportunities and mitigate potential threats, ultimately positioning the organization for success in achieving its business goals.

2. Sustainable Profit -

In the world of business operations, achieving sustainable profit is of utmost importance for the survival the success of the business strategy.

A strategist needs to have a keen understanding of the costs and expenses involved in managing a business.

Organizations that fail to generate short-term profits may find themselves in precarious positions, forced to seek additional funding to sustain their operations and growth initiatives.

A strategist will not be able to continue without adequate funding.

In strategy, Sun Tzu emphasized the importance of profitability in his teachings, stating that it is crucial to generate profits that can be reinvested into the business.

This reinvestment serves as a means to secure resources for ongoing initiatives and to fortify the company's position in the marketplace.

The strategist's role is to ensure that the organization not only achieves immediate financial returns but also establishes a foundation for long-term financial health.

As Sun Tzu said on the importance of sustaining battle operations,

Hence, a wise general makes sure his troops feed on the enemy.

This is called using the conquered foe to strengthen our forces.

3. Costing and Budgeting -

Effective costing and budgeting are integral components of a strategist's responsibilities.

The strategist must meticulously analyze the financial implications of various strategic options, ensuring that resources are allocated efficiently.

This involves creating detailed budgets that reflect the organization's priorities and anticipated expenditures.

The goal is to execute strategies that yield maximum results with minimal resource expenditure.

By employing a disciplined approach to budgeting, the strategist can identify areas where costs can be reduced without compromising quality or operational effectiveness.

This focus on cost management aligns with Sun Tzu's philosophy of achieving victory with minimal effort and resources.

Here is Sun Tzu's quote,

Hence, to fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting.

4. Risk Management -

A proficient strategist must also excel in risk management. This involves identifying potential risks and uncertainties that could impact the business, as well as developing strategies to mitigate those risks.

By maintaining a proactive approach to risk management, the strategist not only safeguards the organization against potential pitfalls but also positions it to seize advantageous opportunities as they arise.

5. An Opportunist

When it comes to opportunity, Sun Tzu says,

A strong defense against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy himself.

The strategist is constantly on the lookout for business opportunities, which can include discovering untapped market segments or recognizing areas with minimal competition.

Additionally, they must be vigilant in monitoring competitors for any missteps or weaknesses that can be exploited.

6. Strategies and tactics for winning

All strategies are made with a clear understanding of the competitive landscape and the internal capabilities of the organization.

The strategist must craft detailed plans that outline specific actions and initiatives designed to achieve the desired outcomes. This includes setting measurable objectives, defining key performance indicators, and establishing timelines for execution.

7. Management Skills

Finally, a successful strategist must possess strong management skills, particularly in leadership and communication. These skills are crucial for mobilizing and inspiring the team to implement the strategies and tactics that have been developed.

A strategist must be able to articulate the vision and rationale behind the strategic initiatives, ensuring that all team members understand their roles in achieving the collective goals.

Effective communication fosters collaboration and alignment within the organization, enabling the team to work cohesively towards common objectives.

Additionally, the strategist must demonstrate adaptability and resilience, guiding the team through challenges and changes in the business environment.

Business is War. You need a Strategy

In the business world, you will encounter significant competition. Possessing the best or a superior product and service does not ensure success.

A business strategist's role is to devise a winning strategy.

Explore the insights and philosophy of Sun Tzu's "The Art of War."