Sun Tzu’s Advice to Strategy Makers


More than 2300 years ago, Sun Tzu wrote The Art of War, an amazing book on the principles of military strategy. Herebelow are some idea extracts:

  1. Adopt SOSTAC. He believed that it is essential first to carry out a complete analysis of the situation. The strengths and weaknesses of one’s position, the relationship between one’s goals and the goals of society at large, the intensity of one’s courage and determination, and the worthiness and integrity of one’s objective must all be carefully evaluated. Even then, it seems, SOSTAC (Situation Analysis, Objectives, Strategy, Tactics, Action, and Control) was emerging—situation analysis, objectives and strategy.
  2. Do your Homework. Those who triumph, compute at their headquarters, a great number of factors, prior to a challenge. Those who are defeated, compute at their headquarters, a small number of factors, prior to a challenge. Much computation brings triumph, little computation brings defeat. How much more so with no computation at all. By observing only this, I can see triumph or defeat.
  3. Develop some options. Therefore those who are not entirely aware of strategies that are disadvantageous, cannot be entirely aware of strategies that are advantageous.
  4. Know your Resources. You must be certain that your resources have been carefully evaluated before engaging in this challenge.
  5. Why senior management Support: before engaging in a challenge, a leader must be certain that the organization is prepared to support the expense of a confrontation.
  6. Do you hurt your market or environment? Brilliant leaders are always aware of the entire system, both inside and outside of their organizations. They know that to harm or destroy what is outside will hurt their own growth, while employing their rivals and incorporating their resources will enhance their strategy.
  7. Put everything in place before making a move. Sun Tzu believed that a true victory can be won only with a strategy of tactical positioning, so that the moment of triumph is effortless and destructive conflict is avoided even before considering a confrontation – for whatever purpose.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Small Business: Causes of Failure


  • Plunging in without first testing the waters on a small scale.
  • Underpricing or overpricing goods or services.
  • Underestimating how much time it will take to build a market.
  • Starting with too little capital.
  • Starting with too much capital and being careless in its use.
  • Going into business with little or no experience and without first learning something about it.
  • Borrowing money without planning just how and when to pay it back.
  • Attempting to do much business with too little capital.
  • Not allowing for setbacks and unexpected expenses.
  • Buying too much on credit.
  • Extending credit too freely.
  • Expanding credit too rapidly.
  • Failing to complete, accurate records, so that the owners drift into trouble without realizing it.
  • Carrying habit of personal extravagance into the business.
  • Mistaking the freedom of being in business for oneself, for liberty to work or not according to whim.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Corporate Giving


One of the most visible ways in which businesses help communities is through gifts of money, property, and employee service. The corporate philanthropy or corporate giving demonstrates the commitment of businesses to assist the communities by supporting nonprofit organizations.

Some argue that corporate managers have no right to give away company money that does not belong to them. According to the line of reasoning, any income earned by the company should be either reinvested in the firm or distributed to the stockholders who are legal owners. The charitable contributions are one additional way in which companies link themselves to the broader interests of the community, thereby advancing and strengthening the company rather than weakening it.

Companies also help local communities through the substantial number of business donations that are not recorded as philanthropy because they are not pure giving. Routine gifts of products and services for local use often are recorded as advertising expenses; gifts of employee time for charity drives and similar purposes usually are not recorded; and the costs of soliciting and processing employee gifts, deductions usually are not recorded as corporate giving. Still, they add value to the local community of which the company is part.

Many large US companies have established nonprofit corporate foundations to handle their charitable programs. This permits them to administer contribution programs more uniformly and provides a central group of professionals that handles all grant requests. Foreign-owned corporations use foundations less frequently, although firms use highly sophisticated corporate foundations to conduct their charitable activities. As corporations expand to more foreign locations, pressures will grow to expand international corporate giving. Foundations, with their defined mission to benefit the community, can be a useful mechanism to help companies implement philanthropic programs that meet corporate social responsibility.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

The Seedbeds of Managers


Good managers are not born; they are made. An organization acquires managers in three ways: promoting employees from within, hiring managers from other organizations, and hiring managers graduating from universities.

Promoting people within the organization into management positions tends to increase motivation by showing employees that those who work hard and are competent can advance in the company. Internal promotion also provides managers who are already familiar with the company’s goals and problems. Promoting from within , however, can lead to problems: it may limit innovation. The new manager may continue the practices and policies of previous managers. Thus, it is vital for companies—even companies committed to promotion from within—to hire outside people from time to time to bring new ideas into the organizations.

Finding managers with the skills, knowledge and experience required to run an organization or department is sometimes is difficult. Specialized executive employment agencies—sometimes called headhunters, recruiting managers, or executive search firms—can help locate candidates from other companies. The downside is that even though outside people can bring fresh ideas to a company, hiring them may cause resentment among existing employees as well as involve greater expense in relocating an individual to another city.

Schools and universities provide a large pool of potential managers, and entry level applicants can be screened for their developmental potential. People with specialized management skills are specially good candidates. Some companies offer special training programs for potential managers just graduating from college.

When exposed to advertising, the consumer is not merely drawing information from the ad but is actively involved in assigning meaning to the advertised product.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Profitability Objectives


Many firms have some type of profitability objectives for their pricing strategy. Management knows that:

Profit = Revenue – Expenses

and that revenue is a result of the selling price times the quantity sold:

Total Revenue = Price x Quantity Sold

Some firms try to maximize profits by increasing their prices to the point where disproportionate decrease appears in the number of units sold. A 10 percent price hike that results in only an 8 percent volume decline increases profitability. But a 5 percent price rise that reduces the number of units sold by 6 percent is unprofitable.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Good Human Relations’ Spin-off


Most organizations and their managers realize the importance of maintaining good human relations. A climate of openness and trust can stimulate performance and foster loyalty. This kind of atmosphere can only have a positive effect on human relations.

Although many managers get a lift from knowing that they’re treating their workers right, there are practical benefits as well. When workers are satisfied with the interpersonal component of their jobs, they are usually more productive. They are also less likely to resign or to file a complaint with the personnel office, the union, or some other agency—both actions that could create additional expense and effort for the company.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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