Two pitfalls in business warfare

Among the pitfalls in business warfare two prominent ones are noted as miscalculation and misjudgement. When combined these could lead to major catastrophe for one or for both sides that are involved in business warfare.  Here is a short preview:

Miscalculation is basically not adding up the sum total correctly of number, quantum, tools & techniques in play and the degree of what is latent and what is hidden in the battle space. Before commencing any type of business warfare the attacker must evaluate the strength of the enemy as well as his weaknesses in the tactical sphere. Strength lies upon the physical assets and human resources and the relevant technology opponent has at present and what could be forthcoming in due course.

Second aspect is the type of moves opponent makes on & off. Simply speaking miscalculation generally occurs, as I said, on the tactical side. For each move you or the opponent make there could possibly corresponding moves. Yet, not every move requires a reaction, of course. This can be further analysed into outcome & reaction. Depending on the outcome both sides can adjust their individual position. In the cola war, both Coca-Cola and Pepsi Cola do this counter play.

Misjudgement is more about unearthing the real intention of the opponent when he makes his manoeuvres, and not the cosmetics surrounding it.  Is this manoeuvre a shadow play is the right question to be asked? Will this move alter the strategic balance between the two parties is the next question. There is nothing good to prejudge the manoeuvre as threatening one when it is simply shadow boxing. Here is the deception or maskirovka as Russians call it.

Look at what happened when the Global North targeted Russia’s geoeconomics by sanctioning her oil & gas exports and fixed the ceiling on the price of barrel of oil. The global North misjudged only when they fixed the price ceiling. For all intents purposes they diluted the bite of the sanctions hinting that these could be relaxed if Russia stick to the price ceiling.

In business sense and in the broader geoeconomics scene, misjudgement is devastating to the side that makes the faulty strategic manoeuvre. Both Lukoil and Gazprom detected how this misjudgement could be played positively into their hands and began discounting oil & gas prices to much lower than the ceiling initially and as demand is being gradually built upward, the ceiling figure was rubbished and ultimately sanctions were ingloriously busted.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist