Three lessons from business stratagem: Loot from burning house

Chinese 36 stratagem is well-known. You can draw practical lessons from these stratagems. Loot from burning house is one such stratagem that is vitally important to business strategist. Here are three lessons for him: 

Lesson one

When waging business warfare, the first edict to be followed is “hit the enemy when he is down”. Generally enemy gets into bottom when faced with internal problems that may not appear as dangerous at first sight but turn out to be much more acute as these cannot be easily isolated and rectified. The firm is put on fire fighting mood forever. Consequently, it dampens enthusiasm of top management, so to speak. Therefore the best time to attack opponent is when his internal structure is in chaotic condition. Before that you must gather info profile of the chief trouble makers inside a firm and their needs and aspirations.

Lesson two

If the enemy does not have internal trouble spots but only has challenges from outside then your offensive must undergo change. You do not attack directly but allow him to be ensnared by other enemies hovering outside. Create issues between the opponent and his own competitors. Let him roil in fighting them first. Sun Tzu opines, “When your enemy is exhausted and his resources are spent fighting his opponents it is time to move and take advantage of his troubles”

Lesson three

When an enemy has both internal and external issues at hand that, he is unable to grapple with; you have got a golden opportunity to finish him off sans mercy. The enemy is in deep crisis as troubles mount every day and everywhere. As a strong party you have wherewithal to crush him as he cannot put forward a united front to face your onslaught. The good example was the US motor industry plagued by internal troubles during 1970s, had to face oil crisis as well. The double whammy was so damaging due to their manufacturing preference for “gas guzzlers”. Japanese car manufacturers led by Toyota made short work of them within no time by bringing out models that are energy efficient and price wise cheaper too.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

 

 

When you can use business stratagem: “kill with borrowed knife”?

 When your business is just picking up, you are lower in the pecking order and cannot even think of any offensive, let alone banish envious competitors prowling like wolves in your neighbourhood. You have to tread carefully and artfully to deflect their manoeuvres. Here comes timely help from Chinese 36 stratagem! 

Sun Tzu said: “If you are limited in your own strength, then borrow the strength of the enemy. If you cannot neutralize an enemy, borrow an enemy's knife to do so. If you have no generals, borrow those of the enemy”. That sums up the Third stratagem of the 36 Chinese Stratagems: kill with borrowed knife.

Your current situation can be summed up in two scenarios:

a)  You lack sufficient strength in terms of finance, manpower, production and marketing resources to compete head-on with opponents. Whatever little you have, you have got to preserve for future use rather than deploying these at present.

b) Even if you have the temerity to use limited and precious resources, your business strategist cautions that prevailing situation is not favourable for the use of own assets. He implores that you be more frugal in expending the deep pockets.

There are five specific ways this stratagem can be operationalized:

1. Use the enemy’s own strength against them. Pepsi Cola learnt vigorous marketing from Coca Cola and used same against it

2. Trick an ally or competitor to wage business warfare against a company that privately entertains or publicly declares its intention to mount offensive against you

3. Bring internal dissension in the corporate management of your opponent. You act like a hidden hand in bringing about strife within the boardroom.

4. Bribe a C-Level officer such as CMO, CTO to turn traitor and become a whistle blower of malfeasance occurring amongst the opponent’s management team.

5. Poach a vital guy who is in charge of product innovation, research & development or technology. In the alternative get one know-all guy from the opposite side, to spill the beans for you so that you can secretly mount business warfare using cyber space to put most of their systems out of order or in extreme situations destroy them without any trace.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

Legend behind stratagem: “kill with a borrowed knife”

In business warfare, companies try to avoid direct attack on the competitor and resorts to devious techniques such as getting someone else to do the dirty job and thereafter feign innocence. This business stratagem gives companies a huge comfort zone. How this stratagem came into being? Here is the legend behind “kill with a borrowed knife”:

Duke Zhuang of Zheng (743–701 BC) was the Third Ruler of State of Zheng and arguably a great strategist of his time whose use of stratagem is legendary. He opted for various nuances of Chinese stratagem to bring down rival kingdoms. The one he used against the State of Kuai is an exceptional and entered into Chinese folk lore on military affairs.

Before invading Kuai, he did his homework. First he sent out his trusted spies to roam around Kuai to find out about the strength of its army, the details about military generals and advisers who have sway over the court of Kuai. After drawing the best men list he got into managing information warfare.

Duke Zhuang then spread misinformation inside his own state of Zheng.  The fake news was: a number of generals and advisers of Kuai are in his pocket and are ready to betray the king of Kuai. He was also cunning enough to publish the names of the conspirators. He announced that after capturing Kuai all these top men stand to benefit for their help and would be richly rewarded.

He did not stop at that. He published this secret arrangement in places where the people gather making it into the grapevine promptly. As the message spread throughout, the spies of Kuai operating inside Zheng got wind of it and dutifully passed the info to the king of Kuai.

When the king of Kuai got this message he got into mighty rage. Without investigating the veracity of this fake news he ordered all those whose names appear be apprehended immediately and be executed without any mercy. By this rash action the king of Kuai unwittingly made his army rudderless, because the best of talent is gone and whoever remained were indeed fearful that similar fate awaits them too and were ready to run away.

As the news of execution reached Duke of Zheng, he did not lose a single moment. He immediately ordered his men for a quick battle with king of Kuai and his weakened army. Seeing the daylight and regretting for the fate of defeat he brought upon the state of Kuai, he appealed to the remaining men for a last minute ditch to forestall defeat. However, the counter attack could not take-off as the demoralised army was vanquished in no time and the king of Kuai was captured & summarily executed!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

 

What is the business stratagem, casinos play?

 The casino theory goes: The house always wins. That means except for the most brilliant and talented players, bunters lose out at the end. If you want to experience this you must visit city like Macau and walk into Venetian Hotel where the world’s largest casino is located. You will forget yourself and even the most conservative of you bet and lose whale of money. Why?

Because casino is the best example of businesses practising the Chinese 36 stratagem “Deceive the heavens to cross the sea”.  The gist of this business stratagem is “divert attention and make the kill”. Casinos provide the background for this stratagem in style. Here is how casinos play the business stratagem:

1. Like in Venetian the situation surrounding every casino is flashy, fastidious and fascinating. Casino floors in Venetian extend to 530,000 sq. ft. with more than 500 play tables and more than 3,400 slot machines tempting even the most religious to try it out.

2. Slot machines are main revenue source for casinos. Vibrant sound with vivid colours along with flashing lights in constant motion make you glued to the images and force you to play faster than you do in normal circumstances. In casino parlance this phenomenon is called “slot trance”.

3. Even if you try to move out, the house will never let you go. Venetian casino invites you be in and around the hotel and enjoy a free gondola trip in the San Luca canal inside the hotel compound. Sometimes the house is liberal; you might get a free limit if you are celebrity or who is who.

4. Are you time conscious? No worry once you enter the casino floor you will not have any clocks to look at or any windows to peer through. Granted you may wear a wrist watch but you never want to check neither the mobile in pocket which you wish to turn on. The house succeeds in your losing track on time and reality.

5. Free drinks galore, carried by waitresses whose bosoms are bigger than the trays they carry. Over that you have choosy drinks in small glasses tempting you to signal the beauties to serve you more frequently. Presumably for you to relax, but the spirit along with the carriers are double attraction for you to play not to relax.

6. You never touch currency notes throughout your stay inside the casinos. You get chips to play on tables and tokens to be inserted into the slots. Although chips come in different colours to denote different amount of value your consciousness of the real value is removed and in there you see only playthings that are to be used rather than to hold. Similarly tokens are stacked and handed over to you in bright colours to stimulate your play sequence and speed.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

Legend behind stratagem: “deceiving the heavens to cross the sea”

You come across a classy business stratagem used extensively by companies in computer, Information technology, leisure, gaming, travel and entertainment where you are made to take off your concerns, worry and sometimes boredom. It is the well –known stratagem “deceiving the heavens to cross the ocean”. In other versions the word heavens is replaced by king or sky. Here is the legend behind it:

The king of Koguryo, in Ancient Korea asked for help from the Emperor of Tang Dynasty in Ancient China, Geosong Li Simin, to wade off an attack he faced within. The Emperor readily agreed initially but started back footing when faced with the task of crossing the mighty ocean. General Xue Rengui, who was leading the army made a subterfuge.

Making an imagined invitation from a well-wisher hosting the Emperor and his men to relax and enjoy with wine, food and music he set up tents covered by canvasses in fine décor in moving caravans that approached the shore of the ocean and later started sailing towards Koguryo.

When the emperor heard the sound of waves thrashing on the tents he was suspicious and removed the curtains to see that he is in the middle of the ocean sailing towards Koguryo. The Emperor then decided to move forward. Upon reaching the sea borders of Koguryo, General Xue bowed to the Emperor and asked for his pardon for this contrivance.

The emperor was so impressed by the clever manoeuvre of General Xue that he not only pardoned him but rewarded him for his courage & wisdom in the effective use of stratagem. Needless to say, that the Emperor finished the mission with victory for him and the King of Koguryo. This led ancient Chinese folklore to coin the proverb “deceive the heavens to cross the sea”.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com  

Blog:   Business Strategist

 

Besiege Wei to rescue Zhao

The state of Wei launched an attack on the state of Zhao in In 353 BC. The king of Zhao asked help from state of Qi to forestall this attack Qi obliged and sent a strong contingent commanded by General Tian Ji. The General wished to attack the strong Wei army directly, but his strategist Sun Bin who is a descendant of famous Sun Tzu advised a counter attack on Wei by besieging it rather than meeting them in battle in Zhao. The result was…….

When the Wei army camped on the outskirts of Zhao, heard  the news of besiege of Zhao, changed course and returned home to defend home front. A returning army exhausted after a long journey back home was an excellent opening for General Tian Ji who massacred the Wei army and rescued Zhao. This incident led to the second stratagem in the “36 stratagem” under the title “Besiege Wei to rescue Zhao”.

Distract and destroy syndrome:  As a business stratagem, besiege Wei to rescue Zhao drives home the point that a new and upcoming company should never pick up a fight with the strongest competitor. Instead it must mount stealth attack on what the company cherishes to preserve. When this happens the strong company retreats to preserve its position or covers up weakness. A good example is the innovation ladder. Apple is definitely the super innovator yet Samsung has beaten her on sales volume.

Find the chink in the armour: Another way to look at this stratagem is for the new company to find out a niche market where the strong guy is absent or under-performing. The new entrant can leverage its competitive advantage over the lead company. Sun Tzu summarises: “If the enemy is campaign his defence will be weak; if his army is fast moving, his baggage train is slow; if the army is well-equipped, the treasury is down”. Needless to say Huawei is beating big Telco giants in 5G technology.

Bring an ally onto the scene: In a competitive environment do not go solo. Business stratagem dictates that you must build alliances. These are done at the development, rolling out, installation and in support services. Besiege Wei to rescue Zhao is a classic advice given by Sun Pin in building right alliances. Chinese business culture is anchored on demand generation as an input side along with supplier network on the supply train. When a company is moving fast in its chosen field it must realize that the baggage train will become slower as Sun Tzu points out. To speed up every business must have allies to push the carts carrying goods to and fro faster.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

Deceive the heavens to cross the sea

In Chinese folk lore there are stories of kings and their stratagems in fighting battle and conducting matters of statehood. “Deceive the heavens to cross the sea” is the first of the celebrated 36 stratagem. The germ of the proverb is to appear non-threatening to competitors by going about the daily routines in normal way and in open manner until the crunch time comes…

In 225 BC, State of Qin in China sent General Wang Jian to conquer the next most powerful state of Chu. At an earlier occasion state of Qin sent much bigger army to attack Chu but was defeated convincingly. General Wang Jian knew this well and did not want same thing to happen. So instead of a direct attack on Chu he camped at the outskirts of the state. 

The Chu state was ready for war and was taunting Jiang to take up the fight. Wang Jian dismissed it matter of factly and was seen openly engaged in fun and frolic in daytime and partying during night. Several months passed and there was no sign of any hostilities happening. Chu army exasperated from the long wait decided to call off the campaign and started withdrawing from their encampment. The retreating army was an easy prey for General Wang Jian and in the ensuing surprise attack he not only decimated the entire Chu army but captured the state of Chu with little bloodshed.

Masking oneself and making false pretension is the key element in this stratagem. When you behave normally under tense situation and that too in open and visible manner the opponent gets weary and ultimately either lowers his guard or gives up on his campaign. This stratagem has deception, evasion and a great degree of misleading the opponent inter twined in it.

As a business stratagem, deceiving heavens to cross the sea is applied by companies engaged in footwear, aviation, leisure and gaming where the enticement trap can be easily laid. For example, Nike wants to tell a story, how Nike product started its journey from idea to reality in the form of fitting footwear on the legs of consumers. Interesting and important facts about footwear, health, fitness that Nike product provides to users are highlighted. In doing so the premium price Nike charges is entirely forgotten!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

 

Major highlights of business stratagems

There is quite bandying about strategy and tactics. Many do not know there is an intermediary, one that was celebrated in the folklore of Ancient China. It is stratagem or in its popular name “36 Stratagem”. These are proverbs originating from the history, culture, rulers and finally from lively literature of China during last few millenniums.

These stratagems have broad applications including in military, politics, diplomacy and business. Here are the major highlights of business stratagem:

1. Business stratagem combines both strategy and tactics and often dubbed as hybrid. Nearly one –third of its adoption is in relation to strategy while the balance tow-third relates to tactics. Put it other way the intention is strategic whereas its operation is tactical.

2. Play of the stratagem is conditioned by the position the initiator is in and how the situation unfolds for him. For example, when the field commander observes the current situ surrounding him and his men he envisages how the situ could play out. He therefore, charts a course of action drawing from his own experience and the gist of 36 stratagems and chooses the one that has the best line of fit.

3. It is quite possible when a marketer looking at the competition might cherry- pick one business stratagem or a combination of two or more so that he can achieve the objectives he set for short term and the goals that were already set for the longer term.

4. The main purpose of adopting any of the business stratagems is to have optimum result for the initiator to obtain competitive advantage over an opponent. Later on this optimum result must be extended to bring about long term solution in the field of product development and product marketing.

5. Right business stratagem effectively covers and conceals the intention of the user giving rise to intrigue and manoeuvre so that he can perform the specific task set at a particular moment of the time and the prevailing situation.

6. Most writers give jaundiced view of business stratagems by painting it negatively. True business stratagem hinges on deception, cunning, secrecy, surprise and a great degree of stealth. Yet these are permissible in love and war. Today competition has replaced war as a result managers are at perfect liberty to use business stratagems, unless these are proscribed by law and customs in a particular country where such competition takes place. 

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

 

 

How China can bust US Trade sanctions?

 In the free trade world, imposing sanctions on a country is basically a rebellion. America has piled up quite a number of sanctions lately over China. How should China respond: reciprocate in kind or do something else? Here is a piece of advice from Zhuge Liang: Adopt the Meng Huo Stratagem.

Shu Han was one of the three kingdoms in China during the third century and Zhuge Liang was the chancellor of the kingdom. As a master strategist he guided the kingdom to victory and progress. During this time a rebellion broke out in the Nanzhong region led by Meng Huo who had great following. Zhuge Liang outmanoeuvred him and captured him in the battle.

Zhuge Liang persuaded Meng Huo to give up the fight and be a loyal citizen. Meng Huo did not relent and said his people would never cease rebellion till they win. Instead of hanging Meng Huo, Zhuge Liang released him. But Meng Huo persisted in his rebellion and once again was captured and released. This process went on for seven times. At the end Meng saw the futility of his rebellion and declared:

“Seven times captured, seven times freed! Such a thing has never happened! Though I stand beyond the range of imperial grace, I am not utterly ignorant of ritual, of what propriety and honour require”. So said, he pledged fealty to the state of Shu Han, and ordered his men to surrender. Afterwards they became the bulwark of the Shu Han army.

Zhuge Liang succeeded because he used a stratagem that is bound to succeed at the end. Similarly China must adopt a business stratagem with two vectors;

1. She need to counter American sanctions not by imposing reciprocal ones but liberalize some areas where she can allow American businesses to enter and grow within China, of course with a caveat that these businesses mount pressure on US government to cease, postpone or neutralize existing sanction regime  

2. Extend cooperation in trade and technology with a 50:50 stake in capital outlay and market opening. Companies under this scheme would sell equally in America and China outside any domestic or countervailing sanctions.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist