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- Sun Tzu Art of War – Five Stages of Evaluating Success of Strategies
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Sun Tzu Art of War – Five Stages of Evaluating Success of Strategies
Now in warfare, judgments must be made as follows: First, judgment of severity; secondly, the evaluation of the scope of activity; thirdly, the calculation of self-forces; fourth, a comparison of forces; and fifth, creating winning opportunities. The degree of difficulty is assessed based on the characteristics of the terrain. Based on the degree of difficulty, the scope of the activity is evaluated. Based on the scope of activity, the calculation of own forces is made. Based on the calculation of one’s forces, comparisons with those of the enemy are evaluated. The odds of winning can then be determined based on the ratings. – Chapter Four, Sun Tzu’s Art of War
According to Sun Zi, there are five steps to study to evaluate the chances of winning, and they are firstly, the evaluation of the degree of difficulty; secondly, the evaluation of the scope of activity; thirdly, the calculation of self-forces; fourth, a comparison of forces; and fifth, creating winning opportunities.
BUSINESS REQUEST
Let’s see how to apply these five steps to business strategy evaluation.
Difficulty level
The first stage is the level of difficulty, as developed by Sun Tzu, you need to look at the landscape to decide. Terrain in warfare would refer to the culture of the targeted consumer market, political and economic forces, laws established for the economy and industry. In summary, it means the characteristic of the target market. And from here you can move on to the next stage of evaluation, which is to evaluate the scope of the activity.
Field of activity
The field of activity in business would mean, in the case of retail trade, how many stores, which location, delivery and transport network, etc. If you are into manufacturing, it would be the number of factories, where the factories should be, the distribution network and so on. And based on all of these factors, you can then look at the third area, and that is self-force calculation.
Calculation of own forces
The calculation of own forces would concern human resources. Do you have the right person for every job? Do you have the right people to run a marketing campaign, build a supply chain and logistics network? Do you have the “right” frontline staff? It is an assessment of the quantity and quality of your human resource that determines whether you are able to cope and serve the target market.
Comparison of forces
Next is the fourth area, which is the comparison of one’s forces with those of the enemy. This fourth area is evaluated when you enter a market in which there is at least one established rival. This is often when you go into a foreign market. Then you have to compare whose employees are competent, what their strengths and weaknesses are, and what yours are as well. Does your strength allow you to capture a large portion of the foreign market to make your business viable?
After all this is done, you can determine and calculate your chances of winning. Once you have calculated your winning odds, you can then decide whether or not to implement the strategy.
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