Comparing the business

and military strategies

Nor-rahma M. Regaro
A strong military heritage underlies the study of
strategic management. Terms such as objectives,
mission, strengths, and weaknesses were first
formulated to address problems on the battlefield.
According to Webster's New World Dictionary, strategy
is "the science of planning and directing large-scale
military operations, of maneuvering forces into the most
advantageous position prior to actual engagement with
the enemy
Understanding the Origin
“Strategos”
-Stratos (the army) and ago (to lead).
-The history of strategic planning began in the military.

“The Art of War”

-The oldest military manual written 400-320 B.C. by an
ancient chinese general, Sun Tzu
 Business Strategy and Military Strategy
Business Strategy
Objectives • To conquer and control markets
Analysis • Of the macro environment
• Of the industry
(microenvironment)
• Resources and competences
• Organizational Structures
• Control and Coordination
Results • Business strategy
• Strategic plan
Military Strategy
• To conquer and control territories
• Of the environmental conditions
• Enemy’s strengthens and
weaknesses
• Own capabilities and limitations
• Command structure
• Leadership and coordination
• Military strategy
• Plans of campaign
Both business and military organizations try to use their own strengths to exploit
competitors' weaknesses. If an organization's overall strategy is wrong (ineffective),
then all the efficiency in the world may not be enough to allow success.

A fundamental difference between military and business strategy is that business

strategy is formulated, implemented, and evaluated with an assumption of
competition, whereas military strategy is based on an assumption of
conflict. Nonetheless, military conflict and business competition are so similar
that many strategic-management techniques apply equally to both.
 Excerpts from Sun Tzu’s The Art of War Writings
• Know your enemy and know yourself, and in a hundred battles you will never be defeated. When you are
ignorant of the enemy but know yourself, your chances of winning or losing are equal. If ignorant both of
your enemy and of yourself, you are sure to be defeated in every battle.

• He who occupies the field of battle first and awaits his enemy is at ease, and he who comes later to the scene
and rushes into the fight is weary. And therefore, those skilled in war bring the enemy to the field of battle
and are not brought there by him. Thus, when the enemy is at ease, be able to tire him; when well fed, be able
to starve him; when at rest, be able to make him move.

• If you decide to go into battle, do not announce your intentions or plans. Project "business as usual."

• When you do decide to challenge another company (or army), much calculating, estimating, analyzing, and
positioning bring triumph. Little computation brings defeat.
 Some Military Strategies that can be applied to business?

Set an objective, keep it Keep your troops well

uppermost, and plan to Clear lines of supplied, well led, well
meet the objective communication informed, treated with
respect.

Listen to your troops.

Gather intelligence on Accept that your front line Inspire your troops.
your opposition troops know more about Genuinely, be a leader
the front line than you they can respect
will
Nature of Global
Competitions
Nor-rahma M. Regaro
Globalization is a process of doing business
worldwide, so strategic decisions are made based on global
profitability of the firm rather than just domestic
considerations. A global strategy seeks to meet the needs of
customers worldwide, with the highest value at the lowest
cost.

A global strategy includes designing, producing, and

marketing products with global needs in mind, instead of
considering individual countries alone. A global strategy
integrates actions against competitors into a worldwide plan.
Organizations that conduct business operations across national borders are
called international firms or multinational
corporations. The strategic-management process is conceptually the
same for multinational firms as for purely domestic firms; however, the
process is more complex for inter- national firms as a result of more
variables and relationships.

Advancement in technology throughout the centuries has improved the

ability to attain goods and services from all over the world. Global
competition has helped to increase the profitability from a small mom and
pop business to a large corporation moving into international business.
 ADVANTAGES OF GLOBALIZATION

1. Economic Growth
It’s widely believed that increased globalization leads to greater economic growth for all parties. There are several
reasons why this might be the case, including:
Access to labor: Globalization gives all nations access to a wider labor pool. Developing nations with a shortage of
knowledge workers might, for example, “import” labor to kickstart industry
Access to jobs: This point is directly related to labor. Through globalization, developing nations often gain access to
jobs in the form of work that’s been outsourced by wealthier nations.
Access to resources: One of the primary reasons nations trade is to gain access to resources they otherwise wouldn’t
have. Without this flow of resources across borders, many modern luxuries would be impossible to manufacture
or produce.
The ability for nations to “specialize”: Global and regional cooperation allow nations to heavily lean into their
economic strengths, knowing they can trade products for other resources.

2. Increased Global Cooperation

For a globalized economy to exist, nations must be willing to put their differences aside and work together. Due to
this, increased globalization has been linked to a reduction—though not an elimination—of conflict.
3. Increased Cross-Border Investment
According to the course Global Business, globalization has led to an increase in cross-border investment. At the
macroeconomic level, this international investment has been shown to enhance welfare on both sides of the
equation.

DISADVANTAGES OF GLOBALIZATION

1. Increased Competition
When viewed as a whole, global free trade is beneficial to the entire system. Individual companies, organizations,
and workers can be disadvantaged, however, by global competition. This is similar to how these parties might
be disadvantaged by domestic competition: The pool has simply widened.
2. Disproportionate Growth
Globalization can introduce disproportionate growth both between and within nations. These effects must be
carefully managed economically and morally.
3. Environmental Concerns
Largest companies in the world using 4 metrics:
Sales, profits, assets and market value
THANK
YOU!