36 Strategies

Re: The 36 Strategies

Postby helios » Thu Jun 19, 2008 12:13 pm

Strategy 9 - Observing the Fire from the Other Side of the River (隔岸观火) ge an guan huo

阳乖序乱,阴以待逆。
暴戾恣雎,其势自毙。
顺以动豫,豫顺以动。

解释:

- 阳乖序乱 = internal struggles, company's instrinsic disorder made public (阳:指公开的);
- 阴以待逆 = wait-n-see till e company's situation become worse, b4 attacking (阴: 指暗地里的);
- 暴戾恣雎 = (凶暴) displeasures, arguements in company;
- 其势自毙 = company's strength (?stocks) are weakened;
- 顺以动豫,豫顺以动 = once e news, "noises" quieten down, seize e opportunity/ buildups, act and reap e benefits that comes in naturally & smoothly ... (意思是:顺时而动,正因为豫卦之意是顺时而动,所以天地就能随和其意,做事就顺当自然).

Examples:

1. Squabbles within family businesses [at e time of writing, e author commented on e acquisition deal of Yeo Hiap Seng by Far East Organisation];

2. Exploiting conflicts, tensions in international business to form win contracts by cashing on e vacuum left by e fighting "parties", ie. after staying side-line, remain'g silent, observ'g and watch'g e fire [euphoria] from e other side of e river;

3. Staying out of uncertain situations/ outcomes/ dilemma, in e case of minority shareholders shld refrain fr. taking sides, adopt advices from bankers, 3rd parties, remain at distance levels to watch b4 tak'g decisions on whether to sell-out.
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Re: The 36 Strategies

Postby helios » Thu Jun 19, 2008 2:24 pm

Strategy 10 - A Dagger Sheathed in a Smile (笑里藏刀) xiao li cang dao

信而安之,阴以图之。
备而后动,勿使有变,刚中柔外也。

解释:

- 信而安之 = trustful, it emphasises on e words (使信、使安);
- 阴以图之 = behind one's back, possibly an ambush (暗地里);
- 备而后动,勿使有变 = e ambush is planned by a strategist (有所准备);
- 刚中柔外也 = what appears to be meek/ weak / soft on e outside may be strong/ hard/ determined on e inside (表面柔顺,实质强硬尖利).

Examples:

1. Sales strategies - e skillful salemen are to close e biggest sale out of e client.

2. Marketing & distribution & competition strategies - particularly, japanese business strategies, harbour'g ambitious plan to flood e world markets with their brands; e japanese companies like to keep a low profile [non-threat] first due to their strict disciplinary culture. Once e general perception is formed, e japanese companies will be e best rivals to displace e western companies out of their market share [as underdogs].

2.1 Refer to e Pokka Co. thread:
http://wookup.com/finance/forum/viewtopic.php?f=30&t=612&p=6824#p6824
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Re: The 36 Strategies

Postby helios » Fri Jun 20, 2008 10:58 am

Strategy 11 - The Plum dies in place of the Peach (李代桃僵) li dai tao jiang

势必有损,损阴以益阳。

解释:

- 势必有损 = losses are inevitable, one shld be willing to make sacrifices (损阴) in a battle to reap benefits or gain victory (益阳).

Examples:

1. Prioritise e use of limited resources - i like this application in businesses whereby u might not be able to win on every grounds, due to e financial/ budget/ human/ technologies contrainsts. One got to stand firm and know one's priority; bear in mind that there are trade-offs to gain e upper hand.

2. Focus on e right markets - literally in stockpicks, or trades, etc.
2.1. Three types of market places:
- developed market = high-end;
- developing market = mid-end;
- less developed market = low-end;

3. Sacrifice e little things to accomplish e big plan - used in business arena and negotiation of contracts.
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Re: The 36 Strategies

Postby helios » Tue Jun 24, 2008 9:22 pm

Strategy 12 - Stealing a Goat along the way (顺手牵羊) shun shou qian yang

微隙在所必乘,微利在所必得,少阴,少阳。

解释:

- 微隙在所必乘 = if one sees a small hole from e enemy's side;
- 微利在所必得 = and uses it to one's advantage;
- 少阴,少阳 = e small weaknesses (少阴) will accumulate into small gains (少阳).

Examples:

1. Seizing every business opportunity to venture into untapped market;

2. Growing a business by attracting talents = quote by Robert Kuok: if there are smarter people - stronger - better horses running - then why aren't you putting some of your money on them?;

3. Instead of taking on more than one can chew, one shld consider going after smaller opportunities and proposition, e.g. one can expand steadily by acquiring smaller companies which provide e synergy. e risks are lower and certainty of success higher to go pursue businesses than to over-diversify;

4. Opportunities can be found in a crisis (危机) = (机会).
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Re: The 36 Strategies

Postby helios » Thu Jun 26, 2008 1:50 pm

Strategy 13 - Hitting the Grass to Startle the Snake (打草惊蛇) da cao jing she

疑以叩实,察而后动;复者,阴之媒也。

解释:

- 疑以叩实,察而后动 = an attempt to clarify deviations, suspicious points (& circumstances) b4 making e next move (verbs: 叩、问、查究);

- 复者,阴之媒也 = repeatedly probe & investigate e suspicions to discover e undeveloped plot behind e scene (媒介).

Examples:

1. Forcing actions in e open, at times necessary to "provoke" targeted audience/ competitors into actions. ie. to acquire a controlling stake in listed Companies to test e market if there'r any stoppers - this action is an offensive strategy as e person who hits e grass is in e best position (立场) to capture e snake;

2. The downside risks:

2.1. Beware of boomerang effect; e snake it had startled [after hitting e grass] could create more havoc. ie. instead of stimulating e economy w incentives, packages to boost competitiveness of trades & exports, e floating of more usable money can expose e vulnerability of e currency and e economy, causing cascade damages;

2.2. Beware of unintended effect: one has to undstd e sensitivity of e target; if e target does not respond as anticipated (ie. in non-events or non-intervention), e appropriate measures may not be successfully executed.
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Re: The 36 Strategies

Postby helios » Mon Jun 30, 2008 9:12 am

Strategy 14 - Borrowing a Corpse to Resurrect a Soul (借尸还魂) jie shi huan hun

有用者,不可借;不能用者,求借。
借不能用者而用之,匪我求童蒙,童蒙求我。

解释:

- 有用者,不可借 = a useful person (thing/ situation) may be more difficult to employ or take advantage of;

- 不能用者,求借 = a less useful person (or dead thing/ situation - superficially) may be employed to unleash its full potential;

- 借不能用者而用之,匪我求童蒙,童蒙求我 = a child that is weak & ignorant will need e assistance of a teacher to become strong. This strategy is used in a desperate situation and facing danger; a smart person grasps any opportunity and persuades others to help him survive.

Examples:

1. Operating under e umbrella of others, deployed in marketing strategies to tap into others distribution network;

2. Con't to grow by investing in overseas;

3. Extending product life cycles - a product will face 4-stages growth cycle, ie. introduction, growth, maturity, decline, a marketer will attempt to extend e life cycle whenever possible by product improvement, product differentiation or creating blue oceans;

4. Sell-outs, Mergers and Acquisitions - in pharmaceutical industry, there is a trend towards mergers as a means of consolidating, and minimising competition to acheive economies of scale in R&D, purchasing, manufacturing & marketing.
Last edited by helios on Tue Jul 01, 2008 1:42 pm, edited 1 time in total.
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Re: The 36 Strategies

Postby helios » Mon Jun 30, 2008 10:28 am

i think, e below strategy 15 shld be familiar to all; esp. it's illustrated in Sun Tze War Strategies too.

下政攻城

《孙子兵法》早就指出:不顾条件地硬攻城池是下等策略,是会失败的。敌人既然已占据了有利地势,又作好了应战的准备,就不能去与他争地。应该巧妙地用小利去引诱敌人,把敌人诱离坚固的防地,引诱到对我军有利的战区,我方就可以变被动为主动,利用天时、地利和人为条件,一定可以击败敌人。


Strategy 15 - Luring a Tiger from its Lair in the Mountains (调虎离山) diao hu li shan

待天以因之,用人以透之。 往蹇来返。

解释:

- 待天以因之 = trap e enemy when e natural elements are to his disadvantage;

- 用人以透之 = create false impressions to lure/ tempt (诱惑) e enemy out of e mountains (comfort zone) & destroy him (往蹇来返).

Examples:

1. Choosing e site of negotiation (lure e enemy out of his home ground);

2. Luring important foreign investments by providing supporting facilities;

3. Attracting foreign talents (human resources) for economical reasons.
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Re: The 36 Strategies

Postby helios » Tue Jul 01, 2008 1:53 pm

Strategy 16 - Releasing the Enemy to Recapture Him (欲擒故纵) yu qin gu zong

逼则反兵;走则减势。
紧随勿迫,累其气力,消其斗志,
散而后擒,兵不血刃。
需,有孚,光。

解释:

- 逼则反兵;走则减势 = do not destroy e enemy as there r good reasons to keep him alive; let him escape & tire himself out;

- 紧随勿迫,累其气力,消其斗志 = while pursuing e escaped enemy, he will be tired, & lost e fighting spirits;

- 散而后擒,兵不血刃 = without any bloodshed, it's then e best time to capture him.

- 需,有孚,光 = once e enemy is psychologically defeated, & believes that he's unable to put up a fight, e battle will be easily won.

Examples:

1. Exhaust e resources of e weaker competitors thro' open market/ perfect competition;

2. Graft e use of varied strategies that comes w several embedded advantages;
2.1. Do not repeat e tactics that won you a victory, but vary them according to e circumstances;

3. To win e entire organisation, first win e heart of e leader. In war, sheer physical dominance does not ensure victory, as it's more impt to win total surrender & loyalty.
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Re: The 36 Strategies

Postby helios » Tue Jul 01, 2008 2:03 pm

Strategy 17 - Tossing out a Brick to get a Jade (抛砖引玉) pao zhuan yin yu

类以诱之,击蒙也。

解释:

- 类以诱之 = use a decoy to entice e enemy & get him muddled;

- 击蒙也 = tempt him to fall into e trap (撞击,打击);

Examples:

1. Use of baits in business - to lure big spenders, e.g. casino operators.
1.1. Offer e enemy a bait to lure him, when he's in disorder, strike him.

2. Investment incentives, conducive investment climate to attract foreign investments.

3. Auctions/ charity gala functions to raise $$$.
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Re: The 36 Strategies

Postby helios » Wed Jul 02, 2008 8:50 am

Strategy 18 - Disband the Bandits by capturing their Leader (擒贼擒王) qin zei qin wang

摧其坚,夺其魁,以解其体。龙战于野,其道穷也。

解释:

- 摧其坚,夺其魁,以解其体 = if e enemy's base is destroyed in an attack, its leader is captured, e whole organisation will break down;

- 龙战于野,其道穷也 = juz like a sea dragon wanting to stage a war on e wilderness land, it'll face difficulties in doing so.

Examples:

1. Corporate head hunting, departure of key executives in a company;

2. Getting to e root of e problem, arresting it with an effective solution. (Management skills).
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