Military Strategy and Business Strategy Workshop in International Commerce 2 A Comparative Analysis of Military Strategy and Business Strategy Hwy-Chang Moon Professor of International Business & Strategy The Graduate School of International Studies Seoul National University Email: cmoon@snu.ac.kr Class Time: Tue. 2:30 – 5:30 pm Classroom: Bldg. 140-2, Rm 201 Office Hours: Mon & Tue 1:25 - 2:25 pm or by Appointment Office: Bldg. 140-2, Rm 311 Teaching Assistant Wenyan Yin (wenyanyin2012@gmail.com)

Course Description Sun Tzu is the most famous and respectable ancient military strategist. His work of The Art of War is the world’s foremost classic on military strategy, and is still a required textbook in major military schools. Although it is a military work, its strategy and insights are not confined to military affairs, but have been widely applied to various fields of studies, including business. Michael Porter is the most famous and respectable modern business strategist. He is recognized as the father of modern business strategy, and his ideas are taught in almost every business school throughout the world. His work has had great influence on both academia and practice about competitiveness, economic development, unproductive urban communities, environmental policy, and the role of corporations in society. This course will help students understand important strategies developed by Sun Tzu and Michael Porter by comparing and contrasting them from various perspectives. Both theories and practices will be rigorously analyzed to develop skills necessary for devising successful strategies in business and other areas.

Grading Policy Grading [ Total 100% ] Professionalism (20%) Professionalism: attendance, attitude, and participation (20%) Weekly summary of readings for each class (20%) Presentation: Class-topic presentation (20%) PPT report: Class-topic presentation (20%) Final exam (20%) Professionalism (20%) Students should attend all classes. Those who miss more than two classes may not receive a grade. Tardiness and class disturbances may be reflected in the grade. Students are also required to know the Honor Code and apply it to all work and behavior in the class. Weekly summary (20%) Students are required to submit a one-page summary of the assigned readings for Classes 3 through 14 (12 total). Summaries should be submitted via email to cmoon@snu.ac.kr and wenyanyin2012@gmail.com at least 24 hours before class (by 2:30 pm on Monday). The weekly summary should (i) discuss what you think most interesting in the readings, and (ii) provide constructive criticism and variant views. The one-page summary should be approximately 400 to 500 words in length.

Weekly Summary Format Please title your email and your file name as “SB&MP Weekly Summary_Class #_ Full Name.” Full name Class number (e.g., Class 03) Summary of the article(s) Uniqueness Main points Evaluation Constructive evaluation Possible extension

Grading Policy Presentations (20%) and PPT reports (20%) Students are required to give presentations of interesting points from class readings. Students are expected to choose their own topics and group members, which will be determined in Class 2. Further information regarding the presentations will be given later. Students should submit class-topic presentation PPT files at least 24 hours before the class of their presentations. Final exam (20%) It will take two hours with open books and notes in the last class (Class 15).

Course Materials There are reading materials for each of the class. Students should read the materials before class, so that class meetings can be used for discussion rather than for lecture. It is also recommended that students regularly read good business and economic publications such as WSJ, NYT, Economist, and other articles. Recommended readings for Sun Tzu’s The Art of War Minford, J. 2008. Sun Tzu’s The Art of War. North Clarendon, Tokyo, and Singapore: Tuttle Publishing. 김광수. 1999. 손자병법. 서울: 책세상. Recommended readings for Porter’s business strategy Moon H. C. 2010. Global business strategy: Asian perspective. Singapore: World Science Publishing Co.

Course Schedule (I) Class 1. (Sept. 6) Introduction - Overview of the course - Military vs. Business strategy Class 2. (Sept. 13) Ch 1. Laying Plans - Sun Tzu: Five elements for victory - Porter: Diamond model - Cases: (1) Japan’s attack on Pearl Harbor, (2) Sony Corporation Class 3. (Sept. 20) Ch 2. Waging War - Sun Tzu: Swift victory and using enemy’s resources - Porter: Value chain analysis - Cases: (1) Napoleon’s invasion of Russia, (2) Hyundai Motor Company Class 4. (Sept. 27) Ch 3. Strategic Attack - Sun Tzu: Winning a complete victory - Porter: Five forces model - Cases: (1) Genghis Khan’s terror strategy, (2) Apple Inc. Class 5. (Oct. 4) Ch 4. Tactical Disposition - Sun Tzu: Preparing overwhelming conditions for victory before going to war - Porter: Generic strategies - Cases: (1) The Battle of Stalingrad, (2) Toyota Motor Corporation

Course Schedule (II) Class 6. (Oct. 11) Ch 5. Energy - Sun Tzu: Creating strategic advantage through Zheng (正) and Qi (奇) - Porter: Operational Efficiency (OE) and Strategic Positioning (SP) - Cases: (1) Vietnam War, (2) Wal-Mart Stores, Inc. Class 7. (Oct. 18) Ch 6. Strengths and Weaknesses - Sun Tzu: Evading enemy’s strengths and attacking its weaknesses - Porter: Three strategic positionings - Cases: (1) Hannibal at Cannae, (2) Southwest Airlines Co. Class 8. (Oct. 25) Ch 7. Maneuvering - Sun Tzu: Turning the circuitous course into the straight one - Porter: Creating Shared Value (CSV) - Cases: (1) The Long March of the Red Army (Mao Zedong), (2) Nestle in India Class 9. (Nov. 1) Ch 8. Variation in Tactics - Sun Tzu: Variation in tactics under different situations - Porter: Competitive strategy - Cases: (1) Trojan War, (2) Haier Group (China) Class 10. (Nov. 8) Ch 9. Marching - Sun Tzu: Moving and deploying troops and investigating enemy’s situation - Porter: Extending generic strategies from three to eight types - Cases: (1) Hanxin fight to win or die, (2) Tata Motors (India)

Course Schedule (III) Class 11. (Nov. 15) Ch 10. Terrain - Sun Tzu: Six types of terrains - Porter: The cluster model for locational advantages - Cases: (1) The Battle of Myeongnyang, (2) The Competitiveness of Silicon Valley Class 12. (Nov. 22) Ch 11. The Nine Situations - Sun Tzu: Different situations according to the mutual position between one and its enemy - Porter: C-C Model and I-R Model - Cases: (1) The Battle of Incheon, (2) Starbucks in China Class 13. (Nov. 29) Ch 12. The Attack by Fire - Sun Tzu: Using the most effective and powerful tool in attack - Porter: The power of created advantage - Case: The Battle of Red Cliffs, (2) Alfred Nobel (Dynamite and Nobel Prize) Class 14. (Dec. 6) Ch 13. The Use of Spies - Sun Tzu: Obtaining information by utilizing spies - Porter: Information advantage - Cases: (1) Mata Hari (A Spy for Germany), (2) Baidu, Inc. (China) Class 15. (Dec. 13) Final Exam - Open Book/ Notes