STRATEGIC MANAGEMENT FROM ISLAMIC PERSPECTIVE
THE QURANIC PERSPECTIVE RELATED TO STRATEGIC MANAGEMENT
COMPETITIVE ADVANTAGE FROM AN ISLAMIC PERSPECTIVE
🍏Seeking competitive advantage is a means (higher profit) to an end (long-term survival), not an end in itself.
🍏Competitive advantage is derived from superior knowledge (core competencies) which allows the organization to stay in business without having to engage in curropt business practices.
EXTERNAL ANALYSIS
🍉 SWOT analysis. For example, opportunities = fard kifayah, work for charity
🍉 Exercise faith in business
🍉 Does Islam create barriers to competition like engage in gambling, gharar business activity.
INTERNAL ANALYSIS
🍊 RBV - core competencies - sustainable competitive advantage
🍊 It may not possible to succeed in the business without establishment of strong common culture based on Islamic values.
🍊 Intangible resources which are ethics and integrating faith and business principles is valuable.
BUSINESS LEVEL STRATEGY
🍑 Cost leadership strategy combines with faith
🍑 Differentiation strategy
🍑 Focus strategy - Muslim community as a niche market
CORPORATE LEVEL STRATEGY
🍅 What markets should i not be in?
🍅 Acquisition of beer brewery?
🍅 Should i remain in an unattractive market that has been abandoned strategy by rivals?
🍅 Consider personal, selfish, managerial motives that underlie many corporate strategy decisions.
INTERNATIONAL STRATEGY
🍒 For example are exports, licensing, franchising, strategic alliances and wholly-owned subsidiaries.
🍒 Case - The founder of Pura-Vida coffee plantation facilities in the poor areas of San Jose, Costa Rica - to minister to the improverished people of these neighourhoods.
🍒 Avoid to treat people in foreign market as less deserving of our most responsible behaviour.
STRUCTURE & CONTROL
🍐 Structural issues seem to have less to do with the form of structure themselves, an dmore to do with attitudes of those leadership within these structures
🍐 Is there an islamic business structure?
🍐 Consider intentions and behaviors, appropriate and responsible accountability in business and justice, mercy and grace realte to organizational and indivual control systems.
COMPETITIVE DYNAMICS
🍇 If our rivals diversify into gambling, alcohol/pornography markets, should we not follow them at all costs in order to check their moves?
🍇 Is it un-islamic for large firms to systematically attack small rivals in order to eliminate them?
MERGES & ACQUISITION RESTRUCTURING
🍒 Whether acquire/merge with firm/industry which islam ought not to be comfortable
🍒 Consider the ethics of dowsizing actions
THE
PROBLEM
|
THE
SOLUTION
|
|
SURAH
|
Al-Takathur (Quran, 102)
|
Al-Asr (Quran, 103)
|
DESCRIPTION
|
People are
competing with one another to get their destination quickly. They hide
embarrassing information from the boss and they play political games inside
the organization. Their focus is on this life.
|
Successful
people cooperate with one another because they are all in the same car. To arrive
safely at their destination, they need to say the truth (even to their bosses)
and they need to be patient (even when they do not get that promotion). Their
focus is on life after death.
|
MENTAL
MODEL
|
Competition
|
Cooperation
|
MOTIVATION
|
Extrinsic
|
Intrinsic
|
PERSPECTIVE
|
The life
|
The next life
|
METAPHOR
|
A good driver drives
quickly
|
A good driver
drives safely
|
COMPETITIVE ADVANTAGE FROM AN ISLAMIC PERSPECTIVE
🍏Seeking competitive advantage is a means (higher profit) to an end (long-term survival), not an end in itself.
🍏Competitive advantage is derived from superior knowledge (core competencies) which allows the organization to stay in business without having to engage in curropt business practices.
EXTERNAL ANALYSIS
🍉 SWOT analysis. For example, opportunities = fard kifayah, work for charity
🍉 Exercise faith in business
🍉 Does Islam create barriers to competition like engage in gambling, gharar business activity.
INTERNAL ANALYSIS
🍊 RBV - core competencies - sustainable competitive advantage
🍊 It may not possible to succeed in the business without establishment of strong common culture based on Islamic values.
🍊 Intangible resources which are ethics and integrating faith and business principles is valuable.
BUSINESS LEVEL STRATEGY
🍑 Cost leadership strategy combines with faith
🍑 Differentiation strategy
🍑 Focus strategy - Muslim community as a niche market
CORPORATE LEVEL STRATEGY
🍅 What markets should i not be in?
🍅 Acquisition of beer brewery?
🍅 Should i remain in an unattractive market that has been abandoned strategy by rivals?
🍅 Consider personal, selfish, managerial motives that underlie many corporate strategy decisions.
INTERNATIONAL STRATEGY
🍒 For example are exports, licensing, franchising, strategic alliances and wholly-owned subsidiaries.
🍒 Case - The founder of Pura-Vida coffee plantation facilities in the poor areas of San Jose, Costa Rica - to minister to the improverished people of these neighourhoods.
🍒 Avoid to treat people in foreign market as less deserving of our most responsible behaviour.
STRUCTURE & CONTROL
🍐 Structural issues seem to have less to do with the form of structure themselves, an dmore to do with attitudes of those leadership within these structures
🍐 Is there an islamic business structure?
🍐 Consider intentions and behaviors, appropriate and responsible accountability in business and justice, mercy and grace realte to organizational and indivual control systems.
COMPETITIVE DYNAMICS
🍇 If our rivals diversify into gambling, alcohol/pornography markets, should we not follow them at all costs in order to check their moves?
🍇 Is it un-islamic for large firms to systematically attack small rivals in order to eliminate them?
MERGES & ACQUISITION RESTRUCTURING
🍒 Whether acquire/merge with firm/industry which islam ought not to be comfortable
🍒 Consider the ethics of dowsizing actions
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