Strategic Management from an Islamic Perspective E-Book

Rodrigue Fontaine

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 476

Veröffentlichungsjahr: 2013

Beschreibung

Fascinating insights into modern strategic management from an Islamic perspective While strategic management is a cornerstone of any MBA program, it's almost always taught from conventional theories and typically American case studies. This book takes those traditional theories and interprets them from an Islamic perspective using more international case studies. Though primarily intended as a textbook for business students, the book is also extremely useful for any Muslim business leaders who want to transform their businesses while complying with Shariah, with a particular focus on developing corporate cultures and structures in sync with Islamic values. * Offers a critical review of conventional strategic management theory, suggesting more effective alternatives based on a combination of conventional and Islamic theories * Includes international case studies, each with a particularly Islamic angle * Written by a successful author team that has written extensively on the subject of business management from an Islamic perspective

Leseprobe

Contents

Foreword

Preface

Acknowledgments

Part I: Strategy: An Islamic Perspective

Chapter 1: Introduction

Leading an Organization Is Like Driving a Car

Critical Thinking

The Problem with Conventional Management

The Problem with Conventional Strategic Management

The Value of Strategic Management from an Islamic Perspective

References

Notes

Chapter 2: Conventional Strategic Management

Introduction

The Importance of Competitive Advantage

Competitive Advantage: A Means or an End?

The Importance of Stakeholders

The Strategic Management Process

Strategic Management in Developing Countries

Why Do Most Strategies Fail?

First Observation: Causal Ambiguity

Second Observation: Strategic Thinking

Third Observation: Profitability versus Risk

Summary

References

Notes

Chapter 3: Four Fundamental Problems

Introduction

FP 1: The Use of Interest-Based Loans

FP 2: Developing Sustainable Organizations

FP 3: Overcoming Defensive Routines

FP 4: Overcoming Conflicts of Interest

Discussion

Summary

References

Notes

Chapter 4: Organizational Justice

Introduction

Elements in Organizational Justice

Hammer and Champy

W. Edwards Deming

Eli Goldratt

Discussion

Summary

References

Notes

Chapter 5: Islam Transforms People and Leaders

Introduction

The Individual as the Unit of Analysis

Belief in Islam Appeals to the Intellect

Islam in the Context of an Organization

Islam in the Context of Multicultural Societies

The Importance of Prayer

The PIES Model

The Driving Analogy

Summary

References

Notes

Chapter 6: The Challenge of Culture

Introduction

The Link between Culture and Strategy

Lessons from Research at the International Islamic University Malaysia

The Role of Top Management

Summary

References

Note

Chapter 7: The Role of Islamic Law

Introduction

Why Do We Need Islamic Law?

Principles of Islamic Law

The Importance of Intention and Knowledge

Islamic Law for Top Management

Islamic Law for Middle Management

Islamic Law for Subordinates

Shariah and Fiqh

The Need for Further Research

Summary

References

Notes

Chapter 8: Strategic Decision Making

Introduction

A Broader View of Strategy

Strategy as Problem Solving

Errors in Strategic Decision Making

Defining the Strategic Problem

Understanding the Strategic Problem

Experimenting

Strategic Decision Making

Evaluating the Strategic Process

Summary

References

Notes

Chapter 9: Analyzing a Case

The Purpose of Analyzing a Case

Choosing the Story

Part II: Case Studies

Chapter 10: Case 1: IBM and Lou Gerstner

Introduction

The Beginning

The Writing on the Wall

Finding a New CEO

The First Days at IBM

The Corporate Culture Problem

Do We Need a Strategic Vision?

Getting the Execution Right

The Essence of Leadership

Reviving the Brand

Compensation

Making the Company Grow Again

References

Chapter 11: Case 2: Al Rajhi Bank

The Job Offer

Al Rajhi’s Background

Bilal’s Conclusions

Chapter 12: Case 3: Bank Muamalat

Zabeda’s Report

The Beginning of Bank Muamalat

Top Management Structure

The Financial Performance

Putting IT to Work

The Competitive Environment

Zabeda’s Supervisor’s Comments

References

Chapter 13: Case 4: Bank Rakyat

The Strategic Challenge

The Cooperative Movement

Bank Rakyat

Marketing at Bank Rakyat

Putting IT to Work

Future Plans

References

Note

Chapter 14: Case 5: MUSLEH (Part 1)

The Dilemma

MUSLEH

The Founding of MUSLEH

The Personality of Ustaz Amin

The Classical Strategic Management Framework

Connections with Other Professionals

Setting a New Direction for the Group

Note

Chapter 15: Case 6: MUSLEH (Part 2)

Introduction

Changes in the Middle East

Dr. Tareq Al Suwaidan

Dr. Amr Khaled

The Debate

A Trip to Kuwait City

What to Do Next?

Chapter 16: Case 7: Fuji Xerox

The Phone Call

An Overview of Fuji Xerox

Fuji’s Emphasis on CSR and Sustainability

Fuji’s Marketing Initiatives

A SWOT Analysis of Fuji Strategy

An Analysis of Fuji’s Financial Results

Conclusion

Chapter 17: Case 8: McDonald’s Pakistan

The Dilemma

The Company Profile

Raza Ali

Rashid Ibrahim

McCafé

McDonald’s Target Market

The Main Competitor: Gloria Jean’s Coffees

Back to the Dilemma

Chapter 18: Case 9: Unilever Bangladesh

The Appointment

Bangladesh

Industry Factors

Industry Players

The Organization’s Structure

Financial Management

Marketing Management

UBL Products

Brand Promotion

Pricing

Operations Management

Human Resources Management

Conculsion

Notes

Appendix: A Primer on Evolution

About the Authors

About the Contributors

Index

Copyright © 2013 by John Wiley & Sons Singapore Pte. Ltd.

Published by John Wiley & Sons Singapore Pte. Ltd.

1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons Singapore Pte. Ltd., 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628, tel: [phone], fax: [phone], e-mail: [email protected].

Limit of Liability/Disclaimer of Warranty: While the publisher, author and contributors have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher, authors or contributors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Other Wiley Editorial Offices

John Wiley & Sons, 111 River Street, Hoboken, NJ 07030, USA

John Wiley & Sons, The Atrium, Southern Gate, Chichester, West Sussex, P019 8SQ, United Kingdom

John Wiley & Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario, M9B 6HB, Canada

John Wiley & Sons Australia Ltd., 42 McDougall Street, Milton, Queensland 4064, Australia

Wiley-VCH, Boschstrasse 12, D-69469 Weinheim, Germany

Library of Congress Cataloging-in-Publication Data

ISBN 978-1-118-55305-3 (Hardcover)

ISBN 978-1-118-55306-0 (ePDF)

ISBN 978-1-118-55308-4 (ePub)

We would like to dedicate this book to all those who are trying to make this world a better place.

Foreword

The world is crisis prone. A crisis of one kind or another continues to confront countries, regions, and the whole world. Often, a crisis emanating in one corner of the globe can become pervasive, whether it is induced by environmental disorders or sociopolitical upheavals.

Businesses operate within the ecosystem of environment, society, and governments and the bilateral or multilateral trade and investment relationships between countries and regions. From this perspective, the ability to perceive changes and, more important, to align a business with impending changes and to face challenges is imperative. Business leaders, who have steered their firms and organizations to success, have consistently shown their acumen and prowess in making strategic decisions that are important for the future of an organization.

The future is not a set of constant variables. It is fraught with ever-changing parameters. It is dynamic and prone to risks that can be extraneous. This is one reason that strategic management is focused on in business studies and management practices. The conventional approach to discussing strategic issues from a purely traditional business–based perspective is fast changing. Stakeholder issues hitherto considered as external to business, such as environment, social justice, governance, transparency, and ethical concerns, are now an integral part of critical thinking and affect a firm’s strategic business as well as its survival in the long run.

The authors have made a pioneering and bold attempt to look at strategic management issues from an Islamic perspective. This is a welcome initiative as their efforts bring a fresh approach to the continuing discussion on strategic management. Apart from addressing the issues from a pedagogic point of view, the authors have presented data and case studies contributed by experts and obtained from their research. This approach helps to illustrate the application of some of the principles of strategic management from an Islamic perspective.

In this regard, the authors have attempted to include Islamic values into the discussion. This, in my view, is a welcome contribution to the ongoing debate on sustainability issues that dominates business strategy nowadays. The intention of the authors to imbue Islamic practical wisdom in formulating strategies and plans is commendable.

The book achieves its objective to be an introductory text for graduate students and others who are interested in the subject.

Datuk Seri Mohamed Iqbal

Chairman, Malaysian Institute of Management

Kuala Lumpur, Malaysia

Preface

This book is based on a simple premise of humanism. This world would be a better place if business strategists applied Islamic principles when developing their strategic plans. With this book, we would like to propose a methodology for strategic management from an Islamic perspective. We have taken the best ideas of both Western strategic management knowledge and Japanese strategic management knowledge and have tried to integrate East and West with the practical wisdom of Islamic principles.

Several years ago, the idea that any religion—let alone Islam—could help us manage things better would have been unthinkable. However, with all the corporate scandals that have plagued the world over the past 15 years, people are realizing that it might be a good thing if strategists had a greater sense of morality.

The editors of the Journal of Management Development went a step further. They published a special issue on “Practical Wisdom in Management from the Religious and Philosophical Traditions” in 2012. They wrote that “the pursuit of superior knowledge without the pursuit of practical wisdom is incomplete and can cause great damage.” The editors observe that “the project of enlightenment can be considered incomplete and rudderless without a re-connection to the practical wisdom from religious, spiritual and philosophical traditions.” We concur. For years, experts at the International Islamic University Malaysia have known that the development of strategic management has been lopsided. It is only recently that other experts in the field are looking at merging the classical approach (normally very analytical) with principles and values from other disciplines and other cultures. In particular, scholars around the world are rediscovering the role of religion in providing leaders with a moral compass that seems to be lacking at the moment. We believe that this emerging trend is both exciting and refreshing and we hope to contribute to this trend with our book, Strategic Management from an Islamic Perspective.

For 30 years, the International Islamic University Malaysia has argued for a greater integration of “secular” and “religious” knowledge based on revelations and reasons, arguing that both are necessary. More recently, the university endorsed the concept of al Wasatiyyah, which reflects the concerns that Islam has for justice, excellence, balance, and strength. Within this context, the faculty (kulliyyah) of economics and management sciences (KENMS) has been working on the Islamization of management for more than three decades. We see this project as an inclusive one that can benefit everybody, not necessarily only Muslims.

Audience

The main audience for this book is university students taking strategic management courses. However, we have written this book in a way that we hope will also benefit senior academics and practitioners.

Overview of the Contents

This book is divided into two parts. The first part looks at the theory of strategic management from an Islamic perspective. We start with an introduction (Chapter 1), a review of the literature (Chapter 2), and the identification of four key problems (Chapter 3). We then see how Islam provides solutions by exploring the concept of organizational justice (Chapter 4), the transformational nature of faith (Chapter 5), and the ability to develop an Islamic corporate culture (Chapter 6). Lastly, we discuss the role of Islamic law (Chapter 7) and we finish with strategic decision making (Chapter 8). Part II includes a number of case studies that allow students to develop their analytical skills and the ability to propose new strategies.

Additional Materials

Instructors can find PowerPoint slides of course outlines and instructor manuals for each chapter at www.wiley.com/go/strategicmanagement.

Acknowledgments

This book was written by both of us, but it reflects the collective intellectual effort of many other experts in management, marketing, economics, accounting, and finance. We would like to extend our thanks to some of our colleagues who helped us: Mohamed Sulaiman, Mohd Aslam Hanif, Aahad Osman-Gani, Syed Ismail Ahmad, Arif Hassan, Junaidah Hashim, Mohd Mustapha Omar, Abdul Gapur, Saim Kadiyabi, Ahmad Kameel Mydin Meera, Mohd. Suhaimi, Nor Hazilah, and Naail Kamil among others. Our thanks extend to our colleagues in other universities around the world: Rafik Beekun, Jamal Badawi, Azhar Kazmi, Shamim Ahmad, S. M. Imamul Haque, Abbas Ali, Muhammad Kashif Saeed, and Shamas-ur-Rehman Toor. We would like to thank some of the practitioners we have met on our journey: Dr. Tariq Al-Suwaidan, Ustaz Megat Amin, Sapto Sugiharto, Darwish Moawad, Mohd Adam Mohd Said, Mansor Awang, Hakimi Yakoob, Mohd Shukri Mohd Yunus, and, of course, Fazrul Ismail. You showed us that strategic management from an Islamic perspective is not simply an academic dream, but it is something that is currently being practiced. Special thanks go to Patrick Fontaine, whose insights into leadership and strategy reflect a lifetime of practice in Africa, the Middle East, Europe, and the United States. We would like to thank the university’s Research Management Centre (RMC) for its financial support and Diaa Al Juneidi for his help in organizing the trip to Kuwait and Dr. Al-Suwaidan’s visit to the university. Last, we would like to thank our students and our families—without you, we wouldn’t be here.

Rodrigue Fontaine and Khaliq Ahmad

Kuala Lumpur

Malaysia

Part I

Strategy: An Islamic Perspective

The objectives of this part are to:

1. Clarify the methodology of strategic management from an Islamic perspective.

2. Offer an introductory text to students, academics, and practitioners interested in strategic management from an Islamic perspective.

3. Present some of the data collected by Muslim researchers.

The literature reviewed in the area of strategic management will not be exhaustive, and therefore it might frustrate people wanting a more advanced text. The presentation of the material reflects our personal experiences in teaching strategic management over the years and may differ from other texts.

Chapter 1

Introduction

For more than 20 years now, experts in management at the International Islamic University Malaysia (IIUM) have been working on management from an Islamic perspective (MIP). Recent books in the area of MIP include Ahmad, Islam, and Ismail (2011), Ahmad and Fontaine (2011), and Osman-Gani and Sarif (2011). Over the years, some researchers have specialized in some of the subbranches of Islamic management. Some have developed an interest in organizational behavior, others in business ethics, and yet others in strategic management. The focus of this textbook1 is on strategic management from an Islamic perspective. The mention of “strategic management from an Islamic perspective” raises three questions:

1. What is the Islamic perspective on strategic management?

2. Does strategic management from an Islamic perspective add anything new to strategic management?

3. Do organizations today apply strategic management from an Islamic perspective?

Part I will deal with the first two questions. Part II will address the last question by providing examples of organizations applying the principles of strategic management from an Islamic perspective.

Leading an Organization Is Like Driving a Car

In different parts of this text, we will use the analogy that leading an organization is like driving a car. The driver (leader of the organization) needs to decide where to go (vision), how to get there (strategy), and at what speed to drive (risk and profitability). To achieve his or her goal, the driver needs to avoid hitting other cars (competitors) while obeying the rules of the road (government regulations). The driver (leader) has a number of passengers in the car (stakeholders).

In conventional strategic management, the measure of success is speed (profitability). Passengers (stakeholders) may not have a comfortable ride and some of them might be pushed out of the vehicle in order to arrive at the destination faster.