Foreword xiii
Preface xv
Acknowledgments xvii
Part I Strategy: An Islamic Perspective 1
1 Introduction 3
Leading an Organization Is Like Driving a Car 4
Critical Thinking 5
The Problem with Conventional Management 6
The Problem with Conventional Strategic Management 7
The Value of Strategic Management from an Islamic Perspective 9
References 11
Notes 12
2 Conventional Strategic Management 13
Introduction 13
The Importance of Competitive Advantage 13
Competitive Advantage: A Means or an End? 15
The Importance of Stakeholders 16
The Strategic Management Process 17
Strategic Management in Developing Countries 19
Why Do Most Strategies Fail? 20
First Observation: Causal Ambiguity 24
Second Observation: Strategic Thinking 24
Third Observation: Profitability versus Risk 27
Summary 28
References 28
Notes 30
3 Four Fundamental Problems 31
Introduction 31
FP 1: The Use of Interest-Based Loans 31
FP 2: Developing Sustainable Organizations 35
FP 3: Overcoming Defensive Routines 43
FP 4: Overcoming Conflicts of Interest 45
Discussion 49
Summary 51
References 52
Notes 54
4 Organizational Justice 55
Introduction 55
Elements in Organizational Justice 56
Hammer and Champy 60
W. Edwards Deming 62
Eli Goldratt 64
Discussion 66
Summary 70
References 70
Notes 72
5 Islam Transforms People and Leaders 73
Introduction 73
The Individual as the Unit of Analysis 74
Belief in Islam Appeals to the Intellect 80
Islam in the Context of an Organization 82
Islam in the Context of Multicultural Societies 83
The Importance of Prayer 90
The PIES Model 91
The Driving Analogy 91
Summary 92
References 92
Notes 94
6 The Challenge of Culture 95
Introduction 95
The Link between Culture and Strategy 96
Lessons from Research at the International Islamic University Malaysia 97
The Role of Top Management 101
Summary 106
References 107
Note 108
7 The Role of Islamic Law 109
Introduction 109
Why Do We Need Islamic Law? 109
Principles of Islamic Law 111
The Importance of Intention and Knowledge 113
Islamic Law for Top Management 114
Islamic Law for Middle Management 115
Islamic Law for Subordinates 116
Shariah and Fiqh 117
The Need for Further Research 118
Summary 119
References 119
Notes 120
8 Strategic Decision Making 121
Introduction 121
A Broader View of Strategy 124
Strategy as Problem Solving 125
Errors in Strategic Decision Making 126
Defining the Strategic Problem 127
Understanding the Strategic Problem 128
Experimenting 131
Strategic Decision Making 132
Evaluating the Strategic Process 134
Summary 135
References 137
Notes 139
9 Analyzing a Case 141
The Purpose of Analyzing a Case 141
Choosing the Story 148
Part II Case Studies 151
Cases in This Textbook 151
Note 154
10 Case 1: IBM and Lou Gerstner 155
Introduction 155
The Beginning 155
The Writing on the Wall 156
Finding a New CEO 157
The First Days at IBM 157
The Corporate Culture Problem 159
Do We Need a Strategic Vision? 160
Getting the Execution Right 161
The Essence of Leadership 161
Reviving the Brand 162
Compensation 162
Making the Company Grow Again 163
References 164
11 Case 2: Al Rajhi Bank 165
The Job Offer 165
Al Rajhi’s Background 166
Bilal’s Conclusions 172
12 Case 3: Bank Muamalat 173
Zabeda’s Report 173
The Beginning of Bank Muamalat 173
Top Management Structure 174
The Financial Performance 175
Putting IT to Work 176
The Competitive Environment 177
Zabeda’s Supervisor’s Comments 179
References 180
13 Case 4: Bank Rakyat 181
The Strategic Challenge 181
The Cooperative Movement 181
Bank Rakyat 182
Marketing at Bank Rakyat 183
Putting IT to Work 184
Future Plans 185
References 185
Note 186
14 Case 5: MUSLEH (Part 1) 187
The Dilemma 187
MUSLEH 187
The Founding of MUSLEH 188
The Personality of Ustaz Amin 189
The Classical Strategic Management Framework 189
Connections with Other Professionals 191
Setting a New Direction for the Group 192
Note 192
15 Case 6: MUSLEH (Part 2) 193
Introduction 193
Changes in the Middle East 193
Dr. Tareq Al Suwaidan 194
Dr. Amr Khaled 196
The Debate 196
A Trip to Kuwait City 197
What to Do Next? 198
16 Case 7: Fuji Xerox 201
The Phone Call 201
An Overview of Fuji Xerox 202
Fuji’s Emphasis on CSR and Sustainability 202
Fuji’s Marketing Initiatives 205
A SWOT Analysis of Fuji Strategy 206
An Analysis of Fuji’s Financial Results 207
Conclusion 208
17 Case 8: McDonald’s Pakistan 209
The Dilemma 209
The Company Profile 210
Raza Ali 211
Rashid Ibrahim 211
McCafé 212
McDonald’s Target Market 213
The Main Competitor: Gloria Jean’s Coffees 213
Back to the Dilemma 214
18 Case 9: Unilever Bangladesh 215
The Appointment 215
Bangladesh 215
Industry Factors 216
Industry Players 217
The Organization’s Structure 220
Financial Management 221
Marketing Management 221
UBL Products 222
Brand Promotion 222
Pricing 223
Operations Management 223
Human Resources Management 223
Conculsion 224
Notes 224
Appendix: A Primer on Evolution 225
About the Authors 231
About the Contributors 233
Index 235
