The Adoption Of Islamic Business Practices

One frequently asked question in business today that is least answered is, as stated by David Chaudron, PhD (2003), “What can we do to make our business flourish, survive and grow?” With the rapid changes in technology and the rise in the globalization of markets, we must have a game plan in place for adjusting to these changes. It has become increasingly difficult to predict what is going to happen, and there are thousands of obstacles and opportunities along the way. To add to the confusion, there are thousands of products, solutions and methods for dealing with these changes. With many brands, sizes and varieties it is very difficult to choose what is best for your organization. Add to that,

Industries will look different with all of these forces. The strategy will change based on how these forces look for the organization and industry. These concepts can be applied across the board, and they help organizations from getting trapped into the latest trends and technology out there selling solutions. This matrix really helps to

Islam is more than a religion, it’s a culture, and as such has an effect on political, social, and economic aspects of life—this is especially true outside of the Western world. Followers of Islam believe in full submission to God and this submission is practiced in the secular realm (Taha, 114). Of the five pillars of Islam, one (the zakat) has a direct affect on economic policy and ethics. The culture of Islam has shaped economic and business guidelines In the Islamic World and continues to do so. Cultural ideals attributed to the Qur’an or the Prophet Muhammad, have been a vital source for economic and business practices that have helped to shape the history of many Islamic nations, and are guiding the creation of policies

Businesses continually adapt to a changing environment to maintain their market position (Appelbaum, Habashy, Malo, & Shafiq, 2012; Biedenbacha & Soumlderholma, 2008). Change is inevitable considering the current rate of technological advancement and the growth in global competition (Appelbaum et al., 2012; Armenakis & Harris, 2009; By, 2007). Increasing competition and the need for strategic flexibility and globalization is affecting almost every organization today, regardless of size, market, focus, and so on (Jaros, 2010).

However, this approach is limited. Due to globalization, lowering cost of production and availability of information, the competition is more fierce some than ever in most industries, putting more pressure on companies and shrinking their profit margins. In this competition race, products and services

As technology continue to refine how products and services are delivered to consumers, competition among industry participants becomes more refined. Organizations that are able to keep up with changing technologies become leaders while those that are not fall behind. Mergers and acquisitions are increasing while causing small businesses to sell out or seek partnerships and cooperatives in order to remain competitive and relevant.

In a highly competitive and dynamically changing market it has become imperative for the leading

A company needs to create a series of programs to differentiate their product from those from its competitors and to appropriately price the product to achieve the maximum demand, in order to set up the dynamics of its competitive strategy (David, 2007). The competitive strategy of a company is also expected to offer better products or services to its customers, at a reasonable cost. Due to the mass influence of the external environmental on the customers’ preference, it is vital for the company to develop an available competitive strategy to be able to solve a series of problems, and ultimately to improve the company’s performance. Those problems include: how to differentiate its products or service from competitors, how to create market segments to maximize demands, and how to offer a wider range of products or services to better meet the customers’ needs at more acceptable costs (David, 2007).

“Competition is not only the basis of protection to the consumer, but is the incentive to progress” – Herbert Hoover. The environments that today’s firms operate in are not static. The competitive environment they are operating in is constantly changing due to the entry or exit of competitors, changing technology and the demands of consumers. In order to maintain their market share and profitability, firms must continually assess and evaluate their competitive environment. Evaluating the various market forces firms’ face, and their effect on the competitive market ensures that an organization retains a proactive stance to the competitive environment. Instead of just accepting the status quo, organizations that actively examine and analyze their environment can then make choices and develop strategies that take advantage of the competitive situation or affect it to the firm’s benefit. This proactive stance to the market allows organizations to create value and position themselves for long term success. Firms that do not remain proactive and continually scan the competitive environment run the risk of being blindsided by innovation in the environment or significant changes undertaken by the competition.

The first work experience that I had after obtaining a bachelor degree was as Research Assistant of Center for Central Banking Research and Education of Bank Indonesia from February to July 2015. Having working experience in central bank helped me to develop my expertise in financial field. The responsibility as the research assistant was to aid researcher of Bank Indonesia in composing a book regarding products and sharia contracts of Islamic finance and Islamic monetary instrument. This book was addressed as a guidance for Islamic banking and finance practitioners to develop and offer financial products and services to their prospective costumers. Afterwards, I worked in Roosdiono and Partners (a member of ZICOlaw) as their sharia consultant. In this firm, I served as a consultant in several sharia or legal cases related with Islamic financial institution clients. Having these experiences, I understand and fully aware that my proficiency and expertness of Islamic finance was inadequate to become an expert in this field. Thus, I opt to enlarge my knowledge by pursuing higher level of education in master

Innovation refers to finding new ways to improve the existing products, services, processes, technologies, and employee performance in an organizational setup. In today's competitive business environment, organizations have to focus on bringing innovation in each and every aspect of their business operations; like products or service offerings, enterprise resource planning systems, marketing and promotional efforts, and organizational structure. The market challenges and competitive pressures also force organizations to use a blend of all these innovation processes in their business activities. Therefore, it is vital to give an equal focus on product innovation, process innovation, marketing innovation, and organizational innovation within the limited organizational resources and capabilities.

Different organization looks at the level of technology that competitors used in production of their services. Another crucial thing is the evaluation of what the competitor’s customer are complaining about and takes it as an advantage of attract customers to the organization (Matthew, 2010).

Although these preventions have been functional historically in varying degrees in Muslim countries and societies to avoid unIslamic practices, only in the late 20th century were a amount of Islamic banks formed to relate these ethics to private or semi-private commercial organizations contained by the Muslim community.

Executive summary: With the globalization of world business, Saudi Arabia has become an appealing market for foreign investors. But there has long been belief that the market of Saudi Arabia is difficult to develop and the culture there is inconsistent with the world. The problem of cross-cultural management arises as the cooperation between Saudi Arabia and its world partners continue to increase at an unprecedented rate. This paper analyses commercial and cultural feature of Saudi Arabia, presenting an understanding on the general cultural differences between Saudi Arabia and Singapore by applying different cultural dimensions. And it explains the influence of Arabia commercial culture on

Forty years ago, the Islamic banking industry was created, on a modest scale, to fill a gap in a banking system that was not listening to the fervent Muslim believers. Morocco has been following the same development in offering Islamic finance services to its citizens through Islamic windows in conventional banks. In parallel to this development of the Islamic financial industry in Morocco, it seems very crucial to evaluate critically based on Maliki law school the previous experience of Islamic windows in conventional banks. Taking into considerations, the differences between schools in the interpretation and implementation of Islamic law in economy life, the objective of this paper was to critically analysis the practice of Islamic banks in Morocco. This paper aimed at analyzing the characteristics of different schools of Islamic law and how this would affect Islamic banking. The final aim of this paper was to highlight the importance of jurisprudence/ new interpretations in developing Islamic banking. Qualitative methodology based on semi directive interviewees was the main approach for this paper. Three levels of gaps have been found out. These gaps are related respectively to Murabaha, Musharaka and Ijara. Three recommendations have been advised to fill the gaps: Absolute isolation of Fund, Sharia auditing committee And Compliance with AAOIFI Standards