This document provides an overview of strategic management from an Islamic perspective. It discusses key concepts like Maqasid Shariah (objectives of Shariah), which scholars have categorized into essentials (daruriyyat), needs (hajiyyat), and luxuries (tahsiniyyat). The document then explains the strategic management process, which involves strategy analysis, formulation, implementation, evaluation, and control. It notes these should be based on Islamic principles like consultation (shura) and cooperation (ta'awun). The document concludes that the overall aim of Islamic rulings is to achieve goodness and remove harm or corruption.

1. CHAPTER 8:
Introduction of Strategic
Management from Islamic
Perspective
By: Dr. Mohd Adib Abd Muin
Islamic Business School (IBS), UUM
mohdadib@uum.edu.my
BIMS1043 Principles of Management in Islam 1

2. Outline
• Introduction
• Maqasid Shariah
• Strategy Analysis
• Strategy Formulation
• Strategy Implementation
• Strategy Evaluation and Control
• Strategy based on Islamic Perspective
• Conlcusion
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3. Introduction
• Strategic management is the ongoing planning, monitoring, analysis
and assessment of all necessities an organization needs to meet its
goals and objectives.
• Strategic management is the process of setting goals, procedures,
and objectives in order to make a company or organization more
competitive.
• Typically, strategic management looks at effectively deploying staff
and resources to achieve these goals.
• Changes in business environments will require organizations to
constantly assess their strategies for success.
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4. Maqasid Shariah
 The term ‘maqasid’ in Arabic is plural to the word ‘maqsid’ which
refers to a purpose, objective, principle, intent or end.
 Maqasid al-Shariah or Maqasid of Islamic law are the general
objectives of Islamic legislation which consist of the deeper meanings
and inner aspects of wisdom considered by the Lawgiver (Allah) in
areas and circumstances of legislation.
 The Shariah’s general rules and specific proofs indicate that the all-
purpose principle of Islamic legislation is to preserve the social order
of communities and ensure their well-being. Explicit textual proofs
confirm that the overall objective of the Shariah is to remove
corruption in all kinds of human activity
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5. Cont..
 Maqasid Shariah, in its true essence and entity, is part of the Shariah. It
exists with Shariah itself and thus, has no beginning and is not subject to
any changes or evolution. In other words, Maqasid Shariah is the divine
purpose and objectives that Allah has put in his Shariah: laws and rulings.
• On the other hand, the science on Maqasid Shariah, as a branch of
knowledge that consists of its terminologies and various topics, emerged at
a certain period of time and evolved gradually through different eras.
• In the early period of scholarship, scholars did not use the term “Maqasid
Shariah” to articulate the objectives and purposes behind a ruling or
anything related to Shariah. Instead, they used the term “Al-hukum As-
shar’i” generally which translates to “Shariah ruling”. This term was used a
lot to define or to explain the purposes behind Islamic rulings.
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6. Cont..
 The oldest book recorded that has the usage of the term “Maqasid
Shariah” in Usul Fiqh is the book of Imam al-Juwaini named “Al-
Burhaan fi Usul al-Fiqh” (The evidence of Usul Fiqh) followed by Imam
al-Ghazali, al-Razi and al-Amidi.
• Then came al-Shathibi and Imam Izz ad-Din bin as-Salaam who
contributed greatly to the evolution of the main topics and discussion
of Maqasid Shariah.
• It is also said that al-Shatibi was the first who wrote on Maqasid
Shariah independently as the main topic in his book, al-muwafaqat,
and he also dissected Maqasid Shariah into sub-topics and provided a
thorough explanation on its formulas and issues that eventually
evolved into today’s main point of study and research in this area.
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7. The classifications of Maqasid al-Shariah
• Maqasid Shariah is classified in various ways, according to a number
of dimensions. Jasser Auda outlines some of the various dimensions
as the following:
1- Levels of necessity, which is the traditional classification.
2- Scope of the ruling aiming to achieve purposes.
3- Scope of people included in purposes.
4- Level of universality of the purposes
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8. Maqasid al-Shariah
 According to Ibn ‘Asyur, the main and fundamental purpose of the
Shariah or Islamic ruling is to achieve, attain and fulfil goodness for
human beings.
 Imam al-Ghazali mentioned in his book ‘al-mustasfa’ that the purpose
of a ruling was to safeguard humanity’s faith, life, intellect, lineage
and wealth.
 Therefore, everything that safeguards these five fundamental
objectives is considered to be a maslahah (goodness) and everything
that causes the abandonment of these five is considered to be a
mafsadah (destructive).
 Conversely, getting rid of the mafsadah would also be a form of
maslahah.
BIMS1043 Principles of Management in Islam 8

9. The level of necessity
• These various objectives can also be categorised with respect to the
varying degrees of necessities. The level of necessity can be
traditionally divided into three. Categorised in the descending order
of importance:
1.The daruriyyat (essentials) - The essential masalih (ad-daruriyaat) are the five
fundamental objectives: faith, life, intellect, lineage and wealth. These are
seen as absolute requirements to an individuals' survival and spiritual well-
being, to the extent that their destruction or collapse would precipitate chaos
and the demise of the standard of order in society.
2.The hajiyyat (needs) - or complementary needs, is defined as benefits that
seek to remove severity and hardship in cases where such severity and
difficulty do not pose a fatal threat to the normal order's very survival
3.The tahsiniyyat (embellishment) - luxuries or embellishment, seek to attain
refinement and perfection in the people's customs and conduct.
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10. Necessity - Daruriyyat (essentials)
• Necessity are essential elements for human being. The absence of these elements may
cause harm and damage to human life. The examples of necessities such as shelter, food,
and clothes.
• The necessities are further classified by the scholars into five elements of preservations.
The objective of Islamic rulings is mainly to protect these five elements from any harms.
These preservations are known as:
• Protection of Faith or religion (din)
• Protection of Life (nafs)
• Protection of Lineage (nasl)
• Protection of Intellect (‘aql)
• Protection of Property (mal)
• Some example of acts that are related to the preservations of the above are defending
Islam against enemies’ attack (faith), build the hospital (lineage), provide education
(Intellect), and distribution of wealth in fairly manner through Zakat (property).
These are the objectives which are must and basic for the establishment of welfare in
this world and the world hereafter in the sense that if they are ignored then the
coherence and order cannot be established and fasad (chaos and disorder) will prevail in
this world and there will be obvious loss in the world hereafter.
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11. Needs (Hajiyat)
• Needs are less essential for human life compare to daruriyat. These
are requirements for human being to live without facing difficulties.
However, the lack of any of these needs is not a matter of life and
death, especially on an individual basis.
• Examples of needs are marriage, communication tools, healthy food,
and means of transportation. Islam encourages and regulates these
needs.
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12. Luxuries (Tahsiniyat)
 Luxuries or embellishment are complementary and desirable factors
that give perfection and additional values to human life. Islam
encourages us to achieve these purposes and to have a better life.
Nevertheless, Islam teaches us to pursue these goals in correct
manners.
 The Examples of luxuries are branded outfit, luxury car, bungalows
etc.
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13. STRATEGIC MANAGEMENT
 In management study, strategic management involves with four
proses namely strategy analysis, formulation, implementation, and
evaluation.
 Strategic management proses is a ongoing process to monitor the
management process in order to achieve the objective.
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14. Strategy Analysis
 Analysis the internal and external factors by using some strategy
analysis tools SWOT Analysis.
 Internal Factor= Anything related to Individual or organization and
controllable
 External Factor= Uncontrollable thing and situations
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15. Strategy Formulation
 Create the strategy according to strategy analysis outcome
 Identify what type of strategy to implemented in order to achieve the
goals.
 Eg: S.N.T Formula, Economy Strategy, Market Strategy, Price Strategy
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16. S.N.T Formula
 S.N.T Formula is one of Islamic strategy conducted to managing
conflict in organization or individual.
 S stand for Shura: in order to consult the people in organization or in
our life, the best things to do is Shura. We a listening to each other
and make up the thing by mutual agreement. E.g: Employee conflict
or social conflict.
 N for Nasihat (advice): Giving and receiving advice is also a prophetic
tradition. When parties that could be in conflict engage in give and
take of sincere advice, the potential of conflict happen is minimize.
 T for Ta’awun (cooperation)=The Quran advises Muslims to cooperate
with one another. Cooperate one another in goods things but do not
cooperate in sin.
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17. Strategy Implementation
 Implement the strategy according to final decision
 If the strategy can't be implemented, choose another strategy
 During this proses, conflict might be happened.
 S.N.T Formula should be practice for conflict settlement
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18. Strategy Evaluation and Control
 Evaluating and controlling the strategy proses could be conducted
before or after the strategy process end.
 The leaders will evaluate the performance of strategy implementation
either achieve the aims or not.
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19. Why is strategic important?
 Having a clear and focused strategy is critically important to the
success of your business, and without a well-defined strategy, yours
may stall or even fail.
 If you can take the emotion out of your decision-making process,
you'll have a business and a team that is more focused, more
productive, and more profitable.
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20. The Advantages of Strategic Management
 Discharges Board Responsibility.
 Forces An Objective Assessment.
 Provides a Framework For Decision-Making.
 Supports Understanding & Buy-In.
 Enables Measurement of Progress.
 Provides an Organizational Perspective.
 The Future Doesn't Unfold As Anticipated.
 It Can Be Expensive.
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21. Conclusion
 Ibn ‘Ashur said, “These explicit texts prove that the objective of Shariah is to fulfil and
achieve goodness and remove corruption, and that is closely associated with human’s
actions.
 Therefore, we are assured that the rulings of Shariah strive to achieve goodness and
remove corruptions, and we regard this as the grand overall principle of Shariah.”
ْ‫ل‬‫ٱ‬ ۟‫وا‬ُ‫ل‬َ‫ع‬ْ‫ٱف‬َ‫و‬ ْ‫م‬ُ‫ك‬َّ‫ب‬َ‫ر‬ ۟‫ُوا‬‫د‬ُ‫ب‬ْ‫ع‬‫ٱ‬َ‫و‬ ۟‫ُوا‬‫د‬ُ‫ج‬ْ‫س‬‫ٱ‬َ‫و‬ ۟‫وا‬ُ‫ع‬َ‫ك‬ْ‫ٱر‬ ۟‫وا‬ُ‫ن‬َ‫م‬‫ا‬َ‫ء‬ َ‫ِين‬‫ذ‬َّ‫ل‬‫ٱ‬ ‫ا‬َ‫ه‬ُّ‫ي‬َ‫أ‬ٰٓ‫ـ‬َ‫ي‬
َ‫ون‬ُ‫ح‬ِ‫ل‬ْ‫ف‬ُ‫ت‬ ْ‫م‬ُ‫ك‬َّ‫ل‬َ‫ع‬َ‫ل‬ َ‫ر‬ْ‫ي‬َ‫خ‬
“O believers! Bow down, prostrate yourselves, worship your Lord, and do (what is) good so
that you may be successful,”
(Surah Al-Hajj, 22:77)
ِ‫س‬ْ‫ح‬َ‫أ‬َ‫و‬ ۛ ِ‫ة‬َ‫ك‬ُ‫ل‬ْ‫ه‬َّ‫ت‬‫ٱل‬ ‫ى‬َ‫ل‬ِ‫إ‬ ْ‫م‬ُ‫ك‬‫ِي‬‫د‬ْ‫ي‬َ‫أ‬ِ‫ب‬ ۟‫وا‬ُ‫ق‬ْ‫ل‬ُ‫ت‬ َ
‫َل‬َ‫و‬ ِ َّ
‫ٱَّلل‬ ِ‫ل‬‫ي‬ِ‫ب‬َ‫س‬ ‫ى‬ِ‫ف‬ ۟‫وا‬ُ‫ق‬ِ‫ف‬‫ن‬َ‫أ‬َ‫و‬
ُ‫م‬ْ‫ل‬‫ٱ‬ ُّ‫ب‬ ِ‫ح‬ُ‫ي‬ َ َّ
‫ٱَّلل‬ َّ‫ن‬ِ‫إ‬ ۛ ۟‫ا‬ ٰٓ‫و‬ُ‫ن‬
َ‫ين‬ِ‫ن‬ِ‫س‬ْ‫ح‬
“Spend in the cause of Allah and do not let your own hands throw you into destruction by
withholding. And do good, for Allah certainly loves the good-doers.”
(Surah Al-Baqarah, 2:195)
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22. Activity 8
1. Find on of Islamic prominent scholar in Strategic Management(OLD
or RECENT)
2. Attach his/her picture together with their short information
3. Complete this Activity 8 through Canva
4. Submit through Whatssap Group
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