Islam and Business Finance

Hello readers, I hope you are good. I will be writing about quality assurance today. Quality assurance is a process that provides confidence that the quality requirement of a product (goods or services) will be met. It is a process that checks to see if the products are meeting the specified requirement. It also ensures that the important quality control activities are being carried out the way they should. Thus, quality assurance aims at making sure that customer expectation are satisfied. It aims at preventing defective products. All companies should apply this process called quality assurance Quality assurance includes setting quality targets.  A company should set quality targets and let people who are meant to achieve them be responsible for them. For example a manufacturing company should set a standard for the material being used for production. Training employees on quality is another form of quality assurance which all companies should adopt. T he standard set should

Hello readers. Today, I will be writing about competence. Competence is the ability that enables a company or an individual to deploy its resources effectively. It is neccessary for a company to have a competence target in all its business activities so as to deliver value to its customers. This will help create a competitive advantage for the company. Competencies must provide value to customers. It must be unique or able to develop greatly or be better than that of competitors. New products and services must be able to be developed as a result of the competence. It must be difficult for other competitors to obtain or imitate. Continually producing high quality products can make a company become a market leader (which is a core competence) as it provides a company with a competitive advantage. With high quality, higher prices can be demanded by the company from customers and the company will also be able to gain the loyalty of the customer. Innovative products whe

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Image courtesy of Multipedia at FreeDigitalPhotos.net Hello readers, today I will be writing about buyers behaviour when it comes to purchasing products (goods and services). I hope your week has been good. A buyer is an individual that makes a purchase. That purchase can be influenced by his/her emotions or his/her rational mind. For your marketing strategy to be successful you have to truly understand the buying behaviour of your customers. Some customers buy goods based on trust and loyalty which falls into the emotional reasons. Thus, you have to build trust between your customers and yourself so they can return back to you. Trust is built when you offer good quality for reasonable prices. Some products are bought regularly while some products are purchased seasonally. If your products fall into the seasonal category, you should only purchase them to be resold during that season. At times buyers purchase products on behalf of another individual. In that situation, you

Hello readers, today I will be writing about managing employees. It is common knowledge that employees of an organisation are not owned by the organisation they work for. Thus, employees should always be treated as humans and not assets. An employee will be motivated to deliver high quality results if the employee enjoys his/her working environment. In other words, employees deliver good results when they work with employees that act nicely, when the working environment is conducive and when managers implement decisions that does not lead to dissatisfaction.  There is always a relationship that exists between an organisation and its employees that requires each party to satisfy each other's needs. It is usually perceived as a psychological  contract. Thus, both the employees and the organisation will be doing the giving and the receiving. The initial impression that a employee perceives about the relationship between the organisation and employees goes a long way in in

Hello readers, today I will be telling you about ways to make your strategy a successful one. The scope is your strategy must be fit, in other words your strategy must be consistent with the environment your business operates in. When I say environment, I am talking about both external and internal environments. Thus, you must understand the political, economic, socio-cultural, technological and legal environments your business operates in. The environmental protection that affects your organisation must also influence you when formulating your strategy. Therefore, PESTEL analysis can be used to understand the external environment of your business. The internal environment also needs to be understood, as your strategy must also be in alignment with the internal environment. Understanding your internal environment will help you know the resources your business has, the capabilities of your business as well as the structure and system. The SWOT analysis can be used to help y

Hello readers, I hope you are all good.  I will be writing about becoming an effective leader. Everyone can lead effectively, you can always learn to lead. To become an effective leader, you have to study one to understand why they are effective at what they do. The key qualities of an effective leader include having a dream, having the ability to motivate others, exuding integrity, having the ability to deal with challenges and making decisions. To be a successful leader you must set realistic high goals, be a positve thinker and must be willing to learn from others. A leader must be willing to add value, people skills will have to be decoded in order to become a great leader. To be able to motivate people positively you need to have a clear sense of direction. Your followers will become demotivated if you lack clarity. By this, I mean you need to learn to have clear ways of achieving your goals this could lead to making effective decisions that you will stick with. Chang

Hello readers, it is friday evening. You can now relax after working during the week. For those who work during the weekend, try to find time to relax. Today I am going to tell you about not giving up on your goals. Some achieve their goals while some do not achieve theirs. Everything happens according to the will of Allah. You have to work hard. As such, never give up on your goal and keep praying to Allah (5 times daily). You could encounter challenges when you are trying to achieve your goals, but do not let them hinder you. You have to keep pursuing your goals. When you stop chasing your goals you might not achieve them. The most important goal is making Heaven. Keep working hard and hopefully Allah will bless you with it. You have to believe in the oneness of Allah (He has no partner(s).Pray 5 times daily(obligatory prayers) to Him as well. The non-obligatory prayers too could be done. Give out zakat (obligatory charity), sadaqa (non- obligatory charity) could be

Hello readers, I will be writing about integrity. Integrity means doing the right thing all the time. When a company is said to have high integrity, it means that the company has got high moral principles. Individuals are the ones that run companies, as such these individuals has to be full of integrity. Reasons why integrity is important will be discussed below. Integrity helps build trust, if a company has got integrity all relationships that exist with the company will be based on trust, as such, employees will be motivated to work for the company. It also means that customers will be loyal to the company. When there is trust employers can be rest assured that their employees will do their work adequately. The trust will make employees be more independent which will motivate them to give in their best. Thus, integrity get employers the loyalty of their employees and customers insha Allah (if Allah wills). Integrity helps build a good reputation which in turn attract mor

Hello readers, today I will be telling you about writing down your goals. Have you written down your goals,you? yes you I am talking to you. Have you written it? Most individuals do not write down their goals.  You should write down your goals and break them into smaller goals. It will help you accomplish your goals. Your goals must be SMART, that is specific, measurable, achievable, realistic and timely. The benefit of writing down your goals will be discussed below When you write down your goals and you break them into smaller goals and then you break them into daily activities, it will motivate you to keep striving until you achieve your goals. Writing your goals will prevent you from getting distracted as you know where you are going, as such when opportunities come up while you are trying to achieve your goals. You will know which one to turn down and the ones that you accept. It also provides you with a lot of income when compared to that of your peers. Accor

Hello readers, hope you are doing good. I will be writing about diversification. This time around I will be advising you on when you should diversify your product line. It sounds interesting, right? Here they are. You should diversify your product line when the products you sell is only useful during a particular period. Thus, your products only satisfy seasonal needs. It brings you seasonal income, as such, diversify your products so that you can start receiving some regular income. You should also diversify your product line if you want to expand your business, as diversification will make you enter a new market or increase the amount of product your present customers do buy. You should also diversify your product line, if you know that your present products will sell more when you do. Complementary products will help your present product sell more. If the income you receive from your present product is not enough, you can consider diversification as it will help

Hello readers, hope you are all good and hope you enjoyed the weekend. Today, I will be writing about the different type of leaders. I hope you will gain a thing or two. A leader is an individual that inspires a group of people to achieve a particular goal. A leader could be autocratic, participative, transactional or transformational. The Autocratic Leader This is a type of leader that makes all the decisions. He/She does not delegate duties to other team members. He/She controls all their actions. This type of leadership could be effective when staff are lowly skilled and they require a lot of supervision in order to be able to achieve a task or the goals of the organisation. A business that requires minimal error could also apply the autocratic style of leadership. The Participative Leader This is a type of leader that takes the contribution of his/her team members into consideration but he/she makes the ultimate decision. In other words, this type of leader encoura

Hello readers, today I will be writing about the right business to invest in. Hope you gain a thing or two from it. Allah must be pleased with any business you want to start meaning it must be good for yourself, it must be good for others and it must be good for the community. In other words, your business should be halal. You should invest in what you pray will be good for you in this life and life after death as your business is going to be a part of your life, thus it should make you happy both in this world and the life after You must also invest in an industry you understand. It could be an industry you have gained working experience from or a degree that focuses on the industry. If you do not understand the industry you  want to invest in then acquire the knowledge that will help you understand the industry. Another factor to consider is the barrier to entry, is the industry easy to enter? Do the major competitors try to kill the  competition? If the barrier to e

Hello readers,  I will be writing about entrepreneurs. An entrepreneur is an individual who starts a business, he or she assumes all the risks associated with the organisation with the hope of getting a reward. An entrepreneur is responsible for making decisions on what product (goods and services) that will be provided to the public for sale. The entrepreneur also provides the capital required for running the business. Entrepreneurs play an important role in a country as they help develop a country by creating products that can be exported to other countries. This will help build the gross domestic product (GDP) of a country. Becoming a succesful entrepreneur requires dedication, entrepreneurs are responsible for the growth of the business they have established. The business is your vision, so you must be commited to it. It will help motivate your team members (employees). The way you treat your business is the way your employees will treat your business.  Procrastination i