Halal business is an organized effort toward common goals of individuals with ethics, moral and social responsibility producing and sell for a profit, the goods and services that satisfy society’s needs. Examples of goods provided by a business are tangible items such as cars, televisions, or soda. A service is an action or work performed for monetary compensation. Services include things such as haircuts, hotel stays, or roller-coaster rides.
The purpose of halal business is to serve customers well guided by the principles of Sharia law. It has to deliver value by offering good quality goods or services at an affordable price. To survive and flourish, halal businesses have to win the hearts of customers by putting resources to best use with social consciousness. Businesses, essentially, exist for customers.
Business activities always involves an element of risk or loss or uncertainty. In fact business is an adventurous activity. Those who have guts and daring can only involve in this activity, which an ordinary person cannot. There are three key characteristics that must be met to have a halal business. First, businesses must be the result of individuals working together in an organized way. Second, businesses must satisfy a societal need ethically and accordance to Islamic law. Third, businesses must seek to make a profit.
Halal business must steer away from any unethical activities to generate revenue. Business generates profits from the sale of goods and/or services, and profits are the financial reward that comes from taking the risk of running or owning a business. More specifically, profit is the amount of revenue or income that a business owner retains after paying all the expenses associated with the operation of the business. If the expenses of the business exceed the revenue or income generated from operations, then the business will suffer a loss. Businesses that suffer extraordinary losses during a short period of time, or slowly see their profits decline, may end up closing or filing for bankruptcy.
In earlier days profit maximisation was the sole objective of business. Money chasing was the primary aim of any economic activity. In modern days this chasing concept of business is changed and business has become a social and economic institution.
Modern business aims at profit through service or profit- nun service and not profit irrespective of service and satisfaction of customers and society in general. Now-a-days the profit concept is replaced by profit-cum-service. This concept of profit through service has become popular and widely accepted by the modern businesses.
Modern business provide value to their customers. When businesses talk about value, they are referring to the relationship between the price a customer pays for the good or service and the perceived benefits the customer receives in exchange for his or her time and money. Value has become such a key component of today’s business model that if you go to almost any fast-food restaurant you’ll find a “value meal” or “value menu” advertised. Such businesses are sending the message to their customers that they’ll receive the most “bang for the buck” or the highest value in terms of quantity obtained in exchange for money spent. It’s a business model based on the belief that if you give your customers value, the profit will follow.
Halal business is a fast-growing industry due to demographics and industry expansion. Halal certification of products, outlets, and services is essential for doing business in Muslim-majority countries. Successful companies in the halal industry are those that embrace halal excellence by design. Halal excellence is a process – a pursuit of excellence. Halal business management is beyond halal certification, and needs to address supply chain management, branding and marketing, and risk and reputation management. Halal excellence needs measurement through adopting the right key performance indicators, to protecting your halal reputation and licence to operate in Muslim markets.
