Predicting bankruptcy - Springer978-0-230-28865-2/1.pdf · Predicting bankruptcy Source: The above mentioned link provides the software that handles the calculation. ...

Annex

Predicting bankruptcy

Source: www.bnkruptcyaction.com/bankpred2.htm

The above mentioned link provides the software that handles the calculation. The authors claim that this Bankruptcy Predictor has proved to have an accu­

racy rate of over 88 percent for small businesses (average asset size US$2.5 mil­lion) and an accuracy rate of over 83 percent for very large businesses (average asset size US$63.4 million). A negative score predicts bankruptcy.

Variable

Current Assets

Interest Expense

Profit or loss before taxes

Performance level Variable

Sales

Total Assets

Current liabilities

Calculate score

Performance level

The higher the score, the more financially sound is the company. The lower the score, the greater the danger of the company becoming insolvent. This technique should be considered complementary to other tools. The formula used is the "Springate Formula" developed at Simon Fraser University, Burnaby, British Columbia.

171

Bibliography

ABlC, Annual Report 2005. Airline Business, November 16, 2006. Albert, M. (1993), Capitalism vs. Capitalism. London: Whurr Publishers. AI-Ghamdi, S., Sohail and M. Sadiq (2006), Sustaining competitive advantage in

the global petrochemical industry: a Saudi Arabian perspective, Journal (or International Business and Entrepreneurship Development 3(1/2), 2006.

AI-Sa'doun, A. (2006), Five Strategies Drive Saudi Arabia's Petchem Industry Growth, February 2006 RED ORBT.

Andrews, K. (1971), The Concept o( Corporate Strategy, Dow Jones-Irwin, Homewood, Illinois.

Ansoff, 1. (1965), Corporate Strategy, McGraw-Hill, New York. Ansoff, 1. (1969), Business Strategy, Penguin Books, Harmondsworth. Ansoff,1. (1976), From Strategic Planning to Strategic Management, Wiley, London. Anthony, R. and Govindarajan, V. (2001), Management Control Systems (loth ed.),

McGraw Hill/Irwin, Boston. Arab News, People Have Underestimated the Strength of SABIC, Monday,

October 2, 2006. Argentini, J. (1976), Corporate Collapse, New York McGraw Hill. Babson College, London Business School (2005). Boulding, K. (1956), General systems theory, the skeleton of science, Management

Science, April 2. Buckman, R. Venture capital floods 'Chinese garages', The Wall Street Journal,

July 28, 2005. Business Week, August 11, 2003. Business Week, Harvard Guru to Help Libya, Europe, February 20,2007. Bygrave, W. and Hunt, S. (2005), Global Entrepreneurship Monitor and Gem

Financing Report 2004, Babson College. Canadian Ministry of Industry (1997), Bankruptcy in Canada. Challenges ahead, interview with Minister G Al Rifai, Minister of Economy and

Foreign Trade, Emerging Syria, Oxford Business Group (2002). Charles, w., Hill, 1.. and Gareth R. Jones (2004), Strategic Management, Houghton

Mifflin. Chester A. C. (1998), Are we Americans still capable of thinking strategically?

USIP. Cox, 1..W. and Camp, S.M. (2001), International Survey of Entrepreneurs: 2001,

Executive Report. Crocker, C. (1998), Are we Americans stillcapable of thinking strategically? USIP,

News Release, August 20. Drucker, P. Entrepreneurship in Business Enterprise, Journal o(Business Policy, 1,1970. Drucker, P. (2001), The Essentials of Drucker: Selections from the management

works of Peter F. Drucker. New York: Harper Business. Easy Oz - Emirates Airline, Low cost is coming to long haul flights, next could be

low fares, The Economist, October 29, 2005.

172

Bibliography 173

Egypt vulnerable in post-200S clothing scenario, Egytex International Apparel and Home Textile Manufacturing Trade Fair 2004, Hong Kong Trade Development Council, International Market News, May 20, 2004.

El Namaki, M. (1988), Encouraging entrepreneurs in developing countries, Long Range Planning Vol.4.

El Namaki, M. (1989), Management training for small and medium industries: a cross country analysis of characteristics, constraints and catalysts, in Proceedings of the Second Tokyo Conference on Management Development of Small and Medium Sized Enterprises in Asia, Tokyo, Foundation for Asian management Development.

El Namaki, M. (1989), The strategic positioning of the newly industrialized coun­tries (NICs) in the international market, in (R. Lamb, Ed) Advances in Strategic Management, Voloume 4.

El Namaki, M. (1990), Small business - The myths and the reality, Long Range Planning, 23(4) pp. 78-87.

El Namaki, M. (1992), Creating corporate vision, Long Range Planning, Vol. 25, No.6. El Namaki, M. (1996), The Contemporary Dynamics of Entrepreneurship, Journal of

International business and entrepreneurship GIBE) Vo1.5, No.2. EI Namaki, M. (1999), A Conceptual Framework for Economic and Corporate

Restructuring, Strategic issues at the dawn of a new millennium, Lansa Publishing. El Namaki, M. Have You Lost Control? Capital Magazine, April, 2006. Emirates Airline - A product of vision, New Nation Online Edition, Sat., May 20, 2006. Emirates Airlines to offer in-flight iPod connection in '07, The Wall Street Journal,

November 14, 2006. Emirates boss heads for bigger goals, The Sunday Times, Times Newspapers Ltd.,

London, July 23, 2006. Emirates Group Annual Report 2005-2006. EOS Gallup Europe (2004), Flash EB No 146, Entrepreneurship. EU Flasheuroparameter, Entrepreneurship, January 2004. Family business statistics, Boston Globe, May 4, 2003. Family-run firms are urged to adapt to global changes, Khaleej Times, February 12, 2006. Financial Times (Farnborough Air Show-Boeing lands $ 3.3bn Emirates order), UK

Edition, London, July 19, 2006. Flanagan, the elder statesman of Emirates, Airline Business, November 16, 2005. Flights of fancy, The Economist, October 5, 2006. Gerschenkron, A. (1962), Economic Backwardness in Historical Perspective,

Cambridge: Harvard University Press. Gibb, A.A. (1999), 'Creating an Entrepreneurial Culture in Support of SMEs' small

Enterprise Development. An International Journal. Vo1.10. No.4. GEM, Global Entrepreneurship Monitor (2002), 2002 Summary Report, 30

November 2002, Babson College, Ewing Marion Kauffman Foundation, London Business School.

Global Entrepreneurship Monitor and Gem Financing Report 2004. GEM, Global Entrepreneurship Monitor (2005), 2004 Financing Report, Babson

College, London Business School. Goldsmith, A. (1995), Making managers more effective: Applications of strategic

management, Working Papers, USAID's Implementing Policy Change Project, Working Paper No.9, March 1995.

Goodman, J. B. and Loveman G. W. (1991), Does privatization serve the public interest?, Harvard Business Review, Boston, November/December 1991. pp. 26-38.

174 Bibliography

Gygrave, W., Reynolds P., Autio, E. and Hay, M. (2002), Global entrepreneurship monitor 2002 summary report, Babson College.

Kurt Christensen, H. K. (1988), Diagnosis for General Managers, Kellogg Graduate School of Management.

Hamel, G. and Prahalad, C. K. (1989), Strategic Intent, Harvard Business Review, (May-June): p. 63-76.

Hamel, G and Prahalad, C. K. (1990), The Core Competence of the Corporation, Harvard Business Review, May-June, 79-91.

Hamel, G. and Prahalad, C. K. (1994), Competing for the Future: Breakthrough Strategies for Seizing Control of Your Industry and Creating the Markets of Tomorrow. Boston: Harvard Business School Press.

Handy, C. B. (1985), Understanding Organizations (3rd Ed), Harmondsworth: Penguin Books.

Harvard Guru to Help Libya, Business Week Europe February 20,2007. Hill, C. and Jones, G. (2004), Strategic Management: An Integrated Approach. (6th

edition) Boston: Houghton Mifflin. Hofstede, G. (1984), Culture's consequences, Sage Publications, Newbury Park,

California. ILO, Laborstat, 2004, (Internet)/International Labour Statistics. International Energy Agency, Key World Energy Statistics (2006). International Energy Outlook, Energy Information Administration, US govern­

ment, June 2006. International Labor Office database on labor statistics (2005), ILO Bureau of

Statistics. Interview with Minister of the Public Enterprise Sector. Al Ahram Weekly, Issue

No. 574 on line, February 21-27,2002. Jayid, A. Ahmed (1995), Privatization in Arab Countries, Paper presented before a

conference on Development Economics, the Norwegian School in Economics and Business Administration, Bergen Norway.

Jonsson Yinya Li, Investing in China: the Emerging Venture Capital Industry in China, Asia Times, September 3,2005.

Kaplan, R. S. and Norton, D. P. (1992), The Balanced Scorecard - Measures That Drive Performance, Harvard Business Review (January-February).

Kaplan, R. and Norton, D. (1996), Using the balanced scorecard as a strategiC management system. Harvard Business Review (January-February).

Kets de Vries, M. (1985), The Dark Side of Entrepreneurship, Harvard Business Review. Kim-Song Tan and Sock-Yong Phang (2005) From efficiency-driven to innovation­

driven economic growth, Perspectives from Singapore, Vol. 1 of 1. The World Bank. Knowledge @ Wharton (2004). In Asia, the Venture Capital Business Has Two

Sides, January 22. Liedkta, ]., Linking strategic thinking with strategic planning, Strategy and

Leadership, September-October 26, 1998. McClelland, D. (1961), The Achieving Society, Van Nostrand, Princeton N]. McCombs, B. (1991), Metacognitioll and Motivation in Higher Level Thinking, Paper

presented at the annual meeting of the American Educational Research Association Chicago, IL.

Mintzberg, H. (1973), The Nature of Managerial Work, New York, Harper & Row. Mintzberg, H. (1992), Five Ps for Strategy ill The Strategy Process, H. Mintzberg and

JB. Quinn eds., Prentice-Hall International Editions, Englewood Cliffs N].

Bibliography 175

Mintzberg, H. (1994), The Rise and fall of Strategic Planning, Free Press, (New York and Toronto).

Mohamed H. AI-Mady, SABIC Vice Chairman and CEO, Putting the Middle East at the Center of the Petrochemical Industry: Strategies for Long-term Success 2007.

Patrick, T. (2004), Boss accused over Polaroid failure, Mail on Sunday, April 18, 2004.

Pettijohn, T. F. (1999), Psychology: A ConnecText, 4th edition, McGraw Hill. Pinchot, G. (1985), Intrapreneuring: Why You Don't Have to Become an Entrepreneur.

New York, Harper and Row. Political spin off effects, Al Ahram Weekly, 30 June-6 July 2005. Pondering Partnership, interview with consultant Aiman Abd El Nour, Emerging

Syria, Oxford Business Group (2002). Porter, M. (2001) The competitive advantage of Singapore transition to innova­

tion stage, New Economy Conference, Singapore. Porter, M. E. (1990), Competitive Advantage of Nations, The Free Press. Porter, M. E (1980), Competitive Strategy: Techniques for Analyzing Industries and

Competitors, New York, Free Press. Porter, M. E. (1996), What is Strategy? Harvard Business Review, November-December. Porter, M. E. (1998), The Competitive Advantage of Nations, New York, Free Press. Privatization amended. Al Ahram Weekly, June 8-14, 2006. Privatization phase out? AI-Ahram Weekly. Online, February 14-20, 2002. Profile: The making of Mohammed Al Habtoor, AME Info, June 2, 2004. Ram, C. and Useem,]. (2002), Why Companies Fail, Fortune Magazine May 27,2002. Random House Unabridged Dictionary, © Random House, Inc. 2006. Ray, ]. J. A Quick Measure of Achievement Motivation - Validated in Australia and

Reliable in Britain and South Mrica, AlIStralian Psychologist, 14(3), 1979, pp. 337-344. Red Orbit (2006), Five Strategies Drive Saudi Arabia's Petrochemical Industry

Growth, February 9,2006. Rigas Doganis (2001), The Airline Business in the 21st Century, New York, Routledge. Row erupts between Qantas and Emirates, The Financial Times, UK Edition,

November 9,2005. SABlC Annual Report, 2005. Safan, S. (2000), Essays in Economics and Management in Syria, Arabic language

edition. 21 Century Publications, Damascus (Syria). Safan, S. (2002), Going to Market, the Oxford Business Group. Sajjad M. Jasimuddin (2001), Analyzing the competitive advantages of Saudi

Arabia with Porter's model, The Journal of Business & Industrial Marketing. Santa Barbara, 16(1).

Samuel, B. and Edwards, R. (1993), Understanding Capitalism. Harper Collins. Samuelson P., Nordhaus, D. and Mandel,]. (1995), Economics, New York, McGraw Hill. Schumpeter,]. (1942), Capitalism, Socialism and Democracy. New York: Harper and Row. Schumpeter, J. (1950), Capitalism, Socialism and Democracy, 3rd edition, New York,

Harper and Row. Schumpeter,]. (1984), Capitalism, Socialism and Democracy, Harper Torchbooks. Shirley, M. (1998), The Experience with Privatization, Finance & Development. The

World Bank & IMF. 25( 3), 1998, pp. 34-35. Small Firms. Findings from the 1998 Survey of Small Business Finance. Sobel, R. (1974), The Entrepreneurs: Explorations within the American Business

Tradition. New York, Weybright and Talley.

176 Bibliography

Sound Corporate Governance Essential to Family Businesses Success, Zawya January 25, 2007.

Spreng, D. (2005), It's Time for Venture Capital Firms to Grow Up, Venture Capital Journal.

Strategic Capital Management AG (2005), Global Private Equity performance review (2004).

Strategic issues at the dawn of a new millennium, Lansa Publishing. Stephen,]., Dorgan,]., Dowdy, J. and Thomas M. Rippin. (2007) Who should-

and shouldn't - run the family business, The McKinsey Quarterly, October 6. Successful business needs more than family, Gulf News, April 1, 2007. The Economist, Credit where credit is due, March 18, 1999. The Economist, Flights of fancy, www.economist.com. October 5, 2006. The American Heritage® Dictionary of the English Language, 4th edition.

Houghton Mifflin Company, 2006. The McKinsey Quarterly, October 6,2007. The only way is up, macroeconomic analysis, Emerging Syria, Oxford Business

Group (2000). The Syria Report (2002), Restructuring is going on in public organizations. Thierry, V., Noelle, D., Mazzarol, T. and Thein, V. Triggers and Barriers Affecting

Entrepreneurial Intentionality. Thompson, Arthur A., Jr. Strickland III, A. J. and Kramer, T. R. (1998). Readings in

Strategic Management. 10th edition, Boston, Irwin/McGraw-Hill. Treading a fine line, Emerging Syria, Oxford Business Group (2002). United States Small Business Administration (2003), Financing Patterns of the

small business economy 2003-2004, US Small Business Administration, 200S. United States Small Business Administration (2005), Small business and micro busi­

ness lending in the United States for data years 2002-2003, Office of Advocacy, United States Small Business Administration, Washington, March 200S.

USAID, the impact of privatization and policy reform on cotton spinning indus­try in Egypt, Report No 15, November 2000.

White, S., GAO, J. and Zhang, W. (2002), China's venture capital industry: insti­tutional trajectories and system structure, paper submitted to the international Conference on Financial Systems, Corporate Investment in Innovation and Venture Capital, Brussels 7 and 8 November 2002.

Wilken, P. (1979), Entrepreneurship: A Comparative and Historical Study, Norwood, NJ Ablex.

World Bank (2004a), Syria Fact Sheet, World Bank. World Bank (2004b), World Development Indicators. World Bank Country Fact Sheets, World Bank, 2004-2005. World Economic Forum (2003), The Global Competitiveness Report, 2002-2003. World Economic Forum (2004), The Global Competitiveness Report, 2003-2004. World Economic Forum (2005), Global Competitiveness Report, 2004-2005. World Economic Forum (2006), interview with Mohamed AI-Mady, CEO, SABle. World Economic Forum, Global Competitiveness Report, 2006. World Economic Forum, Interview with Mohamed AI-Mady, CEO, SABlC, 2006. World wide look at reserves and production, Oil and Gas Journal, 103 (47), 2005. Zero2ipo Venture Capital Research Center (2005), China venture capital semi

annual report.

Index

Abu Dhabi, 65, 159 achievement motivation, 130, 131-2

characteristics and attitudes, 114 action program, 23 actualization, 101, 102 Africa, 51, 60, 81 Air France, 60 Al Habtoor Group, 159-60 Al Tomooh and Sheik Moh Ben

Rashid Foundation, 145 Albert, M., 109 Algeria, 83 American venture capital firm, 144 Anglo-Saxon model, 109 Ansoff, 1., 3, 27, 29 Ansoff's growth matrix, 16, 17-18 Anthony, R., 24, 75 Arab entrepreneur, 117

bright side, 129-30: achievement motivation, 131-2; locus of control, 132-3

call it quits, 162-3: performance­related sign of trouble, 164; personal goal, 163-4; person­related sign of trouble, 165; re­entry, 168; seriousness of issue, 165-6; situation, 168-9

dark side, 129, 130: distrust of environment, 133-4; propensity to enterprise, 134-5

entry barriers: biased business choice, 124; conditions for exit, 125; finance, 125; lack of identity, 124; minority status, 124; motivation, 123; non­guided entry, 124-5; non­guided project choice, 124; regulation, 123-4; understanding and choosing technology, 125

exit barriers: cost, 127; lack of alternatives, 127; restart, 127; social stigma, 127

propensity to enterprise, 119-21 self-employment, 118-19 small business sickness, 121-2:

source, 122; types, 127-8 survival barriers: administrative and

regulatory requirement, 125; daily conduct, 125; finance, 126; market information, 126; technology shifts, 126; unfair competition, 126

Asia, 60, 79, 109 Asian entrepreneur, 143 Asian model, 109 Australia, 60, 131

Bahrain, 69, 155 Bahrain Monetary Agency, 144 balanced score card, 24, 75 BeG portfolio analysis, 18-19 Boulding, K., 32, 105 Brazil, 72 British Airways, 60 Buckman, R., 150 business performance-related

problems, 166, 167

capital in Dubai, 43 in Singapore, 45

capital market, 35 capitalism, 32

quasi-European type, 38-9 capitalist thinking system

177

entrepreneurial behavior root, 105: breeds, 108-9; inputs, 105-7; outputs, 108; transformation mechanism, 108

in Syria, 32: breed, 38-9; disabling conditions, 37-8; enabling conditions, 37; feedback, 37; GDP growth, 37; input, 35; output, 33, 37; system-specific quantitative parameters, 34;

178 Index

capitalist thinking system - continued transformation mechanism, 33,

36-7 Chief Executive Officer (CEO)

of family firms, 159-60 succession, 21

China, 52, 70, 72, 149 venture capital: corporate VC fund,

152; government as enabler, 151; managed intervention, 153; provincial government VC fund, 152-3; structure, 150-1; unique products, 151-2; university VC fund, 152

China New Technology Start-up Investment Company, 150

Clausewitz, Carl von, 6 competitive rivalry, 63 contemporary, 91, 101 core competency fitness test, 77 corporate culture, 22-3 corporate governance, 10 created value added, 110 creative destruction, 32, 99 culture's consequences and

dimensions, 130, 133, 134, 168, 169

detachment, 4, 28 distrust of environment, 133-4 diversification, 18, 63, 64 Drucker, P., 99-100, 101, 109, 110 Dubai, 40, 160

analytical framework, 41-2 capita!, 43 demand condition, 43 firm strategy, 44 government, 43, 60 infrastructure, 42 investment climate, 43 labor, 42 labor market, 42, 43 learn form Singapore's mistakes,

49-50 relatedness and supporting

industry, 43-4 and Singapore, comparative

view, 47-9

Dubai Chamber of Commerce, 155 Dubai Islamic Bank, 145 Dutch petrochemical corporation

(DSM),69

economically active population, 111, 120

efficiency objectives, 13, 30 learning objectives, 15 productivity objective, 15

Egypt, 57, 83, 86-7, 121, 130, 131, 132-3

external orientation parameters, 87-8

government, 88-9 public enterprises, competitiveness,

88 strategic choice, 88-9

El Namaki, M., 9, 23, 52, 53,111, 119-20, 121, 123, 131, 134, 135

Emirates Airlines, 59-60 business model, 61-2 competitive profile, 60-1 strategic behavior, 63 strategy, 62-4; effectiveness,

64-7 employer, 111, 119 entrepreneur, 99, 100-101

function, 101-3 see also Arab entrepreneur

entrepreneurial behavior root capitalist thinking system, 105:

breed, 108-9; input, 105-7; output, 108; transformation mechanism, 108

entrepreneurial traits, 103-5 entrepreneurship, 99-100

capitalist thinking, implication, 109-10

demand-side perspective, 113 free market thinking, implication,

109-10 measurement, 111-12 supply-side perspective,

112-13 Etihad Airways, 65 Europe, 60, 79, 109, 156 European mode!, 109

family business, 155 in GCC state: case studies, 158-60;

conglomeration, 161; divergence areas, 157-8; explicit SCA, absence, 162; exploiting opportunities made by national development strategy, 160-1; innovation or R&D, 161; manufacturing or processing, connection with, 161; respect scale, 161-2; response to government strategy, 161; share and management, 156-7

Far East, 60, 90 financial growth objectives, 13-14 Flanagan, M., 64-5 Ford, 74-5, 78, 79 Foreign Direct Investment (FOI), 45,

46, 149, 151 formalization, 4, 28 France, 156

Gao,]., 151 Geleen,69 Gelsenkirchen, 69 GEM (Global Entrepreneurship

Monitor) report, 112, 139, 142 Germany, 156 Global Emerging Markets Group, 144 globalization, 10 Goldsmith, A., 4, 29 Goodman, J. B., 84 Govindarajan, V., 24, 75 growth objectives, 12-13, 30

financial growth objectives, 13-14 market growth objectives, 14

Gulf Air, 60 Gulf Cooperation Council (GCC)

state, 138-9 family business, 155: case studies,

158-60; conglomeration, 161; divergence areas, 157-8; explicit SCA, absence, 162; exploiting opportunities made by national development strategy, 160-1; innovation or R&D, 161; manufacturing or

Index 179

processing, connection with, 161; respect scale, 161-2; response to government strategy, 161; share and management, 156-7

venture capital in, 139-40: case studies, 144-5; experience, 142-3; growth, 147-8; investor, 140-2; small business finance, 139, 145-6; types, 143-4

Gulf Finance House (GFH), 144

Handy, C. B., 22 Harvey, v., 46 Hill, Charles W. L., 24, 75 Hofstede, G., 130-1, 133, 168 HSBC fund, 145 hyper-competition, 10

ILO (International Labor Organization), 111, 118, 119

India, 70, 72 individualism, 130, 169 industry fitness test, 76-7 infrastructure, 57

in Dubai, 42 in Saudi Arabia, 71 in Singapore, 45

Injazat Technology Fund, 144-5 instability in Middle East, 71 international market

Libya's strategic position, 50-1: SBAs, 51-3, 54-7; starting position, 53-5

International Monetary Fund (IMF), 83,85

intrapreneurship, 100 investment climate

in Dubai, 43 in Singapore, 45-6

Iran Foreign Investment Corporation (IFIC), 145

Iraq, 59 Ireland, 117 Irish Development Authority (IDA), 117 Islamic Corporation for the

Development of the Private Sector (ICD), 144

180 Index

Islamic Development Bank (IDB), 144

Japan, 117 Jayid, A. Ahmed, 83 Jones, G. R., 24, 75 Jubail United Petrochemical Co., 69

Kaplan, R. S., 24, 75 Ketz de Vries, M., 100, 129, 136 Khalaf Al Habtoor, 159 KLM,60 Kodak, 74, 78 Korea, 177 Kuwait,155

labor in Dubai, 42

labor market in Dubai, 42, 43

learning objectives, 15 Lebanon, 59, 160 Libya, 50-1, 155

government, 51 SBAs, 54-7: energy, 56-7; global

positioning, 51-3: tourism, 57 starting position, 53-5

Liedkta, ]., 8 locus of control, 132-3 logistics, 71 long-term orientation, 130 Loveman, G. W., 84 Lufthansa, 60

Malaysia, 117, 126, 138 management, 101, 122, 152 managerial role, of entrepreneur,

102-3 Mandel]., 107 market development, 18,63 market growth objectives, 14 market penetration, 17, 63 masculinity, 130 McClelland, D., 100, 113, 114, 130,

131 Mexico, 72 Middle East, 59, 60, 63, 67, 69, 71, 81,

90 military strategy, 6 Mintzberg, H., 3, 4, 27-8, 100, 102

Misr Spinning and Weaving, 79-81, 88

Mohammed Al Habtoor, 160 Mohieddin, Mahmoud, 81 Morocco, 121, 155 motivational need

types, 113-14

the Netherlands, 38, 41, 73, 75, 163 Nordhaus, D., 107 Norton, D. P., 24, 75

Omar Effendi, 83 open skies policy, 60-1 organization culture, see corporate

culture organizational complexity, 10 own account worker, 111, 119

paid employment, 110, 121 Palestine, 59 person-related problems, 166, 167 petrochemical industry, 68, 69-70,

72-3 Pettijohn, T. E, 132 Phang,Sock-Yong,44 planning model

fallacy, 4, 28 Polaroid, 74, 78-9 Porter, M. E., 4, 10,27,41,62, 70 Porters "Diamond Analysis", 27, 41,

42 potential fitness test, 76 power distance, 130, 169 power of buyers, 63 power of suppliers, 62 predetermination, 4, 28 private equity finance, see venture

capital privatization, 83, 84

in Egypt, 86-7: external orientation parameters, 87-8; public enterprises, competitiveness, 88: strategic choice, 88-9

in Saudi Arabia, 92: external orientation parameters, 92-3: public enterprises, competitiveness, 93-4; strategic choice, 94-5

privatization - continued strategic options matrix, 85-6 in Syria, 89-90: external orientation

parameters, 90; public enterprises, competitiveness, 91; strategic choice, 91-2

product development, 18, 63 productivity objective, 15 propensity to enterprise (PTE), 111,

119-21, 131, 134-5

Qantas,60

raw material supply, 71 Ray, ].]., 131 "Reach" program, 70 resource fitness test, 77 return on investment (ROI), 12,

15-16, 30 The rise and fall of strategic planning, 4,

27-8 Russia, 72

Samuelson, P., 107 Saudi Arabia, 67, 73,90,92, 121, 131,

132-3 competitive advantage, 70-1 external orientation parameters, 92-3 government, 68, 94 public enterprises, competitiveness,

93-4 strategic choice, 94-5

Saudi Basic Industries Corporation (SABlC), 67-70, 93-4

base chemical, 73 competitive advantage real, 73 down stream, 73 issue of size, 74 vision and strategy, 71-3

Saudi Economic and Development Company (SEDCO), 145

Saudi Telecommunication Co (STC), 83, 92

Schumpeter,]., 32, 99, 100, 115 self-employment, 111, 118-19 shared services organization, 69, 72 Sheikh Ahmed bin Saeed Al Maktoum,

64-5, 159 Shirley, M., 83, 86

sickness, 121-2 source, 123 types, 127-8, 165

Index 181

Singapore, 38, 40, 41, 44 analytical framework, 41-2 demand condition, 46 and Dubai, comparative view, 47-9 firm strategy, structure and rivalry,

46-7 foreign direct investment, 45 government, 46 infrastructure, 45 investment climate, 45-6 relatedness and supporting industry,

46 strong workforce, 45 venture capital, 45

small business, 117, 141, 146 sickness, 121-2: source, 123; types,

127-8 small business finance, 139, 147-8

needs, 145-6 South Korea, 52 Spreng, D., 143 Steiner, G., 3, 27, 29 strategic behavior,S, 18

drivers, 9-11, 30 levels, 26

Strategic Business Arenas (SBAs) energy, 56-7 global positioning, 51-3 tourism, 57

Strategic Business Unit (SBU), 17, 24-5, 52, 69, 159

strategic choice, 16-17 for Egypt's textile industry, 88-9 for Saudi Arabia's SABlC, 94-5 for Syria's telecommunication

industry, 91 Strategic Competitive Advantage

(SCA),162 strategic control, 10-11,23-4, 74, 75

Arab illustration, 79-81 core competency fitness test, 77 industry fitness test, 76-7 versus management control, 76 non-Arab case illustration, 78-9 potential fitness test, 76 resource fitness test, 77

182 Index

strategic management, 4, 6-7 strategic planning, 3, 6, 27-8 strategic shift

major strategic shift, 20, 21 minor strategic shift, 20

strategic thinking, 7-8 attribute, 8

strategy, 6 definition, 3-4

strategy analysis, 9, 29 strategy formulation, 16-17,27,28

corporate level, 25 macro level, 26

strategy implementation, 19,20,22 strategy making, 3

business level, 24-5 environment level, 25-7 strategic behavior, 5, 18: drivers,

9-11,30; levels, 26 strategy analysis, 9, 29

Structural Adjustment Policies (SAPs), 85

substitution effect, 62 sustainable competitive advantage,

9-10 SWOT analysis, 11-12, 13,30 Syria, 89-90, 121

capitalist thinking system in, 31: breed, 38-9; disabling conditions, 37-8; enabling conditions, 37; feedback, 37; GDP growth, 37; input, 35; output, 33, 37; system-specific quantitative parameters, 34; transformation mechanism, 33, 36-7

external orientation parameters, 90 public enterprises, competitiveness,

91 strategic choice, 91-2

Syrian Korean Company (SKC), 91 Syrian Telecommunications

Establishment (STE), 91

Taiwan, 52, 117 Tan, Kim-Song, 44 Thailand, 38,90, 117, 121, 138 threat of entrants, 62 Total Entrepreneurial Activity, 111-12 Tunisia, 57, 83

UAE, 41, 130, 131, 132-3, 140, 160 uncertainty avoidance, 130, 169 United Kingdom, 41, 131, 156, 160 United States, 38, 70, 73, 109, 123,

135, 139, 142-3, 147, 156

venture capital, 45, 139-40 in China, 149: corporate VC fund,

152; government as enabler, 151; managed intervention, 153; provincial government VC fund, 152-3; structure, 150-1; unique products, 151-2; university VC fund, 152

in GCC, 138-9: case studies, 144-5; experience, 142-3; growth, 147-8; investor, 140-2; small business finance, 139, 145-6; types, 143-4

venture capital Bank of Bahrain, 144 Ville roy & Bosch, 157 vision and visionary zeal, 9

Welch, ]., 28 White, S., 151 Wilken, P., 100, 114-15 William Clarke & Sons, 157 World Bank, 53, 83, 85, 134 World Economic Forum, 47

Global Competitiveness Index, 41 World Trade Organization (WTO),

49-50,51,92

Yemen, 121

Zhang, W, 151