Product details

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Case
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Reference no. 108-049-1
Published in: 2008
Length: 14 pages
Data source: Published sources

Abstract

Flame Company was established as a Kuwaiti shareholding company in September 1999, for a paid up capital of US$100 million. The company was established with the purpose of providing services in financing, leasing and investments according to the Islamic Law (Sharee''a). Flame thrived to benefit from the opportunities available in the leasing and investment market and it gained a satisfactory market share in spite of strong competition and the increasing number of companies operating in the market. In an effort to diversify its investments and increase sources of income, in 2006, Flame focused on real estate investments and added it as a strategic business unit (SBU). In spite of the fact that real estate is an attractive industry in the Kuwaiti market, Flame earned less than 11% on the capital invested. This was below the market standard and was much below the targeted 15% return on equity set by the management. The CEO of the company was faced with the problem of determining the corporate direction, the SBU objectives and goals, and what strategy to pursue to succeed in this industry.
Location:
Industry:
Size:
Large
Other setting(s):
2007

About

Abstract

Flame Company was established as a Kuwaiti shareholding company in September 1999, for a paid up capital of US$100 million. The company was established with the purpose of providing services in financing, leasing and investments according to the Islamic Law (Sharee''a). Flame thrived to benefit from the opportunities available in the leasing and investment market and it gained a satisfactory market share in spite of strong competition and the increasing number of companies operating in the market. In an effort to diversify its investments and increase sources of income, in 2006, Flame focused on real estate investments and added it as a strategic business unit (SBU). In spite of the fact that real estate is an attractive industry in the Kuwaiti market, Flame earned less than 11% on the capital invested. This was below the market standard and was much below the targeted 15% return on equity set by the management. The CEO of the company was faced with the problem of determining the corporate direction, the SBU objectives and goals, and what strategy to pursue to succeed in this industry.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2007

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