Bangladesh Grameen Bank ( Grameen ) is one of the greatest phenomena of modern times. The inspiration of Dr. Mohammed Yunus, a US educated professor who came to learn at Bangladesh ‘s University of Chittagong, Grameen is the innovator of microfinance.
Microfinance, a loaning pattern for the poorest of the hapless, which was conceptualised by Dr. Yunus in the class of his field work with his pupils in Bangladesh, has now spread across the universe ( Holcombe, 1995, p 4 to 13 ) . The hapless have historically tended to stay hapless and go even poorer because of the reluctance of the formal banking sector to impart them little sums of money because of their low incomes and inability to supply collateral.
Dr. Yunus brought about a extremist alteration in such ideas by presenting and implementing a banking system that is able to supply loans without collateral to the hapless for puting up little endeavors, bear down them feasible rates of involvement, and yet retrieve money from them in clip ( Holcombe, 1995, p 4 to 13 ) .The microfinance theoretical account has become a great success in Bangladesh and has touched the lives of 100s of 1000s of Bangladeshi citizens. Dr. Yunus and Grameen were honoured with the Nobel Prize in 2006.
Their microfinance theoretical account has been emulated by legion administrations in different states ( Grameen… , 2010, p1 ) .This short research survey efforts to look into the growing and operations of Bangladesh Grameen Bank, analyse its PESTEL and SWOT characteristics, and thenceforth do appropriate recommendations for its hereafter growing.2. Background, Structure and AimsThe construct for Bangladesh Grameen germinated in Chittagong, Bangladesh, at the case of Dr.
Mohammed Yunus, who came to take up a chair at the University of Chittagong after finishing his Ph.d. from Vanderbilt University. Dr.
Yunus, whilst engaged in rural development work with his pupils on the outskirts of Chittagong, found local villagers to be populating in abysmal poorness, despite working continuously at doing little jute public-service corporation points, because of their deficiency of entree to structured banking and finance installations. Organizing a amount of about 1200 Dollars from his ain and his pupils ‘ resources, he provided micro loans of 27 USD each, without any security, to 42 households, for financing their micro degree production activities ( Jain, 1995, p 3 to 9 ) .With his experiment at this radical type of loaning being startlingly successful, both in footings of recovery and in footings of economic upliftment and concern growing of borrowers, Dr.
Yunus developed a theoretical account for supplying banking services and loans to highly hapless people Bangladesh, one of the poorest and most dumbly populated states of the universe, provided abundant chances to Dr. Yunus for seting his banking theories into pattern. Grameen grew steadily over the old ages through the application of legion advanced funding and concern techniques to go a truly effectual and authorising administration ( Jain, 1995, p 3 to 9 ) .The bank as of now has practically 8 million borrowers, the overpowering bulk ( 97 % ) of whom are adult females. Millions of households have been helped to get the better of the poorness and illiteracy trap through its banking and loaning installations ( Grameen… , 2010, p1 ) . The bank today has about 25,000 employees, about 2500 subdivisions and works in more than 80,000 small towns.
The bank, which is owned by hapless borrowers and the Bangladesh Government in a 94:6 ratio, has distributed about 7 billion USD in loans and has a claimed recovery rate of more than 98 % ( Grameen… , 2010, p1 ) .The aims of the bank are good known and associate to extension of banking to the hapless, riddance of development of hapless persons by money loaners, creative activity of self employment chances for unemployed Bangladeshi citizens, conveying oppressed and disadvantaged adult females within an organizational construction, and change by reversaling “ the antique barbarous circle of ‘low income, low salvaging & As ; low investing ‘ , into virtuous circle of ‘low income, injection of recognition, investing, more income, more nest eggs, more investing, more income ‘ . ( Grameenaˆ¦ , 1998 )3. Methods of growingThe growing of Bangladesh Grameen has been driven by a figure of factors that include ( a ) its alone loaning doctrine, ( B ) its organizational construction, ( degree Celsius ) its manner of operations, ( vitamin D ) the peculiarity of its intercession methods, ( vitamin E ) the vision of its leading, and ( degree Fahrenheit ) its direction civilization ( Holcombe, 1995, p 4 to 13 ) .
Grameen bases its loaning doctrine upon its aims and has consequently developed a loaning doctrine that is based on loaning to hapless people who can non entree the formal banking system, because of their inability to supply collateral for loans and their little transactional capacities. Dr. Yunus is really steadfast in his strong belief on the function of adult females in the economic and societal sweetening of hapless households and the overpowering bulk of Grameen loans are given to adult females. A clear focal point on its mark patronage has enabled Grameen to carefully build loaning, recovery and growing policies ( Holcombe, 1995, p 4 to 13 ) .Grameen has over the old ages built a sophisticated organizational system that has evolved in response to the developmental demands of its mark patronage ( David, 1994, p 2 to 11 ) . The organizational construction of the establishment has two facets, viz.
the receiving system and the bringing system. The receiving system consists of groups and Centres and is an of import institutional tool for the administration of runing units. The bringing system of the bank comprises of subdivisions, country and zone offices, and the caput office.
The organizational construction is institutionalised, focussed on decentralization, and is basically democratic and participative ( David, 1994, p 2 to 11 ) .Grameen has developed specific standards for eligibility, which exclude people who are non hapless, in accessing its installations ( David, 1994, p 2 to 11 ) . Precedence is given to adult females and the bringing system is designed to run into the assorted socio-economic demands of hapless people.
Unlike Orthodox Bankss, Grameen functionaries go to clients ; functionaries train new groups, aid in their development and oversee the gradual advancement of pay outing loans to new borrowers. Care is taken to simplify adoption procedures, maintain loan sizes modest and guarantee that banking regulations are complied with and that refunds made on agenda. Grameen has a phenomenal recovery rate of more than 98 % , an accomplishment that has occurred chiefly because of the shared duty of group members for the refund of loans of single members of the group ( David, 1994, p 2 to 11 ) .Grameen ‘s direction vision, organizational civilization and intercession methods are all dictated by its cardinal aims and invariably aim at greater flexibleness of operations and de-bureaucratisation of systems, even as duty is devolved to take down operating degrees to guarantee that the benefits of Grameen ‘s installations are non misused by vested involvements and are delivered to people in demand ( Holcombe, 1995, p 4 to 13 ) .The bank has grown tremendously during the last 30 old ages frequently confuting its critics from the mainline banking industry.4. SWOT AnalysisA SWOT analysis involves a careful probe and amplification of the ( a ) internal strengths and failings of an administration and ( B ) its environmental chances and menaces ( White, 2004 ) .
Grameen ‘s tremendous success in its country of growing leads to the decision that the administration has legion strengths, which it has efficaciously used to work environmental chances.Grameen ‘s strengths originate fundamentally from its house and committed vision of concentrating merely on the hapless in order to ( a ) supply them with appropriate and practical banking and loaning installations and ( B ) to authorise them to act like responsible and trained enterprisers and concern individuals.The vision and committedness of its direction has now been translated into strengths, with the usage of a scope of irregular and basically participative direction patterns, in countries of organizational construction, service bringing and the direction of its mark group. The administration has more than 25,000 committed workers who invariably work with their mark patronages and strongly believe in their corporate mission.The highly high recovery rate and good degrees of involvements have ensured that the bank has a really strong fiscal construction and does non hold to near foreigners for parts or loans. All its loans are made from its sedimentations and the fiscal storm that has wrecked the largest American and European Bankss has left Grameen untasted.
The bank can utilize its really strong fiscal base, its developed organizational strengths and its wholly committed client base to convey about important economic alteration and upliftment in Bangladesh.Some perceivers feel Grameen ‘s growing and its basically decentralised construction have created organizational inefficiencies. The bank has a relatively high abrasion degree at the entry degree and many employees quit shortly after fall ining. With employees at Grameen holding to work much harder than their opposite numbers in authorities or in the private sector, it is imaginable that the bank can confront a work force crunch in future ( Jain, 1995, p 3 to 9 ) .Whilst the bank has achieved tremendous success, Bangladesh continues to be a hapless state and the bank can widen its installations to 1000000s of people.
With its expert cognition in the country of microfinance, the bank should be able to play a cardinal function in conveying the benefits of microfinance to hapless people in other societies.Whilst the bank is improbable to confront menaces from competition, its borrowers are prone to the consequence of corporate catastrophes like inundations or cyclones, which, when they occur can adversely impact their refunds. The operations of Grameen have antecedently being adversely effected during natural catastrophes and dearths ( Jain, 1995, p 3 to 9 ) .
5. PESTEL AnalysisThe PESTEL ( Political, Economic, Social, Technological, Environmental and Legal ) analysis of Grameen helps in a clearer apprehension of the environment in which the administration operates ( Porter, 1980 ) .Bangladesh, of all time since it achieved independency in 1971, has experienced utmost volatility in its political conditions, with democratic working frequently being disturbed by periods of military regulation. Whilst the state is now a democracy, it is excessively shortly to measure whether the political state of affairs will go on to be stable in the hereafter. The administration, because of its size and the extent of its operations has to continuously interact with governmental policy shapers and functionaries. Although the bank has continued to turn despite different political dispensations, it is possible that governmental policies could in future affect its operations.Bangladesh continues to be an highly hapless society.
The state is nevertheless sing better rates of growing than it did in the yesteryear. Grameen basically works for the hapless and has been instrumental in altering the lives of 1000000s of economically underprivileged people. The company ‘s activities are closely associated with the state ‘s economic system and the bank is accepted to be a cardinal driver of the state ‘s economic system growing.Bangladesh society is preponderantly Muslim by manner of faith. Literacy degrees are low and the place of adult females is subservient to that of work forces. Grameen specifically aims at elating type conditions of adult females and about 97 % of its clients and proprietors are female. Many of the bank ‘s loaning policies are shaped by the demand to better literacy and loaning footings and conditions to borrowers are set consequently.
It is for illustration jussive mood that all borrowers of Grameen send their kids to school.Whilst the state is technologically non really advanced, Grameen is making its best to alter the environment through the delivery in of radio payphone services. The administration was awarded the Petersburg Prize in 2004 for its part to engineering ( Porter, 1980 ) .With a mostly agricultural economic system, Bangladesh does non hold serious environmental issues. Legal establishments are besides in the procedure of development and legal resort is hard to obtain fleetly. Grameen ensures through its advanced and participative debt aggregation system that it does non hold to travel to the tribunals for legal resort ( Porter, 1980 ) .6. DecisionBangladesh Grameen is the consequence of a adult male ‘s vision and committedness to convey approximately long permanent economic and societal and economic alteration in enormously inauspicious conditions.
Whilst the western universe had for long written of Bangladesh as a “ basket ” instance with really few opportunities of growing, Grameen, through its apprehension of the societal and cultural surroundings of the state and the demands and abilities of its citizens is conveying about alteration that has clearly proven to be much beyond the likes of the World Bank. It is an illustration of the accomplishments that can be made with ****Part B1. Retail Fast Food IndustryThe retail fast nutrient industry is influenced by a figure of factors. Such factors can get down with the type of constitution and widen to the demographics of the local community. There are different types of eating houses that cater to different client penchants for nutrient. Whilst the most popular fast nutrient n the UK has traditionally been fried fish and potato french friess, modern-day times are seeing an addition in constitutions that serve beef Burgers, Indian fast nutrient and Lebanese kabobs ( Gambone, 2010, p1 ) .The geographics of a fast nutrient eating house is besides of import to its success. Whilst eating houses frequently do good concern in populated countries, their gross revenues can be affected by the presence of other fast nutrient constitutions in the same country.
Competition frequently leads to the outgrowth of extra merchandise and service characteristics and lower monetary values ( Gambone, 2010, p1 ) .The size of a fast nutrient eating house can hold a major impact on its success. Larger eating houses facilitate the provisioning of better seating, more comfy environments, the chance to serve greater figure of clients and more options in eating picks.Recent decennaries have seen the growing and outgrowth of a figure of branded fast nutrient companies like McDonalds, Burger King, KFC and Subway. The development of a strong trade name is now clearly associated with the success of fast nutrient ironss.Competition has increased intensely in the fast nutrient industry in the UK in recent times.
Whilst the fast nutrient industry in the UK in the yesteryear was dominated by Fish and Chips stables, until McDonalds came along and established its presence across towns and metropoliss, recent old ages have seen the outgrowth of a scope of endeavors, both in the individual store section and in the fast nutrient concatenation sector.The fast nutrient sector in the state is now characterised by the presence of little standalone stores and local and international ironss. London, with its cosmopolite environment and its place as an of import commercial and touristry Centre is home to fast nutrient stores that deal with a scope of culinary arts that include English, American, Asian, European and Latin American nutrient points. Such competition has occurred because of a legion grounds like growing in population and incomes, greater figure of adult females come ining the work force, a more multicultural society, smaller households and individual parents.2. Body ShopThe Body Shop was started by Anita Roddick in 1987.The company has since its origin been committed to the production of natural and healthy cosmetics.
The administration ensures that all its merchandises are made with natural ingredients, are ne’er tested on animate beings and are packaged in reclaimable packing stuff. Whilst these facets of the company ‘s doctrine have placed it in direct competition with section shops, they have helped in the edifice of an organizational civilization and image that has helped Body Shop to turn into a globally celebrated administration with 1000s of employees, and shops in about 50 states. The administration ‘s civilization calls upon employees to work towards societal and environmental sustainability, to equilibrate the human and fiscal demands of stakeholders, and to lend towards the local and international community ( The Body Shop… , 2009, p 1 ) .The administration has ne’er had a selling or advertisement section and uses its shops to make consumer consciousness. The company ‘s organizational civilization is focused on beef uping its merchandise heritage, spread outing client trade name experience, cut downing production and stock list costs and increasing purchases from ethical providers. The company engages in strong stakeholder audience to keep its committedness of bringing value. The organizational civilization of the company aims to interpret Anita Roddick ‘s committedness towards healthy and natural life into practical and down to earth administration patterns, many of which have helped to impel Body Shop ‘s growing ( Charles, 1994, p 4 ) .Corporate constructions provide unambiguous ways and means to guarantee that employees know their occupations, understand the undertakings of their co-workers, and gain lines of communicating and administration.
Such constructions help them to appreciate answerability and duty and decide work related jobs.Body Shop has overtime evolved an effectual corporate model, which aims to supervise concern and determination devising modus operandis, fiscal deductions of operations and care of corporate administration aims, in its different countries of work. The bulk of the 10 member board of managers are non-executive and supply balanced, holistic and external positions to the company ‘s operations and schemes. Body store besides makes usage of a scope of commissions that oversee countries like corporate administration, nominations of non executive managers, scrutinizing and accounting and care of moralss. The organizational construction of the company aims to interpret the basic vision of the company ‘s direction and its aim into world and has contributed significantly to the company ‘s growing.3. Tesco Plc / Virgin GroupDiversification concerns a alteration in the concern definition of administrations in footings of merchandises, engineerings, client maps and client groups of a houses concern or concerns.Tesco and Virgin Plc are two UK based companies that have grown significantly in recent old ages.
Both the administrations have engaged in extended variegation. Tesco, the largest nutrient retail merchant of the UK, initiated its variegation program in 1997 and is by and big following Ansoff ‘s growing theoretical account by first concentrating on presenting new merchandises to its bing clients and so traveling on to set uping new markets for its existing merchandises.The company ‘s variegation scheme aims at growing in non-food, fiscal services, and telecom concerns, in its big and spread outing place markets, and at the constitution of new markets in Central Europe, Asia and the United States ( Tesco Plc, 2009, p 1 ) .The variegation scheme of the Virgin group is on the other manus identified with the entrepreneurial spirit of its laminitis, Richard Branson. The Virgin group has a figure of ventures, many of which like air hoses, nomadic phones, railroads and fiscal services are in unrelated countries of concern.
The company, many experts feel, has engaged in over variegation, which has led to miss of focal point, over accent on the Virgin trade name, and operational and fiscal inefficiencies. Whilst the group ‘s variegation policies are in line with the unorthodox and originative attitude of its laminitis, the group keeps single company ‘s independent, therefore avoiding the legal jobs faced by conservative pudding stones. The assorted companies are nevertheless linked in scheme and cognition sharing and assist each other ( Grant, 2008, p 279-297 ) .Concentric variegation occurs when an administration engages in an activity in a mode whereby such activity is related to the current concern or concerns.
Concentric variegation can be related to selling, to engineering or to both. Whilst homocentric variegation can assist in the realization of synergisms in countries of finance, information, operations and forces it can besides increase hazard, cut down flexibleness, divert resources, dilute direction focal point and unfastened pudding stones to the hazards of pull offing new activities ( Kenny, 2009, p 12 to 31 ) .With the different units of a pudding stone being closely related to each other in affairs of fiscal and corporate construction the concern failure of one of the units can take to inauspicious effects upon the other members of the group.
4. Leadership Styles for Managing ChangeAutocratic leadings refer to leaders who tell employees what to make, publish orders and expect unthinking obeisance.Most strong historical leaders have been bossy and effectual leading, even in the modern twenty-four hours, is associated with elements of strength and paternalism. Research reveals that employees are frequently dying when clear leading can non be clearly identified. Such attitudes spawn the belief that bossy leaders can acquire things done efficaciously and are ideal in state of affairss of exigency or alteration, when things need to acquire done and strong determinations are required ( McCrimmon, 2007, p 1 ) .Whilst exigencies could on juncture require strong willed leaders, the conveying about of effectual alteration in the modern twenty-four hours concern environment is associated with provisioning of way, communicating of the demand and benefits of alteration, constructing alteration title-holders, and maneuvering administrations with soundness through the perturbations that are indispensable to extensive alteration direction enterprises. There is really small range for bossy leading in modern twenty-four hours alter direction scenarios. In fact bossy leading during alteration direction failed miserably during the amalgamation of Chrysler and Daimler ( McCrimmon, 2007, p 1 ) .
The popular axiom of people being born to be leaders is associated with the Traits Theory of Leadership and assumes that merely people with certain types of traits can be leaders. Early trait theories stated that leading was basically an innate and replete quality that a individual have or did non hold. Training for leading development of leading, in such fortunes was futile.Modern twenty-four hours leading theory has progressed far beyond this attack and organizational directions are invariably look intoing ways and means to develop leading qualities in their employees. The traits theory nevertheless does assist in the designation of qualities that are required in good leaders.Modern twenty-four hours administrations try to understand the of import characteristics of different leading theories and seek to develop leading accomplishments through preparation.
The acceptance of such an attack does non nevertheless connote that all people are every bit suited for going good and effectual leaders. It is therefore of import for administrations to take persons, either from outside or from within the administration, who have specific character traits. Such people can so be really efficaciously groomed to presume leading places through suitably designed and expeditiously delivered leading preparation programmes.5. Kentucky Fried ChickenThe determination on come ining the foreign market is highly of import for the success of enlargement enterprises. The most common and basic degree of entry into foreign markets is through exports of goods or services from the place state.
Such exports are frequently converted into more active engagement in a foreign market through licensing or franchising, battle in joint ventures and foreign direct investing in a state. Foreign direct investing relates to the existent ownership of installations in a host state and can be made either through constitution of an endeavor or through the acquisition of an bing concern ( Johanson, 2000, p 1 ) .KFC adopts a figure of ways to come in its foreign markets. The company entered Mexico and Puerto Rico through company owned subordinates, whilst it entered little Caribbean markets through franchises. The company has in recent old ages pushed for enlargement through franchises in its new markets in Asia, where local enterprisers provide the company with a better apprehension of local market features ( KFC Corporation, 2010, P 1 ) .KFC has proved to be vastly successful in the international market despite strong competition from companies like McDonalds and Burger King. The company ‘s success, experts feel is due to the company ‘s policies of concentrating on merchandise quality, standardization and uniformity and on the local penchants of its clients.
The company operates a similar organizational format for all its shops, which is marked by cleanliness, hygiene and a usage of best quality stuffs. Apart from guaranting standardization in its merchandise and service offerings, the company takes great attention in taking its foreign spouses and ensures that it teams up with people who are financially sound and have faultless concern reputes.The company besides places great accent on the eating penchants of local clients and seamsters its bill of fare consequently.
As such whilst clients in China have an option of Peking poulet, clients in India are served their poulet with an overload of spices. This combination of get marrieding planetary criterions of production and hygiene with local client penchants is felt to be the major ground for KFC ‘s international success ( KFC Corporation, 2010, P 1 ) .