P4-5. How transferable is the Grameen Bank\'s business model? Would it work in y
ID: 443294 • Letter: P
Question
P4-5. How transferable is the Grameen Bank's business model? Would it work in your country? How important are the cultural values of Banglasheshi society to its success?
P4-6. Numerous banks and venture capitalists have established for profit microfinance companies to provide small loans to villagers in India and in numerous African nations. Yet some critics have argues it is immoral to profit from the poverty of these impoverished peoples. Do you agree? Should microfinance be limited to not for profit organizations like Grameen Bank?
P4-7. Grameen Bank has teamed with Telenor and Danone to provide telephone service and a low-priced, but nutritious yogurt. Can you think of any other goods or services that could benefit the rural poor through joint ventures between non profit organizations and for profit internal business?
Explanation / Answer
Grameen bank has formulated a social business model. The bank has pioneered the development of micro-finance and created 30 businesses that are designated to alleviate poverty. The business model is prepared using challenging innovation thinking, finding complementary partners, and undertaking continuous experimentations. This business model might be transferable. This model cannot work well in the United States along with the conventional business models due to incompatibility of the concept with local people’s values. The cultural values of Banglashesh are very important for the success of this organization as they value social factors than the economic profits.
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