PESTEL ANALSYSIS OF GRAMEEN BANK

Presented To: Sir. Adil Paracha

POLITICAL
Government Stability

Taxation Policy

Foreign Trade Regulation

Social Welfare Policies

Since poverty alleviation is a major goal of the Government, is being Bangladesh is thrust a parliamentary given oncountry socio-economic democratic but has spent Corporate Tax remains the fifteen of its forty of years development the of Bangladesh is bringing same for the year 2013-2014 independence under military or underprivileged groups improvement in its Tax policies and the Income military-supported rule. has The of Rural Development Foreign Trade Regulation, states ability to finance andas increased with a Slight Labor and Employment provide effectively they are services looking forward to Difference. The Value Added Women and Children remains weak, and is threatened export their own countrys Tax has also increased. Affairs by unstable politics and products and improve The taxation policy for Youth Development corruption. Economy. Corporate Tax didnt Grameen because of Because of this Grameen get changed, so Grameen didnt Government stability can Grameen had playednow a very very good opporunities for got effected. perform their operations more important role in improving Foreign Investment and swiftly and the above and itsmoothly. continues to Financing. make policies even better then that to play a more good role in the Social Welfare Policies

ECONOMIC FACTORS

Business Cycles

GNP trends

Interest rates

Money Supply

Inflation

Unemployment

Disposable Income

The Business Cycle of Bangladesh is increasing day A very big positive Change the in by day and is thus allowing the GNP occurred since growth in has their economy. It is The interest rates in very 2005, their GNP has been effecting Grameen Bank Bangladesh are increasing increasing at a very fast rate. positively. And also Grameen Money Supply M1 in through out years since 1989. The GNP of the country effects bank has played a major role As the Interest rates the Bangladesh averaged in theand country ItUnemployment has been increasing with the Grameen Bank directly in the Development ofin Money supply isof increasing the 238803.42 BDT Million from isslightest decreasing day by day. changes inloans it. terms of Cycle people taking Business Bangladesh. Inflation isin also increasing but 1974 until 2013, reaching an Grameen have played very Increase the interest rates and in terms of saving their Since the Income level a of the since the income level of the all time high of 1277019 BDT important role ineffect decreasing have positive on money. country is increasing day by people is in control, Inflation Million in October of 2013 and the unemployment level in the Grameen Bank, they will day, It means thatas the country dont have that much impact a record low of 6267 BDT country and is continue sly get more return from the loans now has more disposable on the Businesses in the it Million in April of 1975 doing efforts to give. decrease that they Income. country. This Helps the positive Grameen Bank even more. effects Grameen has Because of Inflation Grameen in a way that now they can Grameens vision and mission from this as now people will Bank have to Offer their loans loan out more money.from is save to remove the Poverty more, and Grameen at higher interest rates. the world and for that they would have expansion have to remove Opportunities. Unemployment, in which they have succeeded alot

SOCIOCULTURAL FACTORS
Bangladesh has a dense population. Bangladesh has Income 98% local distribution Bengalis in in the Bangladesh iswhich not fair and country. Of No. of on As the economy is growing even basis. But thethe Women almost equal No. of Lifestyle trends in since theto country Social Mobility ofeven the country people is country is Poor, most of Men. Consumerism in the is is changing, they have also increasing. the rich people are not much Grameen targets women increasing as the per The Attributes toIncome the Work developed their Psyche; they 90% of the Banks shares are rich. mostly as the No. of Women is capita is increasing. trend have increased as are focusing more on the Level of education in the now owned by the people who Grameen has helped aof lot in a almost equal toof the No. Men from the beginning Women are now also playing development the country, country is increasing and the used to take loans from the bringing the Income and they dont get that much since was doing very important role and is and their mindset is changing people in Bank. the country are Distribution level in the country right and Power as Men have Microfinancing. That is they contributing a lot towards work. towards doing Business. They becoming more well educated. to a balanced state. to stand for their rights and were offering Low interst , Grameen since have given want tothe earn better and live Now people know and a earn their living. small amount to the loan to 97% of loans the Women. better life. understand the benefits of people to fund their basic They have aa very Grameen hasplayed helped lot in MicroFinancing and the needs. important role developing this developing such lifestyle trend Overall loans and the bank the country ishad a lot psyche. inSince Bangladesh. to concept. So theyThey are taking an stable then before, People face apart lot of the active in problems financing at in their dont do that startInvestment butMicrofinancing Now they ar atat easy of funds. rate, And the rate of Large and can easily do their work Sum of Loans have increased.

Demographics

Income Distribution

Social mobility

Lifestyle trends

Attributes to work/leisure

Consumerism

Levels of education

TECHNOLOGICAL
Government spends very little or almost none the GDP on Government is of focusing a lot itson R&D. They lack in this are field. the industry, as they New Discoveries and And so cause ofthe that;Grameen moving towards developing Innovation is brought by the have to countries. bring innovations Private Sector companies themselves and support Grameen have a lot of themselves, and Government themselves do research advantage because of that as The speed ofand Tech Transfer Pace of Obsolescence in dont havent helped them in and bring innovation. the Government pays this industry is slow. Its not that the industry is high, in the such a way. subsidiaries to the industries, every year there comes new context of methods used for Grameen have increased their and they specially focus on the innovation in the banking and banking. Product Category, that is they Grameen as this bank financing sector. But Many newBank, and improved and offer more then before, and have helped them Overcome Innovations and technology innovative policies are brought they have done so by the troubles they were like ATM andwhen Online Banking into banking sector and are discovering new methods for8 facing a hard time. have introduced from the last applied So the old methods of providing loans to the people seven years. doing Banking gets Obsolete etc. and new methods are introduced.

Government Spending on R&D

Government/Industry focus

New Discoveries

Speed of Tech Transfer

Pace of obsolescence

ENVIRONMENTAL
Bangladesh is developing country so now some basic employmentis laws are following Bangladesh developing in Bangladesh health and country so they like have like all safety laws and discrimination other developing countries laws, workplace conditions Bangladesh alsoof moving facing problems waste etc. Grameen bank following toward different source of all disposal, they make now these laws like discrimination energy slowly but in main cities different rules and regulations and also promote these types GRAMEEN Bank for less cost which followed specially in offor laws and conditions for and zero environmental their cities , Grameen bank development. pollution working on solar also counties promote the polices energy forwaste their use. regarding material and follow also they recycle their waste properly like wasted paper etc.

Employment Law

Waste Disposal

Energy Consumption

LEGAL
Competition law is promoted Bangladesh started ILO Bangladesh is developing by the Bangladeshs (International Labor country so product Government. They safety want to Organization) Programmed measures taken by them are increase the competition which basically mission few and now they try to of between the companies as making healthy and safe work improve them like they want them to other be environment in different developed countries. innovative and creative. sectors like different factories Grameen Bank nowis focuses As far as Grameen etc but GRAMEEN itself on product safety inBank a sense concerned, the rivalry because arrange different activities that they trained their of such promotion of regarding this issue andthe also employees minimize competitionto law increases. promote, follow and provide or risks of mistake in accounts healthy and safe environment others thing relating customers to their employees. and make transactions or other things more properly managed and authentic and try to reduce the risk

Competition Law

Health and Safety

Product Safety

CONCLUSION
For Grameen Bank to work in Bangladesh proved efficient and effective as they were able to achieve their objectives and they were able to eradicate poverty at a very huge scale. The Environment of Bangladesh also proved advantageous for Grameen Bank, as people in the country were in need of the product that is Micro Financing that the company was Offering.

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