Pestel Grameen Bank

8/12/2019 Pestel Grameen Bank

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PESTEL ANALSYSISOF

GRAMEEN BANK

Presented To:

Sir. Adil Paracha


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Bangladesh is bringing

improvement in its policies of

Foreign Trade Regulation, asthey are looking forward to

export their own countrys

products and improve

Economy.

Because of this Grameen get

very good opporunities forForeign Investment and

Financing.

Corporate Tax remains the

same for the year 2013-2014

and the Income Tax has

increased with a SlightDifference. The Value Added

Tax has also increased.

The taxation policy for

Corporate Tax didnt

changed, so Grameen didnt

got effected.

Bangladesh is a parliamentary

democratic country but has spent

fifteen of its forty years of

independence under military or

military-supported rule. The

states ability to finance andprovide services effectively

remains weak, and is threatened

by unstable politics and

corruption.

Grameen because of

Government stability now canperform their operations more

swiftly and smoothly.

POLITICAL

Government Stability

Taxation Policy

Foreign Trade Regulation

Social Welfare Policies

Since

poverty alleviation is a

major goal of the

Government, thrust is being

given on socio-economic

development of the

underprivileged groups

Rural Development Labor and Employment

Women and Children

Affairs

Youth Development

Grameen had played a veryimportant role in improving

the above and it continues to

make policies even better

then that to play a more good

role in the Social Welfare

Policies


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SOCIOCULTURAL FACTORS

Demographics

Income Distribution

Social mobility

Lifestyle trends

Attributes to work/leisure

Consumerism

Levels of education

Ba

ngladesh has a dense

population. Bangladesh has98% local Bengalis in the

country. Of which No. of

Women almost equal to No. of

Men.

Grameen targets women

mostly as the No. of Women is

almost equal to the No. of Men

and they dont get that much

right and Power as Men have

to stand for their rights and

earn their living.

Income distribution in

Bangladesh is not fair and on

even basis. But since the

country is Poor, even most of

the rich people are not much

rich.

Grameen has helped a lot in

bringing the Income

Distribution level in the country

to a balanced state.

As the economy is growing the

Social Mobility of the people is

also increasing.

90% of the Banks shares arenow owned by the people who

used to take loans from the

Bank.

Lifestyle trends in the country

is changing, they have

developed their Psyche; theyare focusing more on the

development of the country,

and their mindset is changing

towards doing Business. They

want to earn better and live a

better life.Grameen has helped a lot in

developing such lifestyle trend

in Bangladesh. They had to

face a lot of problems at the

start but Now they ar at easy

and can easily do their work

The Attributes to the Worktrend have increased as

Women are now also playing a

very important role and is

contributing a lot towards work.

Grameen since have given

loan to 97% of the Women.They have played a very

important role developing this

psyche.

Consumerism in the cou

ntry is

increasing as the Income per

capita is increasing.

Grameen from the beginning

since was doing

Microfinancing. That is they

were offering Low interst ,

small amount loans to thepeople to fund their basic

needs.

Since the country is a lot

stable then before, People

dont do Microfinancing at that

rate, And the rate of LargeSum of Loans have increased.

Level of education in the

country is increasing and the

people in the country are

becoming more well educated.

Now the people know and

understand the benefits ofMicroFinancing and the

Overall loans and the bank

concept. So they are taking an

active part in financing in their

Investment of funds.


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TECHNOLOGICAL

Government Spending on R&D

Government/Industry focus

New Discoveries

Speed of Tech Transfer

Pace of obsolescence

Government spends very littleor almost none of the GDP on

its R&D. They lack in this field.

And so cause of that;Grameen

have to bring innovations

themselves and support

themselves and do researchand bring innovation.

Government is focusing a lot

on the industry, as they are

moving towards the developing

countries.

Grameen have a lot of

advantage because of that as

the Government pays

subsidiaries to the industries,

and they specially focus on the

Grameen Bank, as this bank

have helped them Overcome

the troubles when they were

facing a hard time.

New Discoveries and

Innovation is brought by the

Private Sector companies

themselves, and Governmentdont havent helped them in

such a way.

Grameen have increased their

Product Category, that is they

offer more then before, and

they have done so bydiscovering new methods for

providing loans to the people

etc.

The speed of Tech Transfer in

this industry is slow. Its not that

every year there comes new

innovation in the banking and

financing sector. But

Innovations and technologylike ATM and Online Banking

have introduced from the last 8

seven years.

The Pace of Obsolescence in

the industry is high, in the

context of methods used for

banking.

Many new and improved and

innovative policies are broughtinto banking sector and are

applied So the old methods of

doing Banking gets Obsolete

and new methods are

introduced.


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ENVIRONMENTAL

Employment Law

Waste Disposal

Energy Consumption

Bangladesh is developing

country so now some basic

employment laws are following

in Bangladesh like health and

safety laws and discrimination

laws, workplace conditions etc.Grameen bank following all

these laws like discrimination

and also promote these types

of laws and conditions for

counties development.


country so they have like all

other developing countries

facing problems of waste

disposal, they make now

different rules and regulations

which followed specially in

their cities , Grameen bank

also promote the polices

regarding waste material and

follow also they recycle their

waste properly like wasted

paper etc.

Bangladesh also movingtoward different source of

energy slowly but in main cities

GRAMEEN Bank for less cost

and for zero environmental

pollution working on solar

energy for their use.


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Competition law is promoted

by the Bangladeshs

Government. They want to

increase the competition

between the companies as

they want them to beinnovative and creative.

As far as Grameen is

concerned, the rivalry because

of such promotion of

competition law increases.

LEGAL

Competition Law

Health and Safety

Product Safety

Bangladesh started ILO

(International Labor

Organization) Programmed

which basically mission of

making healthy and safe work

environment in differentsectors like different factories

etc but GRAMEEN Bank itself

arrange different activities

regarding this issue and also

promote, follow and provide

healthy and safe environment

to their employees.


country so product safety

measures taken by them are

few and now they try to

improve them like otherdeveloped countries.

Grameen Bank now focuses

on product safety in a sense

that they trained their

employees to minimize the

risks of mistake in accounts orothers thing relating customers

and make transactions or other

things more properly managed

and authentic and try to reduce

the risk


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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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