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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.
Bangladesh is developing
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.
Bangladesh is developing
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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QUESTIONS AND ANSWERS
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