A Social Enterprise Case Study Free Essay Example

1. Undertake stakeholder analysis for the Bangladesh’s Grameen Bank? a. Internal stakeholders are directors, managers, employees, bank officers, etc. These individuals believe and promote the company’s vision and mission and give value to Grameen bank’s endeavors. They all fit into a stakeholder group that we can dub as departments and hierarchy in the bank. Furthermore, we can conduct a power/interest matrix. The directors and managers are mainly interested in salaries, share options, job satisfaction, status, and social welfare.

Essay writing service:

• Excellent quality
• 100% Turnitin-safe
• Affordable prices

Order Now

They also have significant power as they make decisions and have detailed information. Therefore, these individuals are key players in the power/interest matrix.

On the other hand the employees and bank officers are mainly concerned with salaries & wages, job security, job satisfaction, and motivation. They share the company’s vision and mission and thus have significant influence over clients of the bank. However, they don’t have the power to influence the strategic course of the firm.

Therefore they are termed as keep informed in the power/interest matrix. b. Connected stakeholders are shareholders and customers. i. Shareholders are concerned with profit growths, share price growths, and dividend returns. Shareholders hold tremendous power as they elect the board. However, the level of power will be dependent on the number of shares one holds. Shareholders create value by electing a board that will follow the strategic goals of the shareholders. In the power/interest matrix a shareholder with controlling stake will be a key player.

Customers are concerned with interest rates, amount of loan available, payment schedules, ease to understand information, customer service, bank locations, etc.

These customers can influence the bank by refusing to do business with them but as the alternative is moneylenders which provide high interest rates this is highly unlikely. So far the needs of the customers are satisfied and thus they have weak power. Customers fall in the keep informed bracket of the power/interest matrix. c. External stakeholders are financiers, government, local community, pressure groups. iii.

Financiers could be the government, central bank, main commercial banks and aid donor funding. These are concerned with Grameen Bank’s cash flows and financial health. They need to make sure the bank maintains its credit rating and the bank pays back all interest dividends for customers having savings account. As Grameen Bank has rate of 1% on default its cash flows and financial health are healthy. Due to the profitability of the social nature of the bank, financiers do not have much need to lend money to the bank and in that sense have no real power or influence over Grameen Bank.

However, the bank is impacted by the macroeconomic environment of Bangladesh and thus any changes in exchange rates, interest rates, real value of money, money supply, money demand, etc will have an impact on Grameen Bank. The result would echo through all facets of the bank changing strategy. The main culprit of this would the central bank and its fiscal policy decisions. They have a low level of interest but high power and thus should be kept satisfied. The bank caters to the rural populace but doesn’t have large influence on fiscal policy rules as it doesn’t have enough bargaining power. v. Government is highly concerned with the success of Grameen bank due to its very nature. The social bank aim to first and foremost improve social welfare. This helps the government justify its policies of economic growth. Therefore the government is highly interested with Grameen Bank. The government has thus the ability to make sure the bank is profitable and operating. It will make sure competition is fair and make sure Grameen Bank benefits the society and doesn’t take advantage of them.

They have the power to shut down the company or propose legislations to make Grameen Bank unprofitable. Therefore the government is a key player and its needs are to be satisfied. v. The local community is essentially impacted by the business’s philosophy of a prominent social agenda which preaches the virtues of entrepreneurship and self reliance while also providing an experience of democratic process. It supports education through scholarships and student loans and encourages members to abide by a set of sixteen rules which are for the benefit of the society.

Due to these rules the local community or village is highly concerned with the success of the company and is thus willing to do business with them. They have significant power as a group as they are a close-knit community where information travels between them freely. So if the local community is unhappy with the business, they can boycott their offering. However, such a situation is very rare as the offering made by the firm is way too valuable to the customer. Thus the local community is in the keep informed part of the matrix. vi. Pressure groups are NGOs, international institutions, etc.

Due to the social nature of the bank, NGOs and international institutions have closely monitored the bank. Due to the obvious benefits, these institutions have promoted the bank’s endeavors. In fact the founder of the firm was given the Nobel prize as positive enforcement. Therefore, these pressure groups have high level of interest but do not possess enough power. This is mainly because the firm and its employees have strong beliefs on their mission and vision. Chances are they will be unwilling to do something that would anger NGOs and international institutions.