Bangladeshi-native Muhammad Yunus developed the constructs of micro-financing and micro-credit when he was Professor of Economics at Chittagong University. After sing some hapless vicinities and small towns near Chittagong. he realized that really little loans to the hapless people could do a really large difference to their work and to their lives. In 1976 he set up his ain research undertaking to impart little sums of his ain money to the hapless people. peculiarly the adult females. The undertaking was successful. and in the same twelvemonth he secured little loans from the authorities bank to continue with the undertaking. which continued to win and turn. In 1983 the undertaking had expanded into a big concern. and was renamed Grameen Bank. From 1983 to 1989 Grameen continued to turn and spread out. until Dr. Yunus realized the demand to diversify ; several subordinate endeavors. including GrameenPhone. were created within the Grameen organisation. All of these endeavors were structured on the same societal concern theoretical account and operated on the same rule of micro-financing. The bulk of these endeavors focused on adult females. because Dr. Yunus believes that adult females suffer more disproportionately from poorness than work forces. and adult females are more likely to utilize their net incomes to assist their households and communities.

The Grameen theoretical account of micro-financing has proved successful in many states. peculiarly developing states. Dr. Yunus has won many awards and awards for his work. including the 2006 Nobel Peace Prize. which he was awarded jointly with Grameen Bank. In 2006-2007. Dr. Yunus considered come ining political relations on a platform to assist the hapless. every bit good as to run for honest and clean authorities. This caused jobs for him and created competition and ill will from other politicians who had antecedently supported his attempts. Accusations began against him for misdirection of Grameen’s fundss. Despite all the old good work through Grameen. Dr. Yunus now has many oppositions. largely political. in Bangladesh. but at the same clip the support of many international leaders from around the universe. In 2011. Dr. Yunus was dismissed as Managing Director of Grameen Bank by the authorities. as it investigated allegations of “misused and misappropriated” financess of the bank. This matter is still on-going and unsolved. Introduction

Iqbal Quadir. a Bangladeshi-born established US citizen. is the laminitis of Legatum Center for Development and Entrepreneurship at MIT ( the Massachusetts Institute of Technology ) . In 1993. he began to develop an thought to supply cosmopolitan nomadic phone service throughout Bangladesh. and in peculiar for the rural hapless. He had been impressed by Dr. Yunus’s success with Grameen Bank and the micro-financing and societal concern theoretical accounts on which it was structured. So he traveled to Bangladesh to run into with Dr. Yunus to research how they might together develop this thought as a on the job venture. Together they negotiated a partner-union with Telenor. the telephone company of Norway. and in 1996 the new company GrameenPhone Ltd. was granted its operating licence and the undermentioned twelvemonth launched its service. Service was expanded over the following four old ages. and by 2000 the web covered the full state. The concern theoretical account for GrameenPhone was based on uniting the fact that most people in Bangladesh could non afford their ain cell phone. and the thought that a cell phone could function as a beginning of income. It besides depended on the Grameen Phone Ladies.

The Grameen Phone Ladies were an indispensable factor in developing the concern theoretical account construction that was the foundation of GrameenPhone. Using the same rule used in Grameen Bank’s advanced thought that adult females are the most reliable footing for micro-lending ventures. Dr. Yunus started a plan in which small town adult females would have loans from Grameen Bank ( through its subordinate GrameenPhone ) . This money was so used to purchase a cell phone and airtime ( in the signifier of SIM cards ) from GrameenPhone. The adult females would in bend rent the phone and airtime to the other villagers for short periods. The villagers were now able to afford to pass on with household and friends anyplace in Bangladesh and even worldwide. The Telephone Ladies made a net income which they could reinvest by purchasing more airtime. or they could utilize to get down other concern ventures. or to better the lives of their households. And GrameenPhone besides made a net income. From this history sum-up. GrameenPhone will be used for the footing of the case-study. Case Summary

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Table 1 nowadayss a basic lineation of the nature of the survey. The creative activity of GrameenPhone as a new concern venture has been chosen as the focal point of the survey. This instance drumhead sets out the methodological analysis to be used. and besides states the purpose of the survey. The survey is intended to analyse the jobs and other factors to be resolved in the creative activity of GrameenPhone. It will be analyzed from the point of view of Dr. Yunus and Grameen Bank. the parent company of the proposed new subordinate. Table 1: Case sum-up

Activity| Description|
Inquirer mission: | To make and set up GrameenPhone as a new concern venture. | Methodology: SIS| Mission to equilibrate the forces of force per unit area from the societal. economic and concern environments encountered in making such a company. | Goals and purposes of enquiry: | To develop the state of affairs in footings of its proficient. Organizational and personal properties. | Nature of scrutiny: | SIS is being used to analyse the proficient and organisational properties of micro-financing and the societal concern theoretical account. | Explanatory theoretical account: | The creative activity and operational development of GrameenPhone based on the societal concern theoretical account. | Options choices: | Options chosen define proficient. organisational and personal characteristics of scheme in set uping GrameenPhone.

Pressure from Environment on Grameen Bank
The first measure for Grameen Bank ( and Dr. Yunus ) toward making the new concern venture is to find the forces of force per unit area which will determine their picks and determinations. Because the companies of the Grameen organisation are structured on a societal concern theoretical account. the forces of force per unit area will be connected more to societal demands instead than conventional concern demands. Figure 1 shows these force per unit areas. which are: ( a ) The demand of the rural hapless villagers to acquire low-cost phone service. Until this clip. most could non afford to have their ain cell phone. ( B ) The demand to offer the rural hapless economic chances for self-sufficient little concern ventures. with the aid of micro-financing loans from Grameen Bank. ( degree Celsius ) The demand to happen a concern spouse with proficient experience in communicating services. At this clip there was no or really limited web handiness of phone service in rural countries. Need to happen a concern spouse

Figure 1: Pressure from environment on Grameen Bank
Low-cost phone service for rural hapless villagers
Grameen Bank

Economic chances for micro-financing

Features of Difficulty or Mess
Table 2 shows whether the features of the different parts of the state of affairs can be seen as a trouble or a muss. Table 2: Features of trouble or muss Characteristics of Difficulty or Mess| Characteristics of Situation| Certain/Uncertain about: The problemKnowledge/informationSolution| There is a demand to assist hapless persons obtain little loans. Uncertainty about ability to refund loans. Information is based on Dr. Yunus’s economic surveies and personal cognition of societal conditions. Solution should take into consideration the investors financing the loans. | Determinable/indeterminable: ImplicationTimescalesNumber of people involved| Impact on societal conditions is ill-defined. Grameen can put timetable for loan refunds. but non find whether timetable will be met. Number of people having loans will depend on money available. | Clear/unclear priorities| Target persons most in demand. who would besides present least hazard of non-repayment. | Independence/interdependence of context| Examine how this concern theoretical account tantrums in with conventional concern theoretical accounts. | System Focus Position of GrameenPhone

Figure 2 shows the system focal point of the aims in making GrameenPhone. On the first degree. the primary aims are: ( a ) To supply an low-cost phone service for all people. particularly the rural hapless villagers. ( B ) To supply the rural hapless with chances to run self-sufficient concern ventures. On the 2nd degree. the aims are to sell the cell phones and airtime ( in the signifier of SIM cards ) . which would so be rented to the villagers by those who operate the little concerns. Figure 2: System Focus Position of GrameenPhone

Cell phones
Business chances
Phone service
Airtime ( SIM cards )
Grameen Phone

Social Roles
Table 3 identifies the functions assigned to the involved parties in this case-study. The job belongs to Grameen Bank. and Dr. Yunus. as its caput. is the client. The stakeholders are all parties who will profit from happening a solution to the job. The alteration agent provides the solution ; in this instance the creative activity of GrameenPhone provides the solution. Table 3: Social functions

Roles| Role Takers|
Client| Dr. Muhammad Yunus|
Problem Owner| Grameen Bank|
Stakeholders| Grameen Bank and its employees and proprietors ; Grameen Phone Ladies and their households ; full population of Bangladesh in demand of cell phone service. | Change Agent| Grameenphone|

Influences on GrameenPhone
The diagram in Figure 3 shows the strength of the assorted influences impacting the creative activity of GrameenPhone. The chief influences come from the social demands of the rural hapless ; the micro-lending involvements of Grameen Bank ; the proficient restraints of constructing a phone service web that will cover all Bangladesh. The influences of media and public consciousness are of lesser importance at the beginning phases. but will increase when GrameenPhone will be launched. Figure 3: Influence Diagram on GrameenPhone

Grameen Bank Micro-lending
Technical restraints
Social demands
Public Awareness

Loan Refunds

Rural Poor

Driving Forces and Restraining Forces
The diagram in Table 4 shows the drive forces ( top row ) and keeping forces ( bottom row ) which influence the creative activity of GrameenPhone. while the thickness of the pointers shows the strength of each force. It can be seen that the combined strength of driving forces outweigh the restraints. Table 4: Force Field Diagram

Driving Forces|
Societal Needs| Help for Rural Poor| Need for Phone Service| Need for Business Opportunities| Expansion| |

Availability of Loan Capital| Loan Repayments and Misuse of Loans| Costs of Implementation| Sustainability| Technical Constraints| Restraining Forces|
Mind Map
In order to be after for the creative activity of GrameenPhone. it is necessary to form the factors that need to be considered. The diagram in Figure 4 is a road-map of these assorted considerations that lead to the head of Dr. Yunus. the person in this instance who would be doing the program.

Figure 4: Mind Map to place the possible considerations for Dr. Yunus Cost Staff Social Needs Implementation Hiring Runing Training Telephone Costs ServiceDr. Yunus Business OpportunitiesFinancing Business Partner Shareholders Role for Grameen Bank? Stakeholders Business Partner Technology Review| Causes that Account for GrameenPhone

There were several causes that contributed to the demand to make a company like GrameenPhone. Most of these were social demands of the rural hapless. chiefly for low-cost phone service and concern chances. There was besides a demand to develop a web that would convey phone service to the full state. The diagram in Figure 5 shows these cause factors. Figure 5: Multiple Cause Diagram demoing the factors that account for GrameenPhone Village adult females

Rural hapless
TechnicalNeed for phones Need for airtime Poverty Willing to work No networkPhones expensive to purchase Families to feed No recognition Simcard expensive for a individual
Telenor Grameen bank Affordability Loans Business Opportunities Creation of GrameenPhone

Modeling Options
An of import factor in the creative activity of GrameenPhone is the function that the Grameen Phone Ladies will play. They will go stakeholders in the new company. The foundation of the societal concern theoretical account on which GrameenPhone is being built depends on the success of their engagement and engagement. The undermentioned features should be examined when aiming prospective Telephone Ladies. Characteristics to turn to in enlisting Grameen Phone Ladies * Role choice of mark borrowers ; do certain they understand what their function is and how they will profit. * Stakeholder profiles. including their households. * Market countries of borrowers ; the countries where they will make concern. * Trainability in runing their ain little concern. |

Table 5: Options and Evaluations refering participants in GrameenPhone Membership Option Available for GrameenPhone|
GrameenPhone ( GP ) | Class| Purposes|
Internal to GP| Managers and employees of Grameen Bank and GrameenPhone| Those with cognition of GB and GP and their internal workings| External to GP| Business venture partners| To supply fiscal capital. To supply proficient and operational knowledge| Evaluation of Possible GrameenPhone Participants|

GrameenPhone ( GP ) | Class| Purposes|
Internal to GP| Managers and employees of GB and GP| To set up loans for Phone Ladies. | External to GP| Grameen Phone Ladies| To lease out cell phones and sell airtime. |

The above considerations should be addressed prior to execution. A scheme for this based on the options in table 5 is offered in table 6.

Table 6: Most promising options for GrameenPhone execution Option| What is involved| Who is involved| How will it work| Establish participants| Identifying all stakeholders| GrameenPhone. Grameen Bank and Phone Ladies| Determine the best campaigners for having loans| Appropriate preparation for employees| Training in the loan process| Employees of Grameen Bank and GrameenPhone| To guarantee that loans are transacted to best advantage of all | Marketing| Explain loan procedure and describe concern opportunities| Phone Ladies and employees of GrameeenPhone| Explain to borrowers how to gain and win in business| Consultation & A ; communicating with stakeholders| Regular contact| Grameen Phone Ladies| Ensure timely refunds. Support concern success. |

Design Implementation Strategy
One of the concluding stairss before execution of the new company is to do certain that all participants. from directors and employees to stakeholders. are decently trained and prepared. Everybody should non merely cognize what they are making. but besides what their function is in the concern venture. and how they all inter-relate. Table 7: Design execution scheme for GrameenPhone

Option| Implementation plan| Allocation tasks|
Training courses| Train GP staff in loan process| Managers and supervisors| Stakeholder classes| Explain loan procedure to Phone Ladies ; demo how they become stakeholders| GP staff| Business classes | Teach Phone Ladies how to run concern venture| GP staff| Marketing| Determine countries for expansion| Managers|

Communication| Get feedback from Phone Ladies| GP staff| Consultation| Hold regular meetings with all staff for feedback and updates| Managers| Monitoring| Review loan refunds | Managers|

The ground to make GrameenPhone was non from profit-making concern thoughts. but as a manner to run into social demands. For Dr. Yunus. the jobs were non from the hazards that he might confront as a man of affairs. but more a challenge for how to construction this new venture as a societal enterpriser. He had the experience from his original work in making Grameen Bank. which was built on the societal concern theoretical account and which used rules of micro-financing. He used these same constructs to make GrameenPhone. However. with GrameenPhone. he was spread outing the ways that Grameen Bank had helped the rural hapless. and he would go on this enlargement with the assorted different ventures he created within the Grameen organisation. The most of import consequence coming from GrameenPhone was the thought of the Grameen Phone Ladies. a construct that has been used in many of the other self-sufficient concern ventures that Dr. Yunus pioneered. GrameenPhone has been a success. and has itself expanded into the country of internet service with the gap of GrameenPhone Community Information Centers.


1. Muhammad Y. . Bertrand M. and Laurence L. -Ortega ( 2010 ) . Building Social Business Models: Lessons from the Grameen Experience. Long Range Planning 43. P. 308-325 2. Mohammad A. Y. and Quamrul A. ( 2011 ) . Empowering Role of the Village Phone Program in Bangladesh: In Retrospect. in Prospect ; Journal of Information Technology Impact. Vol. 11. No. 1. pp. 35-50. 3. Grameen Phone. 2001. Uniform resource locator: & lt ; World Wide Web. grameenphone. com/village. htm & gt ; . 4. Nimalathasan. B. . ( 2008 ) . societal duty of concern: a instance survey of grameen phone in Bangladesh 5. Anne W. S. and Lars M. . Grameenphone and Telenor impacting Bangladeshi Socio-Cultural Development. Surveies in Development Management. No 1. MICRO-2007 6. 1 World Bank. World Development Indicators 2007. 2 Wireless Intelligence. Q3 2008


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