¶ … stakeholders in any microfinance situation. The borrowers are a major stakeholder, and the microfinance institution is another. The investors in the microfinance lender are significant stakeholders, regardless of whether they are investing for charitable purposes or as part of an IPO. Some of the indirect stakeholders are the families and communities of the borrowers, the countries and regions at large (whose economies will ultimately be affected), and the employees of the microfinance institution, and the governments of the countries and regions where the lending takes place, because of their role in tax collection. Even if they have diversified the firm-specific risk, the systematic risk can be substantial in these countries.
Microfinance started mainly as a charitable concept, but there are also examples of microfinance institutions tapping capital markets for financing as well. The competitive strategy is that these entities are getting substantial returns from many of their borrowers -- ROI can be very high when lending to small entrepreneurs, commensurate with the risk. But by pooling risk, microfinance institutions are able to offer high returns to their lenders with limited downside. A secondary competitive advantage is the charitable aspect, which some microfinance lenders still use to acquire capital.
3. Leadership at Banco and Grameen need to balance the interests of the different stakeholders. They must be able to offer loans with low transaction costs and effectively pool risk in a way that allows for superior returns, to offer better returns for investors. In terms of operations, both must be wary of the systematic risks that come from operating in the developing world -- the threats that recessions, political risk, ...
4. Oversight of lending is critical. In microfinance, many borrowers lack collateral, and in some cases even paperwork might be questionable. So at the ground level, governance is more challenging, and not all microfinance lending offices are good at it -- oversight from head office is mandatory. Specific criteria for lending are essential. Some governance might look a little like cash control functions at small companies -- bookkeeping even minor loans and expenses, and using two or more people to disperse funds. At higher levels, governance ends up being not much different than for any other financial institution, focused on governance models for executives, again relying heavily on peer oversight.
1. Strategic management is a pretty broad term -- and any company that is serious about its businesses uses strategic management. Fresh Direct of course knew who its competitors are, how it was going to find a niche in the market and how it could compete against the established players in the grocery business. The grocery business is mature and highly competitive. Fresh Direct sought to leverage changes in the technological environment to carve out a new niche and created the support systems that would allow it to obtain those competitive advantages.
2. FreshDirect's strategy of buying direct from suppliers was something that it felt helped it to compete on price, by lowering costs at that part of the supply chain. This was the "direct' component of the business model, and one that…
Even if they have diversified the firm-specific risk, the systematic risk can be substantial in these countries.
Post Audit Analysis Employee auditing is essential as each retained employee must have an understandable job description that is known to management and new employees must understand their role as well. There is not question that this company will remain in business but a good exit strategy would be to build partnership connections with other retail outlets for distribution of FreshDirect brand products and possibly build a consultation service to assist
Technology also enables it to keep inventories low, as the store can keep close track of consumer demand for specific products. Q3.Assess Fresh Direct's entrepreneurial strategy. Is the company taking advantage of opportunities to launch new products and/or enter new markets? How is it handling new competition? Fresh Direct operates in a relatively conservative format, using word-of-mouth advertising to save on marketing costs. This is fairly easy for it to do,
Emergency Management: Hurricane Katrina and Lessons Learned In late August, 2005, Hurricane Katrina became the 11th named storm of the Atlantic hurricane season and was its most deadly and destructive. The federal and state governments' responses to this natural disaster have been heavily criticized in the mainstream media as well as by the hundreds of thousands of victims of this disaster in the years that followed. Although it is far
C.O.R.E. And Its Role in the Black Freedom Struggle Nearly one hundred forty years ago, a tall, and not very good-looking, bearded man stepped out onto a great, open field. His tired eyes wandered over the bloody ground, over the earth covered with corpses, over the scene of one of the greatest battles in American History, and his words rang out true and clear -."..Our fathers brought forth on this
Wal-Mart Inc. Wal-Mart is an American-based multinational discount store, currently operating more than 11,000 retail outlets in 27 different countries, and serving approximately 140 million customers weekly. Headquartered in Bentonville, Arkansas, Wal-Mart grew from a small family-managed retailer in 1945 to the world's largest retailer, and was named the world's largest company by revenues in the 2014 Fortune 500 list. The company operates its retail stores in two forms: i) Sam's
Nativas Naturals is looking at ways to bring the Peruvian plant camu into the mainstream, capitalizing on the "superfood" trend wherein exotic foods with high nutrient value are elevated in their status and sold on the basis of their high nutrient value. Prior superfoods such as chia seeds, goji berries and kale have enjoyed success in the past, and marketers are searching for the next big superfood trend. There is