Strategic Management Tools for Microfinance Development

Strategic Management Assessment 1
It is been approach by the CEO, Christopher Nassetta to evaluate the strategic environmental tools. The internal tools used are Porter’s Value Chain Analysis, BCG Matrix and Mckinsey’s 7S. The external tools used are Porter’s Five Forces, Pestle Analysis, and Industrial Lifecycle. This report critically analyses internal and external tools for better performance. This report aims to evaluate the strategic environment where they operate in. The report will be forwarded to higher management. The report consists of various academic sources such as books, journals, articles, annual reports, pdfs, e-books, and case studies.

The comprehensive Financial Inclusion plan declared in India by our honourable Prime Minister Shri Narendra Modi has emerged as a major policy objective. The microfinance sector plays a significant role in fostering inclusive growth by offering loans, credit, savings and other basic financial services to borrowers at the bottom of the economic pyramid. Inclusive growth simply means all round growth of the masses. Microfinance and inclusive growth ensure the economic and the financial progress by bridging the gap between the formal financial institutions and the poor sections of the society resulting in balanced and optimal growth. In this paper, author provides an overview of India's microfinance industry, its position and significance in economic development, prevalent models for the microfinance disbursement, potential for growth of microfinance in India, challenges of microfinance in India and the suggestions to overcome these challenges.

In Nigeria, studies in structural transformation and sectoral interdependencies, particularly, employing time series data, rebased to the same and current basis are limited. The recent economic rebasing exercise, which has made available time series data needed for this kind of analysis provides some motivation to investigate these phenomena. Meanwhile, there have been conjectural discussions on 'dwindling marginal productivity of labour', despite year-on-year economic growth in the past few decades. This suggests that, while productivity decline was evident in some sectors of the economy, there were more than proportionate and compensatory productivity increases in some other sectors of the economy, albeit less visible, to warrant aggregate growth outcome. Consequently, this research attempts to understand labour productivity distribution across the major sectors of the economy and investigates the transitions in marginal productivity of labour and the reallocation of economic activities and resources among the major sectors of the Nigerian economy during the growth period of the past few decades in order to determine sectoral interdependencies and structural transformation. Vector error correction model (VECM) econometric tool was used to investigate sectoral interdependencies, while non-parametric methods were used to unravel structural transformation. The results revealed sectoral interdependencies and a transformation of the economy from production sectors of agriculture, manufacturing, mining and quarrying to services sectors, which include, retail and wholesale trade, information communications technology, financial services, administration and social services. The administration and social services sector has assumed more than proportionate importance in employment, whereas, it has the least productivity with negative implications for the overhead cost of governance. Government should design and implement policies to realign resources allocation optimally.

In this paper, the emphasis is given to discussing the association between the growth rate and poverty reduction in Kerala. Kerala has become one of the states registering a high growth rate in the country. Kerala has undergone a structural change in growth and structural changes bear its effects on poverty and unemployment. In other words, poverty could be regarded as a declining function of the growth and structural change of an economy. Kerala, to a greater extent, stands testimony to this hypothesis. It is obvious that Kerala has registered remarkable progress in the growth rate of State Gross Domestic Product (SGDP) and the per capita income compared to other states in India. Compared to the past record of the State in the fifties, sixties, and seventies, the growth in production and service sectors in recent times has been more commendable. It is also found that the high growth that Kerala achieved in recent times has led to a commensurate decline in her poverty ratio compared...