Presented by- Roll no-Md. Arif Sadik Chaudhury (24037)Md. Shifat Hossain (24053)Tanjina Tahjib (22064)Towsif Ahmed (24042)Md. Ferdaus Alam (24010)

Social Business

What is Social Business? A financially sustainable organization. Only to solve social problem. Original investments may be recouped and profits are reinvested to fur-ther increase for organization’s social impact. Example– Grameen Shakti, Grameen Danone etc

Characteristics of Social Business• Addressing social problems which are so ingrained that these problems cannot be addressed solely by governments and traditional social-sector organizations.• Always put the social goal first.• Focus on affordable solutions to social problem. • Its objective is to improve access to essential products and service in a financially sustainable manner.• The company decides who the targets and how to filter them.• Applying business principles to social problems can increase financial sustainability.

Benefits of Social business

Social Benefits Business Benefits• Provides innovative solutions to social problems

• Creates results that last well beyond the initial investment

• Empowers beneficiaries by transforming them aid recipients into consumers with choices

• Leverages the business mindset to in-crease efficiency

• Creates greater lasting social impact than traditional donation-based corporate social responsibility (CSR) programs

• Provides new opportunities for learning & innovation

• Improves employee motivation & relation

• Offers the potential for a positive impact on the brand

Model of Social business

Private

Non profitPublic

Key lessons for Succeeding in Social Business

• Clear about core capabilities & potential interests. • Fully understand the problems & their root causes.• Understand the landscape of stakeholders, legal issues &

activities of the players.Choosing the right focus area

• A clearly differentiated offering tailored to local needs is important..

• Rethink how to reach customers,: Employ innovative dis-tribution method.

• Go beyond Traditional marketing: Customer education is needed too.

Designing successful business model

• Adapting and iterating to make the business model work.• Not waiting too long to test the concept in the market.Continuously learning & adapt-

ing

Key lessons for Succeeding in Social Business

• Partnerships can be helpful only if structured effectively• The right people are integral to success.Building efficient and sus-

tainable operations

• • Measure and manage social impact as rigorously as fi-

nancial results.• To reach more beneficiaries and boost impact.

Managing for impact

CASE STUDY #1BASF GRAMEEN

Social Problem 11 million people in Bangladesh are at risk of malaria 84,000 cases in 2009 Dengue, a critical problem since 2008 Product Long-lasting insecticide-treated nets Customized nets suitable for Bangladesh Market

Place & Promotion All of Bangladesh, including the malaria regions

CASE STUDY #1Founded in March 2009. Initial investment of €200,000 provided by BASF. Products from Grameen Fabrics & Fashions. Financial status 2012, revenue is 171,000 million euro.

Current status 75,000 nets sold to dateAdaptation to local market

Outlook• Sell 200,000 nets through 2015• Nets for 3 million people•3 machines in the future

SOCIAL IMPACT Health protection against insect-borne dieases for more than 75,000 families.

Case Study #2Grameen Shakti Provides Clean Energy to Rural HouseholdsImpetus Business model Operations Status & outlook Impact

Social Problem

• Low living stan-dards & unhealthy environment in rural areas

• Lack of electricity:70% households not con-nected to electricity

• Indoor air pollution

Product•Solar home systems (€290)•Improved cooking stoves (€9)

•Small biogas plants (€400)Place & promotion•Sales & service via rural offices

•Technical training for users & mainte-nance service pro-vided by Grameen Technology Center

Standalone busi-ness in coopera-tion with:•World Bank•Infrastructure De-velopment Company Limited (IDCOL)

Initial Investment of~€90,000•USAID and others

Key challenge•Manage high rates of attrition

Founded in 1996 as non profit busi-nessSocial business since December 2010Current status

•Reached break-even point in 2000•Market share for so-lar home systems:50%•More than 1.7 mil-lion products sold

OutlookScale-up planned

Financial Status•Operating expendi-tures: €71.4 million •Revenues: €72.77 millionSocial impact•8 million beneficia-ries•Energy access, im-proved health envi-ronment, reduced deforestation•800,000 tons of CO2 saved per year•More than 12,000 jobs created

Clean energy for ru-ral household

Health & Environ-ment friendly solu-tions

Standalone business Break-even point achieved in 2000

More than 8 million benefiriaries

Looking Forward…..

Any Questions?