Mateo, Alberto Nel V R.

O0B

Answers to the ICICI Bank Case Study Guide Questions:

1. What is ICICI Bank's innovation?

o It is their centralization of their core banking operations and their lending to

the poor which is translated to viable market for the company.

2. What is special about RBI's pilot project with NABARD in 1991?

o It is the micro credit to the rural poor.

3. According to Mahajan, why are the transaction costs of savings in formal

institutions as high as 10% for the rural poor?

o It's because of the small average size of transactions and distance of the
branches from the villages.

4. What are some of the problems of MFIs in India?

o Lack of resources, scalability of their operations, and high cost of individual

transaction.

5. What are the two innovative BOP models of the ICICI?

o Direct Access-Bank-Led-Model and Indirect Partnership Model

6. What is the connection between Grameen Bank and Bank of Madura?

o Their connection is the model of providing small loans to clients below the
poverty line.

7. Describe ICICI's three-tier system. Discuss why it is three-tiered.

o Commercial Banks, Regional Rural Banks and Cooperative and special-

purpose banks.

8. What are the 3 essential steps in the SHG process? Comment on why each step is
necessary.

o Learn to save, learn to lend what you save and learn to borrow responsibly.
They are all important for it teaches them how to be wise, practical and
accountable to what they are doing.

9. Discuss the NABARD checklist for SHG's. Comment on why each item on the
checklist is necessary.
 o Is the group size between 15 to 20 members? Are all members considered very
poor? Was there a fixed amount of savings collected each month? Is there
more than 20% literacy? Have they used their savings for internal lending
purposes? Have the members kept a high level of attendance? All of this

10. What is the impact of micro lending in a household according to a NABARD

study?

o It is the change on the different aspects of confidence, communication and

decision-making.

11. Discuss the possible implementation of a smart-card based payment system?

Would it work? Why?

o It can be implemented in order to eliminate the cost associated in cash

handling. It will serve as storage of value while having the transactions
audited at the same time.

12. Discuss the quote: "Banking with the poor has undergone a paradigm shift. It is no
longer viewed as a mere social obligation. It is financially viable as well". Do you
think this quote can be applied in the Philippines? Discuss.

o This quote can’t be applied in our country because of our mentality that we
focus always on self-interest and ignore the bigger picture which might give us
a better position in what we are doing. Another is the level of the education in
our country accompanied with level of peace and order in totality.

Answers to the ITC e-Choupal Case Study Guide Questions

1. What is the innovation of the e-Choupal?

o It is the virtual integration of the supply chain and significant changes

efficiencies in the traditional system through the linkage of information with
the help of internet.

2. Discuss the paradox of Indian Agriculture?

o Agriculture in India contributes about 23% of their Gross Domestic Product

(GDP). It also feeds billions of people and employs 66% of their workforce.

3. Why is soya an important innovation in the Indian oilseed complex?

o Because its usage results in better utilization of scarce resources and greater
cropping intensity.

4. Describe the marketing process before the introduction of e-Choupal.

 o They used three channels for their products. These are mandis (government-
mandated marketplaces), traders for eventual resale to crushers, and producer-
run cooperative societies for crushing in cooperative mills.

5. Why is the mandi not an optimal procurement channel?

o Because there is efficiency in the price and quality distortion caused by the
agents' stranglehold on the market and ITC's distance from the farmer.

6. What were the advantages of ITC's competitors? How did ITC address them?

o Horizontal spread, Vertical presence, Old and family-owned and Risk

Management. ITC address this by devising a strategy to systematically deploy
It to change the game in every area.

7. How did ITC "re-engineer as opposed to reconstruct"?

o They re-engineer by keeping the things that are good in their existing system
and looked at what they can build on it.

8. How did ITC "address the whole, not just a part"?

o By focusing on being a viable alternative for procurement.

9. Was it wise for ITC to install an IT-driven solution where most people would not?

o Yes

10. Why does the ITC insist that the sanchalaks NOT give up farming?

o Because it will compromise the trust the sanchalaks commands.

11. Why did the samyojaks introduce the ITC to the sanchalaks?

o Because they would be involved in the new streams of revenue that will arise
from e-Choupal and it will protect their commission earnings.

12. Describe the new ITC value chain. How different is it from the former value
chain?

o The new value chain is now consisting of Pricing, Inbound Logistics,

Inspection, grading Weighing payment and Hub logistics. It is different from
the existing for all of the processes are mostly done in front of the farmer
which would help them learn about pricing techniques and information timing.

13. What is the social impact of the e-Choupals?

o These are improvement on agriculture, better lifestyles, and brighter futures

14. Describe Wave 6 of the e-Choupal. Do you think it is feasible?

o It is to scale the likes of e-Choupal systems in other products that they are
producing like medicine and crafts. It is feasible in their country for they have
laws that are strictly implemented to protect their workforce and that vision
shows transparency and accountability to its users and other beneficiaries.

15. Can something similar to an e-Choupal be implemented in the Philippines?

o No because of our mentality that we focus always on self-interest and ignore

the bigger picture which might give us a better position of our goals especially
in doing business. Another is the level of literacy and education in our country
accompanied with level of peace and order in totality which decreases the
probability of such systems to be implemented.