Friday, April 22, 2016

Week 15 Reading Reflection

  1. What surprised me the most, besides the incredible business of SKS, was the idea of micro-financing with the poor. I have never heard of this idea ever, but it seems like it is having success. With that, it's interesting how well it works with women because they are more likely to reinvest their profits than men. I would have never thought this, but this article backs it up clearly. 
  2. The only thing I was confused on was how this company actually made money. I know that people are reinvesting but the initial principle of $1 doesn't seem big enough to actually receive a good return. Maybe I'm mistaken, but their numbers don't seem big enough to make a sizable profit. 
  3. If I asked the author 2 questions, it'd be: 1) What is the best way for other companies to "scale up customer loyalty?" I would ask this because although it worked for them in India, if I ever owned a business, I would want to know how to attract and sustain customers by fitting to their needs. I would also ask: 2) What is the future of micro-financing? I would ask this because it seems lucrative now, but I would like to know for possible investment options if this is something that will last long-term.
  4. I didn't disagree with anything the author said because I really enjoyed the article and learning about the business. I did find it interesting, though, that he said that they always put their customers over their company even if they lose in the short-term. I question how this helps and hurts in the company in the short and long-term, and wonder if this has had any positive or negative effects on it. 

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