I have mentioned in A yogurt that changes millions of children in rural area in Bangladesh-Stories of Grameen Danone(1) about how sympathy matters. Realizing this point, Grameen Danone made a change and was closer to success. However, the food crisis in 2007 posed a challange again to Grameen Daone.
In 2007, the harvest of wheat was bad in the countries who were main exportation of wheat. Part of harvesrt of wheat was used to produced bio-fuel. which made the supply decrease in the world. However, the demand rose due to the increasing population in some countries(India. China for example). As the result of global free market, the rise of food price in the world had a huge influence on people in Bangladesh,feminine for example. A subtle rise of food price could put people to the line between death and life. The cost of yogurt was also severely affected by this cause.Under this situation, Grameen Danone was in dilemma.
Hold the price to keep customer at the price of taking the risk of bankruptcy?
or
Rising the price by taking the risk of decreased customer or even the collapse of community network to achieve the financial sustainability which is required for a good and long term social business?
If you were they, which one would you choose?
The final decision was latter. All results had been foreseen before happened. The Grameen Ladies gave up their job because it couldn't generate enough income for them due to the reduced customers. This crisis forced Grameen Danone to revirew all their business assumptions. Finally and fortunately, they found a key assumption that relied in food technology.
It was until this crisis happened that Grameen Danone realized that the previous assumption-80g yogurt is enough to contain all necessary micronutrient was wrong. It had been proved that a 60g yogurt could also contain the same amount of those micronutrient without compromising the quality. This new idea enable Grameen Danone use lower price to sell yogurt with the same quality and lower price. It got its customer again and also recover the community network, which rescued Grameen Danone from the crisis. Now, the Grameen Danone has become a financially independent social business by using cross-subsidization.
A crisis turned out to be a chance. This chance allow us scrutinize all assumptions in our business. Although the previous assumption had been true by lots of researcher and expertise, the potential of technology and human being is infinite, which bring as more possibles. Before, Grameen Daone provided food for the developed area like the USA and Europe. Thus their research and formula also based on the user need and market in these areas. The story of Grameen Danone show us that the technology mustn't be limited to those countries and people. It must can be used to serve the poor. Technologies can be used to serve all human being no matter poor or rich if we are eager to create them. Quote a saying from Yunus:
We wanted to go to the moon, so we went there. We achieve what we want to achieve. If we are not achieving something, it is because we have not put our minds to it. We create what we want-2006 Muhammad Yunus Nobel Lecture
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