PlaNet Finance: Broad Scope in Microfinance Case Study Solution


Microfinance has emerged as a powerful tool for poverty alleviation and economic empowerment in the developing world. “PlaNet Finance” by Andrei Hagiu and Elena Corsi explores the organization’s broad scope in microfinance. This essay critically assesses the key aspects of the case, the implications of PlaNet Finance’s approach, and offers recommendations for further development.

Case Issue

The case revolves around PlaNet Finance’s expansive approach to microfinance, covering a broad range of services and sectors. The central issue is whether this broad scope approach effectively fulfills the organization’s mission and contributes to the broader goals of financial inclusion and poverty reduction.

Case Analysis

Overview of PlaNet Finance

Provide an introduction to PlaNet Finance, its mission, and its scope in microfinance.
Highlight the organization’s activities, including lending, capacity building, and advisory services.
Impact on Financial Inclusion:

Analyze the impact of PlaNet Finance’s broad scope approach on financial inclusion in the regions it operates.
Discuss how the organization’s services reach underserved populations, including women and rural communities.
Sustainability and Outreach:

Assess the sustainability of PlaNet Finance’s programs and whether they have led to lasting positive changes in the communities they serve.
Analyze the outreach of PlaNet Finance in terms of the number of beneficiaries and the geographical areas covered.
Challenges and Criticisms:

Identify challenges and criticisms that PlaNet Finance may face due to its broad scope approach.
Discuss any potential risks associated with diversifying activities in microfinance.


PlaNet Finance’s approach of having a broad scope in microfinance has both strengths and potential drawbacks. It has contributed significantly to financial inclusion and poverty reduction by offering a wide range of financial services and support to underserved communities. However, it also faces challenges related to sustainability and maintaining focus amidst diversifications.

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Impact Assessment: Conduct regular impact assessments to measure the effectiveness and sustainability of various microfinance programs under PlaNet Finance.

Strategic Focus: Consider refining the organization’s strategy to maintain a balance between diversification and maintaining a core focus on areas where it has the most impact.

Collaboration: Explore partnerships and collaborations with other microfinance organizations and NGOs to leverage resources and expertise.

Innovation: Continue to innovate in product design and service delivery to address the evolving needs of underserved communities.

Capacity Building: Strengthen capacity-building efforts to empower local communities to manage and sustain microfinance initiatives independently.

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