Case Solution for Transforming People’s Lives: The Vehicles for Change Story

Complete Case details are given below :
Case Name :      Transforming People’s Lives: The Vehicles for Change Story
Authors :           Tigineh Mersha, Christine Nielsen, Ven Sriram, John C. Weiss
Source :             North American Case Research Association (NACRA)
Case ID :            NA0278
Discipline :        Social Enterprise
Case Length :    14 pages
Solution sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
VFC’s primary purpose is to assist low-income families own vehicles so that they can achieve financial independence. Most of the vehicles VFC awarded to low-income families were donated. To supplement its budget, VFC also established a used car sales business called Freedom Wheels (FW) which soon became a profitable enterprise. Nearly all of FW’s profits were transferred to support VFC’s mission. Marty Schwartz, President of VFC, believed that allowing FW to retain more of its profits would allow it to grow its used car business which would bring even larger financial benefits to VFC in the long-run. In the short-term, however, this would reduce the number of vehicles awarded to low-income families-a sensitive issue for many members of his board. At the upcoming board meeting, therefore, Schwartz’s primary challenge was to present an assessment of the potential impact on the vehicle award program of allowing FW to retain more of its profits, and to recommend what percentage of its profits FW should be allowed to retain. He was also prepared to examine other options for growing VFC’s revenue, and to consider the wisdom of spinning-off FW as a separate for-profit entity.

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