VFC's primary purpose is to help low-income families own vehicles so they are able to reach financial autonomy. Many of the vehicles VFC awarded to low-income families were donated. Almost all of the gains of FW were transferred to support VFC's mission. Marty Schwartz, President of VFC, believed that letting FW to retain more of its profits would let it grow its used car company which may bring even larger monetary benefits to VFC in the long-run.
In the short-term, however, this would decline in the amount of vehicles given to low-income families-a sensitive issue for several members of his board. At the upcoming board meeting, consequently, Schwartz's main challenge was to present an assessment of the potential impact on the vehicle prize program of enabling FW to retain more of its profits, and to recommend what percentage of its gains FW should be allowed to retain. He was also prepared to examine other options for growing the earnings of VFC, and to consider the wisdom of spinning-off FW as a separate for-profit thing.
Transforming People's Lives The Vehicles for Change Story Case Study Solution
PUBLICATION DATE: January 01, 2014 PRODUCT #: NA0278-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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