Escudo Rojo:

This case analyzes a successful economic initiative (Escudo Rojo) whose profits help support a legendary religious institution (The Salvation Army) while creating social value for low-income sectors through the sale of used goods. Primarily, the case focuses on this venture’s growth strategy, as Escudo Rojo must increase its financial support for the Salvation Army. In late 2007, the case protagonist took over as Escudo Rojo’s Head and was expected to suggest alternatives to boost revenues in order to provide for the organization’s sustainability in Argentina. As he ponders what to do, the new Head envisions a number of growth options in light of the opportunities presented by the organization’s setting. The case does not report on his final choice, prompting students to assess several strategic paths for Escudo Rojo.

This case may be used in undergraduate and graduate strategy and marketing courses.