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Escudo Rojo: A Salvation Army Initiative and Its Economic Growth Options
The case analyzes a successful economic initiative (Red Shield), 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. The main focus of the case is on its growth strategy, since Red Shield must increase its financial support of the Salvation Army. In late 2007, the protagonist of the case took over as Director of the Red Shield and was expected to suggest alternatives to boost revenues in order to provide for the organization's sustainability in Argentina. The new Director faces the dilemma over what to do and he contemplates different growth options taking into account the opportunities presented by the context. The final decision remains open and students are invited to evaluate diverse strategic alternatives proposed by the Director of the Red Shield. This case may prove adequate for undergraduate, graduate, and MBA strategy and marketing courses.