Solved Case Analysis: Motor City: A Disruptive Business Model A by Edward D. Hess

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Description

This case is appropriate for teaching in entrepreneurship, strategy, marketing, and finance courses. Motor City, the business brainchild of an absentee owner, is a new business model for selling used cars requiring a senior management familiar with the car industry. Some issues are: How should the management be compensated to align interests with the owner? Stock ownership, phantom stock ownership, profit sharing? The B case (ENT-0131) that follows raises such issues as matching the pace of growth with available cash flow.

Publishing Authority:

Darden Business Publishing – University of Virginia

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