Based on THE ETHICAL/ENVIRONMENT PART OF CARVANA COMPANY which emerging opportunity or threat do you believe is the most important for the firm we discussed to act upon? Why? Why is this idea or issue deserving of the firm’s resources (i.e. explain how it links to the firm and what impact it could have)? How should this firm respond? (i.e. suggestions for action)

  • Format your response as a formal note to the VP of Strategic Planning, Dr. Julie Sharek (i.e. include date, greeting, body of text, closing, signature)
  • Use the HYPERLINK function to embed at least one link to further information
  • Include a chart or graph  to support  your  position. If the chart or graph is not created by you, be sure to include a hyperlink to its source. 



  • Carvana has established itself as a well-known and popular online car buying market. There are a substantial number of benefits that Carvana has to offer for individuals looking to purchase or sell their vehicle. After doing some extensive research, I found a unique and intriguing Environmental opportunity that Carvana has established, where they are generating the trend of upcycling cars (Links to an external site.). The purpose behind this system is for Carvana to purchase other individuals’ used cars, who are either looking for something different or ready to move on from it and resell them to someone that can find a meaningful use for it. This process becomes more environmentally friendly because it helps reduce the natural materials used to manufacture brand new cars, along with reconditioning parts on those used cars being purchased. Carvana looks to rely more on a greener approach versus on when the new next model is coming out. According to statistical analysis, Carvana has the capacity potential at its inspections center to recondition up to 617,000 vehicles. Therefore, this evidently shows they are able to restore and fix those cars to get them back on the road, instead of purchasing brand new cars from the manufacturers and risk more carbon emissions and pollution being released into the air. Furthermore, Carvana is looking into purchasing more electric vehicles (EVs) to help enlighten and educate more people on how beneficial these emissions can be to the environment.            
  •  Caravana is a used car dealer that is relatively new. I vividly remember when they built one by my house back home and how intriguing it was. Though to day I want to talk about a threat that i see this company is facing. The ethical threat that this company is facing are all of the cases that are mounting against them and their products. It appears that the company is selling cars while keeping secret some of the problems that the vehicles may have.  For example one customer bought a car car and after further inspections, the odometer was around 40,000 miles lower than it actually was. It has been stated that, ” Carvana has been fined multiple times and even had its licenses revoked in multiple states for various registration violations and inaccurate reporting on inventory history”. 
  •  Carvana has some ethical threats that may present themselves in the companies future. The companies management team consisting of Ernest Garcia II and Ernest Garcia III, along with Ray Fidel, have had a history of “shady business ehtics”. (Links to an external site.) Garcia II and Ray Fidel were involved in embezzling $1 million in the Lincoln L&S scandal and were sentenced to 3 years of probation. They former company DriveTime was also sued by KMX for giving them kickbacks to push their website. While his son runs the company, Garcia II holds the majority of voting power and shares, which may lead to some ethical concerns given his ex-con history and shady business dealings.  
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