個案資料

As Chief Executive Officer Maya Kambeitz sat in her Calgary office preparing for the upcoming mid-2018 board meeting, she considered a potential growth strategy for Norfolk Housing Association (Norfolk Housing) that would align with its core values: to offer inclusive and affordable housing, and to maintain financial stability in 2019 and beyond. Norfolk Housing was a social enterprise registered as a non-profit corporation in Calgary, Alberta, offering rentals of affordable and priced-to-market apartments in shared buildings. Kambeitz wanted the board to consider whether or not to acquire another building, ideally near the current locations, to expand their operations. The increased number of units would improve operational efficiency through economies of scale and serve more people, aligning with the social enterprise’s dedication to both long-term financial sustainability and social purpose. However, expansion would require financing and support to acquire and manage the new building, which could put Norfolk Housing’s financial sustainability at risk.<br><br>The challenge was to achieve Norfolk Housing’s purpose to expand and provide affordable housing to more Calgarians while also maintaining long-term financial stability, which ensured that current tenants would not lose their homes if the association failed. Kambeitz had learned about Riley Park Place, a property with 24 units that was for sale. The location was close to their current properties and its acquisition had potential. However, there were some questions about whether the opportunity aligned with Norfolk Housing’s purpose and financial sustainability.

This case can be used in undergraduate- and graduate-level courses focusing on social enterprise strategies or real estate. In a social enterprise course, class emphasis could be on conducting financial analysis and achieving the balance between purpose and profit (financial sustainability) in the context of strategic growth opportunities. In a real estate course, the discussion could include more emphasis on evaluating the growth option using financial analysis and developing a negotiating strategy for purchasing a new property. This case allows students to examine how social enterprises differ from both for-profit and typical non-profit charitable organizations, with a focus on addressing social problems through a business model that balanced purpose and financial sustainability. The purpose addressed a social problem with a solution, but the cost of delivering the solution could exceed revenues and challenge financial sustainability. In a non-profit corporation, such as a charity, the goal would be to raise philanthropic gifts or apply for grants to cover the costs, which could enable the pursuit of the purpose. However, in practice, charities could find it increasingly difficult to raise gifts and grants over time. In a for-profit corporation, depending on the priorities of the owners, the need for profits and growing value limited the company’s ability to address social problems. The case of Norfolk Housing provides an example of a social enterprise that allows students to explore the tensions between solving a social problem (the purpose) and achieving long-term survival without donations or grants (financial sustainability). The case also describes a growth opportunity through the possible acquisition of a property, raising questions of whether the acquisition would allow the social enterprise to continue delivering on purpose and financial sustainability. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Recognize different approaches to solving a complex societal problem and the role of social enterprises.</li><li>Conduct financial analysis to support decision-making about the purpose and sustainability of social enterprises.</li><li>Examine the issues and concerns of different stakeholders in and around social enterprises.</li><li>Evaluate how decision makers align purpose and financial sustainability in their social enterprise growth strategies.</li></ul>

• social enterprise
• affordable housing
• growth through acquisition
• female CEO