CASE # 2
1) Briefly state what the case is about? The case is about a print shop located in Toronto known as Eva’s Phoenix print shop. It is a socially and environmentally responsible commercial printer that helps homeless and at risk youth achieve self-sufficiency. The enterprise success is contributed to its careful integration between commercial and social elements. Regardless of their useful synergy the separation of the departments would be advantageous as they can be more productive and efficient. Recently there have been complaints from clients in terms of satisfaction. The untrained youth were allowed to train and work on the client jobs simultaneously. This led to complaints and a strategic review by an MBA student suggested separation of social and commercial departments. This lead to a 250% increase in sales, which can be contributed to their efficiency. Given the massive growth the central question becomes how to financially support the organization? As the organization grows what legal structure should be implemented? And how can firm generate enough profits from their commercial operations to pay for their social operations? 2) Identify the key issues in the case? Some of the key issues I found with the case are the following: - Separation of social and commercial elements. In the case it is mentioned that the separation of social and commercial elements will be beneficial for both elements. The departments will be more efficient as this would preserve the benefits of immediate access for Eva’s phoenix youth and create greater commercial efficiency. However this breaks down their useful synergy. Once the departments are separated they will lack integration, which is a key success factor to an organic organization like Eva’s phoenix. - Risks of hiring street youth: Hiring street kids, recovering alcoholics and suffered youth increases their costs. First in terms