Abstract

In January 2010, Central City Opera House Association’s (CCOHA) Board members realized the pressing need to evaluate the organization’s business model. The urgency was brought on by growing deficits in the organization’s finances compounded by the economic crisis in the State of Colorado and the nation. Founded in 1933, CCOHA’s mission was to “Foster interest and education in performing arts.” The purpose was to create "a summer arts festival to restore and utilize the historic Central City Opera House built in 1878." As such, this non-profit organization’s goals included not only maintaining artistic excellence in its programming but also preserving and restoring its 550-seat opera house and 28 additional historic buildings including 25 residences, built in Central City from1860 to 1900. The Opera House owned by the Association nestled in the scenic mountains and was an integral part of the history and culture of Central City and the Blackhawk National Landmark Historic District. However, declining revenues and contributions, and rising operating costs threatened the Association’s very existence. In an effort to reverse these adverse trends, Board Chair Jerome Martin and Treasurer Peter Benz began to search for new business models.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evaluate CCOHA’s strengths and weaknesses using the RBV (Resource-based view) framework popular in the field of Strategic Management and identify CCOHA’s sources of competitive advantages
• Examine CCOHA’s financial statements and assess if the organization needs a new and different business model
• Discuss CCOHA’s business model and suggest if CCOHA should close or continue to operate with a new business model.

Keywords

Non-Profit Management, Strategic Management, Resource-based view framework, Competitive advantages, Business model, VRIO framework