Strategic Audit of a Corporation: Habitat for Humanity Harvard Case Solution & Analysis

Strategic Audit of a Corporation: Habitat for Humanity Case Solution

I. Current Situation

In FY2021, Habitat for Humanity had a combined revenue of around $2.3 billion and the total of net assets of around $3.2 billion. Funds are generated through grants and contributions, sales of homes, gifts-in-kind, and are distributed for use in additional fundraising and programming, advocacy, general management, and international advocacy (Habitat for Humanity Annual Report, 2021).

The mission of Habitat for Humanity is “seeking to put God’s love into action to bring people together to build homes, communities, and hope” (Habitat for Humanity, 2022). The organizations vision is to provide everyone in the world with a place to live (Habitat for Humanity, 2022). The five principles of Habitat for Humanity are:

1. To show others Jesus Christ's love

2. Put an emphasis on shelter 

3. Campaign for affordable housing 

4. Spread the message of hope and dignity 

5. Back durable and transforming development

Habitat for Humanity is focused on partnering with individuals and organizations in order to build or improve homes, provide stability to occupants, and teach independence through carpentry skills for people all over the world, regardless of an individual’s personal faith (Habitat for Humanity, 2022).

The clearly stated objectives of Habitat for Humanity include providing shelter, advocating for affordable housing opportunities, and support for the sustainable and the transformative development. (Haeffele, S., 2019).These are clearly stated, and are seen through the homes that Habitat for Humanity builds and repairs. The objectives of demonstrating the love of Jesus Christ and promoting dignity and hope are implied from performance. The organization is based in faith, but does not boast about this and instead showcases these principles through the mission of giving everyone an affordable and a decent place to live.(McGregor-Lowndes, 2020)

The mission of the organization is “seeking to put God’s love into action to bring people together to build homes, communities, and hope” (Habitat for Humanity, 2022). The organizations vision is providing everyone in the world with a place to live (Habitat for Humanity, 2022). The organization is involved in several business endeavors, with the goal of providing with financial education, helping them to build their home, and working towards owners having affordable mortgages (Habitat for Humanity, 2022). The ways in which Habitat for Humanity (2022) achieves this is through the following:

1Building new homes and remodelling existing ones in metropolitan areas\

2. Helping people repair and improve existing homes and communities

3. Providing aid after natural disasters via Habitat Disaster Response

4. Raising awareness for affordable and a decent housing around the world

5. Partnering with other organizations outside of the U.S. to help families via financial means

6. Habitat Restore donation centers and home improvement stores, which sell furniture, accessories, and building materials discounted from retail prices, the proceeds from which are added to available funds for other Habitat for Humanity initiatives

7. Vehicle donation and recycling program, which generates revenue to help Habitat families

From a corporate perspective, Habitat for Humanity seeks to advocate for business partners and fundraising in order to deliver on the mission statement of providing affordable housing and stable communities for people across the globe.(Lee, E. 2019). On the business side, the organization must ensure appropriate funding is available and allocated to its initiatives and programs, including home preservation, veteran housing, women build, and youth programs (Habitat for Humanity, 2022). Functionally, Habitat for Humanity relies on skilled trades, project managers, and volunteers in order to build homes for people. The organization also provides education opportunities for participants of housing programs to ensure they have the training and means necessary to maintain their new home, make repairs as needed, and can create a financial plan for paying an affordable mortgage (Habitat for Humanity, 2022).

Habitat for Humanity has three primary strategies, which are reliant on a sustainable organization at its foundation, including “mobilizing resources” to “fund the mission, grow skills and leadership capabilities, and operate with excellence” (Habitat for Humanity Strategic Plan, 2020). The three strategies are to build sector impact, build community impact, and build societal impact (Habitat for Humanity Strategic Plan, 2020).

First, Habitat for Humanity improves housing conditions through sustainable construction and housing services, focuses on transforming communities through home building, and leverages its capabilities to help people impacted by natural disasters in urban areas (Habitat for Humanity Strategic Plan, 2020). Second, Habitat for Humanity builds partnerships to increase access to affordable housing through the development of policies that improve access “products, services, and financing” to create opportunities for millions of people each year (Habitat for Humanity Strategic Plan, 2020). Third, the organization supports policies that reduce or eliminate barriers to “better, healthier, and more financially stable” homes, communities, and families (Habitat for Humanity Strategic Plan, 2020). These strategies are employed globally to drive awareness and stewardship for the mission of Habitat for Humanity in addressing urgent housing needs.

According to Habitat for Humanity (2022), the organization defines its advocacy as “changing policies and systems to eliminate barriers to adequate, affordable housing in order to create a world where everyone has a decent place to live”.

A transnational strategy displays characteristics both from the multi domestic and global corporate-level strategies (Hitt et al., 2020). Habitat for Humanity utilizes a transnational strategy. Globally, the mission and objectives are consistent and projects are all branded as Habitat for Humanity across all 50 United States and more than 70 countries (Habitat for Humanity, 2022). All strategies are focused on “building strength, stability, and self-reliance in partnership with people and families in need of a decent and affordable home” (Habitat for Humanity, 2022)....

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