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Second of a two case series involving Caledonia University. This case focuses on the university's competitive situation, financial management, relationship to its environment and governance. It may be used on its own or as a follow-up to a discussion of Caledonia University (A). These two cases are useful to familiarize students with the problems of universities that are church related or influenced by religious affiliation and values, the importance of relating organizational culture to the environment and the importance of external assessment for universities. Further, these cases raise the inherent conflict between efficiency and effectiveness in non-profit organizations. A background note is available to accompany the case.