Strategic Management Final Presentation
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Transcript of Strategic Management Final Presentation
The New Hope Apostolic Church
Family Center Endeavor
Prepared for Pastor Kurt Geddis and the New Hope Church by:
Theodore Van Patten, James Gagnon, Pharm. D. and Jake Nichols, Pharm. D., MBA
May 6, 2009 1
A Strategic Plan
Acknowledgements
• We would like to thank the enthusiastic, generous, and kind members
of the New Hope Church for welcoming us into their family and
providing us with an honest and passionate description of not only
their current organization, but also of their future vision. Their
dedication to supporting the people within their community, as well as
those individuals in need of support, is rivaled by few.
• We would also like to thank Dr. David Jordan for his flexibility,
accessibility, support, and enthusiasm for our personal professional
growth.
2
Presentation Outline
• Overview of the organization’s history & current status
• Corporate governance structure
• Strengths, Weaknesses, Opportunities and Threats (SWOT)
External Environment Factors Analysis Summary (EFAS)
Internal Environment Factors Analysis Summary (IFAS)
Strategic Factors Analysis Summary (SFAS)
• Summary of resources, competencies, & capabilities
• Strategy formulation
• Review & discussion of strategic recommendations
• Listing of goals and objectives relative to strategic evaluation &
control 3
The New Hope Apostolic Church
• First location established in Bloomfield, CT
Initially founded by Pastor Kurt Geddis and his brother
Michael
Current membership includes over 250 parishioners
• Worcester church established in September 2002
Current membership of 75 parishioners
Average Sunday worship attendance of 60
4
The New Hope Apostolic Church
• Members believe that they are obligated by God to
not only save souls, but to also meet the needs of
the communities that they serve
• The idea to establish a community/ family center
evolved as a natural extension of these core beliefs
and principles Develop programs and services that address the “whole person” –
body (physical & health needs), spirit (spiritual needs), and mind
(educational & psychological needs)
5
Organizational Structure &
Leadership
• Currently no full-time employees on staff
• Church relies heavily on volunteers for support when
needed (ex. clinicians, electricians, etc.)
Members contribute a great deal to overall operations
• Resources are also available through the parent church
in Connecticut
• All revenue is generated through collections conducted
during weekly services
6
Organizational Structure &
Leadership
• The Board is comprised of
three highly respected
members of the Church:
Pastor Kurt Geddes – final
decision maker on all matters
Deacon Jon Dyer – founding
member of Worcester location
Elder Hooker – provides
continuous spiritual guidance
• The Geddes family is very
active as a whole in the
Church and beloved by the
entire parish
• Both leadership and Church
members are passionate and
dedicated to making their
family/community center a
reality
7
External Factor Analysis
Summary (EFAS)
Factor Weight Rating Weighted
Score
Opportunities
O1 – Spiritual focus .05 4 .20
O2 – Location .10 4 .40
O3 – Strength of core group .08 3 .24
O4 – Strong core foundation .05 3 .15
O5 – Established need .10 3 .30
O6 – Opportunity to build from
scratch .02 1 .02
8 “We have the people to do it!”
Factor Weight Rating Weighted
Score
Threats
T1 – Global Economy .15 2 .30
T2 – Finances .20 3 .60
T3 – Very focused beliefs .08 2 .16
T4 – Fear of change .05 2 .10
T5 – Inadequate evaluation
of community .02 1 .02
T6 – Lack of member incentives .10 2 .20
TOTAL SCORES 1.00 2.69
9
External Factor Analysis
Summary (EFAS)
“The economy is failing!”
The Competition
• The Salvation Army
640 Main Street, 1 mile
• The Y (YMCA & YWCA)
766 Main Street, 0.8 miles
• Worcester Youth Center
326 Chandler Street, 0.5
miles
• Henry Lee Willis
Community Center
65 King Street, 0.4 miles
• Boys and Girls Club of
Worcester
65 Tainter Street, 0.9 miles
10
Scanned External Environment
Trends Chart
11
Code
Trend
Status
Area(s)
Forecasted Trend
Significance
ET1 Diminishing donations, grants, and gifts due to
flagging economy.
Current &
Future
Economic High
ET2 Increasing operating costs for most
organizations.
Current &
Likely
Economic High
ET3 Consistent & increasing need for community-
based support programs.
Current &
Future
Socio-Cultural Moderate – High
ET4 Strong relationships between faith-based
organizations and the community.
Current &
Future
Socio-Cultural Moderate
ET5 Growing collaborations between cultural
organizations as a means of sharing
administrative functions/staff.
Future Economic
Political
Moderate – High
ET6 Relatively moderate rates of crime in local area. Current Socio-Cultural/
Economic
Moderate
External Environment Trend
Plot
12 12
High Impact/ High Impact/
Low Probability High Probability
Low Impact/ Low Impact/
Low Probability High Probability
Probability of Trend Continuing
10 0
10
Source: Duncan, Ginter, & Swayne (1998)
ET3 ET1, ET2, ET6
ET4 ET5
ET1 - Economy
ET2 - Costs
ET6 - Crime
• Below average score for external analysis (2.69)
suggests inadequate acknowledgement and response
to environmental factors that may ultimately affect
success of new endeavor
Embark on a comprehensive evaluation of the local community to
identify key issues that must be addressed prior to moving forward
Expand upon competitor analysis to further identify differentiators
and how they may be exploited for New Hope’s benefit
13
External Strategic Analysis
Internal Factor Analysis
Summary (IFAS)
Factor Weight Rating Weighted
Score
Strengths
S1 – Loving & caring .125 4 .50
S2 – Unity .125 4 .50
S3 – Passion .075 5 .375
S4 – Leadership .075 4 .30
14 “We are welcoming and have a family oriented culture.”
Factor Weight Rating Weighted
Score
Weaknesses
W1 – Finances .25 2 .50
W2 – Organization & strategy .20 3 .60
W3 – Time constraints .10 3 .30
W4 – Name not well known in
the community .05 2 .10
TOTAL SCORES 1.00 3.175
15
Internal Factor Analysis
Summary (IFAS)
“We know the goals but not always the path.”
Internal Environment
Value Chain
16
ORGANIZATION CULTURE
Shared Assumptions Shared Values Behavioral Norms
ORGANIZATION STRUCTURE
Matrix Function Division
STRATEGIC RESOURCES
Financial Human Resources Physical Plant Technology Marketing
PRE-SERVICE Market Research
Target Market
Pricing
Promotion
Branding
POINT-OF-SERVICE Service/Product Quality
Marketing
- Satisfaction
- Market Development
- Penetration
- Enhancement
- Differentiation
AFTER-SERVICE Follow-up -
Service/product Quality
- Marketing Billing
Enhancement
Source: Adapted from Michael E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance.
New York: Free Press, 1985, p.37.
W1
W2 W3
W4
S1
S4
S2 S3
Resources, Competencies, &
Capabilities
• Marketing
Currently no formal or consistent marketing campaigns for the
Church
Regularly post video clips from weekly services on YouTube
• Finances
All income is generated through weekly collections
(~ $4,000 monthly)
Current revenue covers operating costs for the Church
“Need to have the Pastor full time.”
17
• Human Resources
Lack of formal
organizational structure
and reliance on
volunteers does not lend
itself to establishment of
a formal HR department
Would have to consider
this issue independently
for new center
• Leadership
“Strong”, “dedicated”, and
very well respected overall
Board comprised of three
members who make all
decisions on behalf of Church
members
Potential issues related to
consistent and adequate
communication from the
Board to parishioners 18
Resources, Competencies, &
Capabilities
Resources, Competencies, &
Capabilities
• Information Systems
Limited technological
resources
Church currently has few
computers for parishioners
to use; “very outdated”
“Ideally the community/
family center will have a
full computer lab.”
• Assets & Operations
No tangible assets
Current location is rented
Church members
regularly volunteer when
repairs are necessary
Would like to purchase a
new building for family/
community center
19
• Above average score for internal analysis (3.175) suggests
a relatively solid understanding of internal resources as
well as key factors that may contribute to overall success
Faith-based, family-oriented, selfless members and
leadership with strong ideals and a focus on helping those in
need
Ability to utilize volunteers when essential needs arise
Support and dedication at all levels of the organization for
the establishment of the New Hope Church
community/family center 20
Internal Strategic Analysis
Strategic Factor Analysis
Summary (SFAS/SWOT)
21
Strategic Factors
1
Weight
2
Rating
3
Weighted
Score 4
Duration
5
Comments
6
S I L
S8 & S9: Giving nature .20 3 .60 X Cannot under estimate the
benefits of a faith based
organization.
S5 & O5: Community need .25 3 .75 X Well-established need for inner-
city programs
W1 & T1: Financial
Resources
.4 2 .80 X X Relative lack of access; poor and
unpredictable economy
T5: Incomplete evaluation of
community needs
.15 2 .30 X Need to perform a more
in-depth evaluation of
community to identify key factors
Total Scores: 1.00 2.45
Note: 1. Listing of key strategic factors drawn from SWOT Analysis.
2. Weight each factor from 1.0 (most important) to 0.0 (not important) based on the factors probable impact on NHFC’s strategic position.
3. Rate each factor from 5 (outstanding) to 1 (poor) based on NHFC’s current response to the factor.
4. Multiply each factor’s weight times its rating to obtain weighted score.
The total weighted scores for NHFC in Column 4 indicates how well the organization is responding to the factors in the internal/ external environment. The total weighted
score for an average firm in an industry is always 3.0.
Formulation of Strategy
• Hierarchy of Strategic Alternatives
• SPACE MATRIX/Adaptive Strategy
Formulation
• SPACE MATRIX Chart
• Family Center’s ‘Competitive’ Posture
22
Directional
Strategies
Adaptive
Strategies
Market Entry
Strategies
Positioning
Strategies
Implementation
Strategies
• Mission
• Vision
• Values
• Expansion
• Contraction
• Stabilization
• Purchase
• Cooperation
• Development
• Marketwide
• Market Segment
• Functional
- Diversification
- Vertical Integration
- Market Development
- Product Development
- Penetration
- Acquisition
- Licensing
- Venture Capital
- Cost Leadership
- Differentiation
- Marketing
- IS
- Human Resources
- Finance
- Divestiture
- Liquidation
- Harvesting
- Retrenchment
- Enhancement
- Status Quo
- Merger
- Alliance
- Joint Venture
- Internal Development
- Internal Venture
- Focus/
Cost Leadership
- Focus/
Differentiation
- Culture
- Structure
- Leadership
- Operations
- Ethics/
Social Responsibility
Source: Adapted from Ginter, Swayne & Duncan (2004)
• Organization-wide
• Service Delivery
- Pre-Service
- Point-of-Service
- After-Service
Hierarchy of Strategic Decision
and Alternatives
23
SPACE Matrix Evaluation
Factors (Adaptive Strategy Direction)
1. Factors Determining Industry Strength:
• Growth potential Low High
• Profit potential Low High
• Financial stability Low High
• Technological know-how Low High
• Capital intensity High Low
• Overall direction of the market (Task) Low High (customers, competitors, stakeholders, satisfaction, etc.)
2. Factors Determining Environmental Stability:
• Competitive pressures High Low
• Barriers to entry into market Few Many
• Rate of inflation High Low
• Technological changes Many Few
• Overall societal forces Imbalanced Balanced (i.e. sociocultural, economic, political/legal, technological)
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
Average Score = 2.83
Average Score – 6 = -2.8
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
3. Factors Determining Competitive Advantage:
• Market share Small Large
• Product quality Inferior Superior
• Costumer loyalty Low High
• Competitors strengths Few Many
• Competitors weaknesses Few Many
• Technological know-how Low High
4. Factors Determining Financial Strength:
• Cash availability Low High
• Past net margin (profits) Low High
• Future Capital requirements High Low
• Risk involved in market segment High Low
• Ease of exit from market Difficult Easy
• Overall financial resources Low High (i.e. Endowment, fund balance, etc.)
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
Average Score = 1.5
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
Average Score – 6 = -2.83
0 1 2 3 4 5 6
0 1 2 3 4 5 6
SPACE Matrix Evaluation
Factors (Adaptive Strategy Direction)
SPACE Matrix (Strategic Position and Evaluation)
26
Financial
Strength
Competitive
Advantage
Environmental
Stability
Industry
Strength
Conservative Aggressive
Competitive
5
4
3
2
1
1 2 3 4 5 6
Source: Ginter, Swayne & Duncan
(1998)
(-2.83)
(-2.8)
(1.5)
-6 -5 -4 -3 -2 -1
-1
-2
-3
-4
-5
Defensive
(2.83)
Sample Logo
27
Family Center
Proposed Mission Statement
28
“To heal and unite each
community, one family at a
time, through services that
enrich the whole person; body,
spirit, and mind.”
Proposed Vision Statement
29
“It is the vision of the New
Hope Family Center to become
the guiding beacon of
Christian Family services
throughout Central
Massachusetts.”
Finalize the Mission and Vision for
the New Hope Family Center
30
Goal #1
Objective Implementation
Strategy Person responsible Review date
Convene
stakeholders to
review and finalize
and approve the
Family Center’s
mission and vision,
and articulate core
values of the
organization
The Mission and
Visions statement are
the guiding force of the
any organization and
is critical in identifying
the direction of the
organization
Pastor Kurt Geddis June 2009
Decide Whether or Not to Pursue
501(c)(3) Status for New Center
31
Goal #2
Objective Implementation
Strategy Person responsible Review date
Convene Church
Board and get
advice from
Bloomfield Church
to discuss
advantages of
making the Family
Center a separate
501 (c) (3)
organization.
Following the
guidelines to establish
a 501 (c) (3) will enable
funding opportunities
for the Center
Pastor Kurt Geddis June 2009
Develop Service Delivery Plan
32
Goal #3
Objective Implementation
Strategy Person responsible Review date
Form a committee to
research and
develop service
delivery plan to
guide in the process
of developing
programs and
services.
Conduct
Neighborhood surveys,
check Government
Website for funding,
and available
recourses.
Suggested:
Ron Dyer
Brenda Geddis
Mrs. Theresa Geddis
July 2009
Utilize Current Resources to
Help Establish New Programs
33
Goal #4
Objective Implementation
Strategy Person responsible Review date
Create a process for
allowing members to
use facility for
programs
Survey current
members and create a
process to approve
them to start programs
Board of Directors August 2009
Form an Operations Committee to
Proactively Address Sub-systems Issues
34
Goal #5
Objective Implementation
Strategy Person responsible Review date
Elect members from
within the Church
based on their skills
to manage growth
committee for each
sub-system;
Financial, Human
Resources, Physical
Plant, Technology
and Marketing
Solicit members that
have skill sets that are
matched up to a sub-
system and have them
meet as an
Operational Growth
Committee (OGC).
These members might
one day be on the BOD
Pastor Kurt Geddis September
2009
Cultivate Partnerships and
Collaborations
35
Goal #6
Objective Implementation
Strategy Person responsible Review date
Utilize the facility by
inviting external
organizations to
conduct seminars
that address
neighborhood needs
Reach out to
neighborhood groups,
organizations, and
health centers and
offer the facility to
conduct seminars
Brenda Geddis August 2009
Establish Board of Directors
and Advisory Panel
36
Goal #7
Objective Implementation
Strategy Person responsible Review date
Form a separate
Board of Directors
for Family Center
Form a BOD only
after all other goals are
met. Members on the
OGC committee will
be good candidates
Pastor Kurt Geddis September
2010
Form an Advisory
Board for Family
Center
The AD should not be
assembled until after
the BOD has been
together for at least 6
months and hopefully
through the other goal
of collaborations.
Pastor Kurt Geddis January 2011
Executive Summary
• The New Hope Church strongly believes that the
establishment of a family center will provide them with
additional resources that will further their ability to serve
the local community
• The Church’s dedication to serving the community in
which they live is quite evident and they have a great
deal to offer the city of Worcester
• The attitudes, devotion, resiliency, and selflessness
nature of the Church’s members will continue to be
invaluable as they grow and seek new ventures 37
Executive Summary
• Regardless of whether or not NHC decides to move
forward with the development of the family center,
additional sources of revenue need to be identified,
evaluated, and secured
• Relationship building with key community leaders and
stakeholders should commence immediately
• Before moving forward with plans for the family center,
it is essential to have a strong, yet fluid strategic plan to
ensure perpetual evaluation of progress and to
proactively identify and address any potential barriers 38
Thank You!
Questions
?
39