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Strategic Management Final Presentation

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What was great about this course was that we had to select an organization, meet with them, and present to them a final strategic plan. I knew some of the members of this Church who were looking to expand their community involvement. I interviewed all leadership and as a team we presented this plan to them. I did the design work in this Powerpoint Presentation.

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Strategic Management Final Presentation

  1. 1. The New Hope Apostolic Church  Family Center Endeavor  A Strategic Plan 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
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. External Factor Analysis Summary (EFAS) Weight Rating Weighted Score 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 Factor Opportunities “We have the people to do it!” 8
  9. 9. External Factor Analysis Summary (EFAS) 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 “The economy is failing!” 2.69 9
  10. 10. 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
  11. 11. Scanned External Environment Trends Chart 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 communitybased 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 11
  12. 12. External Environment Trend Plot 10 High Impact/ Low Probability High Impact/ High Probability ET3 Low Impact/ Low Probability ET1, ET2, ET6 ET1 - Economy ET2 - Costs ET6 - Crime Low Impact/ High Probability ET5 0 ET4 10 Probability of Trend Continuing Source: Duncan, Ginter, & Swayne (1998) 12 12
  13. 13. External Strategic Analysis • 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
  14. 14. Internal Factor Analysis Summary (IFAS) Weight Rating Weighted Score S1 – Loving & caring .125 4 .50 S2 – Unity .125 4 .50 S3 – Passion .075 5 .375 S4 – Leadership .075 4 .30 Factor Strengths “We are welcoming and have a family oriented culture.” 14
  15. 15. Internal Factor Analysis Summary (IFAS) Weight Rating Weighted Score 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 Factor Weaknesses “We know the goals but not always the path.” 3.175 15
  16. 16. Internal Environment Value Chain PRE-SERVICE Market Research Target Market Pricing Promotion Branding S1 POINT-OF-SERVICE AFTER-SERVICE Service/Product Quality Marketing - Satisfaction - Market Development - Penetration - Enhancement - Differentiation Follow-up Service/product Quality - Marketing Billing Enhancement ORGANIZATION CULTURE Shared Assumptions Shared Values Matrix Function Division STRATEGIC RESOURCES W1 Financial Human Resources S3 W3 S4 Behavioral Norms ORGANIZATION STRUCTURE W2 S2 Physical Plant W4 Technology Marketing Source: Adapted from Michael E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press, 1985, p.37. 16
  17. 17. 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
  18. 18. Resources, Competencies, & Capabilities • 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
  19. 19. Resources, Competencies, & Capabilities • Information Systems • Assets & Operations  Limited technological resources  No tangible assets  Church currently has few computers for parishioners to use; “very outdated”  Church members regularly volunteer when repairs are necessary  “Ideally the community/ family center will have a full computer lab.”  Would like to purchase a new building for family/ community center  Current location is rented 19
  20. 20. Internal Strategic Analysis • 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
  21. 21. Strategic Factor Analysis Summary (SFAS/SWOT) Strategic Factors 1 Weight 2 Rating 3 Weighted Score 4 Duration 5 S I Comments 6 L S8 & S9: Giving nature .20 3 .60 S5 & O5: Community need .25 3 .75 X Well-established need for innercity 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 Note: X Cannot under estimate the benefits of a faith based organization. 2.45 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. 21 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.
  22. 22. Formulation of Strategy • Hierarchy of Strategic Alternatives • SPACE MATRIX/Adaptive Strategy Formulation • SPACE MATRIX Chart • Family Center’s ‘Competitive’ Posture 22
  23. 23. Hierarchy of Strategic Decision and Alternatives Directional Strategies Adaptive Strategies Market Entry Strategies Positioning Strategies Implementation Strategies • Mission • Expansion • Purchase • Marketwide • Functional - Diversification • Values - Cost Leadership - Marketing - Licensing - Differentiation - IS - Market Development • Vision - Acquisition - Vertical Integration - Venture Capital - Product Development - Penetration • Contraction - Divestiture - Liquidation • Cooperation - Merger - Alliance - Joint Venture • Development - Harvesting - Internal Development - Retrenchment - Internal Venture • Stabilization - Enhancement - Status Quo • Market Segment - Focus/ Cost Leadership - Focus/ Differentiation - Human Resources - Finance • Organization-wide - Culture - Structure - Leadership - Operations - Ethics/ Social Responsibility • Service Delivery - Pre-Service - Point-of-Service - After-Service Source: Adapted from Ginter, Swayne & Duncan (2004) 23
  24. 24. SPACE Matrix Evaluation Factors (Adaptive Strategy Direction) 1. Factors Determining Industry Strength: • • • • • • Growth potential Profit potential Financial stability Technological know-how Capital intensity Overall direction of the market (Task) Low Low Low Low High Low (customers, competitors, stakeholders, satisfaction, etc.) 2. 0 1 2 3 4 5 6 High 0 1 2 3 4 5 6 High 0 1 2 3 4 5 6 High 0 1 2 3 4 5 6 High 0 1 2 3 4 5 6 Low 0 1 2 3 4 5 6 High Average Score = 2.83 Factors Determining Environmental Stability: • • • • • High 0 1 2 3 4 5 6 Few 0 1 2 3 4 5 6 High 0 1 2 3 4 5 6 Many 0 1 2 3 4 5 6 Imbalanced 0 1 2 3 4 5 6 (i.e. sociocultural, economic, political/legal, technological) Average Score – Competitive pressures Barriers to entry into market Rate of inflation Technological changes Overall societal forces Low Many Low Few Balanced 6 = -2.8
  25. 25. SPACE Matrix Evaluation Factors (Adaptive Strategy Direction) 3. Factors Determining Competitive Advantage: • • • • • • Market share Product quality Costumer loyalty Competitors strengths Competitors weaknesses Technological know-how Small 0 1 2 3 4 5 6 Inferior 0 1 2 3 4 5 6 Low 0 1 2 3 4 5 6 0 1 2 3 4 5 6 Few 0 1 2 3 4 5 6 Few Low 0 1 2 3 4 5 6 Large Superior High Many Many High Average Score – 6 = -2.83 4. Factors Determining Financial Strength: • • • • • • Cash availability Past net margin (profits) Future Capital requirements Risk involved in market segment Ease of exit from market Overall financial resources (i.e. Endowment, fund balance, etc.) 0 1 2 3 4 5 6 Low High Low High 0 1 2 3 4 5 6 0 1 2 3 4 5 6 Low High 0 1 2 3 4 5 6 Low High Difficult 0 1 2 3 4 5 6 Easy 0 1 2 3 4 5 6 High Low Average Score = 1.5
  26. 26. SPACE Matrix (Strategic Position and Evaluation) Financial Strength 5 Conservative Aggressive 4 3 2 (-2.83) Competitive Advantage -6 -5 -4 -3 (1.5) 1 -2 -1 -1 (-2.8) 1 2 3 4 (2.83) 5 6 Industry Strength -2 -3 Defensive -4 Competitive -5 Source: Ginter, Swayne & Duncan (1998) Environmental Stability 26
  27. 27. Sample Logo Family Center 27
  28. 28. Proposed Mission Statement “To heal and unite each community, one family at a time, through services that enrich the whole person; body, spirit, and mind.” 28
  29. 29. Proposed Vision Statement “It is the vision of the New Hope Family Center to become the guiding beacon of Christian Family services throughout Central Massachusetts.” 29
  30. 30. Goal #1 Finalize the Mission and Vision for the New Hope Family Center Objective Implementation Strategy 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 Person responsible Review date Pastor Kurt Geddis June 2009 30
  31. 31. Goal #2 Decide Whether or Not to Pursue 501(c)(3) Status for New Center Objective Implementation Strategy 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 Person responsible Review date Pastor Kurt Geddis June 2009 31
  32. 32. Goal #3 Develop Service Delivery Plan Objective Implementation Strategy Form a committee to research and Conduct develop service Neighborhood surveys, delivery plan to check Government guide in the process Website for funding, of developing and available programs and recourses. services. Person responsible Review date Suggested: Ron Dyer Brenda Geddis Mrs. Theresa Geddis July 2009 32
  33. 33. Goal #4 Utilize Current Resources to Help Establish New Programs Objective Implementation Strategy Create a process for Survey current allowing members to members and create a use facility for process to approve programs them to start programs Person responsible Review date Board of Directors August 2009 33
  34. 34. Goal #5 Form an Operations Committee to Proactively Address Sub-systems Issues Objective Implementation Strategy Elect members from Solicit members that within the Church have skill sets that are based on their skills matched up to a subto manage growth system and have them committee for each meet as an sub-system; Operational Growth Financial, Human Committee (OGC). Resources, Physical These members might Plant, Technology one day be on the BOD and Marketing Person responsible Review date Pastor Kurt Geddis September 2009 34
  35. 35. Goal #6 Cultivate Partnerships and Collaborations Objective Implementation Strategy 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 Person responsible Review date Brenda Geddis August 2009 35
  36. 36. Goal #7 Establish Board of Directors and Advisory Panel Objective Implementation Strategy 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 Person responsible Review date 36
  37. 37. 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
  38. 38. 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
  39. 39. Thank You! Questions ? 39

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