Central United Methodist Church - 2004
Forest David: Francis Marion University
Bob Barrett: Francis Marion University
A.
Case Abstract
Central United Methodist Church is a comprehensive business policy or strategic
management case designed for use at both the undergraduate and graduate levels.
With a setting in year 2004, this case provides the church's mission statement and
financial statements as well as narrative regarding the church's strategies and
direction. Students typically are asked to prepare a three-year strategic plan for
the church. The church has a new pastor, and timing is right for strategic changes.
The church receives offerings of about $1.5 million per year and needs to decide
how best to spend this money in winning souls to Jesus Christ and improving
society in the local area.
Located in Florence, South Carolina (843-662-3218; www.centralmethodist.net),
Central United Methodist Church is a growing and vibrant church with plans to
expand services dramatically. The church has a Long Range Planning Committee
that seeks input and direction. Students can serve as outside consultants doing
research and then making a presentation to this committee.
With $1.6 million left from the Phase I building project, a slight shortfall in
pledges for the operating budget, and a new $1 million to $2.5 million building
project being started, how should Central United Methodist Church approach this
fund raising dilemma? At a more basic level, how should the church begin to
approach the development of a system to listen to and accommodate disgruntled
parishioners? This may lead you to a discussion on large group dynamics.
B.
Vision Statement (proposed)
Central United Methodist Church exists to serve and glorify God as revealed in
Jesus Christ by making disciples through worship, fellowship, education, and
service to the Church and the community.
C.
Mission Statement (proposed) (corresponding components listed below)
CUMC’s mission is to glorify God through our ministries, services, activities,
modern facilities, and dedicated staff (2,7). We are dedicated to sharing the
beliefs of the Bible and United Methodist with everyone (6), including our
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members and the unsaved people of Florence and the Pee Dee (1,3). We are
committed to continuous growth and the development of our church and espically
our youth (5). We are dedicated to responding to the spiritual, physical, and
emotional needs of the community through our ministries and technological
outreach (8,4).
1.
2.
3.
4.
5.
6.
7.
8.
9.
D.
Customers
Products or services
Markets
Technology
Concern for survival, profitability, growth
Philosophy
Self-concept
Concern for pubic image
Concern for employees
External Audit
Opportunities
1.
2.
3.
4.
5.
Few day care options in the Florence area
Growing Hispanic population in the Florence area
Affordable advertisement mediums in the area
Christian schools in the area are enrolled at full capacity
Membership growth from expansion of Florence.
Threats
1.
2.
3.
4.
5.
6.
Number of independent churches growing throughout Florence.
Difficult to expand facilities any further at current location.
Other churches are more modern in music and worship service styles.
Other churches offer day cares/Christian schools.
Other churches actively recruiting potential new members.
Other churches have services on television and radio.
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Competitive Profile Matrix
Central
UMC
Critical
Success
Factors
Attendance
Membership
Finances
Facilities
Youth Opps.
Staff
Marketing
Total
Highland Park
UMC
Baptist
Temple
Weight
Rating
Weighted
Score
Rating
Weighted
Score
Rating
Weighted
Score
0.20
0.10
0.20
0.20
0.15
0.10
0.05
1.00
3
3
4
4
4
3
3
0.60
0.30
0.80
0.80
0.60
0.30
0.15
3.55
3
2
3
3
3
3
2
0.60
0.20
0.60
0.60
0.45
0.30
0.10
2.85
4
3
4
4
4
3
3
0.80
0.30
0.80
0.80
0.60
0.30
0.15
3.75
EFE Matrix
Key External Factors
Opportunities
Few day care options in the Florence area
Growing Hispanic population in the Florence area
Affordable advertisement mediums in the area
Membership growth from expansion of Florence.
Christian schools in the area are enrolled at full
capacity
Threats
Independent churches being planted throughout
Florence.
Difficult to expand facilities.
Other churches more modern in music and
worship styles.
Other churches offer day cares/Christian schools.
Other churches actively recruiting potential new
members.
Total
E.
Weight
Rating
Weighted Score
0.18
0.15
0.05
0.05
0.08
2
1
1
3
1
0.36
0.15
0.05
0.15
0.08
0.15
2
0.30
0.07
0.10
3
1
0.21
0.10
0.07
0.10
1
1
0.07
0.10
1.00
1.57
Internal Audit
Strengths
1.
2.
3.
4.
5.
6.
7.
8.
Large income from tithing (over $1 million annually).
Modern, spacious facilities including recently built Davis Life Center.
Location in central area of Florence with rich heritage.
Church members who are loyal in attending services and activities.
Low amount of debt (Davis Life Center already paid for).
Space available as new classrooms needed.
Committed to financial support of community outreach programs.
Large, diverse staff for both spiritual and business concerns.
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9. Large amount of youth in church membership.
10. Service broadcast on radio on Sunday mornings.
11. Advertisements on television.
12. Web page.
Weaknesses
1. Not enough sanctuary space for 11:15 AM service.
2. Still using music and worship style consistent with the past, whereas other
churches are moving to more modern music and worship styles.
3. Do not offer any type of multi-cultural ministry.
IFE Matrix
Key Internal Factors
Strengths
Large income from tithing.
Modern, spacious facilities.
Central location with rich heritage.
Church members loyal to services and activities.
Space available for more classrooms as needed.
Qualified staff for spiritual and business matters.
Good image from financial support of community outreach
programs.
Weaknesses
Not enough sanctuary space for 11:15 AM service.
Not as modern in music and worship styles as other
churches.
Do not offer any multi-cultural ministry.
TOTAL
Weight
Rating
Weighted
Score
0.15
0.12
0.10
0.08
0.08
0.06
0.09
4
4
3
4
3
3
3
0.60
0.48
0.30
0.32
0.24
0.18
0.27
0.05
0.12
2
2
0.10
0.24
0.15
1.00
2
0.30
3.03
227
F.
SWOT Matrix
Opportunities
1. Few day care options in the
Florence area
2. Growing Hispanic population in
the Florence area
3. Affordable advertisement
mediums in the area
4. Christian schools in the area are
enrolled at full capacity
5. Membership growth from
expansion of Florence.
Threats
1. Independent churches being
planted throughout Florence.
2. Difficult to expand facilities any
further at current location.
3. Other churches more modern in
music / worship service styles.
4. Other churches offer day
cares/Christian schools.
5. Other churches actively
recruiting potential new
members.
6. Other churches have services on
television and radio.
Strengths
1. Large income from tithing (over
$1 million annually).
2. Modern, spacious facilities
including recently built Davis
Life Center
3. Location in central area of
Florence with rich heritage
4. Church members who are loyal
attending services and activities.
5. Low amount of debt (Davis Life
Center already paid for).
6. Space available as new
classrooms needed.
7. Committed to financial support
of community outreach services.
8. Large, diverse staff for both
spiritual and business concerns.
9. Large amount of youth in church
membership.
10. Service broadcast on radio on
Sunday mornings.
11. Advertisements on television.
12. Web page.
S-O Strategies
1. Expand the day care program
(S1, S2, S4, O1, O4)
Weaknesses
1. Not enough sanctuary space for
11:15 AM service.
2. Still using music and worship
style consistent with the past,
whereas other churches are
moving to more modern music
and worship styles.
3. Do not offer any type of multicultural ministry.
S-T Strategies
1. Purchase land on block (S1, S5,
T2)
2. Open a day care or school. (S1,
S2, S6, T4)
3. Add televised service, continue
radio service to compete with
other churches doing the same
(S1, S10, T6)
W-T Strategies
1. Promote the 9:00 AM service
(W1, T2)
2. Offer a specialized service for
other cultures to keep up with the
more tailored services of
independent churches (W3, T1,
T5)
W-O Strategies
2. Pursue a more diverse group of
members through a multicultural ministry (O2, W3)
228
G.
SPACE Matrix
Y axis
Financial strength
Environmental stability
+5
-2
+1 worst to + 6 best
-1 best to –6 worst
Y axis: 5 + (-2) = 3
X axis
Industry strength
Competitive advantage
3
-2
1 worst to 6 best
-1 best to -6 worst
X axis: 3 + (-2) = 1
Conservative
FS
Aggressive
CA
IS
Defensive
ES
Competitive
229
H.
Grand Strategy Matrix
RAPID MARKET
GROWTH
Quadrant II
Quadrant I
WEAK
COMPETITIVE
POSITION
STRONG
COMPETITIVE
POSITION
CENTRAL UMC
Quadrant III
Quadrant IV
SLOW MARKET
GROWTH
1. Concentric diversification
2. Horizontal diversification
3. Conglomerate diversification
4. Joint venture
230
I.
The Internal-External (IE) Matrix
The IFE Total Weighted Score
High
3.0 to 3.99
The EFE Total
Weighted Score
Strong
3.0 to 4.0
I
Average
2.0 to 2.99
II
Weak
1.0 to 1.99
III
Medium
2.0 to 2.99
IV
V
VI
Low
1.0 to 1.99
VII
VIII
IX
Central United
Methodist Church
Hold and Maintain
231
J.
Matrix Analysis and SWOT Summary
Alternative Strategies
Forward Integration
Backward Integration
Horizontal Integration
Market Penetration
Market Development
Product Development
Concentric Diversification
Conglomerate Diversification
Horizontal Diversification
Joint Venture
Retrenchment
Divestiture
Liquidation
IE
X
X
X
X
X
X
SPACE
X
X
X
X
X
X
X
X
X
GRAND
X
X
X
X
COUNT
2
2
2
2
2
2
2
2
2
1
0
0
0
232
K.
QSPM
Strategic Alternatives
Key Internal Factors
Strengths
Large Income From Tithing
Modern, Spacious Facilities
Located In Prestigious Area Of Florence With A Rich
Heritage
Church Members Loyal To Church Related Activities
Space Available For New Classrooms As Needed
Well Qualified Staff For Financial And Spiritual
Matters
Financially Supportive Of Community Outreach
Programs
Weaknesses
Not Enough Sanctuary Space For 11:15 AM Service
Music And Worship Style Not As Modern As They
Could Be
Do Not Offer Any Type Of Multi-Cultural Ministry
SUBTOTAL
Key External Factors
Opportunities
Few day care options in the Florence area
Growing Hispanic population in the Florence area
Affordable advertisement mediums in the area
Membership growth from expansion of Florence.
Christian schools in the area are enrolled at full capacity
Threats
Independent Churches Being Planted Throughout
Florence
Difficult To Expand At Current Location
Other Churches Offer More Modern Music And Worship
Styles
Other Schools Offer Full-Day Day Cares And Schools
Other Churches Actively Recruiting Potential Members
SUBTOTAL
SUM TOTAL ATTRACTIVENESS SCORE
Weight
0.15
0.12
0.10
Open A Full-Day
Day Care
AS
TAS
3
0.45
4
0.48
4
0.40
Begin A Ministry
For Hispanics
AS
TAS
4
0.60
3
0.36
2
0.20
0.08
0.08
0.06
--4
---
--0.32
---
--3
---
--0.24
---
0.09
---
---
---
---
0.05
0.12
2
---
0.10
---
3
---
0.15
---
0.15
1.00
3
0.30
2.05
4
0.60
2.15
Weight
0.18
0.15
0.05
0.05
0.08
Open A Full-Day
Day Care
AS
TAS
4
0.72
2
0.30
----4
0.20
-----
Begin A Ministry
For Hispanics
AS
TAS
2
0.36
4
0.60
----3
0.15
-----
0.15
2
0.30
3
0.45
0.07
0.10
2
---
0.14
---
3
---
0.21
---
0.07
0.10
1.00
--4
--0.40
2.06
4.11
--3
--0.30
2.07
3.26
233
L.
Epilogue
As 2003 came to a close, funds required to cover the operating budget were met
with donations for the year. On the capital funding side of the ledger, some $1.6
million remained in the debt portion for capital projects (from Phase I). As the
church discussed specifics about Phase II of the building project, major concerns
arose from some pockets of the church community over the remaining debt and
incurring additional debt for the new projects. The 2003 Capital Campaign, much
more quiet than the massive campaign used in the mid-1990s to secure pledges to
cover Phase I, produced just over $900 thousand in pledges. Some members
contend that the church is stretching the donation dollars quite thin. The 2003
Stewardship Campaign, raising pledges to cover the 2004 Operating Budget, was
the most successful ever, totaling pledges over $1.3 million – however, the
approved operating budget for 2004 was over $1.4 million.
234