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Strategic Analysis: City of Commerce, Texas Prepared and Submitted by Class Members, MGT 439 01E – Business Strategy Carlos Alvarez Amaya Minju Choung Hayley Gaines Alma Paulin Tiffany White Darien Woolsey Bin Yu Dr. Leslie Toombs December 12, 2016

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Page 1: 439 Strategic Analysis Commerce Texas Final2

Strategic Analysis: City of Commerce, Texas

Prepared and Submitted by Class Members, MGT 439 01E – Business Strategy

Carlos Alvarez Amaya Minju Choung Hayley Gaines Alma Paulin

Tiffany White Darien Woolsey

Bin Yu Dr. Leslie Toombs

December 12, 2016

Page 2: 439 Strategic Analysis Commerce Texas Final2

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MEMORANDUM

TO: Wyman Williams, Mayor, City of Commerce; Bonnie Hunter, Executive Director, Commerce Economic Development Corporation; Darrek Ferrell, City Manager, Commerce, Texas

FROM: Project Team, Management 439 Class RE: Submission of Strategic Analysis Project DATE: December 15, 2016

The members of the Management 439 Strategic Analysis Project for the City of Commerce have completed their report and are looking forward to formally presenting their findings to you on Monday, December 12, 2016 at 6:30 p.m. on the TAMUC Campus, Room 218 of the BA Building. We have learned much from the opportunity to work on this project with you and would like to say “thank you” to all three of you for your support and for the time you invested in meeting with us. The ability to interact and engage with leaders on projects such as this one enhances our learning process and prepares us for starting our careers with tools which will enhance our communication and decision making capabilities. We end this semester encouraged about the future of Commerce! The changes in leadership of key stakeholder organizations of the city (including, Charlie Alderman, Superintendent, Commerce Independent School District; Dr. Ray Keck, President, Texas A&M University-Commerce; Darrek Ferrell, City of Commerce Manager, and Wyman Williams, City of Commerce Mayor; along with the continued successes of Bonnie Hunter, Executive Director, Commerce Economic Development Corporation) have created a culture of teamwork and commitment to the mission of the city for the first time in many years. Throughout this analysis, we have observed these groups working together to identify areas where resources can be leveraged to create opportunities for the citizens of Commerce and increase awareness of the City. The following analysis will identify the strengths, weaknesses, opportunities and threats for Commerce, including a competitor analysis; provide a definition of the most critical issues facing the City; identify and analyze strategies to address these critical issues; provide recommended solutions; and offer implementation suggestions. We look forward to answering questions related to this analysis during our presentation.

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2 Strategic Analysis: City of Commerce, Texas

Table of Contents

SWOT Analysis ----------------------------------------------------------------- 3

Competitor Analysis ---------------------------------------------------------------- 7

Critical Issue Analysis -------------------------------------------------------------- 11

Strategic Alternatives -------------------------------------------------------------- 13

Recommendations -------------------------------------------------------------- 15

Implementation -------------------------------------------------------------- 18

References -------------------------------------------------------------- 21

Appendix --------------------------------------------------23

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SWOT Analysis

Strengths

One of the major strengths of Commerce, Texas is the presence of a comprehensive four-year

university, Texas A&M University – Commerce, according to US News (2016). Texas A&M University –

Commerce has a total population of 7,642 students with a graduation rate of 22%. These graduates

could potentially contribute to the available workforce here. Additionally, there is a large seasonal

influx of students that come into the city every year at the beginning of the fall semester, which

increases the available work force. This Increased student population increases the amount of money

being spent throughout the community at these times. Another important aspect of the University’s

presence is the fact that the new upper administration, President Keck in particular, is taking a

cooperative and collaborative stance with the city of Commerce with the aim of benefitting both groups.

For example, the University has resources including students and facilities that can be shared with the

community to assist Commerce ISD with student mentoring and joint programs between the school

system and the University; reinforce the city designation as Certified Retirement Community through

providing educational, cultural, and recreational activities for this segment of the populations, and

provide student interns to assist local business organizations with specific technical needs (e.g. assist

with the development of advertising/social media plans). In addition, the availability of quality higher

education at a lower cost, is an attractive feature to many industries interested in locating facilities in

Commerce. The growing number of international students also provides an opportunity for community

members to learn more about cultural diversity which helps to create a city culture which recognizes the

importance of global interconnectedness.

The City of Commerce also has some available resources that could be utilized for further

development. In particular, there is excess water capacity available in our system that could be sold or

utilized by industry. As stated in the annual water quality report for Commerce, Texas (2015) the city has

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two 500,000 gallons water towers and 1 million gallon ground storage tank (City of Commerce).

Additionally, there are available tracts of land, zoned for industrial use (Commercial Property Map), that

can be purchased and could bring in new industries and their accompanying jobs, taxes, and increased

spending within the community. They have low cost of living (Area Vibes 2), and companies operating in

Commerce have lower labor costs compared to other cities. In addition, the City has been working on

cleaning up the condition of existing housing through the enforcement of housing codes for the city.

The physical appearance of the city is improving and lots for new construction are being made available

as some of the poor structures are being condemned and torn down. The City has received a grant to

help with the renovation of the sidewalks downtown and a landscape architect has been hired to help

plan how to best utilize the grant as part of the renovation of downtown. Four new retail businesses are

being opened downtown and there is a lot of activity with offers being made on the remaining

properties for sale.

Commerce also has some less tangible resources available that stand to benefit the citizens and

the community. For example, the new president of the University, a new ISD superintendent, a new

mayor, a new city manager and an experienced executive director of the Commerce Economic

Development Corporation are working together to establish a true partnership between key city

stakeholders. The collaboration between these leaders stands to unite the major forces at play in this

city. The city is also exploring new sources of money, including grants, for projects to improve the city.

Weaknesses

Commerce has a small population and low property values (Area Vibes 3). The property values of

Commerce have an average of $7k compared to the average of $131k for the state and $175k for the

nation. Property taxes are a relatively low source of income for the city (Tax Income Table for the City of

Commerce given by the City Manager). In addition to this, much of the land in the city is owned by the

University and Churches (Commerce Entity Owned Map), which are non-taxable entities. Because of

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this, the city operates on a very tight budget (Tax Table). The effects of this tight budget can be seen in

areas around the city, such as roads, and the ISD (Commerce ISD). Commerce has a high unemployment

rate of 8.8% compared to 4.9% for the state of Texas and 5.8% for the nation (Area Vibes 1). Commerce

has a very low income, partly because a considerable amount of the population is students with 20-34

year olds making up 26.1% of the population (City-Data). More students are enrolled during the Fall and

Spring semesters because more classes are offered. This results in seasonality of the student population.

Another factor contributing to seasonal fluctuations in student enrollment during the summer semester

is the need for some students to return to their home communities to work full-time so that they can

earn money to return to the University in the fall semester. The seasonal fluctuation in student

enrollment makes it difficult to attract new restaurants and retail businesses to Commerce.

In the past, the lack of congruency between the motivations of the City and the University has

prevented an atmosphere of cooperation. Additionally, the low performance of the school district has

been a driving factor in University faculty as well as others considering this area choosing to live in

surrounding communities such as Rockwall, Royce City, Frisco, McKinney, and Plano where school

district performance scores are higher, and educational program opportunities are higher in the schools

and the community. The quality of public education is also a major factor that businesses look at when

making location decisions.

Another weakness associated with the poor financial position of the city is the lack of an

advertising budget to promote Commerce. In addition, there are not many tourist attractions which

would contribute to the ability to promote the city as a day trip destination.

Opportunities

Because Commerce is an older city, home prices are affordable; The median property value for

the city of Commerce is $71,700 and the median property value for Hunt County is $92K (Area Vibes)

This could be attractive for residents with low income or students. This also presents the opportunity to

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6 Strategic Analysis: City of Commerce, Texas

remodel older buildings, including residences as well as the downtown area, which may attract new

businesses (City-Data). In addition to this, the increased traffic and growing population of the Dallas area

(City-Data) presents opportunities for growth in Commerce as well. With the existing roadway system

and the proposed Hunt County further development of connecting roads to the DFW Metroplex,

Commerce can become a desirable location for complementary businesses such as suppliers to major

corporations in the DFW area. Also given the proximity to the area, Commerce could also provide

warehouse storage, including cold storage facilities, for businesses in the DFW area.

Because of the availability of labor in Commerce along with a fluctuating student population, a

manufacturing plant with scalable production and low skill requirements may flourish here.

Threats

The growth of the Dallas area (Forbes, 2016) also stands to be a threat to Commerce. This

growth is leading to the further development of other cities around Commerce, such as Greenville which

“has abundant industrial land available for development, much of it owned by the Greenville EDC. The

price per acre is reasonable and negotiable” (Greenville EDC). Also, the higher cost of groceries and gas

in Commerce are a factor that may deter growth based on data provided by City-Data (2015)

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Competitor Analysis

Geographically speaking, Commerce has two major competitors, Greenville and Sulphur

Springs. In addition to these, it is also in competition with some of the outlying areas and smaller towns

around these cities.

According to Google Maps, Greenville is about 15 miles west of Commerce, accessible by either

Highway 224 or Interstate 30. Sulphur Springs is about 20 miles east of Commerce, and is accessible by

either Highway 11 or I3A0, though Highway 11 is a much faster route.

Sulphur Springs Sulphur Springs has many notable advantages when compared to Commerce, including:

Sulphur Springs ISD is larger with more resources, job opportunities and programs

o It should be noted that SSID is not a member of Region 10, and can’t be easily

compared to other schools in the surrounding area; SSISD is a member of Region 8 along

with Mount Pleasant.

Interstate I-30 runs through Sulphur Springs

o The city is further away from Dallas than Commerce or Greenville

Railroad stop in Sulphur Springs – Blacklands Railroad is a freight train that transports feed

ingredients and fertilizers. The World headquarters for Blacklands Railroad is in Sulphur Springs,

giving the city an advantage in shipping animal feed from different businesses in the city such as

the Farmers Co-op according to Blacklands Railroad. (2016)

Larger population (15,868 according to 2013 Census) thus there are more people paying more

property taxes--$2.49/100--http://ss-edc.com/community-profile/taxes

Veteran Memorial where people can come to pay their respects. It serves as somewhat of a

tourist attraction in that people come from all over to visit. The memorial has a kiosk that

“allow[s] visitors to locate individual names, display information on their service,

commendations, and view a picture if one is available” according to the visitors section of

sulphurspringstexas.org. (2015)

Residential Life

o A variety of housing opportunities, styles and neighborhoods

o Recently updated downtown

o Activities downtown throughout the year for families and people of all ages—Farmers

market, Cinco de Mayo celebration, Christmas celebration, Fourth of July on the square,

movie nights for kids on Fridays (Big blow up screen and families can come watch for

free), splash pad

o More restaurants—Los Mochis, Juan Pablos, Tierra del Sol, Wendy’s, Schlotzkis, Burger

King, Don Lalos, Romas, Dairy Queen, Panda Express, Chili’s, Pizza Inn, Bayou Jacks,

Bodacious, local privately owned restaurants on the square—Arturo’s, Potato House,

Al’s Diner, Winery, Muddy Jakes, The Pioneer Café, Lindsey’s, Coffee off the Square

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o More retail stores—Bealls, Factory Outlet Mall, Miss Behavin, Sister Babyz, Lou Nells,

Everything Unique, Circle E, Catos, Famous Footwear, Factor Connections, Shoe Inn

o Cheaper Gas—Sulphur Springs’ cheapest gas on November 13, 2016 was $1.91.

Commerce’s cheapest gas on November 13, 2016 was $1.98.

http://www.texasgasprices.com/GasPriceSearch.aspx

o Hospital with a clinic, 2 Urgent care centers, Concierge doctor

o Police Department and Sheriff’s Department

Employment Opportunities

o Clayton Homes

o Grocery Supply

o Saputo

o Ocean Spray

o SSISD

o Lowe’s

o Jeld Wen

o Holt Agribusiness Sulphur Springs

o Atmos Energy

o Suddenlink

o Walmart Supercenter

Sulphur Springs Economic Development

Major Employers

Company Name Industry Category Number of Employees

Flowserve Oil & Gas Valves 250

BEF Foods Food Processing 170

Pinnacle Companies Frack Tank Manufacturing 402

Clayton Homes Construction 206

Ocean Spray Food & Beverage 161

Grocery Supply Food Distribution 700

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Aerostar Raven Scientific Balloon Manufacturing 40

Morning Star Foods Dairy Product Distribution 305

M & F Western Products Wholesale Distribution 120

Jeld-Wen Door Manufacturing 80

Recreation

o Golf Course / Country Club

o Parks

Kid’s Kingdom

Coleman Park

Pacific Park

Skate park

o The ROC – Recreation Outreach Center

Facility that allows people from the community to come and use the basketball

court, the indoor walking track, study rooms, gym, play room, play soccer, play

volleyball.

o Rodeo Arena and Equine area

o Movie theater

o Farmers Market

Education Opportunities

o YMCA - Afterschool for kids

o PJC – Paris Junior College

o 3 Private Schools

CCA, Water Oak, Bright Star

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10 Strategic Analysis: City of Commerce, Texas

Greenville Greenville presents its own unique set of advantages, when compared to the City of Commerce. These are of particular concern due to the close (15 minute) proximity to Commerce.

Interstate I-30 runs directly through town

o Closer to Dallas than Commerce or Sulphur Springs

Residential Life:

o Cheaper Gas

o Wide (and expanding) variety of entertainment, restaurants and retail

Whataburger, Jack in the Box, Wendy’s, Braum’s, CiCi’s Pizza, Papa John’s, Pizza

Hut, Dominos, Little Caesars, Peller’s Pizza, Taco Bell, Taco Casa, Tacqueria la

Ventana, Sweet Frog, La Sabrosita, Antojitos Mexicanos, Texas Snow, Fruteria,

Applebee’s, IHOP, Red Lobster, Snuffer’s, TaMolly’s, El Mariachi, Molina’s, El

Fenix, Tony’s Italian, Buffet Palace, Chipotle, Panda Express

Academy, Hobby Lobby, Marshall’s, Ross, Hibbet Sports, JCPenney, Beall’s, Belk,

Staples, Jaded Gypsy, The Calico Cat, Lowe’s, Walmart, The Home Depot,

Cavender’s, Atwoods

Splash Kingdom, City Sports Park, Shenaniganz, Majestic 12 Theatre, Dance

Studio, Chop Shop (MMA/Martial Arts), The Force (Boxing), YMCA, Boys and

Girls Club (Afterschool), The ACE Program (Similar to Boys and Girls Club),

BRAZUZA (Indoor Soccer), Golf Course

o Schools

1 Headstart School

5 Elementary Schools

6th Grade Center

1 Middle School

1 High School

Paris Junior College

Greenville Christian School

Employment Opportunities – Greenville has a wide variety of industries and employment

opportunities, including an industrial district that allows more business to come in with jobs.

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o In addition to these employers, there are various service, restaurant, and retail

businesses around town, and recently more have been added, such as Academy, and

Hobby Lobby, as well as new restaurants and a water park.

http://www.greenvilletxedc.com/sites/default/files/files/Greenville TX - ED Brochure -

Updated Aug 2014.pdf

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Critical Issues

Lack of Jobs – The unemployment rate in Commerce is 15.4% compared to the national average

of 7.9 as of the last census. (USA City Facts) The following are the major employers listed on the

Chamber of Commerce website; Ben E. Keith Beverages, The City of Commerce, Commerce ISD, Hunt

Regional, Hydro, Mohawk, Texas A&M University – Commerce, and the various restaurants and retailers

around town. (Commerce – Chamber)

School District – Commerce ISD is ranked below average in performance compared to the state

and region 10. (TEA Federal Report Cards)

Performance - All Grades, All Subjects

Year District Region 10 State

Greenville 2015 68% 75% 73%

2014 72% 77% 75%

Caddo Mills 2015 87% 75% 73%

2014 88% 77% 75%

Commerce 2015 65% 75% 73%

2014 71% 77% 75%

Campbell 2015 63% 75% 73%

2014 73% 77% 75%

Lone Oak 2015 81% 75% 73%

2014 90% 77% 75%

Low Tax Revenue – A large amount of the land area of the city is owned by the university and

churches, both of which are non-taxable entities. This prevents the city from receiving property tax

money from much of the land within the city limits. Additionally, the low average income of the city

combined with people shopping in other cities means that sales revenue for businesses is smaller than it

could be as well.

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Seasonality of the City’s population – Because many Commerce residents are actually college

students that are only here seasonally, the customer base for many retailers and service providers

fluctuates dramatically during the summer and briefly during the winter. This causes uncertainty in the

market, and produces the unique challenge of finding business models that can support a dramatic

decrease in revenue for 2-3 months out of the year.

Poor Marketing – The City of Commerce does not market their opportunities well. If one is not

aware of Commerce or of the University, they have little knowledge of the opportunities that Commerce

has to offer.

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Strategic Alternatives

Low test scores and poor performance of Commerce ISD

First, an emphasis should be placed on developing current faculty and hiring better faculty through

measures such as stricter adherence to requirements for certification (Rand). Community open forum

meetings have already been scheduled to actively involve the community in determining the future

direction of CISD which will help develop community buy in for the direction and help to improve

community perception of CISD. A close partnership between CISD and TAMUC is in the early stage of

formation. Further investigation of how both groups can benefit from the partnership programs could

be established. For example, a program that put students from the education department (or perhaps

others) in mentorship roles for the ISD students can be implemented. The city could also do more to

showcase the students who make honor rolls. This benefits the ISD, the University, and the City of

Commerce.

Low Tax Revenue

Bring in new manufacturing plants and small businesses (ESRI). This would increase the employment

rate, while also bringing in additional sales taxes from new storefronts, and residents having more

money from the additional primary jobs. This could present internship opportunities to business,

engineering, and science majors and others, as well as providing jobs for local residents, and even

students looking for part time work. The downside to this is that any new businesses will have to deal

with the seasonal nature of the city’s population. Another aspect of the low tax revenue is that of low

property taxes. If the University were to offer a program where they allowed a real estate developer to

build housing to sell to faculty and staff and then agreed to buy back the houses of faculty and staff

members should they want to sell in the future, it could incentivize university employees to live in town

and spend money here. The downside to these ideas is that the cost of them would cut slightly into the

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benefit of the increased revenues. However, this option generates taxes that would not be earned

currently.

Poor Marketing

There is a lack of awareness of the University outside of a 60 minute radius (cite Dr. Keck interview that

Tiffany conducted). Also the City does not have a solid brand. While efforts have been made to

promote some of the attractions of Commerce including the dedication of the Claire L. Chennault State

Historical Marker, there is currently no marketing budget for the city and no coordinated marketing

plan.

The University has recently hired a new Director of Marketing, Scott Cason, and new marketing plans

are currently being developed. One gap that exists is the dissemination of information regarding all of

the activities occurring on campus from performances, distinguished speakers, and to sporting events.

The website does not have a coordinated list providing information regarded the dates and times of

these events. The marketing for Commerce could be improved through community meetings, and

investments in small marketing companies in the city (Community Toolbox). This could help attract more

people to the town, and improve the overall image at the risk of potentially not seeing as strong of a

level of benefit that the city would like.

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Recommendations

Through the analysis of available city resources and consideration of the most important issues facing

the city, the following recommendations have been suggested;

1. The expansion and continuation of partnerships between the University and Commerce ISD

This could include the further development and creation of mentorship programs such as the one

currently run by the university athletic department. These could provide valuable opportunities for

collaboration between students in various types of classes and extra-curricular activities to work with

older students studying them on a higher level.

2. Building Partnerships with local businesses and the University

Partnerships between local businesses and the University could be beneficial in a variety of ways. Local

businesses that could offer competitive internships could potentially attract more students that do not

want to commute longer distances, while also boosting the reputation of the University. Additionally,

collaboration between the university’s marketing department and local businesses could lead to

enhanced marketing for both local businesses and the university within the city of Commerce.

3. City working with small businesses to take advantage of marketing benefits

The city of Commerce could work with businesses within the city to review how they market

themselves. Creating a consistent marketing strategy for small businesses within the community could

improve the city’s overall image. This strategy could be created through a continuation of this project

through the work of another class, such as a graduate level marketing class. The class could work with

the city to help create new ways to advertise and share what Commerce has to offer.

A benefit of improved marketing comes from the idea that people who know more about what’s going

on in an area will feel more connected and involved with it. They will also be more likely to talk about it

and spread the word. This would increase spending, and consequently, tax revenue.

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It’s important to not assume that everyone has Internet access, or uses it frequently. It would be

beneficial to include physical media in the city and local business’ avenues of advertising. In this same

vein, the city might consider highlighting one small business per month in all of their forms of media.

This could include information about what the business is, what they have to offer, and a little bit about

their history. This could even go so far as to include a small business fair where local businesses from the

community could have a place to come and share who they are and what they do. This would likely be

inexpensive to implement as well.

4. Envision future Commerce – Create a long term city master plan

By creating a detailed long term master plan for the City of Commerce, a solid framework for a large

variety of future decisions could be made.

5. Increasing the availability of grant money

The increased availability of grant money could be utilized to fund and complete improvement projects

throughout the city. This could also be tied into collaboration with the University in terms of people who

could spend time finding and writing grants, or even just coming up with ideas to make improvements

around the city that could be funded through these grants.

6. Improve Marketing

A new city marketing initiative geared toward differentiation could be established. This could revolve

around older ideas such as “Commerce means business” or simply just selling the city for what it is; a

small college town.

Commerce is a certified retirement community (Retire in Texas) and because of this needs to pursue the

retirement age population in forms of media and marketing that will reach this population of people in

the city but also other demographic groups such as college students.

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18 Strategic Analysis: City of Commerce, Texas

Additionally, some research into retail gap analysis indicates that Commerce is in need of entertainment

as well as specialty food stores. The specialty food store could be satisfied by a business such as an “old

timey” soda shop. This would provide an uncommon venue to fulfill a need of the city in a way that

would contribute to our image of a small college town, while also fitting in with the aesthetic of a

retirement community.

While addressing the need for entertainment, the long-closed movie theater in town came into

consideration. There are much larger movie theaters available in Greenville (about 20 minutes away)

and Sulphur Springs (about 30 minutes away), however, there are no drive-in movie theaters near

Commerce. This would be another uncommon source of entertainment that could attract people from

nearby areas to Commerce. Additionally, Commerce used to have one on FM 2874.

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Implementation

The following implementation plan outlines the actions which could be taken by the City and the major

entities within to address the recommendations that have been presented. One of the overarching

themes that came across during the analysis was the need for partnerships throughout the major

entities of the city.

1. Expansion and continuation of the partnerships between TAMUC and CISD

Priority Level High

Key POC(s) A committee made up of department heads who are interested in pursuing new partnerships alongside those who are already working on programs such as these

Key Actions 1. Expand the mentorship program currently run by the athletics department to groups such as the Honors College, or President’s List students.

2. Collaboration between ISD fine arts programs and their respective university departments. Could include mentoring or joint productions put on for the city to increase community involvement and a potential attraction.

3. Find ways to simplify logistical and legal barriers in getting ISD students onto the campus to utilize university resources.

2. Partnerships between the University and local businesses

Priority Level Normal

Key POC(s) Lacey Henderson, American Eagle Properties and others who own downtown real estate

Key Actions 1. Educate local business owners about the benefits and available skill sets of the interns they could be utilizing and develop programs that maintain relationships with these businesses.

2. Increase student/city involvement by hosting classes in buildings downtown where possible. University could potentially lease space in privately owned buildings.

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20 Strategic Analysis: City of Commerce, Texas

3. Partnerships between the city and local businesses

Priority Level Normal

Key POC(s) Commerce EDC, Commerce Chamber, Representative for University Faculty/Students, Local Business owners who volunteer

Key Actions 1. Organize a small business conference, the focus of which is to develop a think tank between the Chamber, University faculty/students, and local business owners. This group will work together to create a marketing scheme that can benefit all groups. It should also work closely with Dr. Bob Collins at TAMUC to encourage area small business owners to attend the SBECON, small business and entrepreneurship meeting held every spring on the TAMUC campus.

2. Create a monument, sculpture or other attraction in a visible, central location. This attraction would combine elements of all major entities within the city, i.e. Bois d’ Arc, Lions, Tigers, and Education. Consideration could also be given to the remarkable diversity brought to the city through international students, by including a structure such as a globe that highlights the locations of residents original homes.

4. Envision Future Commerce

Priority Level Normal

Key POC(s) Commerce EDC, Commerce Chamber, Representative for University Faculty/Students, Local Business owners who volunteer, local resident input through city meetings, Outside contractors.

Key Actions 1. Work with a consulting firm to help create a vision of what Commerce could be in the future, and draft a plan for how to get it there, as well as a timeline and financial plan to achieve it.

5. Increase the Availability of Grant Money

Priority Level High

Key POC(s) City Manager

Key Actions 1. Hire a consultant who specializes in writing grants, and is willing to work on a commission basis. This would provide incentive to write as many grants as possible in addition to accounting for the lack of available funds for a salary.

2. Seek alternative funding from corporations, such as the funding from Dr. Pepper that was used to sponsor the murals downtown.

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6. Improving Marketing

Priority Level Normal

Key POC(s) Scott Cason, Chris Meyers, City Manager

Key Actions 1. Create a website that acts as a community bulletin board showing current and upcoming events for both the city and university. This website would not be intended as an outward facing recruiting tool for the university, but as a tool to help students or residents find local events to attend. This website could be managed by either the city or university marketing department, depending on availability of resources.

2. Utilize the knowledge of marketing students. In the form of marketing projects as part of their coursework or as internships, these students could provide a low cost solution to businesses seeking to further their brand.

3. Focus on differentiation. Attempts to sell Commerce as a smaller Greenville or Sulphur Springs will fall flat on their face because that’s not what Commerce is. Commerce needs to be positioned as a smaller, older, rural college town with plenty of activity, but where people are still able to get away from the hustle and bustle of bigger cities. As part of this, encourage differentiation while satisfying specialty retail gaps found in retail data analysis by encouraging the development of an ‘Old timey’ soda shop which would fit the vibe of the town, and also one of a retirement community. Additionally, the gap in entertainment could be helped by a drive-in movie theater. There is not one anywhere nearby, which means that it could pull in business from outside of the city. These ideas could be pitched in a small business conference meeting.

Conclusion_____________________________________________________________________

The Management 439 team members have identified critical issues that should be addressed as part of

the ongoing effort to strengthen the City and better position it to achieve the mission of providing

excellent quality of life for its citizens. The team’s recommendations include strategies and

implementation plans for “encouraging community involvement, supporting and partnering with

institutions that enhance the sense of community, and the wise stewardship of public funds”. (City of

Commerce Website).

It should be noted that the team did not have access to financial information from all of the partners

in the analysis and was unable to include supporting financial implementation strategies for the

recommendations.

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22 Strategic Analysis: City of Commerce, Texas

References

Areavibes. "Commerce, TX Cost of Living." Cost Of Living In Commerce, TX. N.p., n.d. Web. 23 Nov. 2016. <http://www.areavibes.com/commerce-tx/cost-of-living/>

Areavibes. "Commerce, TX Employment." Commerce, TX Employment Information. N.p., n.d. Web. 22 Nov. 2016. <http://www.areavibes.com/commerce-tx/employment/>

Areavibes. "Commerce, TX Housing." Commerce, TX Home Prices & Housing Information. N.p., n.d. Web. 23 Nov. 2016. < http://www.areavibes.com/commerce-tx/housing/>

AgriBusiness, Holt. "HOLT AgriBusiness - Sulphur Springs." HOLT AgriBusiness. N.p., n.d. Web. 04 Dec. 2016. <http://holtag.com/contact_us/locations/sulphur_springs.aspx>.

"Commerce, Texas." Commerce, Texas (TX 75428) Profile: Population, Maps, Real Estate, Averages, Homes, Statistics, Relocation, Travel, Jobs, Hospitals, Schools, Crime, Moving, Houses, News, Sex Offenders. N.p., n.d. Web. 04 Dec. 2016.

"Commerce, TX." Commerce, TX Census Data - City Facts -o. N.p., n.d. Web. 04 Dec. 2016. <http://www.usacityfacts.com/tx/hunt/commerce/>.

"Commerce, TX." Data USA. N.p., n.d. Web. 04 Dec. 2016. <https://datausa.io/profile/geo/commerce-tx/#housing>.

"EMPLOYMENT." Commerce, Tx - Chamber of Commerce. N.p., n.d. Web. 04 Dec. 2016. <http://commerce-chamber.com/employment.php>.

"How Does Texas A&M Commerce Rank Among America's Best Colleges?" Texas A&M University--Commerce - Profile, Rankings and Data | Texas A&M Commerce | US News Best Colleges. N.p., n.d. Web. 22 Nov. 2016. <http://colleges.usnews.rankingsandreviews.com/best-colleges/texas-am-commerce-3565>

ISD, Commerce. "Employee Handbook." Cartographic Perspectives 0.81 (2015): 1. Web. <http://www.commerceisd.org/upload/common/employee%20handbook_2016-17.pdf>.

"Movie Times and Movie Theaters in Sulphur Springs, TX- Local Showtimes - Fandango." Fandango. N.p., n.d. Web. 04 Dec. 2016. <http://www.fandango.com/sulphur+springs_+tx_movietimes>.

Scott Bayer. (2016). The explosive northern growth of metro Dallas. Forbes. Retrieved from http://www.forbes.com/sites/scottbeyer/2016/07/01/the-explosive-northern-growth-of-metro-dallas/#7752315446a6

"Section 17. Leading a Community Dialogue on Building a Healthy Community." Chapter 3. Assessing Community Needs and Resources | Section 17. Leading a Community Dialogue on Building a Healthy Community | Main Section | Community Tool Box. N.p., n.d. Web. 04 Dec. 2016. <http://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/community-dialogue/main>.

"Ssfirstbaptist." Ssfirstbaptist. N.p., n.d. Web. 04 Dec. 2016. <http://www.ssfbc.org/about>. "Sulphur Springs EDC | Team Texas." Sulphur Springs EDC | Team Texas. N.p., n.d. Web. 04 Dec. 2016.

<http://goteamtexas.com/member-profile/sulphur-springs-edc>. Texas, Retire In. "Commerce." Commerce. N.p., n.d. Web. 28 Nov. 2016.

<http://www.retireintexas.org/Home/CertifiedRetirementCommunities/Commerce.aspx> "Understanding Teachers' Impact on Student Achievement." Teachers Matter: Understanding Teachers' Impact

on Student Achievement | RAND. N.p., n.d. Web. 04 Dec. 2016. <http://www.rand.org/education/projects/measuring-teacher-effectiveness/teachers-matter.html>.

"WATER DISTRIBUTION." City of Commerce. N.p., n.d. Web. 22 Nov. 2016. <http://commercetx.org/departments/public-works/water-distribution/>

"Welcome to Sulphur Springs, Texas." Welcome to Sulphur Springs, Texas. N.p., n.d. Web. 04 Dec. 2016. <http://sulphurspringstx.org/>.

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Greenville’s TEA Federal Report Card

https://rptsvr1.tea.texas.gov/cgi/sas/broker?_service=marykay&year4=2014&year2=14&_debug=0&sin

gle=N&title=2014-

15+Federal+Report+Card&_program=perfrept.perfmast.sas&prgopt=2015%2Ffrc%2Freport_card.sas&pt

ype=H&level=district&search=distnum&namenum=116905

Caddo’s TEA Federal Report Card

https://rptsvr1.tea.texas.gov/cgi/sas/broker?_service=marykay&year4=2014&year2=14&_debug=0&sin

gle=N&title=2014-

15+Federal+Report+Card&_program=perfrept.perfmast.sas&prgopt=2015%2Ffrc%2Freport_card.sas&pt

ype=H&level=district&search=district&namenum=Caddo+&district=116901

Lone Oak’s TEA Federal Report Card

https://rptsvr1.tea.texas.gov/cgi/sas/broker?_service=marykay&year4=2014&year2=14&_debug=0&sin

gle=N&title=2014-

15+Federal+Report+Card&_program=perfrept.perfmast.sas&prgopt=2015%2Ffrc%2Freport_card.sas&pt

ype=H&level=district&search=district&namenum=lone+oak&district=116906

Commerce’s TEA Federal Report Card

https://rptsvr1.tea.texas.gov/cgi/sas/broker?_service=marykay&year4=2014&year2=14&_debug=0&sin

gle=N&title=2014-

15+Federal+Report+Card&_program=perfrept.perfmast.sas&prgopt=2015%2Ffrc%2Freport_card.sas&pt

ype=H&level=district&search=district&namenum=commerce&district=116903

Campbell’s TEA Federal Report Card

https://rptsvr1.tea.texas.gov/cgi/sas/broker?_service=marykay&year4=2014&year2=14&_debug=0&sin

gle=N&title=2014-

15+Federal+Report+Card&_program=perfrept.perfmast.sas&prgopt=2015%2Ffrc%2Freport_card.sas&pt

ype=H&level=district&search=district&namenum=campbell&district=116910

Page 25: 439 Strategic Analysis Commerce Texas Final2

24 Strategic Analysis: City of Commerce, Texas

Appendix

1. Population Analysis

2. Property Value Table

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25

3. Population Growth Chart

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26 Strategic Analysis: City of Commerce, Texas

4. Property Value Map

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27

5. Commerce Tax Table Sum of City Sales Tax Column Labels

Fiscal Year January February March April May June July August September October November December Grand Total

2010 46,171.06$ 68,902.00$ 39,579.44$ 44,823.18$ 48,723.41$ 45,795.54$ 47,875.64$ 64,355.47$ 47,683.33$ 42,517.78$ 67,514.41$ 51,516.36$ 615,457.61$

2011 44,442.60$ 64,317.66$ 45,313.92$ 44,225.07$ 59,862.49$ 53,260.01$ 47,982.40$ 67,029.94$ 50,411.86$ 47,853.71$ 73,501.40$ 43,738.13$ 641,939.18$

2012 47,113.13$ 70,979.94$ 54,238.96$ 50,422.86$ 70,201.66$ 51,894.98$ 60,250.48$ 68,920.98$ 61,751.98$ 51,446.34$ 78,081.79$ 50,505.22$ 715,808.31$

2013 72,231.96$ 87,817.01$ 57,051.71$ 61,961.83$ 81,642.14$ 62,333.99$ 67,144.24$ 86,203.01$ 66,292.24$ 56,825.36$ 107,344.65$ 65,318.12$ 872,166.26$

2014 64,166.51$ 88,858.41$ 60,922.44$ 63,467.21$ 83,009.21$ 69,652.88$ 72,332.04$ 78,670.37$ 68,181.86$ 69,535.37$ 91,273.83$ 69,052.27$ 879,122.38$

2015 61,508.93$ 86,368.34$ 70,273.94$ 56,816.71$ 85,566.35$ 51,206.05$ 52,359.34$ 58,981.45$ 59,381.71$ 70,186.38$ 88,051.39$ 62,575.69$ 803,276.26$

2016 47,171.71$ 65,565.62$ 60,172.46$ 53,126.53$ 79,002.29$ 56,967.13$ 51,820.65$ 78,239.29$ 59,063.69$ 551,129.37$

Grand Total 382,805.89$ 532,808.98$ 387,552.86$ 374,843.38$ 508,007.54$ 391,110.58$ 347,944.13$ 424,161.21$ 353,702.97$ 390,185.58$ 584,006.76$ 401,769.48$ 5,078,899.36$

Fiscal Year January February March April May June July August September October November December Total

2010 7.5% 11.2% 6.4% 7.3% 7.9% 7.4% 7.8% 10.5% 7.7% 6.9% 11.0% 8.4% 100.0%

2011 6.9% 10.0% 7.1% 6.9% 9.3% 8.3% 7.5% 10.4% 7.9% 7.5% 11.4% 6.8% 100.0%

2012 6.6% 9.9% 7.6% 7.0% 9.8% 7.2% 8.4% 9.6% 8.6% 7.2% 10.9% 7.1% 100.0%

2013 8.3% 10.1% 6.5% 7.1% 9.4% 7.1% 7.7% 9.9% 7.6% 6.5% 12.3% 7.5% 100.0%

2014 7.3% 10.1% 6.9% 7.2% 9.4% 7.9% 8.2% 8.9% 7.8% 7.9% 10.4% 7.9% 100.0%

2015 7.7% 10.8% 8.7% 7.1% 10.7% 6.4% 6.5% 7.3% 7.4% 8.7% 11.0% 7.8% 100.0%

Average 7.4% 10.3% 7.2% 7.1% 9.4% 7.4% 7.7% 9.5% 7.8% 7.5% 11.2% 7.6% 100.0%

City Sales Tax Budget 650,000.00$

Month % Collection Expected Collection Actual Collection Variance Projected Collection

October 7.5% 48,438.67$ 51,820.65$ 3,381.98$ 51,820.65$

November 11.2% 72,561.26$ 78,239.29$ 5,678.04$ 78,239.29$

December 7.6% 49,154.59$ 59,063.69$ 9,909.10$ 59,063.69$

January 7.4% 47,932.06$ 47,171.71$ (760.36)$ 47,171.71$

February 10.3% 67,230.64$ 65,565.62$ (1,665.02)$ 65,565.62$

March 7.2% 46,894.06$ 60,172.46$ 13,278.40$ 60,172.46$

April 7.1% 46,164.35$ 53,126.53$ 6,962.18$ 53,126.53$

May 9.4% 61,213.20$ 79,002.29$ 17,789.09$ 79,002.29$

June 7.4% 48,134.83$ 56,967.13$ 8,832.30$ 56,967.13$

July 7.7% 49,958.06$ -$ -$ 49,958.06$

August 9.5% 61,427.01$ -$ -$ 61,427.01$

September 7.8% 50,891.26$ -$ -$ 50,891.26$

Total 100.0% 650,000.00$ 551,129.37$ 63,405.71$ 713,405.71$

*City Sales tax combines the Municipal Sales Tax and the Ad Valorem Tax Relief Fund