Reference no: EM132390359

Is this a good example of strategic issue?

A company's stability and profitability are highly dependent on its ability to quickly identify and respond to changes in the external environment. Change is inevitable and having the flexibility to deal with unexpected market mutations can mean the difference between survival and extinction for an organization. The major external challenge that SCI is dealing with is the shifts in consumer preferences. The Funeral Home industry is going through major shifts nationwide as customs evolve. Cremation, which costs half what traditional burials do, is becoming more popular. Families are looking for more personalized approach and alterative burial options and memorial services are on the rise. It is a strategic issue as it affects the company's product or service level and mix. If the company is not able to respond effectively to changing consumer preferences, its market share, revenue, cash flows, and profitability could decrease. Therefore, SCI needs to take action and consider diversification in order to expand company's revenue sources. To stay viable, SCI needs to remain on the cutting edge of technology to analyze emerging trends that will drive the products and services that must be offered to sustain competitive advantage.