Service Corporation International Case Study

History, Development and Growth of the company

Service Corporation International began its operations in 1962. Robert L. Waltrip formed the corporation. At first, it began its operation in Houston (USA). It was set up to offer funeral services, crematoria and cemetery facilities. Service Corporation International has expanded from Houston to North America. It offers funeral services and cemetery facilities mainly in United States and Canada.

The Company has set up over three thousand funeral service locations, over five hundred cemeteries and around two hundred crematoria. In addition, it began to offer insurance services in five continents (SCI, 2011).

To improve its operations, the company conducts multiple business activities. These activities include branding of services and acquisition of other similar companies to gain competitive advantage. For instance, Service Corporation International has brought together all its products under one brand name ‘Dignity Memorial’. This was meant to increase service delivery to customers as well as boost its recognition.

Service International Corporation has managed to expand steadily due to acquisition of additional funeral homes. The original names of the acquired firms as well as the existing management are retained after the acquisition. The company only ensures that their logo is used to identify all the property it owns. This has enabled it to expand secretly without the notice of its competitors.

It has achieved reputation in the market since it is one of the most successful organizations. In this regard, it is rated to be one of the highly equipped providers of funeral and cemetery services. As a result, its market position in the minds of consumer has enabled it to conquer a large proportion of the market.

In addition, the levels of returns have made it diversify in the market. This process has yielded more loyalty from consumers and led it to be listed in the New York Security Exchange.

Internal Strengths And Weaknesses


Having examined the company’s development history, it is evident that it has survived all challenges to get to its present position. It is also clear that this company has a good profile that can be analyzed to foretell its future (Mooradian et. Al., 2012). Service Corporation International has numerous internal strengths that include:

The company has a good work force- The Company has a good management system. It has been able to sustain the company through difficult times. For instance in the year 2000, the economic conditions were not favorable, which affected all businesses across the globe.

Therefore, the management had to cut down costs by closing down some of its subsidiaries. During this period, they realized that more than seventy percent of the company profits were from United States and Canada.

The company has invested in real and financial assets- Service Corporation International owns numerous assets, which are famous. For instance, it owns the largest cemetery in the world that measures 2500 acres. It also owns Joseph Gawler’s Sons Funeral home in Washington D.C. This funeral home is preferred by famous personalities. These facilities are renown to offer the best services that meets clients’ needs.

The company has distinctive brands- The Corporation has good brands, which enable customers to identify its property, products and services. These brands are unique and attractive compared to those of its rivals. As a result, its products and services are popular worldwide. Some of the brands of Service Corporation International includes:

  • Dignity Memorial-This brand was found in 1999, and operates in 41 states in the United States and 7 provinces in Canada
  • Dignity planning- This brand is utilized in North America
  • Advantage-The brand was designed to provide basic funeral services.


Even though this company has portrayed significant strengths, weaknesses can also be raised out of its analysis. This can be given with the help of the controversies and scandals that have been raised against the company. The following issues have challenged the competitiveness of the corporation.

In the late 1990’s, it was accused of failing to observe the law. The case was ruled in their favor because its founder was a friend to George W. Bush, the governor of Texas at that moment. The state frustrated the investigations of the matter.

The governor and other leaders instructed the investigation to be abandoned. However, some individuals resisted. Consequently, they lost their jobs and were not given benefits as stated in the law.

Service Corporation International has been accused of inappropriately delivering its services. In 2010, it was accused of having failed to inform the family of a woman that they had buried their member in a wrong grave. In addition, they later exhumed and buried the body correctly without notifying the family. The company also worsened the issue by failing to obtain a legal permit from the state before performing the exercise.

A fine accompanied this activity on the company as well as punishments of the staff who were involved in the process. To ensure that the public notice the action, it published the whole issue in the company’s website. This mistake could have terminated its business. As a result, it established means of adhering to the law, and being careful in discharging duties.

External Environment

Service Corporation International is in an environment exposed to stiff competition. In this case, multiple corporations offer similar products and services. Forces such as the number of competitors, operational size, market share, profitability, and pricing strategies influence the corporation’s competitiveness (Johri, 2010).

Porter’s five forces model can be used to illustrate the external environment forces. The model addresses the forces by analyzing the influence of suppliers, negotiation power of consumers, chances of new competitors entering the industry, degree of rivalry and threats of substitutes.

Risk of New Entrants in the Industry

A potential entrant refers to a firm that is not currently competing in the funeral and cemetery industry, but poses a threat if given a chance. This is because the penetration of newcomers causes competition for customers in the industry. Service Corporation International has minimized the degree of new companies entering the company through its strong capital base.

At the same time, operating on low costs restricts new entrants. The marketing team of the corporation has promoted consumers’ loyalty. This process has been achieved through effective modes of product promotion in the industry. As a result, Service Incorporation International is controlling a larger market share.

Suppliers’ Bargaining Power

This relates to business entities that supply inputs to the corporation. Their negotiation power poses a threat to the corporation by interfering with prices of inputs such as raw materials and other input services. Consequently, suppliers may influence the operating costs. This threat caused by suppliers will lead to propagation of expenses costs to consumers.

The cost managers of Service Corporation International take care of the welfare of its suppliers. Some of the approaches adopted include lucrative prices for consistency, rewards and bonus for supplies. Such business entities are regarded as a threat, and the corporation handles their matters appropriately.

Threat of Substitutes

The presence of substitutes with the ability to satisfy customers’ needs other than Service Corporation International’s products creates a threat. The corporation has learnt that reasonable prices should be charged for their services. In addition, the prices should fluctuate depending on the market conditions.

When the number of companies that offer substitute services is small, the corporation benefits by charging optimum prices for its services. Furthermore, Service Corporation International differentiates its services through a variety of factors.

Some of the factors used include geographical locations, demographic factors and attitudinal preference. In such a way, the customers have developed a positive mentality towards the corporation as the best choice.

Buyers’ Powers

The negotiation power of buyers refers to potential effects that consumers have on the prices of a company’s products or services. In this regard, strong consumers can affect the profitability of a company. To survive in the industry, Service Corporation International ensures that its services are of high quality standards.

Through provision of reasonable priced services, it attracts consumers. At the same time, market segmentation has reduced the severe influence of consumers in their profitability. Therefore, the corporation continues to expand steadily without any challenge from consumers.

Degree of Rivalry

Rivalry illustrates the nature of competition for customers and inputs by firms in the same industry. Intense rivalry among well-established companies influences the profitability standards. Some of the factors that cause such a phenomenon include demand conditions, growth rates and presence of a large customer base.

In this regard, Service Corporation International negotiates with other firms in the same industry to establish a market structure for funeral and cemetery services. This initiative has reduced the fluctuations of profits in the corporations. Similarly, other corporations influence on Service Corporations International has significantly declined.

The Value Chain

Service Corporation International has survived in the market full of competitors. This company has a good system of service delivery. It can be well-explained using Porter’s concept of value chain. Porter has categorized value chain components into two groups: primary activities and support activities. Primary activities are activities done during provision of services by a company.

This ensures that consumers are offered with the services. The corporation has carefully developed a strong value chain to gain competitiveness. It is crucial for a company’s survival in a competitive market. In this regard, the corporation has acquired multiple funeral homes that offer varied funeral services for the consumers. This is based on the social, cultural, religious and geographical differences.

Some of these activities include upstream logistics, operations, downstream logistics, marketing &sales and services. The realignment of these processes ensures that the corporation achieves the targeted objective of competitiveness. This will lead to a greater market share in the industry (Hersey & Blanchard, 2002).

Similarly, the corporation has a good system of conducting its operations. The other type of porter’s chain of activities called support activities illustrates this approach. Some vital issues that are considered include firm infrastructure, human resource management, technological development and procurement. The firm has a good organization structure with distinct chain of command.

The roles of every employee have been clearly stated in their corporate governance guidelines. A board of directors that meet the qualifications of the company manages the company. Human resource management has carefully planned the corporation to ensure that workforce attains its set targets. The guiding core values of the department include dedication, excellence, integrity, accountability, innovation and respect.

Technological development is also a crucial element of the corporation. Since technology is dynamic, the corporation incorporates new changes to ensure survival in the industry.

Lastly, Service Corporation International has a sound procurement department that plans for acquisition of facilities and inputs. All these plans and approaches have enabled the corporation to remain in the peak of the industry (Heizer & Render, 2004).

The corporation is at the maturity stage of the business life cycle. The progress from this stage will lead to the post-maturity stage. Under this stage, the corporation can experience three likelihoods. These likelihoods include renewal, steady or decline states.

The appropriate state for the company to be is the renewal state. Through adoption of appropriate strategies, the company can renew its services and products to enhance its profitability. As a result, its influence in the market will continue to be felt.

SWOT Analysis

The SWOT analysis model describes strengths, weaknesses, opportunities and treats that a firm experience in the industry. Through the analysis of these factors, a company can be able to forecast future trends of the market. As a result, it can appropriately create strategies for dealing with any expected eventuality. Service Corporation International has the following strengths in marketing the funeral and cemetery industry:

The services offered by the corporation are appealing and contending. These attributes have created preference and taste among consumers.

Based on this fact, consumers have developed loyalty for the corporation’s services in the industry. Since Service Corporation International has directed resources to provision of distinctive and innovative services, it has attracted a larger section of consumers. As a result, the volume of sales has steadily increased.

Service Corporation International has been able to expand due to its flexibility in adopting new technology. The company has a good research and development team that handles financial and operational matters. The corporation has experience in the industry, which allows it adjust its services over other corporations in the industry.

The company has seven brands that identify its services. This enhances marketing as customers easily recognize the services. Branding also differentiates the company’s products from those of other companies. Consequently, it assists in reduction of confusion among different companies’ services.

Service Corporation International’s services are affordable to consumers as compared to its rivals. Thus, the company can add any profit margin on the costs and still be a cost leader in the funeral and cemetery industry. Through this initiative, the expected profits are always high. As a result, the corporation can undertakes diversified investment projects in the same industry to attract more consumers..

Regardless of the above strengths, there are weaknesses within Service Corporation International. These weaknesses include:

The previous records of the corporation affect its image among consumers. When the corporation messed up with the body of one of the families, fears began to develop. Furthermore, the favor given by the local government during the presentation of the verdict irritates most consumers. This occurs from the fear of such incidence reoccurring.

Inappropriate advertising has affected the corporation market size. Based on its success history in the past, the corporation does not undertake rigorous promotions. The outcome of this incident has led to reduction in consumer base. Similarly, the marketing strategies do not cover substantially its various services.

The management structure of the corporation does not cover effectively all the subsidiaries in the region. With the multiple subsidiaries, the corporation cannot effectively monitor their operations. In addition, the subsidiaries operate as different entities resulting in variation in service provision. Consequently, consumers are likely to go for those funeral and cemetery services from rivals with precise service specifications.

The corporation’s human resource department is full of challenges. Since the department is located in each of the subsidiaries, they are operations are different. As a result, the large number of workforce cannot be easily monitored. This has led to inefficiencies in service delivery.

To counter the above mention weaknesses Service Corporation International has viable opportunities in the funeral and cemetery industry. In addition, the opportunities boost the strengths of the corporation (Hamel, 2007). The following are the possible opportunities:

The corporation has a substantial amount of base. In this case, it can invest in any type of investment with few limitations. In addition, their performance in the New York Security Exchange enables it to lure customers into their undertakings. This is because it is a sense of financial stability.

The growing number of the population implies there is shortage of land to conduct funeral and cemetery services. In this regard, people will resort to commercial cemetery services and crematoria services. Such change of events would be in favor of Service Corporation International. If the company ventures into provision the services at affordable prices, it is likely to win over the market in the funeral and cemetery industry.

Most of the services offered by the funeral and cemetery organizations are designed for the rich. If the corporation designs an initiative that favors provision of services among the poor, the company would increase its customer base. This market would contribute small profits initially but will grow to offer the company substantial profits.

In any business environment, all corporations are exposed to threats that may terminate their operations. Service Corporation International is likely to face the following threats in the funeral and cemetery industry:

Provision of funeral and cemetery by giant manufacturers- Some providers of similar services as Service Corporation International may dictate the market directions through provision of products and services at relatively lower prices.

Shortage of inputs and resources- During times of intense funeral and cemetery provision, Service Corporation International may not have adequate materials to inputs to provide the essential services.

In addition, the corporation may experience a shortage of employees to provide similar. This will be caused by labor turnover, retirements or death in service. Consequently, it will expose the corporation to a risk of financial and customers’ loss.

Low standards of services- Since Service Corporation International management are responsible for delegating their responsibilities to junior staff. The staff may not comply with the policies and procedures of the corporation. As a result, the company will taint its image in the eyes of the public. This will be a similar experience as it happened in the past.

The above strengths, weaknesses, opportunities and treats reveal the nature of the corporation in the industry. Through integration of these elements, the organization will improve its competitiveness.

If the corporation minimizes its weaknesses, it will play a great role in boosting its strengths. As a result, the profitability of the company would be high. This will go in line with maximization of stakeholder’s wealth (Graham & Bennett, 1998).

In a different dimension, the company has to exploit its opportunities at the current moment before they are obsolete. These opportunities are lucrative but seasonal. Based on these facts, the corporation can utilize its strengths to maximize on the available opportunities.

The other aspects of threats should be dealt with appropriately. The corporation has to develop risk management strategies that will protect the company in case of any eventuality. Moreover, the corporation has to counter its competitors to survive in the industry. This could be through adjustment of business strategies or change of functional strategies.

The Corporate Level Strategy

Service Corporation International has a sound corporate management. It has developed its own corporate governance policy that governs its operations. Its corporate policy is as follows: ‘Service Corporation International (SCI) is committed to developing effective, transparent and accountable corporate governance practices’.

The corporate governance philosophy adopts practices that are not only compliant with New York Stock Exchange (NYSC) and other legislative requirements. In addition, they have a board that constructively and actively engaged in corporate oversight. As a result, the corporation ensures that its services are genuine and effective amongst all its stakeholders.

The company operates different lines of business, which includes provision of funeral services, cemetery facilities and crematoria services. The company offers these services in the name of the following brands.

Dignity Memorial Brand

It was the first national brand that was developed in 1999 to offer funeral, cemetery and crematoria services in North America. They assist in preparation of memorial services for consumers wishing to remember their loved ones.

National Cremation Society

It was formed in 1973 to offer cremation services. It is the oldest and the largest cremation service provider in North America. This facility provides the highest quality of service in the region.


Service Corporation International aims at providing its services to all classes of people in the society. Advantage funeral homes were formed to gather for the needs of the poor. These consumers wish for simple forms of funeral services.

Funeraria Del Angel

Funeraria del angel is a brand that was formed to gather for the Hispanic group of people. This is because their death service requirement is different. As a result, their population is significant to demand an investment in providing such services to them. This service is also one of the projects initiated to cater for the cultural differences.

Making Everlasting Memories

Service Corporation International developed a brand that allows people to share memories of their loved ones. The company prepares biographies and other items that friends and relatives. These memories are shared amongst the families from one generation to the next.

Memorial Plan

In the process of providing services to all classes of people, the funeral services of honorary people are addressed. A memorial plan has been formed to provide funeral services to those who wish to have prestigious funeral services. It is a new brand, which offers services in southern Florida.

The Neptune Society

The Neptune society is also called the ‘Trident society’ in some regions of California. It is known as the Neptune society in Los Angeles, San Luis Obispo, Santa Barbara and Ventura. The Neptune society offers cremation services to its consumers. Consumers with such a wish are provided with the service.

The above seven lines of business operate under Service Corporation International’s management. They are distinct from each other with unique brands having their own logo.

However, all properties of the company are identified by the ‘dignity logo’. Even though these brands operate distinctly, they are under one corporate management of Service Corporation International. Thus, Service Corporation International has been able to expand and grow since it was founded. It has acquired and merged with other companies in the same industry.

Company’s Business-level strategy

Service Corporation International is a single-business company. The corporation engages in provisions of funeral services. In addition, it acquires businesses in the same industry to promote its profitability.

Some of the competitive strategies adopted by the company include service differentiation, cost leadership, and strategic development. These factors are influenced by the competitive position and life-cycle stage of the corporation (Shim & Siegel, 2000).

Service differentiation involves the formulation of services, which are unique in the market. In this case, Service Corporation International has invested in varied types of funeral homes. These funeral services address the needs of consumers depending on their social status, cultural backgrounds, geographical locations and religious beliefs.

As such, consumers can differentiate the services of the corporation from those of its rivals. This has facilitated growth in the reputation of the company. Similarly, the consumers ranked the corporation among the best in the industry.

Cost leadership involves the provision of services at varied prices to consumers. Based on the social classes of consumers, the corporation offers services to meet their needs. The corporation developed different funeral facilities and programs that consumers can make their choices.

In this case, the corporation taps any revenue from diverse consumers. In addition, the services of Service Corporation International are relatively cheap compared to its rivals. This has made it one of the most cost-considerate companies in the industry (Freedman, 2007).

In addition, the corporation has established functional strategic development. This initiative is aimed at expanding the asset base of the company within the region. Some of the programs that have been incorporated include marketing and research & development. Through this means, the company is able to acquire more funeral homes. Moreover, it has incorporated comprehensive services that meet the consumers’ needs.

Another critical element of the business-level strategies is the customer responsive nature. The corporation has established a set of values that govern the behavior of its employees during service delivery. High level of hospitality and respect are used to attract consumers.

Through this act, consumers are given the first priority concerning their demands. This trend has made the company retain and attract more consumers. As a result, the customer base of the corporation steadily grows (Terry, 1999).

Structure and control systems

The corporation has well-structured and controlled systems of implementing its strategies. In this case, the company utilizes a vertical differentiation. The corporation has its headquarters in Houston and other subsidiaries distributed across North America and Canada.

Over time, the company continues to acquire additional funeral homes. The management of all these branches may be challenging, but the company’s vertical differentiation plays a critical role (Williamson, 2004).

The top management operates from the headquarters. These individuals are involved in formulation of strategic plans of the organization.

The basis of the strategies is obtained from the lower level management. Through consultation made by the middle level managers and the operations managers, the top management can reflect on the real situations at the ground (Dewhurst, 2002). In this case, strategies are formulated to enhance retention of its existing employees and consumers.

The human resource management department has established a vertical control system. In this regard, issues are addressed in sequential manners from the top management to the operational management. The vice versa also is functional.

This management system assists the corporation to detect strengths and weaknesses in every dimension of its investments. On the other hand, employees will be monitored efficiently to ensure satisfactory service delivery.

The challenge of addressing employees’ issues is dealt within the subsidiary levels. The nature of remuneration offered to employees depends on their contributions and position in the corporation. Initially, the managers are rewarded since they are responsible for overseeing departmental activities. On the other hand, employees receive attractive remuneration based on their contribution.

The remuneration system consists of monetary and non-monetary benefits. The monetary benefits include salaries, commission and bonuses on the activities done. Non-monetary benefits consist of insurance covers, training programs and other additional benefits.

This system of remuneration is attractive among the employees (Wilson & Gilligan, 2005). As a result, the employees have high morale for service delivery due to employment security.

However, the delivery of services has weaknesses at the lower level of management. Since employees at this level are either on contractual or permanent basis, it is hard to establish their real contribution.

In addition, it is difficult to design a system that measures their real efforts due to the overlapping demands of services. As a result, the company’s management delegates such responsibilities to the operational managers. This could lead to interference of the actual expectations of the employees.

Another crucial component of the company is marketing. Through designing of an appropriate marketing mix, the corporation’s management is able to influence the market of funeral services. The main product strategy adopted is enhancement of standards and variety of the services. Place strategies aim at providing unique services based on the geographical locations of consumers.

In this case, the proximity of consumers to funeral homes has a great impact on the demand for service. Pricing strategies are another crucial element of marketing. In this regard, the corporation differentiates it products to meet a wide variety of consumers.

In addition, the corporation has incorporated market segmentation base on the social statuses of the consumers. Lastly, the promotion strategies are essential for the organization. In this case, the corporation combines advertising and public relations to influence its consumers (Shim & Siegel, 2000).

Regardless of the above marketing strategies, there are challenges in sourcing finance to achieve the desired goals. At times, substantial amounts of finance are invested on the strategies, but yield no returns. The nature of competition also in the industry interferes with the performance of the corporation.

Based on the weaknesses experienced by the company, it is essential to develop an action plan to counter them. The ideal action would involve reengineering of its business processes. This involves creation of diverse and unique services. In addition, it involves improvement of common services offered by the company.

As such, it should be distinctive and qualitative. As a result, the weakness would be addressed in a series of phases that may take a period of three years. This implies that the corporation would portray a new set of policies and services offered to consumers (Woodhall & Stuttard, 2006).).

Financial analysis

The financial aspect of the corporation is very important in evaluating its performance and position in the market. Through ratio analysis, one can identify the corporation trend. The ratios at the end of 2011 financial year include:

Gross profit margin= Sales Revenue-Cost of Goods Sold

Sales Revenue = 2,316,040,000 – 1,837,504,000

2,316,040,000 = 20.66 %

Net profit margin = Net income

Sales Revenue =146,232

2316040 = 6.31 %

Return on Total assets= Net income Available to Common stockholders

Total Assets = 144,903

9,327,812 = 1.55 %

Return on stockholders’ Equity= Net income available to common stockholders

Stockholders’ equity =144,903

222,956 =65 %

Current ratio= Current Assets

Current liabilities = 328,093

385608 = 0.85

Quick Ratio= Current Assets- Inventory

Current Liabilities =328,093-25,513

385608 = 0.785

Inventory Turnover= Cost of Goods Sold

Inventory = 1,837,504

25,513 =72.02

DSO =Accounts Receivable

Total Sales/360 = 103,892

2,316,040/360 = 16.15

Debt-to-Assets Ratio = Total Debt

Total Assets = 103,892

9,327,812 =0.011

Debt-to-Equity Ratio = Total Debt

Total Equity =103,892

222956 = 0.47

Times-Covered Ratio =Profit Before Interest and Tax

Total Interest Charges =362,699

133,782 = 2.71

Total Shareholder Returns =Stock Price (t + 1)

Stock Price (t) + Sum of Annual Dividends per Share

Stock Price (t) = 1(1+1)-1(1) +1

1(1) =200%

Price-Earnings Ratio =Market Price per Share

Earnings per Share =9.76

0.61 = 16

Market to Book Value =Market Price per Share

Dividends per Share = 9.76

0.20 =48.8

Dividend Yield = Dividend per Share

Market Price per Share = 0.20

9.76 = 0.0205

The financial ratios above indicate the performance and position of the corporation in the market. This analysis indicates that the liquidity of the company is significantly low. On the other hand, the assets held by the company are many. For the stakeholders, they benefit from the reception of annual dividends, which are consistent (SCI, 2011).

Market recommendations

The challenges facing the company need to be addressed. This involves the development of strategies that counter the problems, and increase future profitability. At the current period, the corporation offers funereal services to its consumers. This involves provision of funeral services such as cemetery and crematoria. As such, the corporation has to diversify the nature of its services.

The incorporation should add services such as memorial services, insurance and obituaries. Moreover, the corporation should diversify its investments in other related industries. In this case, it is appropriate for the company to venture into the real estate industry because it has a large capital base. This will improve its performance in the security exchange market (Cadle et al., 2010).

The corporate strategy has to be revised to comply with the changes in the industry. In this regard, the corporation has to alter most of its policies and initiatives in the marketing department.

Since dynamism in technology offers better means of accessing consumers at lower costs, it is essential for the company to invest in this form of marketing. This reduces the operation costs. Consequently, the level of sales would increase. This is because a large consumer base will be achieved.

Another critical element that the organization should reevaluate is the financial management. A strategy should be incorporate to enhance efficient utilization of resources in the organization. Through improvement of accountability and transparency, most of the corporation finance will be utilized appropriately. Similarly, the finance will be directed to viable investments that will improve its profitability.

Research and development is also a vital component of the corporation. This department should be utilized to establish new ventures and investments that are feasible. Some of the areas that should be researched on include services and products.

With the improvement of their services and products, the company will be able to make large volume of sales (Hersey & Blanchard, 2002). In addition, the services offered within the different funeral homes will be integrated. As a result, all needs of consumers will be addressed at their closest facility.

Action plan

1stPhase (Two years) 2nd Phase (Third year and onwards)
Functional strategies Thorough implementation of strategies already formulated to offer the company with the desired results. In this case, all its services will appropriately be delivered to the market, while offering services at affordable costs. This involves a serious campaign to overhaul the services offered by the company. In this regard, the company will add other services such as memorial services and obituaries for the customers. In addition, the previous services will be reengineered in a qualitative and quantitative perspective.
Marketing The company would organize to conduct marketing on the region through means such as media advertising and public relations Over time, marketing strategies will change. Therefore, the company has to adopt the latest technological facilities to conduct promotion of its services and products. These methods include internet marketing and mobile marketing.
Human resource management The organization has to realign its human resource structure. In this case, the management should portray a three-level structure consisting of top, middle and operational management. This will ensure efficiency in services delivery The corporation has to realign its management based on its objectives. In this regard, the management should be decentralized,. As such, each subsidiary will has its own departments. In addition, the financial issues will be the only subject to be consolidated.
Research and development This department has a cardinal role of ensuring that the organization survives in the industry. As a result, the company should utilize it to improve the nature and manner of delivering services to the consumers. When the services and products are ideal for consumers’ taste, it is necessary to upgrade them. This involves reengineering of varied types of services that can be offered to consumers.


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