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In the first episode of Six Feet Under, a popular American television show aired earlier this decade, a large corporation tries
In the first episode of Six Feet Under, a popular American television show aired earlier this decade, a large corporation tries
admin
2012-12-01
52
问题
In the first episode of Six Feet Under, a popular American television show aired earlier this decade, a large corporation tries to buy a family-owned funeral home (even making overtures at the patriarch’s own burial). The owners of Salem Funerals & Cremations, based in Winston-Salem, can relate to that. In 1991 Service Corporation International (SCI), the largest funeral chain in America, bought their formerly family-owned business, one of the oldest in America. But last year they broke free from SCI and started Salem, which is now using low prices and simple services to wrest market share from their cross-town corporate rival.
Thus continues the unending tug-of-war between corporate and family-owned funeral homes in America. It is a strange industry: more than 85% of funeral homes are still owned by families or independent firms (similar perhaps to dry-cleaning shops but not much else). Just 3,000 of 22,000 funeral homes are owned by big corporations, estimates George Clarke, executive director of an association of independent funeral homes. Houston-based SCI is the biggest of the corporates, claiming a 14% share of revenues from "death care", as they tactfully call their business.
Public death-care companies are not exactly in rude health themselves. SCI’s share price, despite nearly doubling in the past year, stands at less than one-third of its level in the late 1990s; its biggest rival, Stewart Enterprises, is just over $7, down from $28 at its peak in 1998. The trouble was a wave of consolidation during the 1980s and 1990s. Funeral-home companies thought they could grow by acquisition and cut costs through consolidation. But they overpaid amid a scramble to buy independent funeral homes, and found that they could not wring big savings out of them.
Death, although recession-proof, is not a growth business (even though baby boomers are getting on), so SCI is trying to increase its margins. In recent years it has adopted a new strategy, cutting prices for caskets and urns while concentrating on selling bundles of services, says David Hass, a managing director. In 2005-2006, average revenues per funeral service at SCI rose by an impressive 9% (or $394 per service), whereas the number of funeral services performed fell by 5.8%. SCI has also gone for branding. Its chain of "Dignity Memorial" funeral homes offers such services as a "24-hour compassion helpline" and advice on securing bereavement fares from airlines. The company says the brand is doing well; it is rolling out a Hispanic version, Funeraria del Angel, targeted at Latinos, complete with bilingual staff and the option of 24-hour viewing of the deceased.
Independents say that the corporates’ prices are too high, and that their service is too impersonal for such a delicate business. "Everything is bottom-line oriented," complains Jim Weeks, who recently bought back the funeral home once owned by his family in Savannah, Georgia, from SCI.
Whatever the price, both corporates and independents will be troubled by the growing popularity of cremations. These are much less costly than burials. Richard Puryear of Salem Funerals and Cremations estimates that a typical burial costs $6,400, whereas cremations average at best $2,800. In 2005 about 32% of funerals in America were cremations, up from 26% in 2000, according to the Cremation Association of North America. It expects the number to rise to 46% by 2025. SCI is responding by withdrawing from the cheapest cremations and going for more lucrative packages. Already 41% of its business comes from cremations (above the national average because its business is concentrated along the coast, where cremations are especially popular). "We expect it could be 50% in the next five to ten years," if not higher, says Mr. Hass.
Family operators face an extra hurdle. It is hard to persuade young people to get involved in the business, which is not just gloomy but also grueling: undertakers are on call 24 hours a day, seven days a week. Most of the staff of independent funeral homes are 45 or older, says Mr. Puryear. So death could yet be their undoing.
The problem threatening big corporations and independents is that
选项
A、they are criticized for high prices.
B、cremations are gradually replacing burials.
C、the average costs of cremations are growing.
D、they are suffering from a shortage of manpower.
答案
B
解析
推理判断题。原文第六段首句谈到大公司和独立公司都会因为火化的不断普及而遇到困难;该段后面的内容具体谈到火化的普及是怎样影响这些公司的。 由此可见,大公司和独立公司所面临的共同威胁就是[B]。[A]利用第五段第一句中的high prices设置干扰,但说independents受到criticized纯属无中生有;文中并没有提到“火葬的平均成本在增长”,故[C]也不对;[D]“它们劳动力短缺”是尾段所谈到的家庭式经营所面临的问题, 故也应排除。
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