1. What were the concerns about the direction of CPI?The three main concerns with the direction of CPI included the need for improving the customer in-storeexperience as noted by the CEO at the time. Second was the long wait times for photo session to take place. Third was the delay in the customer receiving their photos from a central printing location.2. Why did CPI fail to read and respond to the changing environment in which it conducted business?CPI was stuck in their old ways of doing business and did not look to the future. They did not recognize the changing environment of the industry. They had a large existing customer base, and instead of evolving and making changes that were needed, CPI opted to try and expand its customer base to keep them in business. Potentially, due to the concerns listed above those new customers may not have returned a second time and rumors may have spread about issues with the business model and that mayhave hurt them further. They did not invest in new technology and processes and how the digital world would change their business. They could have made changes in the printing process and had the photos to customers in an hour or less. Whereas, the photos were printed in one location in the country and the customers had to then return to the store to pick them up.3. As technological trends and consumer behaviors and attitudes changed, why did CPI hold on to its own success model?They held on to its business model even through trend and consumer changes because it had worked forthem for over 60 years. They old saying “If it isn’t broke don’t fix it,” was probably the way of thinking. Even the CEO at the time pushed for changes after he himself witnessed issues with the studios. The plea to the Board of Directors though fell on deaf ears as they opted to expand its customer base. The Board believed with the strengths the company enjoyed and the long history in the business they could stay the course and continue to be a sought-after business.4. As business competitors within the industry weigh their future, how will they pay attention and adjust their business strategies in order to remain viable and avoid the CPI fate?With the fast pace of technology and the digital world evolve, competitors should be keenly aware they may face the same fate as CPI. Companies should always be looking to improve continuously. This must include looking at and listening to what people are saying and make changes to address concerns. Understand what your competitors are doing. How do they market themselves, what products or areas are they focusing on, how are they evolving with the current environment? Organizations need to evolveand develop ways of moving forward, invest in research and development of new or refined products to keep them viable for the future. In conclusion, based on what the former CEO had witnessed and professed to the board, perhaps if they had listened and heeded his warning, they may still be in business today. They were stuck in their ways and did not want to evolve and update their studios. As is stated in the case, they had the greatest opportunity for success, but they missed it.Daft, R. Organization Theory & Design 12e,