Strategy, balanced scorecard, service company.
Southland Corporation is a small information- systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Southland's services is very competitive. To compete successfully, Southland must deliver quality service at a low cost. Southland presents the following data for 2012 and 2013.
Software-implementation labor-hour costs are variable costs. Software-implementation support costs for each year depend on the software-implementation support capacity Southland chooses to maintain each year (that is, the number of jobs it can do each year). Software-implementation support costs do not vary with the actual number of jobs done that year.
Required:
1. Is Southland Corporation's strategy one of product differentiation or cost leadership? Explain briefly.
2. Describe key measures you would include in Southland's balanced scorecard and your reasons for doing so.
Question 2
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