Northland Corporation is a small information- systems consulting firm that specializes in helping companies implement standard sales- management software. The market for Northland’s services is very competitive. To compete successfully, Northland must deliver quality service at a low cost. Northland presents the following data for 2011 and 2012.

Software- implementation labor- hour costs are variable costs. Software- implementation support costs for each year depend on the software- implementation support capacity Northland 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.

1. Is Northland Corporation’s strategy one of product differentiation or cost leadership? Explain briefly.
2. Describe key measures you would include in Northland’s balanced scorecard and your reasons for doingso.

  • CreatedJanuary 15, 2015
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