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 doingso.

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2012 2013 1. Number of jobs billed 2. Selling price per job 3. Software-implementation labor-hours 4. Cost per software-implementation labor-hour 5. Software-implementation support capacity (number of jobs it can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6ow5) 40 $45,000 $42,000 25,000 28,000 $58 $60 70 $224,000 $252,000 $3,600 70 3,200