Suppose that during 2013, the market for implementing sales-management software increases by 10%. Assume that any increase in market share more than 10% and any decrease in selling price are the result of strategic choices by Southland’s management to implement its strategy.
In Exercise 12- 26, 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.

Calculate how much of the change in operating income from 2012 to 2013 is due to the industry-market-size factor, product differentiation, and cost leadership. How successful has Southland been in implementing its strategy?Explain.

  • CreatedMay 14, 2014
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