Snyder Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Snyder's products is very competitive. To compete, Snyder must deliver quality service at a low cost. Snyder bills clients in terms of units of work performed, which depends on the size and complexity of the sales management system. Snyder presents the following data for the years 2015 and 2016.

Software implementation labour-hour costs are variable costs. Software implementation support costs for each year depend on the software implementation support capacity (defined in terms of units of work) that Snyder chooses to maintain each year. It does not vary with the actual units of work performed each year. At the start of each year, management uses its discretion to determine the number of software-development employees. The software-development staff and costs have no direct relationship with the number of units of work performed.
Required
1. Is Snyder Corporation's strategy one of product differentiation or cost leadership?
2. Describe briefly key elements that you would include in Snyder's balanced scorecard and your reasons for doing so.

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2015 2016 1. Units of work performed 2. Selling price 3. Software implementation labour-hours 4. Cost per software implementation labour-hour 60 S 50,000 30,000 S60 90 $360,000 S4,000 70 $ 48,200 32,000 S63 90 $369,000 $4,100 Software implementation support capacity (units of work) 6. Total cost of software implementation support 7. Software implementation support capacity cost per unit of worlk 8. Number of employees doing software development 9. Total software development costs 10. Software development cost per employee $375,000 $125,000 $390,000 $130,000