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ICQ #3 13-23 Strategy, balanced scorecard, service company. Haller Corporation is a small information systems consulting firm that specializes in helping companies implement sales management

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ICQ #3 13-23 Strategy, balanced scorecard, service company. Haller Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Heller's products is very competitive. To compete, Haller must deliver quality service at a low cost. Haller bills clients in terms of units of work performed, which depends on the size and complexity of the sales management system. Heller presents the following data for the years 2018 and 2019. 2013 2019 1. Units of work performed 60 70 2. Swing price $ 50,000 $ 48,200 3. Software implementation labourhours 30,000 32,000 4. Cost per software implementation labourhour $ 60 $ 63 5. Software implementation support capacity {units of work) 90 90 6. Total cost of software implementation support $360,000 $369,000 5'. Software implementation support capacity cost per unit of work $ 4,000 $ 4,100 8. Number of employees doing software development 3 3 9. Total software development costs $325,000 $390,000 10. Software development cost per employee $125,000 $130,000 Software implementation labourhour costs are variable costs. Software implementation support costs for each year depend on the software implementation support capacity (dened in terms of units of work) that Heller 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 softwaredevelopment employees. The softwaredevelopment staff and costs have no direct relationship with the number of units of work performed. RE QUIRED 1. Is Haller Corporation's strategy one of product differentiation or cost leadership? 2. Describe briefly key elements that you would include in Haller's balanced scorecard and your reasons for doing so

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