solved Many of the cases and organizations that we have discussed

Many of the cases and organizations that we have discussed to date have been product-related. However, the US Economy is primarily service based (https://dpeaflcio.org/programs-publications/issue-fact-sheets/the-service-sector-projections-and-current-stats/ (Links to an external site.)). As a result, it is important to consider how one can develop strategies for this industry.There are many, many firms that engage in consulting (or a type of service). It is important to consider a market segment, a mission, a costing model, and so on. For most consulting firms (mine included), it is important to develop a billable rate that will capture direct (direct employee costs including salary and benefits) and indirect costs (e.g., rent, utiliities, overhead such as HR, accounting, marketing, etc.).There are many strategic choices a service firm must make: (1) where will it locate? (2) what type of employee will it want to attract? (new entrants, seasoned employees, or a mix?), (3) What salaries will you offer to attract and retain? (4) What compensation will you offer (base salary, vacations, bonus plan, etc.)? (5) How many hours will you expect your employee to work (the more hours that are billed, the greater the revenue)? (6) What percentage of the time do you expect your employees to bill (e.g., 50 to 100%)? (7) What impact will billing and hours have on motivation, retention, and attraction of employees? (8) How much overhead do you anticipate and will you hire employees or will you outsource (e.g., secondary activities of the value chain)? (9) How much will you pay support staff to be competitive in the market for employees? (10) What type of client will you pursue (high end, low end, in the middle) and is the amount you plan to bill aligned with that approach?These are questions to consider for the next class. We will spend time in the next class to allow your team to generate answers to these questions and others. The project will include presenting your company’s strategy and costing model to the class. Here is ONE example of a costing model.033118 FINAL.Growth.Gear.Consulting.xlsx