Show the merits of using return on investment, Strategic Management

Assignment Help:

Q. Show the Merits of using return on investment?

Merits of using return on investment (ROI)

-  Relative (percentage) measure so performance can be compared 'relatively' for divisions or business units which are different sizes.

-  ROCE is a well understood measure for 'users' of financial accounting.

-  Forces a manager to be efficient and effective with resources e.g. money or capital employed to buy assets, when attempting to improve profitability.


Related Discussions:- Show the merits of using return on investment

What is benchmarking, A technique employed to help with deciding which soft...

A technique employed to help with deciding which software package to select.

Case study on fisher price, Fisher price is famous for manufacturing qualit...

Fisher price is famous for manufacturing quality toys at moderate prices. Fisher price is the best known brand for toys. It enjoys the largest market share of around 65% in the ind

What is uncontrollable costs, Q. What is Uncontrollable costs ? Uncont...

Q. What is Uncontrollable costs ? Uncontrollable costs General apportioned fixed overhead e.g. group overhead allocated or apportioned to divisions, which would not b

Decision-making information systems, An organisation is reviewing its decis...

An organisation is reviewing its decision-making information systems and has asked you to recognize suitable assessment criteria for this review. Value for money. Value for m

Illustrate about value for money framework, Q. Illustrate about Value for m...

Q. Illustrate about Value for money framework? The value for money (VFM) framework (the 3Es)  Economy (Cheap) e.g. is the organisation procuring resources at the lowe

Management decision - making case problem, Louise Nance had working on the ...

Louise Nance had working on the assembly line of the Jackson Manufacturing Company for about six months. During recent weeks, her supervisor, Ben Miller, noticed that her productio

Define global and international regional strategies, 1. What are the streng...

1. What are the strengths and weaknesses of the mission statement? Which of these statements are effective guides to decision-making within an organization? Which, if any, of th

Technology can drive substitution of products or services by, A) Producing ...

A) Producing new and better products or services B) Substitution of require by a related product or service C) Displacing consumer spending into latest unrelated products and

Calculate the growth-price-recovery, Hamadi Corporation manufactures an ele...

Hamadi Corporation manufactures an electronic component 'AZ-101'. This component is significantly different from its peer companies and has gained a high repute. The company presen

Feasibility concerns, Whether an organization has the resources and compete...

Whether an organization has the resources and competences to deliver a plan

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd