Roi Definition Example Essays


Found 162237 essays.

Definition of ‘Return On Investment – ROI’

Keep in mind that the calculation for return on investment and, therefore the definition, can be modified to suit the situation -it all depends on what you include as returns and costs.A financial analyst, however, may compare the same two products using an entirely different ROI calculation, perhaps by dividing the net income of an investment by the total value of all resources that have been employed to make and sell the product.The definition of the term in the broadest sense just attempts to measure the profitability of an investment and, as such, there is no one “right” calculation.Investopedia explains ‘Return On Investment – ROI’ .This flexibility has a downside, as ROI calculations can be easily manipulated to suit the user’s pu...


300 words (0.8 pages)
Return on Investment Essay

In fact, decision makers must recall that an ROI measure on its own is not an adequate ground for resorting to a certain action over a different one.In addition, the decision makers will anticipate realistic proposals from an analyst as well concerning how ROI may be improved upon by decreasing the costs, adding gains or speeding up gains (Moloney, 2009).This means that when making a review of the measures of ROI, or when even told to come up with one, it is very pertinent that care is employed to ascertain that all the people involved are able to describe the measure in the same manner.The use of ROI is very important as I seek to elaborate below.Owing to this very fact, a good analyst will endeavor to assess the chances of varying ROI ...


888 words (2.2 pages)
APA guidelines Essay

So if your net profit is $100,000 and your total assets are $300,000, your ROI would be .33 or 33 percent.Definition of Vendor Managed Inventory.ROI deals with the money you invest in the company and the return you realize on that money based on the net profit of the business (Entrepreneur Media, Inc., 2014).Return on investment, or ROI, is the most common profitability ratio.There are several ways to determine ROI, but the most frequently used method is to divide net profit by total assets.


1470 words (3.7 pages)
Transportation National Group (Columbia Business School)

The purpose of using ROI is to know the company can collect more than the cost of investment or not and for planning of future investment.Providing lower price may result in increasing prospective customers, increasing the utilization of trucks and finally rising the total ROI, analogous to globally optimum.Second, ROI should be used for annually basis instead of a single contract in this highly competitive market.However, there are some faults how to use the ROI.To relax the constraint, ROI should be “the ratio of Revenue for the year to Investment”.


1942 words (4.9 pages)
Total Cost of Ownership vs Return on Investment

Advantages of ROI .The investopedia.com (n.d) defines ROI as “A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments”.* ROI is consistent with most management reward models, and this fact is made evident by its use as a financial performance metric.To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.Definition of ‘Return On Investment – ROI’ .


865 words (2.2 pages)
Project Management Recommendation Essay

The project will be closed only upon completion of the project, evaluation of the project, and client approval of the project.Secondly, if the Piper Industries Corporation is able to deliver the product within 12 months, the company would have met the project schedule deliverable.Project definition and planning .My feasibility study focused on Return on Investment (ROI), length of project, risk level and overall benefit to Piper Industries.Return on Investment (ROI): 77% or $250,000 for a period of 2 to 3 years Length of project: .


682 words (1.7 pages)
Defining And Evaluating Methods Of Measuring Performance Accounting Essay

The RI measure enables to calculate the different risk-adjusted in capital cost while ROI cannot incorporate these differences.When ROI is used as a managerial performance measure, Measuring returns on invested capital also focuses managers’ attention on the impact of levels of working capital (in particular, stocks and debtors) on the ROI.According to Daiva BurkÅ¡aitienÄ-, a further attraction of ROI is that it can compare the return of different businesses field for example division within the company or competitors by adopting it as a common denominator.ROI and RI are short-run concepts that deal only with the current reporting period whereas managerial performance measures should focus on future results that can be expected because o...


2239 words (5.6 pages)
Relationship between Social Responsibility and Profitability

The performance measurement that will be used to evaluate and compare the efficiency of different investments will be the return on investment (ROI).That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.For example, news paper articles can be investigated to know what activities each company is sponsoring or to gain an idea about educational simulations moreover, accounting books can be investigated to get an idea of the profitability trend at times when CSR activities are adopted, such documents may include financial statements, balance sheets and cash flow.One can find some limitations and gaps since Corporate Social Responsibilit...


3518 words (8.8 pages)
The Relationship between Corporate Social Responsibility and Organizational profitability

That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.Waddock and Graves (1997) studied the linkage between corporate social performance (CSP) and financial performance; they hypothesized a positive relationship between CSR and financial performance using CSP as a measure of CSR and return on investment (ROI), return on assets (ROA) and return on equity (ROE) as measures of profitability or the firm’s financial performance.For example, news paper articles can be investigated to know what activities each company is sponsoring or to gain an idea about educational simulations moreover, accounting books can be investigated to get an idea ...


3582 words (9.0 pages)
Advertising And Social Networking Sites Media Essay

.. For the formulated hypothesis that the youth favour and endorse advertisements in SNS, the study findings and analysis of the data during the study validates the hypothesis with exceptions.Most forms of ROI analysis compare investment returns and costs by constructing a ratio, or percentage.With regard to finance, the concept of Return On Investment (ROI) is an indicator that is commonly used to measure the financial successes of social media marketing and advertising in terms of cost reduction and consequent increases in margin.This chapter also suggests avenues of further research in the area including privacy & legal issues & Patent, and intellectual property rights related issues.Ryan Deutsch defines ROI as one of several...


1964 words (4.9 pages)
Operational Levarage

Without a good understanding of the company’s inner workings, it is difficult to get a truly accurate measure of the DOL.Even if it is not 100% accurate, knowledge of a company’s DOL can help us assess the level of risk it offers to investors.That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.At the same time, a company’s prices, product mix and cost of inventory and raw materials are all subject to change.Although you need to be careful when looking at operating leverage, it can tell you a lot about a company and its future profitability.


983 words (2.5 pages)
Barrows Consumer Products Essay

Calculation on ROI, RI and EVA for subunits that operate in different countries needs to be adjusted for differences in inflation and changes in the exchange rates.Given these countries were picked for their significant growth opportunities, a performance measurement based heavily on ROI presents a potential moral hazard for these country managers.Profit, ROI and EVA .However, ROI has a major drawback: it provides incentive for managers to not invest in assets or technology that would drive longer-term growth.Since ROI has a short term outlook, it does not work well in an emerging market.


872 words (2.2 pages)
Importance of Training and Evaluation in Organisations

Use of ROI is just to check the returns on investment.So they increased their interest in ROI.The ROI formula is as follows: .ROI theory cannot be directly applied.That is why ROI theory is called as a fifth stage of Kirkpatrick’s evaluation theory.


4452 words (11.1 pages)
Project Management Email Individual Paper Essay

Jacobs, F. R. & Chase, R. (2011).Return on Investment (ROI): 69% or $450,000 for a period of 5 years Length of project: 7 Years .Answering all of the questions on Return On Investment (ROI), length of project, risk and overall benefit to Piper Industries.Boston, MA: McGraw-Hill Irwin.Return on Investment (ROI): 77% or $250,000 for a period of 2 to 3 years Length of project: Uncertain .


1901 words (4.8 pages)
Development Of Framework For Managing

Recommendation With the justifications presented above, it is highly recommended that the approval is granted to proceed with the development of this framework, and execution of the following actions: 8.1 Appointment of the Project Sponsor 8.2 Appointment of the Project Manager 8.3 Definition of the scope of works for the framework by the Project Sponsor 8.4 Development of the detailed Project Management Plan4.2 Inaccurate and imprecise definition and classification of buildings resulted in improper selection of buildings.5.3 Development of marketing and sales programs prior to building conversion to RFS status will ensure initiatives to achieve ROI are being planned and implemented immediately.The ripple effects from this are low revenu...


1687 words (4.2 pages)
Creating partnership: Enterprise Resource Planning Coursework

An example of the organization that has been affected by complexities in measurement of ROI is Garware polyester Ltd. For this organization, information systems provide both tangible and intangible returns where it is challenging to obtain or analyze data involving intangible benefits (YIN, 2003).ROI sometimes declines because of the problems that arise in implementation of ERP when the process has already started.Lack of such data or use of substandard data presents complexities in measuring ROI.It becomes difficult in choosing the most effective methods for measuring ROI and risks involved in the system are more due to lack of certainty (Gable, 2003).Case study research: Design and methods.


920 words (2.3 pages)
Rochester Manufacturing Corporation

ROI may be largely the plant manager’s responsibility.ROI may be largely the plant manager’sresponsibility.Adding up easier management tasks for example small number ofpeople for supervision and limited number of machines and supplementary floor spacewill also be accessible when required.This responsibility of plants manager to talk about ROI is considered on top rank but if numbers don’t support your change requirements then it is best for you not to change because it might increase cost of overall organization and plant manager has strong repo so could be in danger due to such decision.Solution:In this decision making process an individual with conservative frame of mind plant manager is required who could be questioned for ROI.


1217 words (3.0 pages)
How Did the Decision to Conduct an ROI Study Influence the Design of Coaching Program Essay

These data’s were further converted into monetary value, through various ways, which was further utilized in analyzing the ROI on training.assessment was better approach to calculate the ROI for the coaching program, so that finally while evaluating the results and business impact after conducting the coaching program for the executives, Nations hotel can make a decision on further expanding this coaching program for rest of the employees.The ROI process in Nations Hotel, involved gathering data through out the coaching, so that evaluation result can be evaluated in all the above mentioned five levels.These steps helped in calculating various components of ROI which includes both the calculation of tangible and non tangible benefits, eva...


1199 words (3.0 pages)
Expatriation, expenses, advantages and disadvantages

McNulty and Tharenou have defined expatriate ROI as “a calculation in which the financial and nonfinancial benefits to the firm are compared with the financial and nonfinancial costs of the international assignment, as appropriate to the assignment’s purpose.”This definition implies two important conditions: ... Meeting the Senior Manager Finance Manager during their valuable busy working hours and requesting them to give some guideline by providing knowledge about the Expats and the remuneration model designed for the assignments.· Patience was required to build the relationships and the trust... A large studies conducted by the researchers concluded that only 51 out of many global firms participating in the study desired to obtain an...


1383 words (3.5 pages)
Project management email Essay

For Stargazer, the ROI is, $1,600,000 ($300,000 first year; $550,000 the second year; and $750,000 the third year).In Palomino project, the risk is medium and the critical path is known.Its forecasting variance is very high.Even though a sunk cost of $450,000 is involved in this project, there is no guarantee for the product to start generating returns in 12 months if we pursue this project.Stargazer, even though it is an innovative product it is risky and it has unanswered business questions, so it may not be feasible to complete the project on time.


1011 words (2.5 pages)
Ubu Roi

As at the “Ubu Roi” .Yet it is a big mistake to identify Jarry’s “Ubu Roi” merely with the political satire.Barbara Wright (Norfolk, Conn.: New Direction, 1961); p.22] “Pschitt” becomes the signal to slaughter the king in act 2 of Ubu Roi.Potty-Talk in Parisian Plays: Henry Somm’s ‘La Berline De L’emigre’ and Alfred Jarry’s ‘Ubu Roi’ .Anyway, in the discussion of Jarry’s scatology with reference to the bourgeoisie and the lower classes in Ubu Roi and the following plays, it is necessary to comment upon the specific choice of the theater as the forum where these “revelations” took place.


3785 words (9.5 pages)
Network Installation Proposal

ROI = 10,82,725 – 554,000 .. 554,000 .The Project Manager will be assessing the quality of work for each of teh stake holder and will ensure that the required level of quality is achieved in the given time frame .. All the details about the post-mortem debriefings, report on the lessons learnt, project objectives and the milestones achieved would be mentioned as part of the Project documentation at the end of the project.The following tables show you the NPV and ROI value.The analysis and the lessons learnt will be used for future project success... Any changes to the budget need to be updated to the management committee ..


2208 words (5.5 pages)
Film Prioritization Case

This project would make the minimum ROI which is 18%.In conclusion, the best out of the proposals are the following: One Whale of a Story and Escape from Rio Japuni.The worst proposal are the following: Grand Island and The Year of the Echo.For example, the project need to meet safety, legal, and environmental standards.The point value of Grand Island would be around 50.


661 words (1.7 pages)
Change Proposal

The company’s ROI is how much cost saving the company gains.The final step will support the change proposals position with expected return on investment (ROI).Return on Investment (ROI) .Managing organizational change (2nd ed.).Hoboken, NJ: John Wiley & Sons.


1181 words (3.0 pages)
Cost Centres, Profit Centres, Investment Centres Essay

ROI provides a return measure that controls the size and is comparable to other measures.A manager who generates a large ROI result may be investing in riskier assets which may not be consistent with organisational goals.For example, if ROI is chosen as the measuring technique, managers may be reluctant to make additional investments in fixed assets as it may bring down the ROI for their centre.Investment projects with positive net present values can show poor ROI and RI results in early years, leading to rejection of projects by managers.Though ROI and RI operate on a similar basis, RI proves better in certain circumstances.


2147 words (5.4 pages)
Shi Fabris Case

As the main purpose of the joint venture on branching out its business in China is to reduce the cost brought about by the cheaper labor cost that is directed to increased profit which in this case, a higher percentage on return of investment of an aggressive 20% annually as opposed to the lackluster current state of 5% annual ROI.Chiu Wai, the company’s Chinese (Regarded to posses high cultural context, considering its effect on the local economic environment & addressing the unemployment issue of China thus avoiding being in hot waters with local authorities) deputy general manager, has a profound content on the 5% annual ROI, surpassing its local counterpart.As opposed to the 50-50 joint venture, were every facet of management is ...


1600 words (4 pages)
Project Management Recommendation Paper Essay

References: .While the idea of continuing to spend on the new product line, Stargazer widgets comes with great reward, it is not without great risk.Retrieved from .Operations and Supply Chain Management (13th ed.).The verdict on the Palomino project still gives Piper Industries Corporation some positive traction in developing a new line of widgets that have been formed off of existing technology.


483 words (1.2 pages)
Case Enager Industries

The ROI is able to improve by increasing either or both of its components.For example, Consumer Products is in amateur market while Professional Services is in an emerging market.Improving ROI is about a balancing act that requires all the skills of an effective manager.Brewer, P. C., Garrison, R. H., & Noreen, E. W. (2008).New York: The McGraw-Hill Companies.


1751 words (4.4 pages)
Return on Investment

The world of business and its inhabitants should be very grateful for the DuPont Company and its model for ROI.What’s the return on ROI?At GM and across corporate North America, ROI has since formed the basis of financial control (Southerst, 1993).Ultimately, there are numerous financial ratios that are habitually used in the world of business; however, utilizing the DuPont Model of financial analysis to calculate ROI allows businesses, especially healthcare organizations, to break the organization’s profitability down into component parts to see where it actually comes from.The ROI calculation is particularly significant because it ultimately describes the rate of return a company is able to receive based on the assets that it had avail...


1386 words (3.5 pages)
FedEx Corporation Essay

•Compute the margin, turnover, and return on investment (ROI) in 2005 for each of FedEx’s four business segments (Hint: page 99 reports total segment assets for each business segment.)If FedEx evaluates all of its senior managers using ROI, would the managers of both segments pursue the investment opportunity?•Provide three examples of fixed costs that can be traceable or common depending on how FedEx defines its business segments.•Identify one example of a cost center, a profit center, and an investment center for FedEx.•Assume that the senior managers of FedEx Express and FedEx Ground each have an investment opportunity that would require $20 million of additional operating assets and that would increase operating income by $4 million....


317 words (0.8 pages)

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