Fluent Essays

Review the attached two power point presentations.Write a 150 words critical analysis of the PPT you reviewed.APA formatted.150 words each. .1.pptx .2.pptx Unformatted Attachment Preview Importance of ROI • Tells you whether you made a good choice of not. • One of the best ways to measure investment performance • Helps us right areas of improvement to make good decisions in future • Formula – Difference between original value and current/expected value * 100 Return on Investment • Initial investment = 100$ • Current worth – 200$ • ROI = (200 – 100)/100 * 100 = 100\% ROI - Advantages • Best measure of profitability. • Helps us achieve our long-term financial goals • Improves decision making. • Helps in comparative analysis • Provides quick check of investment status and eliminates wastage of time and money. ROI Disadvantages  ROI calculations require proper data on sales, manufacturing, assets and all types of costs involved, therefore, gathering data can be expensive.  Represents percentage not actual volume of returns.  Asset valuations especially joint assets can lead to difficulties and miscalculations. Make or Buy Decision  Helps management evaluate whether they should manufacture a product internally or buy from external parties.  Basically companies figure out there they want to contract or do it by themselves.  Most effective tool of plan procurement management process  Helps companies save time and money. Possible Scenarios for in-house production  Less cost  Integrates well with current system and production measures  Available bandwidth among current resources  Reliability issues with suppliers.  Maintains confidentiality and control over product line. Outsourcing – Buy decisions  Costs less money.  If manufacturing requires heavy capital investments and time.  Suppliers are skilled and possess knowledge.  Helps support business goals and brings long term sustainability. Example  An equipment costs $50,000 which will produce parts for $20 each. Company can also choose to buy that part from vendor for $30 each.  Cost savig per unit - $10  Equipment cost - $50,000  Break-even point = 50000/10 = 5000 So if the firm can use or sell more than 5000 parts, it should choose to make otherwise it should buy. References  Collins, A. (2018). RETURN ON INVESTMENTS. WWD, 213(4), 10.  https://www.investopedia.com/terms/m/make-or-buy-decision.asp  Hutchinson, B., Small, R., Acquah, K., Sandoval, R., Nugent, R., Belausteguigoitia, D. I., Banatvala, N., Webb, D., Tarlton, D., Kulikov, A., Prieto, E., & Santi, K. (2019). The investment case as a mechanism for addressing the NCD burden: Evaluating the NCD institutional context in Jamaica, and the return on investment of select interventions. PLoS ONE, 14(10), 1–11. https://doi.org/10.1371/journal.pone.0223412  Stojanović Đurđica, Nikoličić Svetlana, & Miličić Milica. (2011). Transport fleet sizing by using make and buy decisionmaking. Ekonomski Anali, 190, 77. https://doi.org/10.2298/EKA1190077S Return on investment  Often known as percentage increase or decrease in an investment over time.  Investors can evaluate performance of their investment and compare with other investments they made.  Return on investment is expressed in percentage.  Usually used to make personal financial decisions. EFFECTIVENESS OF DECENTRALIZATION Political stability is increased with the help of the decentralization.  The local commitment can easily be maintained with the process (Garrison, Noreen, Brewer & McGowan, 2010).  The assurance of the political ethics of the organization is also getting from the decentralization  Effective leadership can be facilitated by the employees with the help of the aspect of the decentralization.  BENEFITS OF DECENTRALIZATION The allocation of the local storage is getting from the procedure of the decentralization  The managers are involved with the employees’ activity in each sector.  The performance level became higher with the effective approach of decentralization.  The employees are getting the confidence to share personal and professional issues with managers directly.  PITFALLS OF THE DECENTRALIZATION The process of decision making is not always aligned with the overall picture of the business.  Due to the low level of knowledge, the productivity of the organization is hampered.  The managers’ objective and authority’s objectives have clashed with each other.  Coordination is obstructed due to the poor communication level with authority.  EXAMPLE OF ROI In ABC Company the operating expense, net income sales, averages operating assets are $90000, 10000, 100000 and the 50000 respectively.  ROI = (Net operating income /Sales) ×( Sales /Average operating assets)  The value of ROI is calculated with respect to the taken value for the ABC company which is 25\%  In the company the investment is increased.  DECISION MAKING Planning the decision is always based on a particular issue.  In the context of the decision making, the multiple alternatives are required to solve the relative issues (Martin, Donohoe & Holdford, 2016).  Testing and monitoring the most effective way to make any decision effectively.  The major attribute of decision making is the specification of the objectives.  (Barclay, 2015) DECISION MAKING WITH RELEVANT COST In the business decision, the affordable cost has played a great role.  The organization faces complications while decided to remove the aspect of the relevant cost.  The overall statement for the finance is getting from the relevant cost  The business operation can be run effectively with the help of the relevant cost  ADVANTAGE OF RELEVANT COST The useful elements can be easily identified with the process of the relevant costing  The operation can reduce the additional cost while making a decision with the process.  The unnecessary cost can be avoided with the help of the procedure.  The complex of the decision making can be easily overcome with the process.  DISADVANTAGES OF RELEVANT COST The process of costing is appropriate for the long term business procedure.  The financial decision of investment sometimes became wrong with the relevant cost.  It only provides an idea about the present value of the operations.  The changing costing produce is not considered in the process.  EXAMPLE OF RELEVANT COST The calculation of the relevant cost gives a better outcome for the decision taken process.  The XYZ firm will invest the $ 1billiiion for the product.  The consideration of the annual cost, marketing cost, and the selling cost are specifying for evaluating the relevant cost.  The calculation will provide a better idea about the relevant cost as the marketing cost which is $25 million.  Reference Barclay, J.(2015). Decision-Making – Professional Organizers Blog Carnival. Organized assistant. Retrieved on 2020 from https://organizedassistant.com/decision-makingprofessional-organizers-blog-carnival/ Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. (2010). Managerial accounting. Issues in Accounting Education, 25(4), 792-793. Reference Kreindler, S. A. (2020). Conceptualizing the organization of surgical services: Comment on “Decentralization and regionalization of surgical care: a review of the evidence for the optimal distribution of surgical services in low-and middle-income countries.”. Int J Health Policy Manag. Martin, L. C., Donohoe, K. L., & Holdford, D. A. (2016). Decision-making and problem-solving approaches in pharmacy education. American journal of pharmaceutical education, 80(3). DECENTRALIZATION OF ORGANIZATION The decision quality of the organization is enhanced with the decentralization.  The operational diversity is activated with the better support of the decentralization (Kreindler, 2020).  The enhancement of personal managerial is accomplished with the process of decentralization.  The managers can get the decision quickly with respect to the present situation.  ... Purchase answer to see full attachment