Instructor: his name
17/4/2016
ROI Worksheet
Use the information in the scenario to complete this worksheet to calculate the ROI.
Benefit Calculation:
2014 Annual Sales ($9,750,000) – 2013 Annual Sales ($7,500,000) = $_2,250,000_
Total Benefits: $2,250,000
Cost Calculation:
Additional boxes made from 2013 to 2014 (650,000-500,000) x Cost per box to be made ($5) = $750,000
Cost for Efficiency Training: $2,000
Total Costs: $(750,000+2,000)=$ 752,000
ROI Calculation:
$1,498,000
ROI = Total Benefits ($
2,250,000
) -- Total Costs ($
752,000
)
Total Costs (
$752,000)
= $1.9920 x 100
= 199.20%
ROI: 199.20%
Benefits of ROI
The use of ROI act as a metric that can be used to compare investment based on varied inputs made by the investor. The effectiveness and the effectiveness of the managements in managing the resources can be deduced from the profits (Phillips, 1994). Similarly, planning of the resources is enhance by ROI. Also, it helps investor to select the best opportunity and goals of an investment.
Efficiency training
The training served to develop the sales objectives, profits goals developments, control of the cost and measuring management’s performance. The ability to maintain a well-coordinated workforce led to the achievement of increased profits at a minimized profits.
Results of ROI
The management of the organization should be served with the result of the ROI (Phillips, 1994). Also, the employees can be sensitized about the outcome of the training in order to achieve huge profit margins. The owner of the organization should be aware of the results in order to help them assess the efforts made by the top managements. Furthermore, the information can be used to check the nature of the organization goals made by the top management.
Recommendation
The use of the assets should be evaluate to detect the weakness of managements, weakness of the organization goal and the moral of the employees. This can be determined using the ROI calculations. In addition, this can be achieved by assessing the sense of responsibility and teamwork among the employees. Furthermore, the assessments can be measures in light with the performance of the employees in their respective workstations. The ultimate reason of such an assessment is to merge the investment made on the training to that of the profit realized in the year 2014 and beyond.
Critical Reflection
Question one
The class has been quite involving with a lot of idea to gain as a student. Most of the learning point and outcome are well position with actual scenario in the field. It is through handwork and practice that will ensure that the lessons learned including ROI, inferential statistics and the data collection methods become beneficial in my future career. I feel motivated to taking on new responsibilities and challenges with ease since most of the grey areas haven been addresses in my life.
The learning environment was quite good and facilitated learning which included using statistical tools, excel and the calculation methods involved. I find it easy using the computer software to solve most of the problem faced in the real world scenario. In a nutshell, the values and the learnings activities encountered during the courser were quite beneficial.
Question two
During the semester I have been introduced to several activities which happened to be my grey areas while at work and internship. It is important to acknowledge the ROI and the statistical tools have been one of my huge problems and source of dilemma. However, starting on after the course will be able to challenge my sleeve with task from this field of study. The use of excel is one of my specialties and form my working environment in most of the calculation. In essences the manipulation and navigation of excel in a learning activity that dominated my studies this semester. I feel motivated since most of the parts that are crucial in may working environment have been addressed.
Question three
As a student, the class environment has change my scope about the statistics, ROI calculation and the data collection which can help me in future research in different levels of studies. The same learning outcomes are important in passing my exams at this level too. Also, the activities that is learned can helped me which at work to build my career and nurture other while I work.
Question four
The classes have been quite educative with much to learn in relation to the real world scenario. The significant learning outcomes are on lessons planning, ROI calculations, excel utilities, inferential statics and analysis. The learning outcomes are important since most of them simplify the complex calculation and analysis that are encountered in a real world scenario. I feel the aspect of getting promoted and moving up the ranks can be trigger by such simplified approach to real life problems in my career.
References
Phillips, J. J. (1994). In Action: Measuring Return on Investment Vol 1. American Society for Training and Development.
Fyafee
roi_file.docx
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