Return on Investment Analysis Essay -- Finance Financial Business Essa

Return on Investment Analysis turn a profit Every business must devise a means to discover and step the profit from an investment. Profit reflects the very nature of business. Businesses that provide a product or service want to know if their efforts in a particular field will result in financial raise (Wiens 1997). The concept Return On Investment provides a means to measure the profit obtained from an investment. I will discuss the area of return on investment from a planning and staff development perspective and wherefore it is important.To Train or no. To Train Companies and educational institutions at virtuoso time or another will face the question of whether training will help their company remain competitive. Training is very dear(predicate) and time consuming. The employee will miss time from work. Someone will befool to fill in for the employee. The fill-in may not perform as well as the employee which results in lower productivity. Travel and site procural ad d to the cost. The trainer will demand a salary and materials. A subject matter expert may possibly factor in the equation. Furthermore, the company usually will conduct a needs abridgment to determine if training is the actual solution needed to increase profitability. totally of these elements translate into time and money. However, research has discovered that a new mass medium of delivery has cut cost significantly. The medium is computer based training (Schriver 1999). The expense is reduced by travel, instructor hours, record handling, and productivity (Schriver 1999). numerous businesses and educational institution are examining the possibility of computer based training. some(prenominal) decision makers reason if the same results can be obtained at a cheaper rate, by all means implem... ...emain in an organization or give victim to cost cutting initiatives. References Hansen, D. & M, Maryanne (1997). Management Accounting 4th Ed, southwest Western College Publishing Company..Lachenmaier, L. & Moor, W. (August 1997). use Business Performance to Evaluate multimedia system Training in Manufacturing. Performance Improvement, p. 16.Schriver R. & Giles, S. (August 1999). Real ROI Numbers. Training and Development,p. 51.Stolovitch, H. & M. Jean (October 1998). astute the Return on Investment in Training A detailed Analysis and A Case Study. Performance Improvement Vol. 37 8, 9-20.Todnem, G. & Micheal W. (Summer 1993) Using ROI to Assess Staff Development Efforts. Journal of Staff Development Vol. 14, No. 3. p. 32Wiens, E. (November 1997). Looking Ahead How Will engineering science Affect the Future. The Technology Teacher, p .21.