Purchase Solution

Issues of using ROI as performance evaluation tool

Not what you're looking for?

Ask Custom Question

Jennifer Baskiter is president and CEO of Plants& More.com , an Internet company that sells plants
and flowers. The success of her startup Internet company has motivated her to expand and create
two divisions. One division focuses on sales to the general public and the other focuses on
business-to-business sales to hotels, restaurants, and other firms that want plants and flowers for
their businesses. She is considering using return on investment as a means of evaluating her divisions
and their managers. She has hired you as a compensation consultant. What issues or concerns
would you raise regarding the use of ROI for evaluating the divisions and their managers?

Purchase this Solution

Solution Summary

Jennifer Baskiter is president and CEO of Plants& More.com , an Internet company that sells plants
and flowers. The success of her startup Internet company has motivated her to expand and create
two divisions. One division focuses on sales to the general public and the other focuses on
business-to-business sales to hotels, restaurants, and other firms that want plants and flowers for
their businesses. She is considering using return on investment as a means of evaluating her divisions
and their managers. She has hired you as a compensation consultant. What issues or concerns
would you raise regarding the use of ROI for evaluating the divisions and their managers?

Solution Preview

Dear student,

Solution attached. I have answered the question generally using my own words and hence reference not quoted.

E25.6
Jennifer Baskiter is president and CEO of Plants& More.com , an Internet company that sells plants
and flowers. The success of her startup Internet company has motivated her to expand and create
two divisions. One division focuses on sales to the general public and the other focuses on
business-to-business sales to hotels, restaurants, and other firms that want plants and flowers for
their businesses. She is considering using return on investment as a means of evaluating her divisions
and their managers. She has hired you as a compensation consultant. What issues or concerns
would you raise regarding the use of ROI for evaluating the divisions and their managers?

Solution:
Return ...

Solution provided by:
Education
  • MPhil, Madurai Kamaraj University
  • MCom, Annamalai University
  • IATA, International Air Transport Association
Recent Feedback
  • "Great explanations on how the answers were obtained."
  • "Love the way she explains everything step by step."
  • "Solutions were thoroughly explained."
  • "Excellent explanations of how problems are solved"
  • "Thanks"
Purchase this Solution


Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.