What Is a Potential Disadvantage of Using ROI as a Performance

question 68

Essay

What is a potential disadvantage of using ROI as a performance measure for management?

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Definitions:

Distributors

Companies or individuals that help move goods from manufacturers to retailers or direct to customers without being the primary producer.

Supply Chain

The network of all entities involved in producing and delivering a product or service to the consumer, including raw material suppliers, manufacturers, and retailers.

Add Value

enhancing the worth of a product or service through additional features, improved quality, or enhanced delivery, making it more attractive to consumers.

Customer Service

Customer service encompasses the support and assistance companies offer to their customers before, during, and after a purchase to ensure a satisfying and helpful experience.