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:

Strategic Management

The formulation, implementation, and evaluation of actions and decisions that will enable an organization to achieve its long-term objectives.

Environmental Scanning

Environmental scanning is the process of systematically gathering, analyzing, and managing external information about factors that could impact an organization's ability to succeed.

Competitive Advantage

An attribute or combination of attributes that allows an organization to outperform its competitors, achieved through cost leadership, differentiation, or focus strategies.

Hypercompetition Environment

A market condition characterized by rapid and continuous changes in competitive rules and strategies, leading to aggressive competition that exceeds traditional levels.