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April 13, 2022 at 9:00 am
hello sir , thank you for your informative lecture. on ur lecture you said that roi is better in comparing larger size. what about RI ? isnt it also better when we compare large size?
John Moffat says
April 13, 2022 at 2:19 pm
If one division is much larger than another then it is going to have a bigger RI. That doesn’t mean that the larger division is operating better – it might have a smaller ROI.
August 4, 2020 at 8:51 pm
Hi Sir can you explain the 3rd point of ROI. What does loss of goal congruence means?
August 14, 2020 at 10:53 pm
August 15, 2020 at 8:07 am
It is better to ask this kind of question in the Ask the Tutor Forum – I do not see all comments on lectures.
Goal congruence is when managers of divisions are motivated to make decisions that are not only good for them but are also good for the company as a whole.
February 28, 2020 at 11:56 pm
what about the disadvantages ?
February 29, 2020 at 10:28 am
Advantages of one are disadvantages of the other!!!!
August 25, 2019 at 6:19 pm
I still cannot understand the last point you mentioned about ROI. Why ROI usually ” doesn’t lead to loss of Goal Congruent”? Would you be able to give more details or an example to explain it?
As I understand ROI sometimes doesn’t lead to goal congruent as it shows in Example 2. Therefore I think last point mentioned in ROI in the video be ” ROI usually doesn’t lead to Goal congruent”.
Thanks in advance.
February 9, 2020 at 5:17 pm
He just said that situations like example 2 don’t happen very often in practice (usually it’s the case like example 1 where using ROI vs RI doesn’t make a difference). So it’s unusual/infrequent enough instance and that’s why ROI “usually” doesn’t lead to loss of goal congruence
August 29, 2018 at 11:36 pm
Thanks again John well explained lecture
August 30, 2018 at 10:17 am
Thank you for your comment 🙂
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