ROI and Break-Even Analysis Techniques

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Assignment 1: ROI and Break-Even Analysis Techniques Please reference text and one other scholarly reference in your response to this assignment.
Return on investment (ROI) and break-even analysis are used by businesses to determine the value of a proposed investment or make decisions about where their money is best spent.
Conduct a comparative research of ROI and break-even analysis techniques using the module readings and the University online library resources.
Respond to the following
To what extent should all or some of these techniques be used to establish a business case?
How should each technique be used to assess specific financial performance benchmarks? Use a specific example to help demonstrate your points.
Give reasons to support your responses.
Write your initial response in approximately 300 words. Apply APA standards to citation of sources.
review and comment on at least two peers’ responses. Consider the following
Are there any alternatives to consider? What are these alternatives?
Assignment 1 Grading Criteria
Maximum Points
Described how all or some of the ROI and break-even analysis techniques should be used to establish a business case demonstrating in-depth analysis.
4
Explained how each technique should be used to asses specific financial performance benchmarks giving specific examples to demonstrate your points.
4
Actively contributed to the discussion by providing points of view with rationale, challenging points of the discussion, or drawing relationships between points of the discussion.
8
Wrote in a clear, concise, and organized manner, demonstrated ethical scholarship in accurate representation and attribution of sources, displayed accurate spelling, grammar, and punctuation.
4
Total
20.
Assignment 2: LASA 1—Business Case and Proposal for Project Selection.
Please review Assignment 2 Grading Criteria
You work for Centervale Apparel, a large clothing manufacturing firm. Centervale Apparel has budgeted $9.7 million for new technology initiatives in the coming year but the project requests currently in the queue for next year total about $15 million. Your boss, the executive director of operations, has asked you to put together a proposal for this project to replace legacy order fulfillment technologies by implementing a supply chain management (SCM) system. Your boss wants to ensure this project will be prioritized over other projects on the list and will be implemented in the coming year. Use the following data to prepare a proposal using a balanced scorecard approach to demonstrate the project’s value to Centervale Apparel.
Here is your brief.
Business Problem: The order fulfillment team has been using several legacy technology systems to manage inventory and distribution. The current systems do not work together, requiring redundant information input and processing. Because of the redundant processes, work is duplicated requiring multiple data entry points and sometimes results in inaccurate and irreconcilable data. There is a constant overage or shortage of supply due to the time it takes for data to get from one point to another. This causes unhappy customers and inventory carrying costs that could be avoided.
Project Description: Replace legacy order fulfillment technologies by implementing a SCM system.
Project Cost: The project will cost approximately $1.2 million including infrastructure and resources to complete the implementation and $250,000 annually to support and maintain the new system with a ten-year lifecycle for the system.
Project Benefit: It is estimated that the implementation of a supply chain management system will improve the order fulfillment processing time and reduce inventory-carrying costs. Implementing the SCM system will also enable the retirement of several legacy systems. Estimated annual cost savings are
·
Data entry staff reduced from 10 FTE to 8 FTE = $100,000/yr savings
·
Reduction in inventory carrying costs = $300,000/yr savings
·
Improved order fulfillment = 10–20% decrease in order to delivery time. This will improve customer satisfaction and retention
·
Improved data accuracy
·
Legacy system maintenance retirement savings = $100,000/yr
Using the information that details the primary business goals for the coming year, you will need to demonstrate how implementing the SCM system will help achieve the business objectives.
Note: Customers are retail companies who order from this clothing manufacturer. Assume a ten-year lifecycle for the SCM system.
Using the module readings and the University online library resources, research methods of developing proposals by applying the balanced scorecard approach. Select two scholarly resources for use in this assignment. You will use these resources to justify your recommendations.
The proposal should include the following
Describe the measureable value. This should include a cost-benefit analysis, such as payback period or ROI that relies on tangible measures of organizational value through cost savings, revenue enhancements, or improvements in the speed, quality, or efficiency of key processes that help achieve competitive advantage (note the difference between tangible and intangible measures in this proposal).
Evaluate and choose alternatives. Make sure to identify any alternatives to the project implementation and provide a justification for each.
Complete a risk assessment of all risks associated with implementing the project using an enterprise risk management (ERM) model.
Describe total cost of ownership and include descriptions of implementation project and ongoing maintenance costs.
Explain the benefits of the project, which include tangible and intangible benefits.
Fully justify a recommendation with a compelling proposal that aligns to the business goals.
Write a 4–6-page paper in Word format. Apply APA standards to citation of sources.
Assignment 2 Grading Criteria
Maximum Points
Describe the measurable value. This should include a cost-benefit analysis, such as payback period or return on investment (ROI) that relies on tangible measures of organizational value through cost savings, revenue enhancements, or improvements in the speed, quality, or efficiency of key processes that help achieve a competitive advantage.
28
Evaluate and choose alternatives. Make sure to identify any alternatives to the project implementation and provide a justification for each.
28
Complete a risk assessment of all risks associated with implementing the project using an enterprise risk management (ERM) model.
32
Describe total cost of ownership and include a description of the implementation project and ongoing maintenance costs.
28
Explain the benefits of the project, which include tangible and intangible benefits.
32
Fully justify a recommendation with a compelling proposal that aligns to the business goals.
32
Ensure academic writing, such as grammar, spelling, and attribution of sources, is appropriate.
20
Total
200

 

Solution ID:480131 | This paper was updated on 26-Nov-2015

Price : $60
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