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In Managerial accounting: What is the purpose of introducing ROIC? IWhere do I even start...? It was already late at night. Hasegawa. business administration section
In Managerial accounting: What is the purpose of introducing ROIC?
IWhere do I even start...?" It was already late at night. Hasegawa. business administration section chief of Romanza Electric, felt lost as he looked out over the cityscape. Nishioka, Hasegawa's boss and general manager of the administrative division. had asked him just a few hours earlier to consider introducing ROIC as a companywide management indicator: I'I hear that more and more global companies are using ROIC as a key indicator. Our consolidated sales exceeded 300 billion last year. and we now have more than 30 overseas subsidiaries and affiliated companies. The companies we need to benchmark are not domestic competitors who are passing up global business opportunities. but Amung and Golden Sky. These foreign global players are also incorporating ROIC into their indicators. I think it's time we tried to pay more attention to ROIC in our management so that we too can be recognized as a global company. Hasegawa. can you look into whether we should adopt ROIC?\" Romanza Electric is a home appliance maker headquartered in the Kansai region. Its main production bases are in Southeast Asia, and its main market is in North America. Romanza products are not only superior in quality but also affordable for their end users. Sales have been growing, particularly at North American mass retailers of major electric home appliances. \"Nishioka-san wants me to look at ROIC...? I don' t even know what it stands for! I need to look it up. He wants a report within two or three days. I'm going to have to work hard on this---"Step by Step Solution
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