Intangible Beneficial Elements
This week we will be discussing the calculation of return on investment (ROI). Although economic terms
are important, we also want to discuss other terms that are also important in this kind of analysis. This
week, the topics of discussion that you are required to address are:
Explain and discuss the intangible elements that should go into an ROI analysis. These benefits could
include carbon footprint, alternative fuel options, virtual benefits, reduction of emissions and any other
elements that you see as important to reverse logistics.
Intangible Beneficial Elements
Intangible beneficial elements in Return to Investment ROI should not be ignored during
decision-making about investments. Although they are difficult to quantify, they should also be
considered. This is because they can make a business successful. It is feared to calculate those
intangible benefits when aggregating the weight of businesses. This part of the intangible
calculates to approximately 25% of contribution to enterprises. Intangible elements are many
depending on the enterprise (Christopher, 2016). This paper looks at those worthy to go through
ROI analysis. They include practical benefits, a reduction of emission and fuel alternatives.
The fuel alternative is finding another cheaper method of operating a business that is
cheaper, effective and environmentally friendly. This implies that so many factors are considered
before replacing something. The reduction of emission is the environmental benefit and an
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intangible element. This implies that what benefits it brings cannot be touched but felt. They
include emissions from industries such as those that pollute water and destroy aquatic beings and
emission to the air that case climate instability (Christopher, 2016).
Carbon footprint deals with how carbon gas is being released to the air bringing a
greenhouse effect. When poisonous gases are released in the air, the ozone layer is destroyed,
which protects the earth from direct sunlight rays. This, in turn, causes imbalance and change in
climate conditions as a result affecting the activities of the human being. This destroys the
present dependency on not only climate but also the future. It is therefore vital when emission of
carbon gases is release. This will bring back the best climate and smooth operations. These
factors need to go through further ROI analysis and opinions given on how to deal with them and
how to make them beneficial and calculate them as benefits confidently.
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References
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
