Amazon should first test the projects on a small scale in its most controversial markets such as the United Kingdom, Japan, and Luxemburg. As Blocher et al. (2015) explain the changes in each market act as an SBU investment. ROI would measure the changes in sales return against the cost of resources to be invested in the tax compliance initiatives. Detailed analysis of the units’ cost structure would show factors contributing to the variance in expenditures at each market, as well as, their impacts on the net sales returns. For example, launching the new sales and tax app in a specific UK SBU not only consumes resources but foster changes that would boost the volume of transactions with both the loyal and new customers.
ROI of the incentives can be monitored through studying the effects on the consumers that currently have a negative attitude towards the company’s tax compliance issues such as Allan Ahlberg. A survey can be conducted to determine the additional revenues Amazon would attract on top of the $ 9.03 billion profits it currently generates from the UK market (Sodré and Brasileiro, 2017). Comparing such net profits against the project cost would indicate the ROI. The available evidence shows that the savings achieved through the changes would be over £1.8 …show more content…
The managers at the subsidiaries with the highest ROI would be rewarded to promote healthy competition and hence promoting tax compliance culture. According to Bocher et al. (2015), businesses can apply the ROI to evaluate the performance trends for various units (p. 745). The researchers argue that firms can establish the performance goals and express the outcome in terms of returns on the earnings. Like in Amazon’s case, the managers would target to increase sales through negotiating contracts with new clients who were previously reluctant to engage in mutually beneficial deals with the online retailer as a result of the tax
ROI of the incentives can be monitored through studying the effects on the consumers that currently have a negative attitude towards the company’s tax compliance issues such as Allan Ahlberg. A survey can be conducted to determine the additional revenues Amazon would attract on top of the $ 9.03 billion profits it currently generates from the UK market (Sodré and Brasileiro, 2017). Comparing such net profits against the project cost would indicate the ROI. The available evidence shows that the savings achieved through the changes would be over £1.8 …show more content…
The managers at the subsidiaries with the highest ROI would be rewarded to promote healthy competition and hence promoting tax compliance culture. According to Bocher et al. (2015), businesses can apply the ROI to evaluate the performance trends for various units (p. 745). The researchers argue that firms can establish the performance goals and express the outcome in terms of returns on the earnings. Like in Amazon’s case, the managers would target to increase sales through negotiating contracts with new clients who were previously reluctant to engage in mutually beneficial deals with the online retailer as a result of the tax