Final answer:
To improve ROI, strategies should focus on increasing revenue through marketing and product development, reducing costs via operational efficiency and better supplier terms, and optimizing asset utilization by disposing of unproductive assets and ensuring efficient use of existing ones.
Step-by-step explanation:
To improve the return on investment (ROI) at Wiig Company's South Division, as the division manager, several strategies can be put into action. These strategies would focus on increasing revenues, reducing costs, and optimizing the use of assets to boost profitability. To increase revenues, the South Division could invest in marketing to enhance product recognition and drive sales. The development of new products or improvement of existing ones to meet customer needs better and thereby increase sales would also be effective.
Cost reduction can be achieved by streamlining operations and increasing efficiency, as well as negotiating better terms with suppliers or seeking more cost-effective suppliers. Another strategy for improving ROI is to review and optimize asset utilization by selling off unproductive assets and ensuring that the remaining assets are being used as efficiently as possible.
Furthermore, examining the capital investment decisions, similar to the scenario with Gizmo Company, where the social benefits of investments are also considered, could aid in determining economically beneficial projects that also provide societal value. Such investments can enhance the company's image and profitability simultaneously, contributing to an improved ROI.