Creation of Wealth
To compute the creation of wealth measure, the Division's net investment (cumulative profit + cumulative investment) is divided by the cumulative investment from Corporate Headquarters to obtain a measure of return on investment.
A value of less than or equal to zero indicates the executive team has bankrupt the Division and is thus unable to finance its current operations from current revenues. The Division is a financial drain on Corporate Headquarters. A value of greater than zero and less than one indicates that the Division is a viable entity and should continue with its marketing plan. A value greater than two indicates the Marketing Division has earned more profit than Corporate Headquarters has invested in it. The Division is now in a position to contribute to the overhead and profits of the entire company and its stockholders.