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In some cases, the situation in a developing market may require backward innovation; that is, the market may require a drastically simplified version of the firm's product due to lack of purchasing power or usage conditions.
Plowback Ratio
The proportion of earnings retained by a business, rather than distributed to its shareholders as dividends, to reinvest in the core business or to pay debt.
Dividend Policy Decision
The strategy that a company uses to determine the size and timing of its dividends payments to shareholders.
Capital Intensity Ratio
A financial metric that measures the amount of capital needed per dollar of revenue; used to evaluate the investment intensity of a business's operations.
Fixed Asset Turnover Ratio
A financial metric that measures how efficiently a company uses its fixed assets to generate sales, calculated by dividing net sales by average fixed assets.
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