Sterling Business School

Market The capital market can be displayed in three sections. Resources, Preprocessing and Manufacture. Resources is the raw materials used to prescribe a certain product. For instance, in case of steel, it is iron ore and in the case of table top salt it is salt ore. Preprocessing is a process of making the right ingrediences or tools for manufacture from the raw materials that is the resources. As an example, flour is used in making bread, but corn is the resource, so flour is preprocess and bread is the product. Manufacture is the final construction of the product, with all the right tools and from all the right ingrediences, like with a shoe from rubber, leather and stitch. After manufacture, production is complete and the product is ready to sell. Creation It is said that the law of supply and demand rules the market, but that is not entirely true. There is creation and that is part of what entrepreneuring is. Imagine for instance that before the mobile phone was invented someone would venture that a demand for mobile phones would create its entry into the market. No way. The mobile phone wasn't demanded, if was invented and then it caught on, or fire if you may. The market has certainly exploded now. So what is the process of innovation, which is a part of entrepreneuring we may ask. Creation is a push and pull process between two stations. User and Creator. Between the two of them, the spark of innovation is ignited and then the process of creation is under way. In the process, the user handles expectancy of the product and the creator handles performance. Together they co-oporate to make the dream of the product come true. Production In prepocess of a product, there is a lot of handling. It is divided into two sectors. Information and Product. Information is about where the product is coming from and what its constitution is. Who might venture it, at what price it would sell, and finally, planche. Product is a movement in two dimensions. Quality and Position. Quality is the preprocess itself, and station. And position is a trade mark up with a value. Production can be both, but Information is usually the itinery. Excercises: Make 100% in Shares Make 200% in Stock Make 1000% in Trade
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