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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