As we all know, Investment is done by living-beings. So, it is necessary to explain humans about investment in our Earth Planet. Prior to this, Developing humans with right characteristics or traits or habits is the first right step towards investment in anything because these are the people who invest. If they are not right, then their investment will be done for wrong activities and outcome of these will be very hazardous or dangerous.
Investment means to give your natural as well as human made resources to others for creating nice products and services which are beneficial for every living -being as well as for nature also.
Natural resources are as follows:
Human made resources are as follows:
Generally, whenever we feel any problem then we start thinking about its alternate or solution to overcome problem. So, we need above-mentioned resources for this because everything which we use from birth to till demise is created from natural resources using living beings. Even living beings also grow using things only made from natural resources which are made by humans.
A basic diagram has been shown below to understand it.
Management refers to a group of people who plans the followings:
Research and analysis related to Own, Company, Market, Country, World and Earth environment using SWOT, PEST & Porter’s five forces etc.
Own Analysis-refers to knowing own strength, weakness mapping with opportunities and threats
The external environment involves all external forces affecting the company or country over which it may or may not have direct control. The external environment consists of two parts: the micro environment and the macro environment.
Micro Environment Analysis-Market Analysis-refers to knowing about the followings:
Suppliers: They supply normally raw material (get from mining earth’s surface-chemistry study to know earth elements) to manufactures for creating products.
Customers: Customers are a requirement to run a business. If no one is buying, your product will get obsolete itself.
Intermediaries: They could be your distributors, wholesalers, and other related people.
Financiers: Business owners take out a loan to get started, and the growth of the business depends upon their ability to obtain additional loans.
Public Perceptions: Does a product have good reputation with the general public? You may have to work on this again.
Macro Environment - Management often conducts a PEST (political, economic, socio-cultural, and technological) analysis to identify macro-economic factors that currently affect or in the future may affect business. Some of the key factors are as follows:
Gross Domestic Product (GDP) is a measure of a country’s output and production of goods and services.
Inflation is a key factor watched by economists, investors, and consumers. Inflation is the decline of purchasing power of a given currency over time or price rise of product & services from average.
Unemployment refers to numbers of non-working people and not getting monetary value in return. As we know, now-a-days barter system rarely works.
Consumer spending - Slow growth or decline in consumer spending suggests a decline in aggregate demand, which economists consider to be a symptom of recessions.
According to me, everything in this world has few limits also. After growth there is stagnation point, known as developed. After reaching at stagnation, there is need of new innovation or invention.
Monetary Policy refers to the use of monetary instruments to regulate interest rates, money supply and availability of credit with a view to achieve country’s economic objective.
Fiscal policy refers to government policy around taxation, borrowing, and spending. Government spending drives borrowing and taxation. It is used to stabilize economy.
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