Tang's school of business management for serious investors Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tang's school of business management for serious investors

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Arthur Tang	6/24/2007 10:04:30 AM
	of 57

How do you run a successful business? You are taught to make a product line or a service model where price, availability and quality in competition with other business can come out successful in more revenue and profitability. It is really not that easy, because you often lose control when you select a distribution method of selling your goods or services. You might say that 99% of the business achieved is done by efficient distribution system. And that is now done by supply chain modelling of your business controlled by business forms with quality control traceability of defects and its sources. Amazing, that covers quality and availability. Two out of three is not all bad. Price points are quite different, and it has to be adjusted based on quality control, which can price yourself out of business. Quality control establishes reject rate. Too many rejects to raise quality is counter productive in cost and availability. less than 2% returns is the quality you want. It is the standard for good quality but not much rejected products to be reworked. so, QC people sometimes had to have customer feedback to walk the products pass QC inspectors by wavers. Services offered also have to have final inspectors to sign off the work done satisfactorily. Once price points are established based on quality, you still have to adjust production quantity for the economy(personal income) and population growth. You sell production capacity, never price of the products or services. Distribution system has to take all the production capacity. Even GE does not have that concept; because to do that you have to have the projection of the market size based on family units and wages they earned. Have fun, business projection is first economic policy of Federal government and its monetary policy, not of high compounded interest rate but credit allocation, and number of years of installment payments to fit the income(cars are bought for $168/mo 72 months contract for $6000 cars; higher prices gets more dollars per month)?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next