Belcanto Business Studio

Archive for 2010

Business is an activity in selling products or services to benefit the owner. Business is a risky activity provides both in terms of loss of material or non-material. But if successful it will provide benefits and prosperity for its owner. To avoid the risk of business then the business should be run properly with sound planning and implementation of a serious and steady. Business consists of several important components that support and complement each other. If one component fails it will interfere with other components. Here are the business components:

1. Management, which is part of a plan, manage, and run a business. This component can be referred to as the backend of the component that is behind the screen.
2. Power of the brand or image, ie charisma, emotional strength which is owned by the company and represent the views / feelings of the people against the company or product.
3. Product or Service, the components that are sold or offered to the market. This component can be referred to as the front end because the components are located in front. This component dealing with the public.

Management of an enterprise is the lifeblood of a company. Management determines the growth or bankruptcy of a company. With the existence of a management and good management so a company will be able to survive from all the pressures, constraints, and obstacles that exist. It will even grow into bigger and better. In managing the company then there are principles and standards where these things will greatly help the development of the company when applied properly. Principle of this standard is not the absolute value in a company’s success. Not always a company that has done everything well will be successful. Sometimes there are some constraints or obstacles that can not be avoided for example duped colleagues or disaster as well as other constraints. Here are some principles and standards that are expected to support the advancement and development of an enterprise:

• Before a firm stand, the capital is usually the initial obstacles that must be met before a company runs. Not always a big capital would provide a big advantage. Effective management and efficient capital will give the maximum profit. For us we have to do the calculation of capital and operational costs needed to run the company in some time to come. We must be able to provide a secure budget for the operations of the company in some time to come. So not only secure the budget for today and tomorrow. With the security budget in the long term the company will be able to survive when experiencing problems or disasters that are sudden and are not considered previously.

The prospect of the end of the Outlook physical demand of gold is still bright. Global demand rose 12 percent to 921.8 tonnes in the third quarter. Significant increase in demand comes from two of the world’s largest consumer, India (28 percent) and China (16 percent). India recorded bought 184.5 tons of gold jewelry and 45 tons in the form of bullion. While China bought up to 153.7 tons of gold. The threat of currency wars also forced several countries central banks adding gold stocks respectively.

Reserve diversification into gold is being actively conducted by the central bank of Iran and China. One of the critical comments contributed sentiment in November. World Bank President Robert Zoellick called for central banks to return to the gold standard in determining the value of its currency.

As if do not want to lag the momentum, interest in hedge funds to precious metals is never subside. Gold-based stocks such as SPDR Gold Trust is in great demand by Shumway Capital Partners and John Paulson. Although he has released half a million shares of gold ETF, George Soros also has 4.7 million shares plus 64 million U.S. dollars investment in the iShares Gold Trust. Consumers themselves seem less affected by high gold prices. The market began to familiar with this trend, perhaps even contributed to expect even higher prices.

euro zone debt crisis has not yet improved. Indications are apparent when the prism of Greek government bond yield, Ireland, and Portugal are still at high levels. When the discourse of aid for Ireland and Greece to roll, the debt crisis actually looks contagious to other countries. When considering the high yield on government bonds, following Portugal susceptible to the blacklist. European sentiment became an additional reason for investors to target precious metals assets.

Nevertheless, the gold rally was hampered in November by the new terms of trade in this commodity. Regulators futures exchange, COMEX, gold trading has been raised margins as much as 5 percent. However, amid low global interest rates, this rule does not seem significant effect on the trend of rising precious metals for long term. The cost of investing in gold will still be counted cheap because the majority of the country’s central bank kept interest rates at low levels.

Countries with the capitalization of the world’s biggest economy still needs a stimulus to improve the level of unemployment, which remained at a high level of 9.6 percent. It’s hard to expect the fiscal stimulus today, especially after the Democrats lost the congressional elections last November. Republicans now control the Congress makes it impossible for the Obama administration to approve a new policy. Congress even failed to extend unemployment benefits program so that the two million non-citizen workers will lose their funding. Quite clearly, President Obama will face serious challenges in carrying out its program. Currently the U.S. can not just rely on fiscal policy and only relies on the generosity of the central bank. Given the greater the Fed injected a stimulus, the more depressed is also U.S. dollar exchange rate so that spur the rally in gold.

Investors continue to collect gold in the midst of global economic uncertainty. The weakening U.S. dollar and the euro zone debt crisis increased the attractiveness of gold. If the scenario went on for so, period rally likely to continue. Every moment of decline is only a temporary correction.

Federal Reserve Bank recently decided to increase the number of purchases of U.S. government bonds as much as 600 billion U.S. dollars. Although Republicans criticized the harsh policy, the leader of the U.S. central bank, Ben S. Bernanke, insisted that the program is crucial role to stimulate economic activity. Liked or not, the central bank’s decision erodes the competitiveness of U.S. dollars, so the more shining gold on weakening dollar trend.

Dollar strengthened slightly against the euro on Tuesday as investors faced renewed concerns that European countries are more likely to need a bailout to deal with huge debts after Ireland. The euro fell to 1.3258 dollars at around 2200 GMT or Wednesday (12/08/2010) at 05.00 pm, from 1.3304 dollars late Monday.

Against the Japanese currency, the dollar rose to 83.45 yen from 82.67 yen on Monday. Traders looked carefully Ireland, where the government announced a 2011 budget that includes drastic savings through tax increases and spending cuts necessary to secure a bailout (bailout) of 85 billion euros international.

And the finance ministers of the European Union completed the talks in Brussels after they announced that it is not necessary to increase the size of an emergency fund for countries that are overwhelmed by the public debt and deficits. The statement was a little to convince investors that the euro zone leaders would be able to prevent the debt crisis from spreading to Spain and Portugal.

“The euro is clearly expose the failure of today more than success, and need to be prudent,” said economist at Credit Agricole CIB. In late New York trading, the pound rose to 1.5755 dollars from 1.5711 dollars the previous day. Dollar rose to 0.9872 Swiss francs from 0.9817.