ABOUT CHINA & RMB (YUAN): WHAT’S IN STORE FOR THE FUTURE?

We know that China is now the No. 2 world economy (overtaken Japan). We know it is in hot pursuit to chase up the US in the No. 1 position in the next 15 years or so. Judging from the prevailing trends of its expanding influence across the globe and the current hurdles faced by the US, China’s intended mission may even manifest slightly earlier than expected. At the same time, we have also read the news about suggestions from various quarters on the need to have an alternative international currency to the US Dollar.

Simple logic tells us that the No. 1 position also relates to the use of the No. 1 economy’s currency for international trade. What, then, are China’s plans with regard to the role of its Renmimbi (RMB), or popularly known as “Yuan”? My personal observations prompt me that this nation is well ahead of its plans.

A British news media just reported a few days ago an interesting development.  The article said China and the United Kingdom had agreed to develop an offshore trading hub for RMB based in London. UK Chancellor George Osborne was quoted as having confirmed this and announced that the agreement would involve the development of RMB denominated financial products and services in London.

The same news report revealed the two nations reaffirming commitment to double trade transactions equivalent to US$100 billion or £62 billion by 2015.

As of now, Hong Kong is the only place that China allows as a centre for deposits in RMB.

I can foresee that when the hub in London is in operation and works out fine, other European nations would follow suit.

From the holistic perspective, how do I perceive the future intrinsic value of the yuan overall?

US and a few other nations have been voicing out that China is suppressing the real value of RMB in order to ensure its exported goods remain more competitive in the international markets. On the other hand, we read news that China has started to embark on measures to orientate towards domestic demand and consumption instead of relying on exports for economic growth in its future route map. Before it can balance this up successfully, I can feel that China would want to try stalling a fast appreciation of its currency……at least for now.

Well, over to you to consider whether RMB is an investible currency asset for the medium to longer term.

NOTE: The comments are of my personal views and analysis based on various sources of information. I shall not be responsible to affirm the veracity of the facts and contents. You may want to form your own conclusions, which may or not be in consonance with my comments.

The title of this article on surface sounds complex and appears to be parable not easily comprehensible. In fact, it is a simple basic formula for a sales organization to instil and put into practice in order to achieve good results.

I will illustrate by referring to a fruit tree as the analogy.

In agriculture, the SOURCE is the type of seed. A good seed is the underlying basis for producing good fruits. The planter may have the best of everything else, but if the seed is not of good quality, the produce will never be of high grade.

In a sales organization, the source relates to the type of sales personnel in the sales force. If effective sales personnel are recruited and retained, then they represent the good cluster of seeds that have potentials to produce good fruits; in the real scene of a  sales organization, it translates into good sales results individually and as an overall group.

Next, comes ELEMENT. In agriculture, the element is the type of soil. The quality of soil is important – the nutrients in it, the texture, the conditions etc. When good seeds (source) are planted into the right soil and ground conditions (element), the higher the chances of getting good produce.

The element in a sales organization is the leadership. Leadership is not comprised of only one (1) individual, but all leaders, ranging from CEO to sales department heads,  who manage and guide the sales force. Good sales force recruited and retained by good leadership representatives  will have greater chances of achievements. A good set of leadership paves out the ground for ensuring the sales force perform  their sales tasks efficiently and effectively. (Note: “Efficient” means doing things the right way; “Effective”  means doing the right things. In short to be efficient and effective means doing the right things in the right way). How a leadership trains, guides, monitors, encourages etc. its sales force – how all these are implemented by the leadership  - will have a bearing to the sales results.

Now, the final ingredient. ESSENCE. In cultivating a fruit tree, the best seed may be used. The soil contents and conditions may be excellently suitable. But if the natural environment is not conducive, the tree may not even grow, let alone bearing fruits. The essence in agriculture entails a combination of sunlight, rainfall and overall climate. The right amount of sunlight, the right amount of water and the right climate will nurture the seeds so that they will grow up fast and ultimately become productive. The essence supplements and complements to give the extra “oomph”.

In a sales organization, the essence is the prevailing working environment. This is one element that many organizations are not consciously aware of its importance. It is important to cultivate healthy competition within a sales force while also encouraging a win-win situation. It is important to keep the organizational environment positive, dynamic, energetic etc. The work culture must be right. The setup must be right. The communication links must be right. The overall environment must be conducive. Bear in mind that a particular sales personnel may be positive-minded and energetic at the beginning, but if the overall environment in the organization keeps on transmitting  negative vibrations, he will surely turn negative-minded eventually. 

Once the three ingredients of source, element and essence are jived in efficaciously, much sweeter fruits of labour will be the end result. All three must co-exist and blend well  for good end results to take place.

My best regards to all.