Citation
Ooi, Chooi Lee
(1998)
Chemasia Engineering Sdn. Bhd.
[Project Paper Report]
Abstract
Mr. Chen Yew Seong 75 years old, is facing one of the most remarkable decision
of h is career profession. His ambition to public listed the company ChemAsia
Engineering Sdn. Bhd. (CAE) a water treatment company, was shake n when
Krofta offer to buy 75% of the company's share accounting to USD900,000.
Mr. Chen targeted high sales turnover in the near future by using government
projected growth rate which is 8%, but deep in his heart it is not realistic. On top
of that, he is facing financial problem to support h is water treatment projects.
Strategic audit was carried out for CAE, it analyze the company current situation
that included performance and strategic posture, external and internal
environment scanning by using S.W.O.T. Study on international strategic
alliances includes benefits, pitfalls, scope, and the management of alliances.
Several alternatives h as been proposed and selection criteria a re used to judge
the appropriate solution.
The recommended strategy was to sell 49% of CAE share to Krofta. This option
enable CAE to solve it's problem while it remain the authority power in the
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